Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2022 | May 17, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2022 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2022 | |
Current Fiscal Year End Date | --06-30 | |
Entity File Number | 000-23446 | |
Entity Registrant Name | SUGARMADE, INC. | |
Entity Central Index Key | 0000919175 | |
Entity Tax Identification Number | 94-3008888 | |
Entity Incorporation, State or Country Code | DE | |
Entity Address, Address Line One | 750 Royal Oaks Dr. | |
Entity Address, Address Line Two | Suite 108 | |
Entity Address, City or Town | Monrovia | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 91016 | |
City Area Code | (888) | |
Local Phone Number | 982-1628 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,241,280,793 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Current assets: | ||
Cash | $ 148,236 | $ 1,396,944 |
Accounts receivable, net | 652,526 | 435,598 |
Inventory, net | 527,212 | 441,582 |
Loan receivables, current | 196,000 | 0 |
Trading securities, at market value | 1,451,922 | |
Other current assets | 253,155 | 182,457 |
Right of use asset, current | 250,032 | 243,406 |
Total current assets | 2,027,161 | 4,151,909 |
Non-current assets: | ||
Property, plant and equipment, net | 3,790,462 | 2,749,340 |
Intangible asset, net | 10,155,441 | 10,650,394 |
Goodwill | 757,648 | 757,648 |
Loan receivables, noncurrent | 0 | 196,000 |
Right of use asset, noncurrent | 299,229 | 486,253 |
Equity method investments in affiliates | 372,330 | 441,407 |
Total noncurrent assets | 15,375,110 | 15,281,042 |
Total assets | 17,402,271 | 19,432,951 |
Current liabilities: | ||
Note payable due to bank | 25,982 | 25,982 |
Accounts payable and accrued liabilities | 2,589,383 | 2,058,839 |
Customer deposits | 905,093 | 751,919 |
Customer overpayment | 69,372 | 59,953 |
Other payables | 549,856 | 750,485 |
Accrued interest | 679,776 | 509,997 |
Accrued compensation and personnel related payables | 15,471 | |
Notes payable - current | 20,000 | 33,047 |
Notes payable - related parties, current | 15,427 | |
Lease liability - current | 265,335 | 239,521 |
Loans payable - current | 874,962 | 392,605 |
Loan payable - related parties, current | 208,915 | 163,831 |
Convertible notes payable, net, current | 1,006,362 | 1,421,694 |
Derivative liabilities, net | 5,425,741 | 2,217,361 |
Warrants liabilities | 4,289 | 21,042 |
Shares to be issued | 275,827 | 138,077 |
Total current liabilities | 12,900,893 | 8,815,251 |
Non-current liabilities: | ||
Loans payable, noncurrent | 830,788 | 308,588 |
Note payable, noncurrent | 4,885,483 | 4,997,323 |
Convertible notes payable, net, non-current | 428,818 | 17,422 |
Lease liability | 325,781 | 524,149 |
Total noncurrent liabilities | 6,470,870 | 5,847,482 |
Total liabilities | 19,371,763 | 14,662,733 |
Stockholders’ equity (deficiency): | ||
Common stock, $0.001 par value, 20,000,000,000 shares authorized, 10,172,993,267 and 7,402,535,677 shares issued and outstanding at March 31, 2022 and June 30, 2021, respectively | 10,172,992 | 7,402,536 |
Additional paid-in capital | 72,119,269 | 64,841,654 |
Share to be issued, preferred stock | 5,600,000 | |
Subscription receivable | (500,000) | |
Share to be issued, common stock | 40,008 | 1,889,608 |
Accumulated deficit | (83,745,587) | (74,364,466) |
Total stockholders’ equity (deficiency) | (1,410,776) | 4,869,874 |
Non-controlling Interest | (558,716) | (99,656) |
Total stockholders’ equity (deficiency) | (1,969,492) | 4,770,218 |
Total liabilities and stockholders’ equity (deficiency) | 17,402,271 | 19,432,951 |
Series A Preferred Stock [Member] | ||
Stockholders’ equity (deficiency): | ||
Preferred stock, value | ||
Series B Preferred Stock [Member] | ||
Stockholders’ equity (deficiency): | ||
Preferred stock, value | 2,542 | 542 |
Series C Preferred Stock [Member] | ||
Stockholders’ equity (deficiency): | ||
Preferred stock, value |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2022 | Jun. 30, 2021 |
Preferred stock, par value | $ 0.001 | |
Preferred stock, shares authorized | 10,000,000 | |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000,000 | 20,000,000,000 |
Common stock shares issued | 10,172,993,267 | 7,402,535,677 |
Common stock shares outstanding | 10,172,993,267 | 7,402,535,677 |
Series A Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 7,000,000 | 7,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Series B Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 2,999,999 | 2,999,999 |
Preferred stock, shares issued | 2,541,500 | 541,500 |
Preferred stock, shares outstanding | 2,541,500 | 541,500 |
Series C Preferred Stock [Member] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1 | 1 |
Preferred stock, shares issued | 1 | 1 |
Preferred stock, shares outstanding | 1 | 1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | ||
Income Statement [Abstract] | |||||
Revenues, net | $ 1,285,300 | $ 404,843 | $ 3,689,906 | $ 2,851,822 | |
