Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2019 | Feb. 15, 2020 | |
Document And Entity Information | ||
Entity Registrant Name | AFTERMASTER, INC. | |
Entity Central Index Key | 0000836809 | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2019 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Is Entity's Reporting Status Current? | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 480,652,177 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2020 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 62,140 | $ 366,129 |
Accounts receivable, net | 34,875 | 24,226 |
Inventory, net | 302,982 | 306,762 |
Prepaid expenses | 270,786 | 311,296 |
Total current assets | 670,783 | 1,008,413 |
Property and equipment, net | 46,165 | 60,817 |
Right-to-use asset, net | 112,268 | 0 |
Deposits | 24,217 | 24,217 |
Total assets | 853,433 | 1,093,447 |
Current Liabilities | ||
Accounts payable and other accrued expenses | 1,528,053 | 1,957,550 |
Accrued interest | 1,107,159 | 921,033 |
Deferred revenue | 3,921 | 3,921 |
Accrued consulting services - related party | 171,887 | 161,124 |
Lease payable | 83,657 | 0 |
Derivative liability | 7,033,544 | 5,009,094 |
Notes payable - related party | 274,000 | 230,000 |
Notes payable, net of discount of $25,275 and $992, respectively | 1,691,407 | 1,053,758 |
Convertible notes payable - related party | 119,500 | 119,500 |
Convertible notes payable, net of discount of $712,078 and $1,024,700, respectively | 5,202,648 | 4,443,837 |
Total current liabilities | 17,215,776 | 13,899,817 |
Long-Term Liabilities | ||
Lease payable, net of current portion | 32,506 | 0 |
Total liabilities | 17,248,282 | 13,899,817 |
Commitments and contingencies | ||
Stockholders' Deficit | ||
Common stock, authorized 513,407,666 shares, par value $0.001, 383,919,057 and 275,622,995 shares issued and outstanding, respectively | 383,925 | 275,629 |
Common stock to be issued, 3,885,000 | 3,885 | 3,885 |
Additional paid in capital | 72,415,510 | 72,770,496 |
Accumulated deficit | (89,201,278) | (85,859,489) |
Total stockholders' deficit | (16,394,849) | (12,806,370) |
Total liabilities and stockholders' deficit | 853,433 | 1,093,447 |
Series A Convertible Preferred stock | ||
Stockholders' Deficit | ||
Preferred stock | 16 | 16 |
Series A-1 Convertible Preferred stock | ||
Stockholders' Deficit | ||
Preferred stock | 2,585 | 2,585 |
Series B Convertible Preferred stock | ||
Stockholders' Deficit | ||
Preferred stock | 3 | 3 |
Series C Convertible Preferred stock | ||
Stockholders' Deficit | ||
Preferred stock | 13 | 13 |
Series D Convertible Preferred stock | ||
Stockholders' Deficit | ||
Preferred stock | 130 | 130 |
Series E Convertible Preferred stock | ||
Stockholders' Deficit | ||
Preferred stock | 275 | 275 |
Series H Convertible Preferred stock | ||
Stockholders' Deficit | ||
Preferred stock | 0 | 0 |
Series P Convertible Preferred stock | ||
Stockholders' Deficit | ||
Preferred stock | 87 | 87 |
Series S Convertible Preferred stock | ||
Stockholders' Deficit | ||
Preferred stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Discount on notes payable | $ 25,275 | $ 992 |
Discount on convertible notes payable | $ 712,078 | $ 1,024,700 |
Convertible preferred stock, authorized shares | 6,325,005 | |
Convertible preferred stock, outstanding shares | 3,109,046 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 513,407,666 | 513,407,666 |
Common stock, issued shares | 383,919,057 | 275,622,995 |
Common stock, outstanding shares | 383,919,057 | 275,622,995 |
Common stock to be issued | 3,885,000 | 3,885,000 |
Series A Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, authorized shares | 100,000 | 100,000 |
Convertible preferred stock, issued shares | 15,500 | 15,500 |
Convertible preferred stock, outstanding shares | 15,500 | 15,500 |
Series A-1 Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, authorized shares | 3,000,000 | 3,000,000 |
Convertible preferred stock, issued shares | 2,585,000 | 2,585,000 |
Convertible preferred stock, outstanding shares | 2,585,000 | 2,585,000 |
Series B Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, authorized shares | 200,000 | 200,000 |
Convertible preferred stock, issued shares | 3,500 | 3,500 |
Convertible preferred stock, outstanding shares | 3,500 | 3,500 |
Series C Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Convertible preferred stock, issued shares | 13,404 | 13,404 |
Convertible preferred stock, outstanding shares | 13,404 | 13,404 |
Series D Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, authorized shares | 375,000 | 375,000 |
Convertible preferred stock, issued shares | 130,000 | 130,000 |
Convertible preferred stock, outstanding shares | 130,000 | 130,000 |
Series E Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, authorized shares | 1,000,000 | 1,000,000 |
Convertible preferred stock, issued shares | 275,000 | 275,000 |
Convertible preferred stock, outstanding shares | 275,000 | 275,000 |
Series H Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, authorized shares | 5 | 5 |
Convertible preferred stock, issued shares | 2 | 2 |
Convertible preferred stock, outstanding shares | 2 | 2 |
Series P Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, authorized shares | 600,000 | 600,000 |
Convertible preferred stock, issued shares | 86,640 | 86,640 |
Convertible preferred stock, outstanding shares | 86,640 | 86,640 |
Series S Convertible Preferred stock | ||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||
Convertible preferred stock, par value | $ 0.001 | $ 0.001 |
Convertible preferred stock, authorized shares | 50,000 | 50,000 |
Convertible preferred stock, issued shares | 0 | 0 |
Convertible preferred stock, outstanding shares | 0 | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
REVENUES | ||||
AfterMaster revenues | $ 143,587 | $ 126,959 | $ 275,467 | $ 272,372 |
Product revenues | 6,875 | 281,105 | 15,264 | 670,214 |
Total revenues | 150,462 | 408,064 | 290,731 | 942,586 |
COSTS AND EXPENSES | ||||
Cost of revenues (exclusive of depreciation and amortization) | 108,742 | 461,196 | 222,808 | 878,953 |
Depreciation and amortization expense | 6,237 | 23,428 | 14,653 | 46,895 |
Research and development | 0 | 3,023 | 0 | 5,623 |
Advertising and promotion expense | 1,780 | 12,199 | 3,777 | 66,568 |
Legal and professional expense | 43,365 | 3,780 | 86,519 | 14,810 |
Non-cash consulting expense | 270,543 | 238,731 | 295,930 | 303,847 |
General and administrative expenses | 517,013 | 786,347 | 1,242,899 | 1,635,534 |
Total costs and expenses | 947,680 | 1,528,704 | 1,866,586 | 2,952,230 |
Loss from operations | (797,218) | (1,120,640) | (1,575,855) | (2,009,644) |
Other Income (Expense) | ||||
Interest expense | (652,185) | (731,916) | (1,342,559) | (1,538,566) |
Derivative expense | (475,762) | (312,256) | (547,121) | (1,355,346) |
Change in fair value of derivative | 359,896 | (17,475) | 35,204 | 594,737 |
Gain on extinguishment of debt | 88,542 | 0 | 88,542 | 0 |
Total other income (expense) | (679,509) | (1,061,647) | (1,765,934) | (2,299,175) |
Loss before income taxes | (1,476,727) | (2,182,287) | (3,341,789) | (4,308,819) |
Income tax expense | 0 | 0 | 0 | 0 |
Net loss | (1,476,727) | (2,182,287) | (3,341,789) | (4,308,819) |
Preferred stock accretion and dividends | (56,367) | (56,367) | (112,734) | (112,734) |
Net loss available to common shareholders | $ (1,533,094) | $ (2,238,654) | $ (3,454,523) | $ (4,421,553) |
Basic and diluted loss per share of common stock | $ 0 | $ (0.01) | $ (0.01) | $ (0.03) |
Weighted average number of shares outstanding | 324,831,418 | 166,333,423 | 303,216,681 | 154,374,704 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Deficit - USD ($) | Preferred Stock | Common Stock | Additional Paid In Capital | Common Stock to be Issued | Accumulated Deficit | Total |
Beginning balance, shares at Jun. 30, 2018 | 3,109,044 | 133,446,521 | ||||
Beginning balance, amount at Jun. 30, 2018 | $ 3,109 | $ 133,742 | $ 68,916,676 | $ 28,553 | $ (76,556,750) | $ (7,474,670) |
Share-based compensation to directors and employees-common shares, amount | 62,879 | 2,168 | 65,047 | |||
Total stock issued for consulting services and rent, shares | 8,000,000 | |||||
Total stock issued for consulting services and rent, amount | $ 8,000 | 356,630 | 1,385 | 366,015 | ||
Common stock issued for conversion of debt, shares | 17,326,372 | |||||
Common stock issued for conversion of debt, amount | $ 17,326 | 256,984 | 274,310 | |||
Common stock issued for interest expense, shares | 3,000,000 | |||||
Common stock issued for interest expense, amount | $ 3,000 | 87,000 | 90,000 | |||
Derivative liability | 959,587 | 959,587 | ||||
Net loss | (2,126,532) | (2,126,532) | ||||
Ending balance, shares at Sep. 30, 2018 | 3,109,044 | 161,772,893 | ||||
Ending balance, amount at Sep. 30, 2018 | $ 3,109 | $ 162,068 | 70,639,756 | 32,106 | (78,683,282) | (7,846,243) |
Beginning balance, shares at Jun. 30, 2018 | 3,109,044 | 133,446,521 | ||||
Beginning balance, amount at Jun. 30, 2018 | $ 3,109 | $ 133,742 | 68,916,676 | 28,553 | (76,556,750) | (7,474,670) |
Total stock issued for consulting services and rent, amount | 303,874 | |||||
Net loss | (4,308,819) | |||||
Ending balance, shares at Dec. 31, 2018 | 3,109,044 | 167,170,130 | ||||
Ending balance, amount at Dec. 31, 2018 | $ 3,109 | $ 167,465 | 71,000,099 | 37,637 | (80,865,569) | (9,657,259) |
Beginning balance, shares at Sep. 30, 2018 | 3,109,044 | 161,772,893 | ||||
Beginning balance, amount at Sep. 30, 2018 | $ 3,109 | $ 162,068 | 70,639,756 | 32,106 | (78,683,282) | (7,846,243) |
Share-based compensation to directors and employees-common shares, amount | 57,598 | 3,031 | 60,629 | |||
Total stock issued for consulting services and rent, amount | 47,250 | 2,500 | 49,750 | |||
Common stock issued for conversion of debt, shares | 5,397,237 | |||||
Common stock issued for conversion of debt, amount | $ 5,397 | 51,626 | 57,023 | |||
Derivative liability | 203,869 | 203,869 | ||||
Net loss | (2,182,287) | (2,182,287) | ||||
Ending balance, shares at Dec. 31, 2018 | 3,109,044 | 167,170,130 | ||||
Ending balance, amount at Dec. 31, 2018 | $ 3,109 | $ 167,465 | 71,000,099 | 37,637 | (80,865,569) | (9,657,259) |
Beginning balance, shares at Jun. 30, 2019 | 3,109,046 | 279,507,995 | ||||
Beginning balance, amount at Jun. 30, 2019 | $ 3,109 | $ 275,629 | 72,770,496 | 3,885 | (85,859,489) | (12,806,370) |
Common stock sold for cash, net of offering costs, shares | 18,900,000 | |||||
Common stock sold for cash, net of offering costs, amount | $ 18,900 | 170,100 | 189,000 | |||
Share-based compensation to directors and employees-common shares, shares | 8,328,043 | |||||
Share-based compensation to directors and employees-common shares, amount | $ 8,328 | 83,280 | 91,608 | |||
Total stock issued for consulting services and rent, amount | 0 | |||||
Derivative liability | (754,997) | (754,997) | ||||
Net loss | (1,865,062) | (1,865,062) | ||||
Ending balance, shares at Sep. 30, 2019 | 3,109,046 | 306,736,038 | ||||
Ending balance, amount at Sep. 30, 2019 | $ 3,109 | $ 302,857 | 72,268,879 | 3,885 | (87,724,551) | (15,145,821) |
Beginning balance, shares at Jun. 30, 2019 | 3,109,046 | 279,507,995 | ||||
Beginning balance, amount at Jun. 30, 2019 | $ 3,109 | $ 275,629 | 72,770,496 | 3,885 | (85,859,489) | (12,806,370) |
Total stock issued for consulting services and rent, amount | 0 | |||||
Net loss | (3,341,789) | |||||
Ending balance, shares at Dec. 31, 2019 | 3,109,046 | 387,804,057 | ||||
Ending balance, amount at Dec. 31, 2019 | $ 3,109 | $ 383,925 | 72,415,510 | 3,885 | (89,201,278) | (16,394,849) |
Beginning balance, shares at Sep. 30, 2019 | 3,109,046 | 306,736,038 | ||||
Beginning balance, amount at Sep. 30, 2019 | $ 3,109 | $ 302,857 | 72,268,879 | 3,885 | (87,724,551) | (15,145,821) |
Common stock sold for cash, net of offering costs, shares | 8,400,000 | |||||
Common stock sold for cash, net of offering costs, amount | $ 8,400 | 75,600 | 84,000 | |||
Share-based compensation to directors and employees-common shares, shares | 9,724,215 | |||||
Share-based compensation to directors and employees-common shares, amount | $ 9,724 | 10,697 | 20,421 | |||
Common stock issued as incentive with convertible debt, shares | 7,000,000 | |||||
Common stock issued as incentive with convertible debt, amount | $ 7,000 | 22,400 | 29,400 | |||
Common stock issued for conversion of debt, shares | 53,693,804 | |||||
Common stock issued for conversion of debt, amount | $ 53,694 | 46,824 | 100,518 | |||
Common stock issued for conversion of payables, shares | 2,250,000 | |||||
Common stock issued for conversion of payables, amount | $ 2,250 | 29,475 | 31,725 | |||
Derivative liability | (38,365) | (38,365) | ||||
Net loss | (1,476,727) | (1,476,727) | ||||
Ending balance, shares at Dec. 31, 2019 | 3,109,046 | 387,804,057 | ||||
Ending balance, amount at Dec. 31, 2019 | $ 3,109 | $ 383,925 | $ 72,415,510 | $ 3,885 | $ (89,201,278) | $ (16,394,849) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
OPERATING ACTIVITIES | ||
Net loss | $ (3,341,789) | $ (4,308,819) |
Adjustments to reconcile net loss to cash from operating activities: | ||
Depreciation and amortization | 56,926 | 46,895 |
Share-based compensation - common stock | 112,029 | 125,676 |
Share-based compensation - warrants and options | 242,825 | 0 |
Common stock issued for services | 0 | 303,874 |
Amortization of debt discount and issuance costs | 863,719 | 1,054,407 |
Early payment fees | 21,789 | 0 |
(Gain)/loss on extinguishment of debt | (88,542) | 0 |
Derivative expense | 547,121 | 1,355,346 |
(Gain)/loss remeasurement of derivative | (35,204) | (594,737) |
Changes in Operating Assets and Liabilities: | ||
Accounts receivables | (10,649) | (164,718) |
Inventory | 3,780 | 0 |
Other assets | 53,105 | 62,989 |
Deposits | 0 | 900 |
Accounts payable and accrued expenses | 115,770 | 137,289 |
Lease payments | (38,378) | 0 |
Accrued interest | 400,347 | 413,907 |
Deferred revenue | 0 | (1,979) |
Accrued consulting services - related party | 10,763 | 47,964 |
Net cash used in operating activities | (1,086,388) | (1,521,006) |
INVESTING ACTIVITIES | ||
Net cash used in investing activities | 0 | 0 |
FINANCING ACTIVITIES | ||
Common stock issued for cash | 273,000 | 0 |
Proceeds from notes payable | 219,000 | 300,000 |
Repayments of notes payable | (97,147) | (36,000) |
Proceeds from notes payable - related party | 44,000 | 112,500 |
Proceeds from convertible notes payable | 463,750 | 1,077,350 |
Repayments of convertible notes payable | (120,204) | (189,659) |
Net cash provided by financing activities | 782,399 | 1,264,191 |
Net change in cash | (303,989) | (256,815) |
Cash at beginning of period | 366,129 | 390,191 |
Cash at end of period | 62,140 | 133,376 |
CASH PAID FOR: | ||
Interest | 56,703 | 160,251 |
Taxes | 0 | 0 |
NON CASH FINANCING ACTIVITIES: | ||
Conversion of notes and interest into common stock | 100,518 | 421,333 |
Derivative liability | 463,750 | 1,077,350 |
Conversion of derivative liability | 224,754 | 1,163,456 |
Common stock issued for prepaid expenses | 0 | 415,765 |
Right-to-use asset | 154,541 | 0 |
Common stock issued with notes payable | 29,400 | 0 |
Warrants issued in private placement | 1,018,116 | 0 |
Convertible notes payable issued for prepaid expenses | 0 | 120,000 |
Convertible notes payable issued for accounts payable | 425,000 | 0 |
Original issue discount | 82,230 | 184,146 |
Conversion of payables for common stock | 2,250 | 0 |
Assignment of debt | 164,204 | 11,238 |
Warrants issued for prepaid expenses | $ 12,595 | $ 0 |
1. CONDENSED FINANCIAL STATEMEN
1. CONDENSED FINANCIAL STATEMENTS | 6 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
1. CONDENSED FINANCIAL STATEMENTS | The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows at December 31, 2019, and for all periods presented herein, have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company’s June 30, 2019 audited financial statements. The results of operations for the period ended December 31, 2019 is not necessarily indicative of the operating results for the full year. |
2. GOING CONCERN
2. GOING CONCERN | 6 Months Ended |
Dec. 31, 2019 | |
Going Concern | |
2. GOING CONCERN | The Company’s financial statements are prepared using generally accepted accounting principles in the United States of America applicable to a going concern which contemplates the realization of assets and liquidation of liabilities in the normal course of business. The Company has an accumulated deficit of $89,201,278, negative working capital of $16,554,457 and currently has revenues which are insufficient to cover its operating costs, which raises substantial doubt about its ability to continue as a going concern. The Company has not yet established an ongoing source of revenues sufficient to cover its operating costs and allow it to continue as a going concern. The future of the Company as an operating business will depend on its ability to (1) obtain sufficient capital contributions and/or financing as may be required to sustain its operations and (2) to achieve adequate revenues from its Promaster and Aftermaster businesses. Management’s plan to address these issues includes, (a) continued exercise of tight cost controls to conserve cash, (b) obtaining additional financing, (c) more widely commercializing the Aftermaster and Promaster products, and (d) identifying and executing on additional revenue generating opportunities. The ability of the Company to continue as a going concern is dependent upon its ability to successfully accomplish the plans described in the preceding paragraph and eventually secure other sources of financing and attain profitable operations. The accompanying financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern. If the Company is unable to obtain adequate capital, it could be forced to cease operations. |
3. SUMMARY OF SIGNIFICANT ACCOU
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates are made in relation to the allowance for doubtful accounts and the fair value of certain financial instruments. Derivative Liabilities The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has a sequencing policy regarding share settlement wherein instruments with the earliest issuance date would be settled first. The sequencing policy also considers contingently issuable additional shares, such as those issuable upon a stock split, to have an issuance date to coincide with the event giving rise to the additional shares. On February 3, 2017, the company entered into a note payable with an unrelated party at a percentage discount (variable) exercise price which causes the number to be converted into a number of common shares that “approach infinity”, as the underlying stock price could approach zero. Accordingly, all convertible instruments, including standalone warrants, issued after February 3, 2017 are considered derivatives according to the Company’s sequencing policy. The Company values these convertible notes payable using the multinomial lattice method that values the derivative liability within the notes based on a probability weighted discounted cash flow model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations. Leases The Company adopted ASC 842 as of October 1, 2019 using a modified retrospective transition approach for all leases existing at October 1, 2019, the date of the initial application. Consequently, financial information will not be updated, and disclosures required under ASC 842 will not be provided for dates and periods before October 1, 2019. As of October 1, 2019, the Company recognized operating lease liabilities of $154,541 based on the present value of the remaining minimum rental payments determined under prior lease accounting standards and corresponding ROU assets of $154,541. The Company determines if a contract is a lease or contains a lease at inception. Right of use assets related to operating type leases are reported in other noncurrent assets and the present value of remaining lease obligations is reported in accrued and other liabilities and other noncurrent liabilities on the Condensed Consolidated Balance Sheets. The Company does not currently have any financing type leases. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate and the Company could not determine the incremental borrowing rates applicable to the economic environment; therefore, the Company uses the risk free interest rates applicable to the duration of the lease, based on the information available at commencement date, in determining the present value of future payments. The right of use asset for operating leases is measured using the lease liability adjusted for the impact of lease payments made prior to commencement, lease incentives received, initial direct costs incurred and any asset impairments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company remeasures and reallocates the consideration in a lease when there is a modification of the lease that is not accounted for as a separate contract. The lease liability is remeasured when there is a change in the lease term or a change in the assessment of whether the Company will exercise a lease option. The Company assesses right of use assets for impairment in accordance with its long-lived asset impairment policy. The Company accounts for lease agreements with contractually required lease and non-lease components on a combined basis. Lease payments made for cancellable leases, variable amounts that are not based on an observable index and lease agreements with an original duration of less than twelve months are recorded directly to lease expense. Revenue Recognition The Company applies the provisions of FASB ASC 606, Revenue Recognition in Financial Statements The Company’s revenues are generated from Aftermaster products and services, Aftermaster Pro, sessions revenue, and remastering. Revenues related to Aftermaster Pro sells through consumer retail distribution channels and through our website. For sales through consumer retail distribution channels, revenue recognition occurs when title and risk of loss have transferred to the customer which usually occurs upon shipment to the customers. We established allowances for expected product returns and these allowances are recorded as a direct reduction to revenue. Return allowances are based on our historical experience. Revenues related to sessions and remastering are recognized when the event occurred. Loss Per Share Basic loss per Common Share is computed by dividing losses attributable to Common shareholders by the weighted-average number of shares of Common Stock outstanding during the period. The losses attributable to Common shareholders was increased for accrued and deemed dividends on Preferred Stock during the three and six months ended December 31, 2019 and 2018 of $56,367 and $56,367 and $112,734 and $112,734, respectively. Diluted earnings per Common Share is computed by dividing net loss attributable to Common shareholders by the weighted-average number of Shares of Common Stock outstanding during the period increased to include the number of additional Shares of Common Stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding convertible Preferred Stock, stock options, warrants, and convertible debt. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s Common Stock can result in a greater dilutive effect from potentially dilutive securities. For the three and six months ended December 31, 2019 and 2018, all of the Company’s potentially dilutive securities (warrants, options, convertible preferred stock, and convertible debt) were excluded from the computation of diluted earnings per share as they were anti-dilutive. The total number of potentially dilutive Common Shares that were excluded were 3,525,005,256 and 234,671,382 at December 31, 2019 and 2018, respectively. Recent Accounting Pronouncements In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The new ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The new ASU will be effective for the Company beginning in the fiscal quarter of 2020, and early adoption is permitted. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendment modifies, removes, and adds certain disclosure requirements on fair value measurements. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2018-13 on our consolidated financial statements. Management has considered all recent accounting pronouncements issued since the last audit of our consolidated financial statements. The Company’s management has evaluated recent pronouncements and have not included those that were note applicable. |
4. NOTES PAYABLE
4. NOTES PAYABLE | 6 Months Ended |
Dec. 31, 2019 | |
Notes Payable [Abstract] | |