Cost of goods sold | 495,217 | 229,818 | 1,344,029 | 1,502,247 | |
Gross profit | 790,083 | 175,025 | 2,345,877 | 1,349,575 | |
Selling, general and administrative expenses | 602,717 | 300,188 | 1,899,601 | 1,446,038 | |
Advertising and promotion expense | 336,824 | 99,481 | 1,395,938 | 378,068 | |
Marketing and research expense | 53,805 | 48,324 | 126,210 | 364,580 | |
Professional expense | 258,880 | 137,399 | 759,630 | 756,444 | |
Salaries and wages | 455,864 | 174,634 | 1,396,026 | 368,616 | |
Stock compensation expense | 463,750 | 16,250 | 587,750 | 82,250 | |
Total operating expenses | 2,171,840 | 776,276 | 6,165,155 | 3,395,996 | |
Loss from operations | (1,381,757) | (601,251) | (3,819,278) | (2,046,421) | |
Non-operating income (expense): | |||||
Other income | 16,643 | 1,957 | 19,535 | 5,099 | |
Gain in loss of control of VIE | 313,928 | ||||
Interest expense | (280,737) | (725,688) | (1,531,965) | (1,920,660) | |
Bad debts | (235) | (256) | (242) | (133,235) | |
Change in fair value of derivative liabilities | (2,788,496) | (3,485,549) | (2,853,569) | 506,559 | |
Warrant income (expense) | 2,116 | (14,694) | 16,753 | 55,695 | |
Loss on settlement | (80,000) | ||||
Loss on asset disposal | (4,767) | (4,795) | |||
Amortization of debt discount | (125,812) | (759,219) | (282,463) | (2,605,144) | |
Amortization of intangible assets | (492,937) | (494,954) | |||
Other expenses | (1,459) | (55,054) | |||
Unrealized gain on securities | (12,153) | (870,132) | |||
Total non-operating expenses, net | (3,686,378) | (4,984,908) | (6,001,832) | (3,912,812) | |
Equity method investment loss | (8,330) | (69,077) | (2,114) | ||
Net loss | (5,076,465) | (5,586,159) | (9,890,187) | (5,961,347) | |
Less: net loss attributable to the non-controlling interest | (147,548) | (48,756) | (509,067) | (48,756) | |
Net loss attributable to SugarMade Inc. | $ (4,928,917) | $ (5,537,403) | $ (9,381,120) | $ (5,912,591) | |
Basic net loss per share | $ 0 | $ 0 | $ 0 | $ 0 | |
Diluted net loss per share | $ 0 | $ 0 | $ 0 | $ 0 | |
Basic and diluted weighted average common shares outstanding | [1] | 9,200,365,590 | 4,121,621,837 | 8,855,737,902 | 3,247,070,176 |
[1] | Shares issuable upon conversion of convertible debt and exercising of warrants were excluded in calculating diluted loss per share. |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Equity (Unaudited) - USD ($) | Total | Preferred Stock [Member]Series A Preferred Stock [Member] | Preferred Stock [Member]Series B Preferred Stock [Member] | Preferred Stock [Member]Series C Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Share To Be Issued Common Shares [Member] | Shares To Be Cancelled Preferred Shares [Member] | Subscription Receivable Cs [Member] | Common Shares Subscribed [Member] | Common Shares Subscribed One [Member] | Retained Earnings [Member] | Noncontrolling Interest [Member] |
Balance at Jun. 30, 2020 | $ (9,138,871) | $ 2,000 | $ 1,542 | $ 1,763,278 | $ 57,307,767 | $ 236,008 | $ (68,438,332) | $ (11,136) | |||||
Balance, shares at Jun. 30, 2020 | 2,000,000 | 1,541,500 | 1,763,277,230 | ||||||||||
Reclass derivative liability to equity from conversion | 1,805,188 | 1,805,188 | |||||||||||
Shares issued for conversions | 1,273,459 | $ 1,081,412 | 192,048 | ||||||||||
Shares issued for conversions, shares | 1,081,411,606 | ||||||||||||
Repayment of capital to noncontrolling minority | (24,000) | (24,000) | |||||||||||
Net loss | 1,279,976 | 1,278,812 | 1,165 | ||||||||||
Balance at Sep. 30, 2020 | (4,804,248) | $ 2,000 | $ 1,542 | $ 2,844,690 | 59,305,003 | 236,008 | (67,159,519) | (33,971) | |||||
Balance, shares at Sep. 30, 2020 | 2,000,000 | 1,541,500 | 2,844,688,836 | ||||||||||
Balance at Jun. 30, 2020 | (9,138,871) | $ 2,000 | $ 1,542 | $ 1,763,278 | 57,307,767 | 236,008 | (68,438,332) | (11,136) | |||||
Balance, shares at Jun. 30, 2020 | 2,000,000 | 1,541,500 | 1,763,277,230 | ||||||||||
Net loss | (5,961,347) | ||||||||||||
Balance at Mar. 31, 2021 | (6,243,495) | $ 1,542 | $ 4,718,105 | 63,095,927 | (1) | 236,008 | (74,350,923) | 53,847 | |||||
Balance, shares at Mar. 31, 2021 | 1,541,500 | 4,718,104,197 | |||||||||||
Balance at Sep. 30, 2020 | (4,804,248) | $ 2,000 | $ 1,542 | $ 2,844,690 | 59,305,003 | 236,008 | (67,159,519) | (33,971) | |||||
Balance, shares at Sep. 30, 2020 | 2,000,000 | 1,541,500 | 2,844,688,836 | ||||||||||
Reclass derivative liability to equity from conversion | 531,591 | 531,591 | |||||||||||
Shares issued for conversions | 320,879 | $ 411,172 | (90,293) | ||||||||||
Shares issued for conversions, shares | 411,171,815 | ||||||||||||
Preferred stock conversions | 502,000 | $ (2,000) | $ 360,647 | 141,353 | |||||||||
Preferred stock conversions, shares | (2,000,000) | 360,647,019 | |||||||||||
Reclassification due to deconsolidation of VIE | (132,895) | (169,262) | 2,396 | 33,971 | |||||||||
Net loss | (1,656,397) | (1,656,397) | |||||||||||
Balance at Dec. 31, 2020 | (5,239,070) | $ 1,542 | $ 3,616,509 | 59,718,392 | 236,008 | (68,813,520) | |||||||