4. NOTES PAYABLE | Convertible Notes Payable In accounting for its convertible notes payable, proceeds from the sale of a convertible debt instrument with Common Stock purchase warrants are allocated to the two elements based on the relative fair values of the debt instrument without the warrants and of the warrants themselves at time of issuance. The portions of the proceeds allocated to the warrants are accounted for as paid-in capital with an offset to debt discount. The remainder of the proceeds are allocated to the debt instrument portion of the transaction as prescribed by ASC 470-25-20. The Company then calculates the effective conversion price of the note based on the relative fair value allocated to the debt instrument to determine the fair value of any beneficial conversion feature (“BCF”) associated with the convertible note in accordance with ASC 470-20-30. The BCF is recorded to additional paid-in capital with an offset to debt discount. Both the debt discount related to the issuance of warrants and related to a BCF is amortized over the life of the note. Convertible Notes Payable – Related Parties Convertible notes payable due to related parties consisted of the following as of December 31, 2019 and June 30, 2019, respectively: Convertible Notes Payable – Related Parties December 31, June 30, 2019 2019 $30,000 face value, issued in August 2016, interest rate of 0% and is convertible into shares of the Company’s Common stock at $0.40 per share, matured June 30, 2019, net unamortized discount of $0 as of December 31, 2019 and June 30, 2019, respectively. The notes are currently in default. $ 30,000 $ 30,000 Various term notes with total face value of $89,500 issued from September 2017 to February 2018, interest rates of 0% and are convertible into shares of the Company’s common stock at $0.10 per share, matured from January 2019 to June 30, 2019, net unamortized discount of $0 as of December 31,2019 and June 30, 2019, respectively. The notes are currently in default. 89,500 89,500 Total convertible notes payable - related party 119,500 119,500 Less current portion 119,500 119,500 Convertible notes payable – related parties, long-term $ - $ - Convertible Notes Payable - Non-Related Parties Convertible notes payable due to non-related parties consisted of the following as of December 31, 2019 and June 30, 2019, respectively: Convertible Notes Payable - Non-Related Parties December 31, June 30, 2019 2019 Various term notes with total face value of $2,049,000, issued from July 2014 to March 2018, interest rates from 0% to 10% and are convertible into shares of the Company’s common stock from $0.10 to $0.40 per share, matured from October 2018 to June 2019. One of the notes and accrued interest was assigned to non-related party notes payable in September 2019 and three of the notes and accrued interest were assigned to a non-related convertible note payable in October 2019 The notes are currently in default. $ 1,844,000 $ 2,049,000 Two term notes with total face value of $373,000, issued in February 2017, interest rates of 10% and are convertible into shares of the Company’s common stock at lesser of 40% of the average three lowest closing bids twenty (20) days prior to the conversion date or $0.40 per share, matured June 2018, with additional extension fees of $81,000 added to principal. A total of $187,403 has been converted and $85,654 has been paid. The notes are currently in default. 180,943 186,597 $265,000 face value, issued in May 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.31 or 60% of the lowest closing bids twenty-five (25) days prior to the conversion date, matured February 2018, of which $179,406 was converted. The note is currently in default. 85,594 104,845 Two term notes with total face value of $131,000 face value, issued on July 2017 and August 2017, interest rates of 12% and are convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matured May 2018 and June 2018, of which $72,000 was converted. The notes are currently in default. 59,000 59,000 $115,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at 57.5% of the lowest closing bids thirty (30) days prior to the conversion per share, matured August 2018. The note is currently in default. 115,000 115,000 $115,000 face value, issued in January 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.12 and 57.5% of the lowest trading price during the prior thirty (30) days, matured October 2018. The note is currently in default. 115,000 115,000 $160,000 face value, issued in April 2018, of which $150,000 in principal and $10,000 in additional fees, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.05 or 57.5% of the lowest closing bids twenty (20) days prior to the conversion date, matured January 2019. The note is currently in default. 160,000 160,000 Two term notes with total face value of $415,000 face value, issued from an assignment in April 2018 of $370,000 in principal and an OID of $45,000, interest rates of 10% and are convertible into shares of the Company’s common stock at rate of 55% of the average trading price for the prior three (3) trading days, matured April 2019, of which $223,198 has been converted. The notes are currently in default. 191,802 191,802 Various term notes with total face value of $502,534, issued from May 2018 to June 2018, interest rates of 12% and are convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period prior to the date of conversion, matured from October 2018 to June 2019, of which $69,898 has been converted and $164,499 has been paid. The note is currently in default. 268,137 268,137 $15,651 face value, issued in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 60% of the lowest trading price during the previous twenty (20) days to the date of conversion, matured June 30, 2019. The note is currently in default. 15,651 15,651 $120,000 face value, issued in July 2018 for prepaid services, interest rate of 15% and is convertible into shares of the Company's common stock at 70% of the lowest closing price per share during the twenty (20) days prior to the conversion, matures July 2019. The note is currently in default. 120,000 120,000 $39,759 face value, issued from an assignment in August 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 55% of the lowest sales price for common stock on principal market during the twenty-five (25) consecutive trading days immediately preceding the conversion date, matured November 2018. The note is currently in default. 39,759 39,759 $23,000 face value, issued in August 2018 of $20,000 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company's common stock at 55% of the average of the three (3) lowest closing price during the 25 days prior to the conversion per share, matures August 2019, net unamortized discount of $0 and $3,214 as of December 31, 2019 and June 30, 2019, respectively, of which $23,000 was converted. The note is currently in default. - 19,786 Various term notes total value of $1,575,001 face value, issued from August 2018 to October 2019, of which $1,352,000 in principal and an OID of $223,001, interest rates of 10% and are convertible into shares of the Company’s common stock at equal the lesser of $0.12 and 70% of the lowest trading price for the common stock during the thirty (30) trading day period ending on the latest complete trading day prior to the conversion date, matures from August 2019 to December 2020, net unamortized discount of $332,276 and $273,843 as of December 31, 2019 and June 30, 2019, respectively. A total of $43,750 has been paid. Three notes totaling $1,111,896 in principal are currently in default. 1,198,975 838,053 Two term notes total value of $64,850, issued in August 2018, of which $61,850 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest trading price for the prior fifteen (15) trading days immediately preceding the conversion date, matures August 2019, net unamortized discount of $0 and $6,998 as of December 31, 2019 and June 30, 2019, respectively, of which $4,550 has been paid. The notes are currently in default. 60,300 57,852 Two term notes total value of $178,000, issued from March 2019 to August 2019, of $160,000 in principal and an OID of $18,000, interest rate of 10% and is convertible into shares of the Company’s common stock at 58% of the lowest trading price for the common stock during the twenty-five (25) trading day period ending on the latest complete trading day prior to the conversion date, matures from March 2020 and August 2020, net unamortized discount of $73,437 and $65,899 as of December 31, 2019 and June 30, 2019, respectively, of which $10,000 has been converted. 94,563 23,101 Various term notes with total value of $562,500, issued from March 2019 to June 2019, of which $535,500 in principal and an OID of $27,000, interest rates of 12% and are convertible into shares of the Company’s common stock at 58% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures from March 2020 and June 2020, net unamortized discount of $226,558 and $509,344 as of December 31, 2019 and June 30, 2019, respectively, of which $100,000 has been paid and $12,500 has been converted. 223,442 53,156 Two term notes with total value of $154,000, issued in April 2019 and June 2019,of which $143,000 in principal and an OID of $11,000, interest rates of 12% and is convertible into shares of the Company’s common stock at 60% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures April 2020, net unamortized discount of $57,015 and $134,435 as of December 31, 2019 and June 30, 2019, respectively. 96,985 19,565 Two term notes total value $103,289, issued from April 2019 to July 2019 of $58,750 in principal, $10,000 in extension fees, $21,789 in additional fees, and an OID of $12,750, interest rate of 12% and is convertible into shares of the Company’s common stock at the lesser of 55% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the issuance date or 55% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures from January 2020 to July 2020, net unamortized discount of $22,792 and $30,967 as of December 31, 2019 and June 30, 2019, respectively. A total of $10,000 has been paid. 70,497 7,533 $263,000 face value, issued from an assignment in October 2019, interest rates of 10% and is convertible into shares of the Company’s common stock at $0.02 per share, matures March 2020. 263,000 - Total convertible notes payable – non-related parties 5,202,648 4,443,837 Less current portion 5,202,648 4,443,837 Convertible notes payable – non-related parties, long-term $ - $ - During the six months ended December 31, 2019, The Company evaluated the amendments under ASC 470-50, “ Debt - Modification and Extinguishment” From July 12, 2019 through October 18, 2019, the Company issued three convertible notes to non-related parties for a total of $541,355, of which $463,750 in principal and $77,605 in OID, that mature from July 12, 2020 to August 2, 2020. The notes bear between 10% to 12% interest per annum. The Company also assumed $21,789 in additional fees added to principal during the period. During the six months ended December 31, 2019, the Company made cash payment of $120,204 toward principal various notes discussed above, had $10,000 in extension fees, converted $64,751in principal, and assigned one note for $20,000 in principal and $3,468 in accrued interest into a non-related party note payable. During the six months ended December 31, 2019, the Company also assigned two non-related party notes totaling $78,000 in principal as well as three non-related party convertible notes for $185,000 in principal into a non-related party note payable totaling $263,000. Notes Payable – Related Parties Notes payable due to related parties consisted of the following as of December 31, 2019 and June 30, 2019, respectively: Notes Payable – Related Parties December 31, June 30, 2019 2019 $5,000 face value, issued in November 2016, interest rate of 0%, which is due on demand. $ 5,000 $ 5,000 Various term notes with total face value of $213,000, issued from February 2017 to April 2019, interest rates of 0%, matured June 30, 2019. The notes are currently in default. 213,000 213,000 $56,000 face value, issued from June 2019 to December 2019, interest rate of 0%, matures June 2020. 56,000 12,000 Total notes payable – related parties 274,000 230,000 Less current portion 274,000 230,000 Notes payable - related parties, long term $ - $ - From July 15, 2019 through December 31, 2019, the Company issued notes to a related party for a total of $44,000 that all mature on June 30, 2020. The notes bear 0% interest per annum. The Company evaluated the notes for imputed interest and found it to be immaterial. Notes Payable – Non-Related Parties Notes payable due to non-related parties consisted of the following as of December 31, 2019 and June 30, 2019, respectively: Notes Payable – Non-Related Parties December 31, June 30, 2019 2019 Various term notes with a total face value of $353,625 issued from August 2017 to December 2019, of which $344,000 in principal, $4,250 of extension fees, and an OID of $6,875, interest rate of 0%, matured from December 2018 to April net of unamortized discount of $8,686 and $992 as of December 31, 2019 and June 30, 2019, respectfully. A total of $138,625 has been paid on principal. One of the notes and accrued interest with a total face value of $52,000 was assigned to a non-related parties convertible note payable with a face value of $263,000 in October 2019. All but two notes are currently in default. $ 155,814 $ 209,758 Various notes with a total face value of $127,000 issued from August 2017 to December 2019, interest rate of 10%, matured from December 2018 through April 2020 net of unamortized discount of $7,034 and $0 as of December 31, 2019 and June 30, 2019, respectively. All but one note is currently in default. 119,966 102,000 Two term notes with total face value of $107,000, issued from September 2017 through March 2019, interest rate of 8% per month, matured from September 2018 and April 2019 net of unamortized discount of $0 as of December 31, 2019 and June 30, 2019. One of the notes and accrued interest with a total face value of $81,000 was assigned to non-related parties notes payable with a total face value of $900,204, and the other note and interest with a total face value of $26,000 was assigned to non-related parties convertible notes payable with a face value of $263,000 in September 2019 and October 2019, respectively. - 107,000 $225,000 face value, issued in March 2018, interest rate of 30%, matured March 2019 net of unamortized discount of $0 as of December 31, 2019 and June 30, 2019. The note and accrued interest were assigned to a non-related parties notes payable with a total face value of $900,204 in September 2019. - 225,000 $260,000 face value, issued in June 2018, an additional $21,000 was added to principal by the noteholder, interest rate of 0%, matured December 2018 net of unamortized discount of $0 as of December 31, 2019 and June 30, 2019, of which $31,000 has been paid. The note and accrued interest were reassigned in September 2019. - 250,000 $160,000 face value, issued in November 2018, interest rate of 5% per month, matured February 2019 net of unamortized discount of $0 as of December 31, 2019 and June 30, 2019. The note and accrued interest were reassigned to non-related parties notes payable with a total face value of $900,204 in September 2019. - 160,000 Four notes and one convertible note were assigned totaling $900,204 in September 2019, interest rate of 15%, matures April 2020 net of unamortized discount of $0 as of December 31, 2019. 900,204 - Two term notes with a face value of $100,000, issued in November 2019, interest rate of 5%, matures April 2020, net of unamortized discount of $9,555 as of December 31, 2019. 90,445 - $425,000 face value, issued in November 2019 resulting from a settlement agreement, interest rate of 0%, matures December 2022, net of unamortized discount of $0 as of December 31, 2019, of which $22 has been paid. 424,978 - Total note payable – non-related parties 1,691,407 1,053,758 Less current portion 1,691,407 1,053,758 Notes payable – non-related parties, long-term $ - $ - During the six months ended December 31, 2019, The Company evaluated the amendments under ASC 470-50, “ Debt - Modification and Extinguishment” From July 9, 2019 to December 20, 2019, the Company issued seven notes to non-related parties for a total of $223,625, $219,000 in principal and $4,625 in OID, that mature from October 14, 2019 to April 12, 2020. The notes bear rates from 0% to 10% interest per annum. The Company evaluated the non-interest-bearing notes for imputed interest and found it to be immaterial. As additional consideration, the Company issued 1,000,000 warrants to purchase shares of Common Stock valued at $12,595. During the six months ended December 31, 2019, the Company assigned five non-related party notes totaling $716,000 in principal and $160,736 in accrued interest as well as a non-related party convertible note for $20,000 in principal and $3,468 in accrued interest into a non-related party note payable totaling $900,204. On November 4, 2019, the Company issued a note to a non-related party for a total of $425,000 as part of a settlement agreement, that matures December 1, 2022. The note bears a rate of 0% interest per annum. The settlement agreement was for prior advertising services totaling $527,767. The Company recorded a gain on settlement of debt of $102,767. |
5. CONVERTIBLE PREFERRED STOCK
5. CONVERTIBLE PREFERRED STOCK | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
5. CONVERTIBLE PREFERRED STOCK | The Company has authorized 10,000,000 shares of $0.001 par value per share Preferred Stock, of which the following were issued outstanding: Shares Shares Liquidation Allocated Outstanding Preference Series A Convertible Preferred 100,000 15,500 $ - Series A-1 Convertible Preferred 3,000,000 2,585,000 3,663,824 Series B Convertible Preferred 200,000 3,500 35,000 Series C Convertible Preferred 1,000,000 13,404 - Series D Convertible Preferred 375,000 130,000 - Series E Convertible Preferred 1,000,000 275,000 - Series H Preferred 5 2 - Series P Convertible Preferred 600,000 86,640 - Series S Convertible Preferred 50,000 - - Total Preferred Stock 6,325,005 3,109,046 $ 3,698,824 The Company’s Series A Convertible Preferred Stock (“Series A Preferred”) is convertible into Common Stock at the rate of 0.025 per share of Common stock for each share of the Series A Preferred. Dividends of $0.50 per share annually from date of issue, are payable from retained earnings, but have not been declared or paid. The Company’s Series A-1 Senior Convertible Redeemable Preferred Stock (“Series A-1 Preferred”) is convertible at the rate of 2 shares of Common Stock per share of Series A-1 Preferred. The dividend rate of the Series A-1 Senior Convertible Redeemable Preferred Stock is 6% per share per annum in cash, or commencing on June 30, 2019 in shares of the Company’s Common Stock (at the option of the Company). Due to the fact that the Series A-1 Preferred has certain features of debt and is redeemable, the Company analyzed the Series A-1 Preferred in accordance with ASC 480 and ASC 815 to determine if classification within permanent equity was appropriate. Based on the fact that the redeemable nature of the stock and all cash payments are at the option of the Company, it is assumed that payments will be made in shares of the Company’s Common Stock and therefore, the instruments are afforded permanent equity treatment. The Company’s Series B Convertible 8% Preferred Stock (“Series B Preferred”) is convertible at the rate of 0.067 per share of Common Stock for each share of Series B Preferred. Dividends from date of issue are payable on June 30 from retained earnings at the rate of 8% per annum but have not been declared or paid. The Company’s Series C Convertible Preferred Stock (“Series C Preferred”) is convertible at a rate of 0.007 share of Common Stock per share of Series C Preferred. Holders are entitled to dividends only to the extent of the holders of the Company’s Common Stock receive dividends. The Company’s Series D Convertible Preferred Stock (“Series D Preferred”) is convertible at a rate of 0.034 share of Common Stock per share of Series D Preferred. Holders are entitled to a proportionate share of any dividends paid as though they were holders of the number of shares of Common Stock of the Company into which their shares of are convertible as of the record date fixed for the determination of the holders of Common Stock of the Company entitled to receive such distribution. The Company’s Series E Convertible Preferred Stock (“Series E Preferred”) is convertible at a rate of 0.034 share of Common Stock per share of Series E Preferred. Holders are entitled to a proportionate share of any dividends paid as though they were holders of the number of shares of Common Stock of the Company into which their shares of are convertible as of the record date fixed for the determination of the holders of Common Stock of the Company entitled to receive such distribution. The Company’s Series H Preferred Stock shall not be convertible into the Corporation’s Common Stock, nor shall such shares have any liquidation or dividend preference over the Corporation’s Common Stock. Series H Preferred Stock shall have the right to take action by written consent or vote based on the number of votes equal to four times the number of votes of all outstanding shares of capital stock of the Corporation such that the holders of outstanding shares of Series H Preferred Stock shall always constitute eighty percent (80%) of the voting rights of the Corporation. The Company’s Series P Convertible Preferred Stock (“Series P Preferred”) is convertible at a rate of 0.007 share of Common Stock for each share of Series P Preferred. Holders are entitled to dividends only to the extent of the holders of the Company’s Common Stock receive dividends. In the event of a liquidation, dissolution or winding up of the affairs of the Company, holders of Series A Preferred Stock, Series P Convertible Preferred Stock, Series C Convertible Preferred Stock have no liquidation preference over holders of the Company’s Common Stock. Holders of Series B Preferred Stock have a liquidation preference over holders of the Company’s Common Stock and the Company’s Series A Preferred Stock. Holders of Series D Preferred Stock are entitled to receive, before any distribution is made with respect to the Company’s Common Stock, a preferential payment at a rate per each whole share of Series D Preferred Stock equal to $1.00. Holders of Series E Preferred Stock are entitled to receive, after the preferential payment in full to holders of outstanding shares of Series D Preferred Stock but before any distribution is made with respect to the Company’s Common Stock, a preferential payment at a rate per each whole share of Series E Preferred Stock equal to $1.00. Holders of Series A-1 Preferred Stock are superior in rank to the Company’s Common Stock and to all other series of Preferred Stock heretofore designated with respect to dividends and liquidation. The activity surrounding the issuances of the Preferred Stock is as follows: During the six months ended December 31, 2019, the Company has not issued any shares of Series A-1 Preferred. During the year ended June 2019, the Company has not issued any shares of A-1 Preferred. During the three and six months ended December 31, 2019 and 2018, the outstanding Preferred Stock accumulated $56,367 and $56,367 in dividends on outstanding Preferred Stock. The cumulative dividends in arrears as of December 31, 2019 were approximately $1,417,468. |
6. COMMON STOCK
6. COMMON STOCK | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
6. COMMON STOCK | On February 8, 2019, the Company increased the number of authorized shares of Common Stock from 250,000,000 up to 1,000,000,000 shares in the sole discretion of the board. The Company has authorized 503,407,666 shares of $0.001 par value per share Common Stock, of which 306,736,038 issued (of which 3,885,000 are to be issued) as of December 31, 2019. The activity surrounding the issuances of the Common Stock is as follows: For the Six months Ended December 31, 2019 The Company issued in conjunction with the private placements, the Company issued 95,200,000 valued at $961,121. The Company issued 53,693,804 shares of Common Stock for the conversion of notes and accrued interest valued at $100,518. The Company also issued 2,250,000 shares of Common Stock for the conversion of payables valued at $31,725 As share-based compensation to employees and non-employees, the Company issued 18,052,258 shares of common stock valued at $112,029, based on the market price of the stock on the date of issuance. As part of a provision in a note payable, the Company issued 7,000,000 shares of common stock valued at $29,400 based on the market price on the date of issuance. For the Six months ended December 31, 2018 The Company issued 22,723,609 shares of Common Stock for the conversion of notes and accrued interest valued at $331,333. The Company issued 11,885,000 shares of Common Stock as payment for services valued at $415,765. As share-based compensation to employees and non-employees, the Company issued 5,199,699 shares of common stock valued at $125,676, based on the market price of the stock on the date of issuance. As part of a provision in a note payable, the Company issued 3,000,000 shares of common stock valued at $90,000 based on the market price on the date of issuance. |
7. STOCK PURCHASE OPTIONS AND W
7. STOCK PURCHASE OPTIONS AND WARRANTS | 6 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