Balance, shares at Dec. 31, 2020 | 1,541,500 | 3,616,507,670 | |||||||||||
Reclass derivative liability to equity from conversion | 3,025,875 | 3,025,875 | |||||||||||
Shares issued for conversions | 403,755 | $ 499,374 | (95,619) | ||||||||||
Shares issued for conversions, shares | 499,374,305 | ||||||||||||
Shares issued for services | 37,500 | $ 15,000 | 22,500 | ||||||||||
Shares issued for services, shares | 15,000,000 | ||||||||||||
Contributions from non-controlling interests in other consolidated subsidiaries | 102,603 | 102,603 | |||||||||||
Shares issued to officer | 1 | (1) | |||||||||||
Net loss | (5,586,159) | (5,537,403) | (48,756) | ||||||||||
Shares issued for cash | 1,012,000 | $ 587,222 | 424,778 | ||||||||||
Shares issued for cash, shares | 587,222,222 | ||||||||||||
Balance at Mar. 31, 2021 | (6,243,495) | $ 1,542 | $ 4,718,105 | 63,095,927 | (1) | 236,008 | (74,350,923) | 53,847 | |||||
Balance, shares at Mar. 31, 2021 | 1,541,500 | 4,718,104,197 | |||||||||||
Balance at Jun. 30, 2021 | 4,770,218 | $ 542 | $ 7,402,536 | 64,841,655 | 5,600,000 | (500,000) | 1,889,608 | (74,364,466) | (99,656) | ||||
Balance, shares at Jun. 30, 2021 | 541,500 | 1 | 7,402,535,677 | ||||||||||
Reclass derivative liability to equity from conversion | 576,214 | 576,214 | |||||||||||
Shares issued for conversions | 385,266 | $ 375,600 | 9,665 | ||||||||||
Shares issued for conversions, shares | 375,600,448 | ||||||||||||
Shares issued for acquisition | $ 2,000 | $ 660,571 | 6,787,029 | (5,600,000) | (1,849,600) | ||||||||
Shares issued for acquisition, shares | 2,000,000 | 660,571,429 | |||||||||||
Shares issued for subscription receivable - common stock | 500,000 | 500,000 | |||||||||||
Net loss | (1,902,718) | (1,595,367) | (307,351) | ||||||||||
Balance at Sep. 30, 2021 | 4,328,979 | $ 2,542 | $ 8,438,707 | 72,214,564 | 40,008 | (75,959,833) | (407,007) | ||||||
Balance, shares at Sep. 30, 2021 | 2,541,500 | 1 | 8,438,707,554 | ||||||||||
Balance at Jun. 30, 2021 | 4,770,218 | $ 542 | $ 7,402,536 | 64,841,655 | 5,600,000 | (500,000) | 1,889,608 | (74,364,466) | (99,656) | ||||
Balance, shares at Jun. 30, 2021 | 541,500 | 1 | 7,402,535,677 | ||||||||||
Net loss | (9,890,187) | ||||||||||||
Balance at Mar. 31, 2022 | (1,969,492) | $ 2,542 | $ 10,172,993 | 72,119,269 | 40,008 | (83,745,585) | (558,716) | ||||||
Balance, shares at Mar. 31, 2022 | 2,541,500 | 1 | 10,172,993,267 | ||||||||||
Balance at Sep. 30, 2021 | 4,328,979 | $ 2,542 | $ 8,438,707 | 72,214,564 | 40,008 | (75,959,833) | (407,007) | ||||||
Balance, shares at Sep. 30, 2021 | 2,541,500 | 1 | 8,438,707,554 | ||||||||||
Reclass derivative liability to equity from conversion | 192,857 | 192,857 | |||||||||||
Shares issued for conversions | 150,000 | $ 214,286 | (64,286) | ||||||||||
Shares issued for conversions, shares | 214,285,714 | ||||||||||||
Net loss | (2,911,002) | (2,856,834) | (54,168) | ||||||||||
Shares issued for cash | 444,000 | $ 370,000 | 74,000 | ||||||||||
Shares issued for cash, shares | 369,999,999 | ||||||||||||
Repayment of Capital | (50,007) | 50,007 | |||||||||||
Balance at Dec. 31, 2021 | 2,204,834 | $ 2,542 | $ 9,022,993 | 72,367,128 | 40,008 | (78,816,668) | (411,168) | ||||||
Balance, shares at Dec. 31, 2021 | 2,541,500 | 1 | 9,022,993,267 | ||||||||||
Reclass derivative liability to equity from conversion | 445,000 | 445,000 | |||||||||||
Shares issued for conversions | 275,747 | $ 850,000 | (574,253) | ||||||||||
Shares issued for conversions, shares | 850,000,000 | ||||||||||||
Net loss | (5,076,465) | (4,928,917) | (147,548) | ||||||||||
Shares issued for commitment | 181,394 | $ 300,000 | (118,606) | ||||||||||
Shares issued for commitment, shares | 300,000,000 | ||||||||||||
Balance at Mar. 31, 2022 | $ (1,969,492) | $ 2,542 | $ 10,172,993 | $ 72,119,269 | $ 40,008 | $ (83,745,585) | $ (558,716) | ||||||
Balance, shares at Mar. 31, 2022 | 2,541,500 | 1 | 10,172,993,267 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (9,381,120) | $ (5,912,591) |
Net loss attributable to the non-controlling interest | (509,067) | (48,756) |
Adjustments to reconcile net loss to cash flows from operating activities: | ||
Excess derivative expense | 1,318,217 | 974,052 |
Loss on settlement | 80,000 | |
Loss on asset disposal | 4,795 | |
Gain on loss of control of VIE | (313,928) | |
Return on EB5 investment | 500,000 | |
Amortization of debt discount | 282,463 | 2,605,144 |
Stock-based compensation | 587,750 | 72,500 |
Change in fair value of derivative liability | 2,853,569 | (506,559) |
Change in exercise of warrant | (16,753) | (55,694) |
Depreciation | 157,359 | 70,650 |
Amortization of intangible assets | 494,953 | 1,022 |
Bad debt | 242 | 133,235 |
Equity method investment loss | 69,077 | |
Unrealized loss on securities | 870,132 | |
Changes in assets and liabilities: | ||
Accounts receivable | (217,170) | (73,758) |
Intangible assets | (5,800) | |
Inventory | (90,425) | (157,858) |
Prepayment, deposits and other receivables | (70,698) | (959,214) |