7. STOCK PURCHASE OPTIONS AND WARRANTS | The Board of Directors on June 10, 2009 approved the 2009 Long-Term Stock Incentive Plan. The purpose of the 2009 Long-term Stock Incentive Plan is to advance the interests of the Company by encouraging and enabling acquisition of a financial interest in the Company by employees and other key individuals. The 2009 Long-Term Stock Incentive Plan is intended to aid the Company in attracting and retaining key employees, to stimulate the efforts of such individuals and to strengthen their desire to remain with the Company. A maximum of 1,500,000 shares of the Company’s Common Stock is reserved for issuance under stock options to be issued under the 2009 Long-Term Stock Incentive Plan. The Plan permits the grant of incentive stock options, nonstatutory stock options and restricted stock awards. The 2009 Long-Term Stock Incentive Plan is administered by the Board of Directors or, at its direction, a Compensation Committee comprised of officers of the Company. Stock Purchase Options During the six months ended December 31, 2019, the Company did not issue any stock purchase options. During the six months ended December 31, 2018, the Company did not issue any stock purchase options, and 25,000 expired. The following table summarizes the changes in options outstanding of the Company during the three and six months ended December 31, 2019. Date Issued Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance June 30, 2019 500,000 $ 0.05 $ 0.17 3.00 $ 25,000 Granted - - - - - Exercised - - - - - Cancelled/Expired - - - - - Outstanding as of December 31, 2019 500,000 $ 0.05 $ 0.16 2.50 $ 25,000 During the six months ended December 31, 2019, the Company issued three-year and five-year warrants to purchase a total of in conjunction with issuance of two promissory notes, valued at $36,578. The Company also issued 95,200,000 five-year warrants in conjunction with issuance of 22 private placements, valued at $961,212 and issued 32,268,725 warrants in conjunction to two consulting agreements valued at $312,415. The warrants are considered derivative liabilities under ASC 815-40 under the Company’s sequencing policy and were valued using the The following table presents the assumptions used to estimate the fair values of the stock warrants and options granted: December 31,2019 Expected volatility 153.09-341% Expected dividends 0% Expected term 0-5 Years Risk-free interest rate 1.48-1.74% The following table summarizes the changes in warrants outstanding issued to employees and non-employees of the Company during the three and six months ended December 31, 2019. Number of Warrants Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance as of June 30, 2019 41,900,718 $ 0.15 $ 0.36 3.43 $ 6,308,991 Granted 130,386,969 0.03 0.01 4.99 3,777,417 Exercised - - - - - Cancelled/Expired (4,079,466 ) 0.27 - - (1,107,150 ) Outstanding as of December 31, 2019 168,208,221 $ 0.05 $ 0.09 4.40 $ 8,979,258 |
8. FINANCIAL INSTRUMENTS
8. FINANCIAL INSTRUMENTS | 6 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
8. FINANCIAL INSTRUMENTS | The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a multinomial lattice model as of December 31, 2019 and June 30, 2019. For amounts over proceeds in the initial derivative measurement, the Company recorded a derivative expense of $547,121 and $1,355,346 during the six months ended December 31, 2019 and 2018, respectively. The fair values of the derivative instruments are measured each quarter, which resulted in a gain of $35,204 and $594,737 during the six months ended December 31, 2019 and 2018, respectively. As of December 31, 2019, and June 30, 2019, the fair market value of the derivatives aggregated $7,033,544 and $5,009,094, respectively, using the following assumptions: estimated 5-0 year term, estimated volatility of 341.18 – 153.09 %, and a discount rate of 1.74 – 1.48%. Financial instruments measured at fair value on a recurring basis at December 31, 2019, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ 7,033,544 $ 7,033,544 Liabilities measured at fair value on a recurring basis at June 30, 2019, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ 5,009,094 $ 5,009,094 Series H Preferred Stock $ - $ 198,116 $ - $ 198,116 |
9. COMMITMENTS AND CONTINGENCIE
9. COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
9. COMMITMENTS AND CONTINGENCIES | Legal Proceedings The Company may become involved in certain legal proceedings and claims which arise in the normal course of business. 1. The Company became a defendant in an employment related lawsuit filed by a former employee, who was terminated for cause in October 2018. The Company believes it is without merit and has filed a defense and a Motion to move the matter to Arbitration. The Motion to move the matter to arbitration was subsequently granted. The complaint revolves around alleged unpaid commissions and the Company does not consider it to be material. 2. On May 2019, a Company subsidiary was named in a lawsuit filed in the Superior Court of Arizona County of Maricopa by the Company’s prior manufacturer, Infinity Power and Controls, LLC. (Infinity), alleging non-payment of invoices totaling $414,000 and an undetermined amount of parts inventory. On July 5, 2019, the Company was added as a defendant in the action. Infinity was the Company’s manufacturer until they were dismissed in December 2018, due to quality and reliability issues, which resulted in unacceptable product returns. On July 2, 2019, the Company commenced an action against Infinity Power and Controls LLC in the United States District Court Central District of California for Breach of Contract, Negligence and Fraud. The lawsuit asks for direct and punitive damages of $30 million from Infinity. As both a plaintiff and defendant in matters relating to its prior manufacturer, the Company believes it sustained substantial damage from the poor-quality product manufactured by Infinity. 3. A lender for two term notes with total value of $154,000, issued in April 2019 and June 2019, has issued a notice of default on the conversion of the notes into stock. Lease Agreements The Company has operating type leases for real estate. As of December 31, 2019, the Company had no finance type leases. The Company’s leases have remaining lease terms of up to 1.33 years, some of which may include options to extend the leases for up to 5 years. Operating lease expense was $21,252 and $42,273 for the three and six months ended December 31, 2019, inclusive of period cost for short-term, cancellable and variable leases, not included in lease liabilities, of $61,376 and $124,430 for the three and six months ended December 31, 2019. Supplemental cash flow information related to operating leases: Six Months Ended December 31, 2019 Operating cash paid to settle lease liabilities $ 38,378 Right of use asset additions in exchange for lease liabilities 154,541 Supplemental balance sheet information related to operating leases: December 31, Balance Sheet Location 2019 Right of use assets Other noncurrent assets $ 112,268 Lease payable Current liabilities $ 83,657 Lease payable Long-term liabilities 32,506 Total lease payable $ 116,163 December 31, 2019 Weighted average remaining lease term (in years) 1.33 Weighted average discount rate 12.15 % We lease offices in Hollywood, California (located at 6671 Sunset Blvd., Suite 1520, 1518 and 1550, Hollywood, California, 90028) for corporate, research, engineering and mastering services. The lease expired on December 31, 2017 and now is on a month to month basis. The total lease expense for the facility is approximately $20,574 per month, and the total remaining obligations under these leases at December 31, 2019, were approximately $0. We lease warehouse space located at 8260 E Gelding Drive, Suite 102, Scottsdale, Arizona, 85260. The lease expired on January 31, 2019 and now is on a month to month basis. The total lease expense for the facility is approximately $1,993 per month, and the total remaining obligations under this lease at December 31, 2019, were approximately $0. We lease corporate offices located at 7825 E Gelding Drive, Suite 101, Scottsdale, Arizona, 85260. The lease expires on April 30, 2021. The total lease expense for the facility is approximately $7,799 per month, and the total remaining obligations under this lease at December 31, 2019, were approximately $125,518. The lease resulted in the balance sheet recognition of $154,541. Below is a table summarizing the annual operating lease obligations over the next 5 years: Year Lease Payments 2020 $ 46,505 2021 79,012 2022 - 2023 - 2024 - Total $ 125,518 Other The Company has not declared dividends on Series A or B Convertible Preferred Stock or its Series A-1 Convertible Preferred Stock. The cumulative dividends in arrears through December 31, 2019 were approximately $1,473,835. |
10. COMMITMENTS AND CONTINGENCI
10. COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
10. COMMITMENTS AND CONTINGENCIES | Legal Proceedings The Company may become involved in certain legal proceedings and claims which arise in the normal course of business. 1. The Company became a defendant in an employment related lawsuit filed by a former employee, who was terminated for cause in October 2018. The Company believes it is without merit and has filed a defense and a Motion to move the matter to Arbitration. The Motion to move the matter to arbitration was subsequently granted. The complaint revolves around alleged unpaid commissions and the Company does not consider it to be material. 2. On May 2019, a Company subsidiary was named in a lawsuit filed in the Superior Court of Arizona County of Maricopa by the Company’s prior manufacturer, Infinity Power and Controls, LLC. (Infinity), alleging non-payment of invoices totaling $414,000 and an undetermined amount of parts inventory. On July 5, 2019, the Company was added as a defendant in the action. Infinity was the Company’s manufacturer until they were dismissed in December 2018, due to quality and reliability issues, which resulted in unacceptable product returns. On July 2, 2019, the Company commenced an action against Infinity Power and Controls LLC in the United States District Court Central District of California for Breach of Contract, Negligence and Fraud. The lawsuit asks for direct and punitive damages of $30 million from Infinity. As a both plaintiff and defendant in matters relating to its prior manufacturer, the Company believes it sustained substantial damage from the poor-quality product manufactured by Infinity. 3. A lender for two term notes with total value of $154,000, issued in April 2019 and June 2019, has issued an notice of default on the conversion of the notes into stock. |
11. RELATED PARTY TRANSACTIONS
11. RELATED PARTY TRANSACTIONS | 6 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
11. RELATED PARTY TRANSACTIONS | On August 8, 2016, the Company issued a convertible note to a daughter of a director of the Company, for $30,000 as of December 31, 2019 and June 30, 2019. The note bears an interest rate of 0% per annum and is convertible into shares of the Company’s Common Stock at $0.40 per share. From September 2017 to June 2019, the Company issued convertible notes to a director and officer of the Company for $89,500 as of December 31, 2019 and June 30, 2019. The notes bear an average interest rate of 0% per annum and is convertible into shares of the Company’s Common Stock at $0.10 per share. On November 15, 2016, the Company issued notes to a director and officer of the Company, for $5,000. The note bears an average interest rate of 0% per annum. From February 2017 to December 2019, the Company issued notes to a director and officer of the Company for $274,000 and $255,000 as of December 31, 2019 and June 30, 2019, respectively. The notes bear an average interest rate of 0% per annum. As share-based compensation to employees and non-employees, the Company issued 9,724,215 and 3,031,473 and 18,052,258 and 5,199,699 shares of common stock valued at $20,421 and $60,629 and $112,029 and $125,676 for three and six months ended December 31, 2019 and 2018, respectively, based on the market price of the stock on the date of issuance. The company has accrued consulting services in the amount of $171,887 and $161,124 payable to directors for services rendered as of December 31, 2019 and June 30, 2019, respectively. |
12. SUBSEQUENT EVENTS
12. SUBSEQUENT EVENTS | 6 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
12. SUBSEQUENT EVENTS | In accordance with ASC 855, Company’s management reviewed all material events through the date of this filing and determined that there were the following material subsequent events to report: In January 2020, a holder of an unrelated convertible note converted $9,000 of principal and $705 of accrued interest into 16,733,120 shares of common stock. In January 2020, the Company issued 80,000,000 shares of Common Stock for $40,000 in cash as part of a private placement. On January 16, 2020, the Company issued a note to an unrelated party for $13,200, which includes proceeds of $12,000 and $1,200 in OID that matures in January 2020. The notes bear 0% interest per annum. |
3. SUMMARY OF SIGNIFICANT ACC_2
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates | The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Significant estimates are made in relation to the allowance for doubtful accounts and the fair value of certain financial instruments. |
Derivative Liabilities | The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has a sequencing policy regarding share settlement wherein instruments with the earliest issuance date would be settled first. The sequencing policy also considers contingently issuable additional shares, such as those issuable upon a stock split, to have an issuance date to coincide with the event giving rise to the additional shares. On February 3, 2017, the company entered into a note payable with an unrelated party at a percentage discount (variable) exercise price which causes the number to be converted into a number of common shares that “approach infinity”, as the underlying stock price could approach zero. Accordingly, all convertible instruments, including standalone warrants, issued after February 3, 2017 are considered derivatives according to the Company’s sequencing policy. The Company values these convertible notes payable using the multinomial lattice method that values the derivative liability within the notes based on a probability weighted discounted cash flow model. The resulting liability is valued at each reporting date and the change in the liability is reflected as change in derivative liability in the statement of operations. |
Leases | The Company adopted ASC 842 as of October 1, 2019 using a modified retrospective transition approach for all leases existing at October 1, 2019, the date of the initial application. Consequently, financial information will not be updated, and disclosures required under ASC 842 will not be provided for dates and periods before October 1, 2019. As of October 1, 2019, the Company recognized operating lease liabilities of $154,541 based on the present value of the remaining minimum rental payments determined under prior lease accounting standards and corresponding ROU assets of $154,541. The Company determines if a contract is a lease or contains a lease at inception. Right of use assets related to operating type leases are reported in other noncurrent assets and the present value of remaining lease obligations is reported in accrued and other liabilities and other noncurrent liabilities on the Condensed Consolidated Balance Sheets. The Company does not currently have any financing type leases. Operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. The Company’s leases do not provide an implicit rate and the Company could not determine the incremental borrowing rates applicable to the economic environment; therefore, the Company uses the risk free interest rates applicable to the duration of the lease, based on the information available at commencement date, in determining the present value of future payments. The right of use asset for operating leases is measured using the lease liability adjusted for the impact of lease payments made prior to commencement, lease incentives received, initial direct costs incurred and any asset impairments. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. The Company remeasures and reallocates the consideration in a lease when there is a modification of the lease that is not accounted for as a separate contract. The lease liability is remeasured when there is a change in the lease term or a change in the assessment of whether the Company will exercise a lease option. The Company assesses right of use assets for impairment in accordance with its long-lived asset impairment policy. The Company accounts for lease agreements with contractually required lease and non-lease components on a combined basis. Lease payments made for cancellable leases, variable amounts that are not based on an observable index and lease agreements with an original duration of less than twelve months are recorded directly to lease expense. |
Revenue Recognition | The Company applies the provisions of FASB ASC 606, Revenue Recognition in Financial Statements The Company’s revenues are generated from Aftermaster products and services, Aftermaster Pro, sessions revenue, and remastering. Revenues related to Aftermaster Pro sells through consumer retail distribution channels and through our website. For sales through consumer retail distribution channels, revenue recognition occurs when title and risk of loss have transferred to the customer which usually occurs upon shipment to the customers. We established allowances for expected product returns and these allowances are recorded as a direct reduction to revenue. Return allowances are based on our historical experience. Revenues related to sessions and remastering are recognized when the event occurred. |
Loss Per Share | Basic loss per Common Share is computed by dividing losses attributable to Common shareholders by the weighted-average number of shares of Common Stock outstanding during the period. The losses attributable to Common shareholders was increased for accrued and deemed dividends on Preferred Stock during the three and six months ended December 31, 2019 and 2018 of $56,367 and $56,367 and $112,734 and $112,734, respectively. Diluted earnings per Common Share is computed by dividing net loss attributable to Common shareholders by the weighted-average number of Shares of Common Stock outstanding during the period increased to include the number of additional Shares of Common Stock that would have been outstanding if the potentially dilutive securities had been issued. Potentially dilutive securities include outstanding convertible Preferred Stock, stock options, warrants, and convertible debt. The dilutive effect of potentially dilutive securities is reflected in diluted earnings per share by application of the treasury stock method. Under the treasury stock method, an increase in the fair market value of the Company’s Common Stock can result in a greater dilutive effect from potentially dilutive securities. For the three and six months ended December 31, 2019 and 2018, all of the Company’s potentially dilutive securities (warrants, options, convertible preferred stock, and convertible debt) were excluded from the computation of diluted earnings per share as they were anti-dilutive. The total number of potentially dilutive Common Shares that were excluded were 3,525,005,256 and 234,671,382 at December 31, 2019 and 2018, respectively. |
Recent Accounting Pronouncements | In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350). The amendments in this update simplify the test for goodwill impairment by eliminating Step 2 from the impairment test, which required the entity to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities following the procedure that would be required in determining fair value of assets acquired and liabilities assumed in a business combination. The amendments in this update are effective for public companies for annual or any interim goodwill impairment tests in fiscal years beginning after December 15, 2019. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In June 2018, the FASB issued ASU No. 2018-07, Compensation-Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. The new ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. An entity should apply the requirements of Topic 718 to nonemployee awards except for specific guidance on inputs to an option pricing model and the attribution of cost. The new ASU will be effective for the Company beginning in the fiscal quarter of 2020, and early adoption is permitted. The Company is evaluating the effect that the updated standard will have on its financial statements and related disclosures. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820) - Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement. The amendment modifies, removes, and adds certain disclosure requirements on fair value measurements. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. The amendments on changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements, and the narrative description of measurement uncertainty should be applied prospectively for only the most recent interim or annual period presented in the initial fiscal year of adoption. All other amendments should be applied retrospectively to all periods presented upon their effective date. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2018-13 on our consolidated financial statements. Management has considered all recent accounting pronouncements issued since the last audit of our consolidated financial statements. The Company’s management has evaluated recent pronouncements and have not included those that were note applicable. |
4. NOTES PAYABLE (Tables)
4. NOTES PAYABLE (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Notes Payable [Abstract] | |
Schedule of convertible notes payable-related parties | Convertible Notes Payable – Related Parties December 31, June 30, 2019 2019 $30,000 face value, issued in August 2016, interest rate of 0% and is convertible into shares of the Company’s Common stock at $0.40 per share, matured June 30, 2019, net unamortized discount of $0 as of December 31, 2019 and June 30, 2019, respectively. The notes are currently in default. $ 30,000 $ 30,000 Various term notes with total face value of $89,500 issued from September 2017 to February 2018, interest rates of 0% and are convertible into shares of the Company’s common stock at $0.10 per share, matured from January 2019 to June 30, 2019, net unamortized discount of $0 as of December 31,2019 and June 30, 2019, respectively. The notes are currently in default. 89,500 89,500 Total convertible notes payable - related party 119,500 119,500 Less current portion 119,500 119,500 Convertible notes payable – related parties, long-term $ - $ - |
Schedule of convertible notes payable-non-related parties | Convertible Notes Payable - Non-Related Parties December 31, June 30, 2019 2019 Various term notes with total face value of $2,049,000, issued from July 2014 to March 2018, interest rates from 0% to 10% and are convertible into shares of the Company’s common stock from $0.10 to $0.40 per share, matured from October 2018 to June 2019. One of the notes and accrued interest was assigned to non-related party notes payable in September 2019 and three of the notes and accrued interest were assigned to a non-related convertible note payable in October 2019 The notes are currently in default. $ 1,844,000 $ 2,049,000 Two term notes with total face value of $373,000, issued in February 2017, interest rates of 10% and are convertible into shares of the Company’s common stock at lesser of 40% of the average three lowest closing bids twenty (20) days prior to the conversion date or $0.40 per share, matured June 2018, with additional extension fees of $81,000 added to principal. A total of $187,403 has been converted and $85,654 has been paid. The notes are currently in default. 180,943 186,597 $265,000 face value, issued in May 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.31 or 60% of the lowest closing bids twenty-five (25) days prior to the conversion date, matured February 2018, of which $179,406 was converted. The note is currently in default. 85,594 104,845 Two term notes with total face value of $131,000 face value, issued on July 2017 and August 2017, interest rates of 12% and are convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period ending to the date of conversion, matured May 2018 and June 2018, of which $72,000 was converted. The notes are currently in default. 59,000 59,000 $115,000 face value, issued in November 2017, interest rate of 10% and is convertible into shares of the Company’s common stock at 57.5% of the lowest closing bids thirty (30) days prior to the conversion per share, matured August 2018. The note is currently in default. 115,000 115,000 $115,000 face value, issued in January 2018, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.12 and 57.5% of the lowest trading price during the prior thirty (30) days, matured October 2018. The note is currently in default. 115,000 115,000 $160,000 face value, issued in April 2018, of which $150,000 in principal and $10,000 in additional fees, interest rate of 10% and is convertible into shares of the Company’s common stock at the lesser of $0.05 or 57.5% of the lowest closing bids twenty (20) days prior to the conversion date, matured January 2019. The note is currently in default. 160,000 160,000 Two term notes with total face value of $415,000 face value, issued from an assignment in April 2018 of $370,000 in principal and an OID of $45,000, interest rates of 10% and are convertible into shares of the Company’s common stock at rate of 55% of the average trading price for the prior three (3) trading days, matured April 2019, of which $223,198 has been converted. The notes are currently in default. 191,802 191,802 Various term notes with total face value of $502,534, issued from May 2018 to June 2018, interest rates of 12% and are convertible into shares of the Company’s common stock at 61% of the lowest two trading prices during the fifteen (15) trading day period prior to the date of conversion, matured from October 2018 to June 2019, of which $69,898 has been converted and $164,499 has been paid. The note is currently in default. 268,137 268,137 $15,651 face value, issued in June 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 60% of the lowest trading price during the previous twenty (20) days to the date of conversion, matured June 30, 2019. The note is currently in default. 15,651 15,651 $120,000 face value, issued in July 2018 for prepaid services, interest rate of 15% and is convertible into shares of the Company's common stock at 70% of the lowest closing price per share during the twenty (20) days prior to the conversion, matures July 2019. The note is currently in default. 