Other assets | 54,163 | |
Other payables | (216,100) | 266,876 |
Accounts payable and accrued liabilities | 530,544 | 807,064 |
Customer deposits | 162,593 | 199,224 |
Unearned revenue | (43,869) | |
Right of use assets | 180,397 | 175,215 |
Lease liability | (172,554) | (173,871) |
Investment to Indigo Dye | (564,818) | |
Interest payable | 106,961 | 132,220 |
Net cash used in operating activities | (3,054,834) | (2,647,840) |
Cash flows from investing activities: | ||
Purchase of fixed assets | (1,198,481) | (55,810) |
Net cash used in investing activities | (1,198,481) | (55,810) |
Cash flows from financing activities: | ||
Proceeds from shares issuance | 430,680 | 1,012,000 |
Loan receivable | 1,365 | |
Loan receivable - related parties | (170,887) | |
Repayment to notes payable, net | (124,887) | |
Proceeds repayment to note payable - related parties, net | (15,427) | |
Proceeds from advanced shares issuance | 500,000 | |
Proceeds from loans payable, net | 1,004,556 | 268,156 |
Proceeds from loans payable - related parties, net | 626,876 | 202,207 |
Proceeds from convertible notes | 582,810 | 1,874,200 |
Repayment of convertible notes | (327,700) | |
Reduction of cash due to Indigo deconsolidation | (326,811) | |
Net cash provided by financing activities | 3,004,608 | 2,532,530 |
Net decrease in cash | (1,248,708) | (171,120) |
Cash paid during the period for: | ||
Cash, beginning of period | 1,396,944 | 441,004 |
Cash, end of period | 148,236 | 269,885 |
Cash paid interest | ||
Supplemental disclosure of non-cash financing activities — | ||
Shares issued for conversion of convertible debt | 811,016 | 1,998,095 |
Reduction in derivative liability due to conversion | 1,214,072 | 5,362,654 |
Debt discount related to convertible debt | 667,698 | 2,080,016 |
Shares issued for commitment | $ 300,000 |
Nature of Business
Nature of Business | 9 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of Business | 1. Nature of Business Sugarmade, Inc. (hereinafter referred to as “we”, “us” or the “Company”) was originally incorporated on June 5, 1986 in California as Lab, Inc., and later that month, on June 24, 1986 changed its name to Software Professionals, Inc. On May 21, 1996, the Company changed its name to Enlighten Software Solutions, Inc. On June 20, 2007, Enlighten Software Solutions, Inc. was incorporated in Delaware for the purpose of merging with Enlighten Softwear Solutions, Inc. a California corporation so as to effect a redomicile to Delaware. On January 24, 2008, the Company changed its name to Diversified Opportunities, Inc. On May 9, 2011 we closed on a Share Exchange Agreement with Sugarmade, Inc., a California corporation founded in 2010, and on June 24, 2011 changed our name to Sugarmade, Inc. On October 24, 2014 we acquired SWC Group, Inc., a California corporation doing business as, CarryOutSupplies.com (“Carry Out Supplies”). Our Company operates much of its business activities through our subsidiaries, SWC Group, Inc., a California corporation (“SWC’’), NUG Avenue, Inc., a California corporation and 70 Shares of our common stock are quoted on the OTC Pink tier of OTC Markets. Our trading symbol is “SGMD”. Our corporate website is www.sugarmade.com. As of the date of this filing, we are involved in several business sectors and business ventures: Paper and paper-based products: NUG Avenue investment into licensed cannabis delivery in Los Angeles area markets. 70 % of NUG Avenue’s Lynwood Operations and holds first rights of refusal on NUG Avenue’s business expansion relative to the cannabis marketplace. By way of our capital injection made into NUG Avenue and via our 70% ownership position, we consolidate and recognize 100% of the revenues and 70% of profits or loss generated by NUG Avenue for its Lynwood Operations. We believe our investment in NUG Avenue will allow us to expand our presence into the licensed and regulated cannabis marketplace. We believe the California cannabis market is still one of the largest Market currently. According to the California Department of Tax and Fee Administration, the total cannabis tax revenue from fourth-quarter of calendar year 2021 return is $ 308.56 157.37 38.98 112.21 7.5 1 Cannabis products delivery service and sales: 505,449 estimated fair value and changed to equity method of accounting. Pursuant to the terms of the Indigo agreement, if the Company determines, in its discretion not to continue to make monthly payments, its 40 % ownership interest in Indigo will be decreased according to the payment then made. As of December 31, 2020, the Company made $ 59,370 additional payments, and held approximately 32 % of the ownership of Indigo. As of March 31, 2022, the Company recorded equity method investment in affiliates at $ 372,330 , net with $ 69,077 loss from equity method investment. Selected cannabis and hemp projects: On October 28, 2021, Lemon Glow obtained a conditional Use Permit (UP) number from the Community Development Department of the County of Lake, California, which the Company believes is an important step towards the conditional UP for commercial cannabis cultivation at its property. The issuance of the conditional UP number by the County of Lake allows the Company to proceed with the state cannabis cultivation license application, and potentially obtain certain applicable permits, such as from the Department of Cannabis Control, Department of Food and Agriculture, Department of Pesticide Regulation, Department of Fish and Wildlife, The State Water Resources Control Board, Board of Forestry and Fire Protection, Central Valley or North Coast Regional Water Quality Control Board, Department of Public Health, and Department of Consumer Affairs, as may be required. The Company believes that obtaining the conditional UP number by the County of Lake could be the first step toward full approval to cultivate cannabis on up to 32 acres out of the total 640 acres of the property. As of the date of this filing, Sugarmade is working diligently on satisfying the conditions required by the County of Lake to allow the Company to cultivate cannabis. It is the Company’s intention to begin such activities at the earliest time possible, assuming permits are ultimately issued. Upon issuance, the company will determines the amount of acreages to grow initially based on market demand and pre-orders. However, no such license or permits have yet been issued, and applications are still pending. There can be no assurance that any such license or permits will be issued in the near future or at all. For the 2022 cannabis cultivation season, we are embarking on a new and bold strategy to enter into contract cultivation arrangements with local Lake County, California, cultivators that have decided not to engage in their own cultivation efforts for the 2022 season. These operators have already made significant investments in infrastructure and have highly specialized personnel available that we can utilize on a contract basis for our production of cannabis. By contracting with the owners of these already available resources, Sugarmade will gain immediate access to the marketplace based on an advantageous cost model that will place Sugarmade on par, or in some cases, at a superior cost position compared to many of the larger cannabis cultivation and distribution companies in the industry. We are in negotiations with several local permitted and licensed operators that are agreeable to a partnership arrangement with Sugarmade to manage operations for cannabis cultivation. We are also in active negotiations on the distribution side of the business that will allow Sugarmade to bring this cultivated cannabis to the marketplace. Invoking this dynamic short-term strategy, while continuing to develop our longer-term strategy to fully develop the large Lemon Glow property for cultivation, will allow Sugarmade to significantly advance the timeframe for gaining market share in this industry - and we believe we will be able to do so based on a cost model that will allow us to produce strong margins this cultivation season. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. These interim unaudited condensed consolidated financial statements should be read in conjunction with our Company’s Annual Report on Form 10-K for the year ended June 30, 2021, which contains our audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the fiscal year ended June 30, 2021. The interim results for the period ended March 31, 2022 are not necessarily indicative of the results for the full fiscal year. Principles of consolidation The unaudited condensed consolidated financial statements include the accounts of our Company, its wholly-owned subsidiaries, SWC, Lemon Glow, Sugarrush, and its majority owned subsidiary, NUG Avenue, as well as Indigo, an equity investee. All significant intercompany transactions and balances have been eliminated in consolidation. Going concern The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required. Our unaudited condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Management endeavors to increase revenue-generating operations. While the Company’s priority is on generating cash from operations, management also seeks to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced, and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock. Business combinations The Company applies the provisions of Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. The Company used third party valuation company to determine the assets acquired and liabilities assumed with the corresponding offset to goodwill. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) Use of estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. Revenue recognition We recognize revenue in accordance with ASC No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer. Property, plant and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 5 Furniture and equipment 1 15 Vehicles 2 5 Leasehold improvements 5 30 Building 31.5 Production molding 5 Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the three and nine months ended March 31, 2022 and 2021. Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, there was $ 0 43,800 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Intangible assets represent purchased intangible assets including developed technology and in-process research and development, technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames. Purchased finite-lived intangible assets are capitalized and amortized over their estimated useful lives. Technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement, or estimated useful life. We capitalized the cannabis cultivation license acquired as part of a business combination. Stock-based compensation Stock-based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk-free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Stock-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the stock-based payment, whichever is more readily determinable. Loss per share We calculate basic loss per share by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted earning per share when their effect is dilutive. Fair value of financial instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the three and nine months ended March 31, 2022. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) Income Taxes The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized. The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense. Derivative instruments The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. Segment Reporting FASB ASC Topic 280, “Segment Reporting”, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in two industry segments – (1) paper and paper-based products such as paper cups, cup lids, food containers, etc., which accounts for approximately 54 % of the Company’s revenues as of March 31, 2022; and (2) cannabis products delivery service and sales, which accounted for approximately 46 % of the Company’s total revenues as of March 31, 2022. A reconciliation of the Company’s segment operating income and cost of goods sold to the unaudited condensed consolidated statements of operations for the three and nine months ended March 31, 2022 and 2021 is as follows: Schedule of Segment Operating Income March 31, 2022 March 31, 2021 Three Months Ended March 31, 2022 March 31, 2021 Segment operating income Paper and paper-based products $ 690,103 $ 333,853 Cannabis products delivery 595,197 70,990 Total operating income $ 1,285,300 $ 404,843 March 31, 2022 March 31, 2021 Three Months Ended March 31, 2022 March 31, 2021 Segment cost of goods sold Paper and paper-based products $ 495,217 $ 229,818 Cannabis products delivery - - Total cost of goods sold $ 495,217 $ 229,818 March 31, 2022 March 31, 2021 Nine Months Ended March 31, 2022 March 31, 2021 Segment operating income Paper and paper-based products $ 1,667,461 $ 1,209,476 Cannabis products delivery 2,022,445 1,642,346 Total operating income $ 3,689,906 $ 2,851,822 March 31, 2022 March 31, 2021 Nine Months Ended March 31, 2022 March 31, 2021 Segment cost of goods sold Paper and paper-based products $ 1,344,029 $ 854,787 Cannabis products delivery - 647,460 Total cost of goods sold $ 1,344,029 $ 1,502,247 New accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 was effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and period ended March 31, 2022. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The Company adopted this ASU on the consolidated financial statements in the year ended June 30, 2021. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and period ended March 31, 2022. In August 2020, the FASB issued ASU 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) ASU 2020-06 On March 2021, the FASB issued ASU 2021-03, “ Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events ASU 2021-03 On April 2021, the FASB issued ASU 2021-04, “ Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” ASU 2021-04 On July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments On July 2021, the FASB issued ASU 2021-07, “ Stock Compensation (Topic 718): Stock Compensation ASU 2021-07 to On August 2021, the FASB issued ASU 2021-08, “ Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ” ASU 2021-08 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Concentration
Concentration | 9 Months Ended |