120,000 120,000 $39,759 face value, issued from an assignment in August 2018, interest rate of 12% and is convertible into shares of the Company’s common stock at 55% of the lowest sales price for common stock on principal market during the twenty-five (25) consecutive trading days immediately preceding the conversion date, matured November 2018. The note is currently in default. 39,759 39,759 $23,000 face value, issued in August 2018 of $20,000 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company's common stock at 55% of the average of the three (3) lowest closing price during the 25 days prior to the conversion per share, matures August 2019, net unamortized discount of $0 and $3,214 as of December 31, 2019 and June 30, 2019, respectively, of which $23,000 was converted. The note is currently in default. - 19,786 Various term notes total value of $1,575,001 face value, issued from August 2018 to October 2019, of which $1,352,000 in principal and an OID of $223,001, interest rates of 10% and are convertible into shares of the Company’s common stock at equal the lesser of $0.12 and 70% of the lowest trading price for the common stock during the thirty (30) trading day period ending on the latest complete trading day prior to the conversion date, matures from August 2019 to December 2020, net unamortized discount of $332,276 and $273,843 as of December 31, 2019 and June 30, 2019, respectively. A total of $43,750 has been paid. Three notes totaling $1,111,896 in principal are currently in default. 1,198,975 838,053 Two term notes total value of $64,850, issued in August 2018, of which $61,850 in principal and an OID of $3,000, interest rate of 12% and is convertible into shares of the Company’s common stock at 61% of the lowest trading price for the prior fifteen (15) trading days immediately preceding the conversion date, matures August 2019, net unamortized discount of $0 and $6,998 as of December 31, 2019 and June 30, 2019, respectively, of which $4,550 has been paid. The notes are currently in default. 60,300 57,852 Two term notes total value of $178,000, issued from March 2019 to August 2019, of $160,000 in principal and an OID of $18,000, interest rate of 10% and is convertible into shares of the Company’s common stock at 58% of the lowest trading price for the common stock during the twenty-five (25) trading day period ending on the latest complete trading day prior to the conversion date, matures from March 2020 and August 2020, net unamortized discount of $73,437 and $65,899 as of December 31, 2019 and June 30, 2019, respectively, of which $10,000 has been converted. 94,563 23,101 Various term notes with total value of $562,500, issued from March 2019 to June 2019, of which $535,500 in principal and an OID of $27,000, interest rates of 12% and are convertible into shares of the Company’s common stock at 58% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures from March 2020 and June 2020, net unamortized discount of $226,558 and $509,344 as of December 31, 2019 and June 30, 2019, respectively, of which $100,000 has been paid and $12,500 has been converted. 223,442 53,156 Two term notes with total value of $154,000, issued in April 2019 and June 2019,of which $143,000 in principal and an OID of $11,000, interest rates of 12% and is convertible into shares of the Company’s common stock at 60% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures April 2020, net unamortized discount of $57,015 and $134,435 as of December 31, 2019 and June 30, 2019, respectively. 96,985 19,565 Two term notes total value $103,289, issued from April 2019 to July 2019 of $58,750 in principal, $10,000 in extension fees, $21,789 in additional fees, and an OID of $12,750, interest rate of 12% and is convertible into shares of the Company’s common stock at the lesser of 55% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the issuance date or 55% of the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the conversion date, matures from January 2020 to July 2020, net unamortized discount of $22,792 and $30,967 as of December 31, 2019 and June 30, 2019, respectively. A total of $10,000 has been paid. 70,497 7,533 $263,000 face value, issued from an assignment in October 2019, interest rates of 10% and is convertible into shares of the Company’s common stock at $0.02 per share, matures March 2020. 263,000 - Total convertible notes payable – non-related parties 5,202,648 4,443,837 Less current portion 5,202,648 4,443,837 Convertible notes payable – non-related parties, long-term $ - $ - |
Schedule of non-convertible notes payable-related parties | Notes Payable – Related Parties December 31, June 30, 2019 2019 $5,000 face value, issued in November 2016, interest rate of 0%, which is due on demand. $ 5,000 $ 5,000 Various term notes with total face value of $213,000, issued from February 2017 to April 2019, interest rates of 0%, matured June 30, 2019. The notes are currently in default. 213,000 213,000 $56,000 face value, issued from June 2019 to December 2019, interest rate of 0%, matures June 2020. 56,000 12,000 Total notes payable – related parties 274,000 230,000 Less current portion 274,000 230,000 Notes payable - related parties, long term $ - $ - |
Schedule of non-convertible notes payable-non-related parties | Notes Payable – Non-Related Parties December 31, June 30, 2019 2019 Various term notes with a total face value of $353,625 issued from August 2017 to December 2019, of which $344,000 in principal, $4,250 of extension fees, and an OID of $6,875, interest rate of 0%, matured from December 2018 to April net of unamortized discount of $8,686 and $992 as of December 31, 2019 and June 30, 2019, respectfully. A total of $138,625 has been paid on principal. One of the notes and accrued interest with a total face value of $52,000 was assigned to a non-related parties convertible note payable with a face value of $263,000 in October 2019. All but two notes are currently in default. $ 155,814 $ 209,758 Various notes with a total face value of $127,000 issued from August 2017 to December 2019, interest rate of 10%, matured from December 2018 through April 2020 net of unamortized discount of $7,034 and $0 as of December 31, 2019 and June 30, 2019, respectively. All but one note is currently in default. 119,966 102,000 Two term notes with total face value of $107,000, issued from September 2017 through March 2019, interest rate of 8% per month, matured from September 2018 and April 2019 net of unamortized discount of $0 as of December 31, 2019 and June 30, 2019. One of the notes and accrued interest with a total face value of $81,000 was assigned to non-related parties notes payable with a total face value of $900,204, and the other note and interest with a total face value of $26,000 was assigned to non-related parties convertible notes payable with a face value of $263,000 in September 2019 and October 2019, respectively. - 107,000 $225,000 face value, issued in March 2018, interest rate of 30%, matured March 2019 net of unamortized discount of $0 as of December 31, 2019 and June 30, 2019. The note and accrued interest were assigned to a non-related parties notes payable with a total face value of $900,204 in September 2019. - 225,000 $260,000 face value, issued in June 2018, an additional $21,000 was added to principal by the noteholder, interest rate of 0%, matured December 2018 net of unamortized discount of $0 as of December 31, 2019 and June 30, 2019, of which $31,000 has been paid. The note and accrued interest were reassigned in September 2019. - 250,000 $160,000 face value, issued in November 2018, interest rate of 5% per month, matured February 2019 net of unamortized discount of $0 as of December 31, 2019 and June 30, 2019. The note and accrued interest were reassigned to non-related parties notes payable with a total face value of $900,204 in September 2019. - 160,000 Four notes and one convertible note were assigned totaling $900,204 in September 2019, interest rate of 15%, matures April 2020 net of unamortized discount of $0 as of December 31, 2019. 900,204 - Two term notes with a face value of $100,000, issued in November 2019, interest rate of 5%, matures April 2020, net of unamortized discount of $9,555 as of December 31, 2019. 90,445 - $425,000 face value, issued in November 2019 resulting from a settlement agreement, interest rate of 0%, matures December 2022, net of unamortized discount of $0 as of December 31, 2019, of which $22 has been paid. 424,978 - Total note payable – non-related parties 1,691,407 1,053,758 Less current portion 1,691,407 1,053,758 Notes payable – non-related parties, long-term $ - $ - |
5. CONVERTIBLE PREFERRED STOCK
5. CONVERTIBLE PREFERRED STOCK (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of preferred stock | Shares Shares Liquidation Allocated Outstanding Preference Series A Convertible Preferred 100,000 15,500 $ - Series A-1 Convertible Preferred 3,000,000 2,585,000 3,663,824 Series B Convertible Preferred 200,000 3,500 35,000 Series C Convertible Preferred 1,000,000 13,404 - Series D Convertible Preferred 375,000 130,000 - Series E Convertible Preferred 1,000,000 275,000 - Series H Preferred 5 2 - Series P Convertible Preferred 600,000 86,640 - Series S Convertible Preferred 50,000 - - Total Preferred Stock 6,325,005 3,109,046 $ 3,698,824 |
7. STOCK PURCHASE OPTIONS AND_2
7. STOCK PURCHASE OPTIONS AND WARRANTS (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of options activity | Date Issued Number of Options Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance June 30, 2019 500,000 $ 0.05 $ 0.17 3.00 $ 25,000 Granted - - - - - Exercised - - - - - Cancelled/Expired - - - - - Outstanding as of December 31, 2019 500,000 $ 0.05 $ 0.16 2.50 $ 25,000 |
Schedule of assumptions used to estimate fair value | December 31,2019 Expected volatility 153.09-341% Expected dividends 0% Expected term 0-5 Years Risk-free interest rate 1.48-1.74% |
Schedule of warrants | Number of Warrants Weighted Average Exercise Price Weighted Average Grant Date Fair Value Expiration Date (yrs) Value if Exercised Balance as of June 30, 2019 41,900,718 $ 0.15 $ 0.36 3.43 $ 6,308,991 Granted 130,386,969 0.03 0.01 4.99 3,777,417 Exercised - - - - - Cancelled/Expired (4,079,466 ) 0.27 - - (1,107,150 ) Outstanding as of December 31, 2019 168,208,221 $ 0.05 $ 0.09 4.40 $ 8,979,258 |
8. FINANCIAL INSTRUMENTS (Table
8. FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule or fair value measurements | Financial instruments measured at fair value on a recurring basis at December 31, 2019, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ 7,033,544 $ 7,033,544 Liabilities measured at fair value on a recurring basis at June 30, 2019, are summarized as follows: Level 1 Level 2 Level 3 Total Fair value of derivatives $ - $ - $ 5,009,094 $ 5,009,094 Series H Preferred Stock $ - $ 198,116 $ - $ 198,116 |
9. COMMITMENTS AND CONTINGENC_2
9. COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Supplemental lease information | Supplemental cash flow information related to operating leases: Six Months Ended December 31, 2019 Operating cash paid to settle lease liabilities $ 38,378 Right of use asset additions in exchange for lease liabilities 154,541 Supplemental balance sheet information related to operating leases: December 31, Balance Sheet Location 2019 Right of use assets Other noncurrent assets $ 112,268 Lease payable Current liabilities $ 83,657 Lease payable Long-term liabilities 32,506 Total lease payable $ 116,163 December 31, 2019 Weighted average remaining lease term (in years) 1.33 Weighted average discount rate 12.15 % |
Annual operating lease obligations | Year Lease Payments 2020 $ 46,505 2021 79,012 2022 - 2023 - 2024 - Total $ 125,518 |
2. GOING CONCERN (Details Narra
2. GOING CONCERN (Details Narrative) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Going Concern | ||
Accumulated deficit | $ (89,201,278) | $ (85,859,489) |
Working capital | $ (16,554,457) |
3. SUMMARY OF SIGNIFICANT ACC_3
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||||
Preferred stock accretion and dividends | $ (56,367) | $ (56,367) | $ (112,734) | $ (112,734) |
Potentially dilutive common shares excluded | 3,525,005,256 | 234,671,382 | 3,525,005,256 | 234,671,382 |
4. NOTES PAYABLE (Details)
4. NOTES PAYABLE (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Total convertible notes payable - related parties | $ 119,500 | $ 119,500 |
Less current portion | 119,500 | 119,500 |
Convertible related party notes payable, net of current portion | 0 | 0 |
Convertible Notes Payable One | ||
Total convertible notes payable - related parties | 30,000 | 30,000 |
Convertible Notes Payable Two | ||
Total convertible notes payable - related parties | $ 89,500 | $ 89,500 |
4. NOTES PAYABLE (Details 1)
4. NOTES PAYABLE (Details 1) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Total convertible notes payable - non-related parties | $ 5,202,648 | $ 4,443,837 |
Less current portion | 5,202,648 | 4,443,837 |
Convertible notes payable - non-related parties, long-term | 0 | 0 |
Convertible Notes Payable One | ||