Mar. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Concentration | 3. Concentration Customers For the three months ended March 31, 2022 and 2021, our Company earned net revenues of $ 1,285,300 and $ 404,843 respectively. The vast majority of these revenues for the periods ended March 31, 2022 and March 31, 2021 were derived from a large number of customers. For the nine months ended March 31, 2022 and 2021, our Company earned net revenues of $ 3,689,906 and $ 2,851,822 respectively. The vast majority of these revenues for the periods ended March 31, 2022 and March 31, 2021 were derived from a large number of customers. Suppliers For the three months ended March 31, 2022, we purchased products for sale by SWC, the Company’s wholly owned subsidiary from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory was purchased from two suppliers which accounted over 10% of the total purchases. The two suppliers accounted for 68.8 % and 23.75 %, respectively, of the Company’s total inventory purchase for the three months ended March 31, 2022. For the nine months ended March 31, 2022, we purchased products for sale by SWC, the Company’s wholly owned subsidiary from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company’s inventory was purchased from two suppliers which accounted over 10% of the total purchases. The two suppliers accounted for 74.03 % and 19.89 %, respectively, of the Company’s total inventory purchase for the nine months ended March 31, 2022. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Noncontrolling Interest and Dec
Noncontrolling Interest and Deconsolidation of VIE | 9 Months Ended |
Mar. 31, 2022 | |
Noncontrolling Interest And Deconsolidation Of Vie | |
Noncontrolling Interest and Deconsolidation of VIE | 4. Noncontrolling Interest and Deconsolidation of VIE Starting in the fiscal year ended June 30, 2020, the Company had a variable interest entity (Indigo), for accounting purposes. The Company owned approximately 29 Starting on October 1, 2020, the Company planned to open new locations via purchasing equity in other brand/franchises to cover delivery for the entire California. Therefore, the Company is not likely at this time to exercise its option to acquire the additional 30 % interest in Indigo. In addition, the Company is no longer involved in day-to-day operations of Indigo and going forward, the Company intends to pursue cannabis delivery independent from Indigo. As of October 1, 2020, the Company ceased to have control over the day-to-day business of Indigo and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $ 505,449 estimated fair value and changed to equity method of accounting. Pursuant to the terms of the Indigo agreement, if the Company determines, in its discretion not to continue to make monthly payments, its 40 % ownership interest in Indigo will be decreased according to the payment then made. As of December 31, 2020, the Company made $ 59,370 in additional payments, and holds approximately 32 % of the ownership of Indigo. (See Note 6) The net asset value of the Company’s variable interest in Indigo was approximately $ 326,812 313,928 372,330 441,407 69,077 123,412 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Legal Proceedings
Legal Proceedings | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | 5. Legal Proceedings From time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of March 31, 2022, there were no legal claims pending or threatened against the Company that, in the opinion of our management, would be likely to have a material adverse effect on our financial position, results of operations or cash flows. However, as of the date of this filing, we were involved in the following legal proceedings. ● On December 11, 2013, the Company was served with a complaint from two convertible note holders and investors in the Company. On February 21, 2017, the Company signed a settlement agreement with the plaintiffs in the matter of Hannan vs. Sugarmade. Under the terms of the settlement agreement, the Company agreed to pay the plaintiffs $ 227,000 to settle all claims against the Company, which included the payoff of two notes outstanding. The parties had estimated the value of the notes at approximately $ 80,000 . As of June 30, 2020, third parties had purchased the two notes. As of March 31, 2022, there remains a balance, plus accrued interest on the $ 227,000 and on the $ 80,000 due under the notes. There can be no assurances the ultimate liability relative to these lawsuits will not exceed what is outlined above. |
Cash
Cash | 9 Months Ended |
Mar. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Cash | 6. Cash Cash and cash equivalents consist of amounts held as bank deposits and highly liquid debt instruments purchased with an original maturity of three months or less. From time to time, we may maintain bank balances in interest bearing accounts in excess of the $ 250,000 As of March 31, 2022 and June 30, 2021, the Company held cash in the amount of $ 148,236 and $ 1,396,944 , respectively, including cash in hands in the amount of $ 74,481 and $ 2,026 , respectively. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Mar. 31, 2022 | |
Credit Loss [Abstract] | |
Accounts Receivable | 7. Accounts Receivable Accounts receivable are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customers deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time, any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. The Company had accounts receivable, net of allowance, of $ 652,526 and $ 435,598 as of March 31, 2022 and June 30, 2021, respectively; and allowance for doubtful accounts of $ 321,560 and $ 259,761 as of March 31, 2022 and June 30, 2021, respectively. |