Total convertible notes payable - non-related parties | 1,844,000 | 2,049,000 |
Convertible Notes Payable Two | ||
Total convertible notes payable - non-related parties | 180,943 | 186,597 |
Convertible Notes Payable Three | ||
Total convertible notes payable - non-related parties | 85,594 | 104,845 |
Convertible Notes Payable Four | ||
Total convertible notes payable - non-related parties | 59,000 | 59,000 |
Convertible Notes Payable Five | ||
Total convertible notes payable - non-related parties | 115,000 | 115,000 |
Convertible Notes Payable Six | ||
Total convertible notes payable - non-related parties | 115,000 | 115,000 |
Convertible Notes Payable Seven | ||
Total convertible notes payable - non-related parties | 160,000 | 160,000 |
Convertible Notes Payable Eight | ||
Total convertible notes payable - non-related parties | 191,802 | 191,802 |
Convertible Notes Payable Nine | ||
Total convertible notes payable - non-related parties | 268,137 | 268,137 |
Convertible Notes Payable Ten | ||
Total convertible notes payable - non-related parties | 15,651 | 15,651 |
Convertible Notes Payable Eleven | ||
Total convertible notes payable - non-related parties | 120,000 | 120,000 |
Convertible Notes Payable Twelve | ||
Total convertible notes payable - non-related parties | 39,759 | 39,759 |
Convertible Notes Payable Thirteen | ||
Total convertible notes payable - non-related parties | 0 | 19,786 |
Convertible Notes Payable Fourteen | ||
Total convertible notes payable - non-related parties | 1,198,975 | 838,053 |
Convertible Notes Payable Fifteen | ||
Total convertible notes payable - non-related parties | 60,300 | 57,852 |
Convertible Notes Payable Sixteen | ||
Total convertible notes payable - non-related parties | 94,563 | 23,101 |
Convertible Notes Payable Seventeen | ||
Total convertible notes payable - non-related parties | 223,442 | 53,156 |
Convertible Notes Payable Eighteen | ||
Total convertible notes payable - non-related parties | 96,985 | 19,565 |
Convertible Notes Payable Nineteen | ||
Total convertible notes payable - non-related parties | 70,497 | 7,533 |
Convertible Notes Payable Twenty | ||
Total convertible notes payable - non-related parties | $ 263,000 | $ 0 |
4. NOTES PAYABLE (Details 2)
4. NOTES PAYABLE (Details 2) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Notes payable - related parties | $ 274,000 | $ 230,000 |
Less current portion | 274,000 | 230,000 |
Notes payable - related parties, long term | 0 | 0 |
Convertible Notes Payable One | ||
Notes payable - related parties | 5,000 | 5,000 |
Convertible Notes Payable Two | ||
Notes payable - related parties | 213,000 | 213,000 |
Convertible Notes Payable Three | ||
Notes payable - related parties | $ 56,000 | $ 12,000 |
4. NOTES PAYABLE (Details 3)
4. NOTES PAYABLE (Details 3) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Note payable - non-related parties | $ 1,691,407 | $ 1,053,758 |
Less current portion | 1,691,407 | 1,053,758 |
Notes payable - non-related parties, long-term | 0 | 0 |
Convertible Notes Payable One | ||
Note payable - non-related parties | 155,814 | 209,758 |
Convertible Notes Payable Two | ||
Note payable - non-related parties | 119,966 | 102,000 |
Convertible Notes Payable Three | ||
Note payable - non-related parties | 0 | 107,000 |
Convertible Notes Payable Four | ||
Note payable - non-related parties | 0 | 225,000 |
Convertible Notes Payable Five | ||
Note payable - non-related parties | 0 | 250,000 |
Convertible Notes Payable Six | ||
Note payable - non-related parties | 0 | 160,000 |
Convertible Notes Payable Seven | ||
Note payable - non-related parties | 900,204 | 0 |
Convertible Notes Payable Eight | ||
Note payable - non-related parties | 90,445 | 0 |
Convertible Notes Payable Nine | ||
Note payable - non-related parties | $ 424,978 | $ 0 |
5. CONVERTIBLE PREFERRED STOC_2
5. CONVERTIBLE PREFERRED STOCK (Details) | Dec. 31, 2019USD ($)shares |
Convertible preferred stock, authorized shares | 6,325,005 |
Convertible preferred stock, outstanding shares | 3,109,046 |
Convertible preferred stock, liquidation preference | $ | $ 3,698,824 |
Series A Convertible Preferred stock | |
Convertible preferred stock, authorized shares | 100,000 |
Convertible preferred stock, outstanding shares | 15,500 |
Convertible preferred stock, liquidation preference | $ | $ 0 |
Series A-1 Convertible Preferred stock | |
Convertible preferred stock, authorized shares | 3,000,000 |
Convertible preferred stock, outstanding shares | 2,585,000 |
Convertible preferred stock, liquidation preference | $ | $ 3,663,824 |
Series B Convertible Preferred stock | |
Convertible preferred stock, authorized shares | 200,000 |
Convertible preferred stock, outstanding shares | 3,500 |
Convertible preferred stock, liquidation preference | $ | $ 35,000 |
Series C Convertible Preferred stock | |
Convertible preferred stock, authorized shares | 1,000,000 |
Convertible preferred stock, outstanding shares | 13,404 |
Convertible preferred stock, liquidation preference | $ | $ 0 |
Series D Convertible Preferred stock | |
Convertible preferred stock, authorized shares | 375,000 |
Convertible preferred stock, outstanding shares | 130,000 |
Convertible preferred stock, liquidation preference | $ | $ 0 |
Series E Convertible Preferred stock | |
Convertible preferred stock, authorized shares | 1,000,000 |
Convertible preferred stock, outstanding shares | 275,000 |
Convertible preferred stock, liquidation preference | $ | $ 0 |
Series H Convertible Preferred stock | |
Convertible preferred stock, authorized shares | 5 |
Convertible preferred stock, outstanding shares | 2 |
Convertible preferred stock, liquidation preference | $ | $ 0 |
Series P Convertible Preferred stock | |
Convertible preferred stock, authorized shares | 600,000 |
Convertible preferred stock, outstanding shares | 86,640 |
Convertible preferred stock, liquidation preference | $ | $ 0 |
Series S Convertible Preferred stock | |
Convertible preferred stock, authorized shares | 50,000 |
Convertible preferred stock, outstanding shares | 0 |
Convertible preferred stock, liquidation preference | $ | $ 0 |
5. CONVERTIBLE PREFERRED STOC_3
5. CONVERTIBLE PREFERRED STOCK (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | ||||
Dividends on preferred stock | $ 56,367 | $ 56,367 | $ 56,367 | $ 56,367 |
Dividends in arrears | $ 1,417,468 | $ 1,417,468 |
6. COMMON STOCK (Details Narrat
6. COMMON STOCK (Details Narrative) - $ / shares | Dec. 31, 2019 | Jun. 30, 2019 |
Equity [Abstract] | ||
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, authorized shares | 513,407,666 | 513,407,666 |
Common stock, issued shares | 383,919,057 | 275,622,995 |
Common stock, outstanding shares | 383,919,057 | 275,622,995 |
7. STOCK PURCHASE OPTIONS AND_3
7. STOCK PURCHASE OPTIONS AND WARRANTS (Details) | 6 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Number of options/warrants outstanding, beginning | shares | 500,000 |
Number of warrants granted | shares | 0 |
Number of warrants exercised | shares | 0 |
Number of warrants canceled/expired | shares | 0 |
Number of options/warrants outstanding, ending | shares | 500,000 |
Weighted average exercise price outstanding, beginning | $ .05 |
Weighted average exercise price granted | .00 |
Weighted average exercise price exercised | .00 |
Weighted average exercise price canceled/expired | .00 |
Weighted average exercise price outstanding, ending | .05 |
Weighted average grant date fair value outstanding, beginning | .17 |
Weighted average grant date fair value granted | .00 |
Weighted average grant date fair value exercised | .00 |
Weighted average grant date fair value canceled/expired | .00 |
Weighted average grant date fair value outstanding, ending | $ .17 |
Expiration date outstanding, beginning | 3 years |
Expiration date outstanding, ending | 2 years 6 months |
Value if exercised, beginning | $ | $ 25,000 |
Value if exercised granted | $ | 0 |
Value if exercised exercised | $ | 0 |
Value if exercised canceled/expired | $ | 0 |
Value if exercised, ending | $ | $ 25,000 |
7. STOCK PURCHASE OPTIONS AND_4
7. STOCK PURCHASE OPTIONS AND WARRANTS (Details 1) | 6 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Expected volatility, minimum | 153.09% |
Expected volatility, maximum | 341.00% |
Expected dividends | 0.00% |
Expected term, minimum | 0 years |
Expected term, maximum | 5 years |
Risk-free interest rate, minimum | 1.48% |
Risk-free interest rate, maximum | 1.74% |
7. STOCK PURCHASE OPTIONS AND_5
7. STOCK PURCHASE OPTIONS AND WARRANTS (Details 2) | 6 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of options/warrants outstanding, beginning | shares | 500,000 |
Number of warrants granted | shares | 0 |
Number of warrants exercised | shares | 0 |
Number of warrants canceled/expired | shares | 0 |
Number of options/warrants outstanding, ending | shares | 500,000 |
Weighted average exercise price outstanding, beginning | $ .05 |
Weighted average exercise price granted | .00 |
Weighted average exercise price exercised | .00 |
Weighted average exercise price canceled/expired | .00 |
Weighted average exercise price outstanding, ending | .05 |
Weighted average grant date fair value outstanding, beginning | .17 |
Weighted average grant date fair value granted | .00 |
Weighted average grant date fair value exercised | .00 |
Weighted average grant date fair value canceled/expired | .00 |
Weighted average grant date fair value outstanding, ending | $ .17 |
Expiration date outstanding, beginning | 3 years |
Expiration date outstanding, ending | 2 years 6 months |
Value if exercised, beginning | $ | $ 25,000 |
Value if exercised granted | $ | 0 |
Value if exercised exercised | $ | 0 |
Value if exercised canceled/expired | $ | 0 |
Value if exercised, ending | $ | $ 25,000 |
Stock Options | |
Number of options/warrants outstanding, beginning | shares | 41,900,718 |
Number of warrants granted | shares | 130,386,969 |
Number of warrants exercised | shares | 0 |
Number of warrants canceled/expired | shares | (4,079,466) |
Number of options/warrants outstanding, ending | shares | 168,208,221 |
Weighted average exercise price outstanding, beginning | $ .15 |
Weighted average exercise price granted | .03 |
Weighted average exercise price exercised | .00 |
Weighted average exercise price canceled/expired | .27 |
Weighted average exercise price outstanding, ending | .05 |
Weighted average grant date fair value outstanding, beginning | .36 |
Weighted average grant date fair value granted | .01 |
Weighted average grant date fair value exercised | .00 |
Weighted average grant date fair value canceled/expired | .00 |
Weighted average grant date fair value outstanding, ending | $ .09 |
Expiration date outstanding, beginning | 3 years 5 months 5 days |
Expiration date granted | 4 years 11 months 26 days |
Expiration date outstanding, ending | 4 years 4 months 24 days |
Value if exercised, beginning | $ | $ 6,308,991 |
Value if exercised granted | $ | 3,777,417 |
Value if exercised exercised | $ | 0 |
Value if exercised canceled/expired | $ | (1,107,150) |
Value if exercised, ending | $ | $ 8,979,258 |
7. STOCK PURCHASE OPTIONS AND_6
7. STOCK PURCHASE OPTIONS AND WARRANTS (Details Narrative) - shares | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | ||
Stock purchase options issued | 0 | 0 |
8. FINANCIAL INSTRUMENTS (Detai
8. FINANCIAL INSTRUMENTS (Details) - USD ($) | Dec. 31, 2019 | Jun. 30, 2019 |
Fair value of derivatives | $ 7,033,544 | $ 5,009,094 |
Series H preferred stock | 198,116 | |
Level 1 | ||
Fair value of derivatives | 0 | 0 |
Series H preferred stock | 0 | |
Level 2 | ||
Fair value of derivatives | 0 | 0 |
Series H preferred stock | 198,116 | |
Level 3 | ||
Fair value of derivatives | $ 7,033,544 | 5,009,094 |
Series H preferred stock | $ 0 |
8. FINANCIAL INSTRUMENTS (Det_2
8. FINANCIAL INSTRUMENTS (Details Narrative) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |||||
Derivative expense | $ 475,762 | $ 312,256 | $ 547,121 | $ 1,355,346 | |
Gain (loss) from derivative instruments | 359,896 | $ (17,475) | 35,204 | $ 594,737 | |
Fair market value of the derivatives | $ 7,033,544 | $ 7,033,544 | $ 5,009,094 |
9. COMMITMENTS AND CONTINGENC_3
9. COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 6 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Operating cash paid to settle lease liabilities | $ 38,378 | ||
Right of use asset additions in exchange for lease liabilities | 154,541 | $ 0 | |
Right of use assets | 112,268 | $ 0 | |
Lease payable, current | 83,657 | 0 | |
Lease payable, noncurrent | 32,506 | $ 0 | |
Total lease payable | $ 116,163 | ||
Weighted average remaining lease term (in years) | 1 year 3 months 29 days | ||
Weighted average discount rate | 12.15% |
9. COMMITMENTS AND CONTINGENC_4
9. COMMITMENTS AND CONTINGENCIES (Details 1) | Dec. 31, 2019USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 46,505 |
2021 | 79,012 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
Total | $ 125,518 |