Loans Receivable
Loans Receivable | 9 Months Ended |
Mar. 31, 2022 | |
Receivables [Abstract] | |
Loans Receivable | 8. Loans Receivable Loan receivables amounted $ 196,000 ($ 196,000 current and $ 0 noncurrent) and $ 196,000 ($ 0 current and $ 196,000 noncurrent) as of March 31, 2022 and June 30, 2021, respectively. Loan receivables primarily consist of a loan to Hempistry Inc. for business use due on July 31, 2022. |
Inventory
Inventory | 9 Months Ended |
Mar. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | 9. Inventory Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company’s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence. If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of March 31, 2022 and June 30, 2021, the balance for the inventory totaled $ 527,212 441,582 0 0 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Other Current Assets
Other Current Assets | 9 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Other Current Assets | 10. Other Current Assets As of March 31, 2022 and June 30, 2021, other current assets consisted of the following: Schedule of Other Current Assets Prepaid Inventory 75,254 — For the period ended March 31, 2022 June 30, 2021 Prepaid Deposit $ 132,776 $ 113,988 Prepaid Inventory 75,254 — Prepaid Expenses 35,864 35,590 Other 9,262 32,879 Total: $ 253,155 $ 182,457 |
Intangible Asset
Intangible Asset | 9 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Asset | 11. Intangible Asset On April 1, 2017, the Company entered into a distribution and intellectual property assignment agreement with Wagner Bartosch, Inc. (“Wagner”) for use of their Divider’™ used in frozen desserts and other related uses. In lieu of cash payment under the agreement, the Company was obliged to issue common shares of the Company valued at $ 75,000 for acquiring the use right of the distribution and intellectual property. The Company amortized this use right as an intangible asset over 10 , and recorded $ 2,500 and $ 1,400 amortization expense for the period ended March 31, 2022 and June 30, 2021, respectively. On May 17, 2021, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and between Merger Sub, Lemon Glow and Mr. Ryan Santiago as shareholder representative, pursuant to which, upon the terms and subject to the conditions set forth in the Merger Agreement, Merger Sub would merge with and into Lemon Glow, with Lemon Glow being the surviving corporation (the “Merger”). The Company valued the cannabis cultivation license from Lemon Glow at $ 10,648,378 with a remaining economic life of 9 years as of June 30, 2021. The intangible assets started to amortize at November 1, 2021 upon receipt of the conditional use permit. The Company recorded $ 492,454 and $ 0 amortization expense for the periods ended March 31, 2022 and June 30, 2021, respectively. |
Goodwill
Goodwill | 9 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | 12. Goodwill Goodwill arises from the acquisition method of accounting for business combinations and represents the excess of the purchase price over the fair value of the net assets and other identifiable intangible assets acquired. The fair values of net tangible assets and intangible assets acquired are based upon preliminary valuations and the Company’s estimates and assumptions are subject to change within the measurement period. There was $ 757,648 757,648 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Property, Plant and Equipment,
Property, Plant and Equipment, net | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment, net | 13. Property, Plant and Equipment, net As of March 31, 2022 and June 30, 2021, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment Office and equipment $ 820,149 $ 820,149 Fixed Assets March 31, 2022 June 30, 2021 Office and equipment $ 820,149 $ 820,149 Motor vehicles 421,277 166,079 Land 2,554,767 1,922,376 Building 197,609 — Leasehold Improvement 478,904 365,620 Total 4,472,706 3,274,224 Less: accumulated depreciation (682,243 ) (524,884 ) Property, Plant and Equipment, net $ 3,790,462 $ 2,749,340 For the periods ended March 31, 2022 and June 30, 2021, depreciation expenses amounted to $ 157,359 105,982 The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no Sugarmade, Inc. and Subsidiary Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Equity Method Investments in Af
Equity Method Investments in Affiliates | 9 Months Ended |
Mar. 31, 2022 | |
Investments in and Advances to Affiliates [Abstract] | |
Equity Method Investments in Affiliates | 14. Equity Method Investments in Affiliates Investment in Indigo Dye Inc. For the fiscal year ended June 30, 2020, the Company accounted for its investment in Indigo as a variable interest entity. The Company owned approximately 29 During the quarter ended December 31, 2020, the Company began plans to open new locations via purchasing equity in other brand/franchises to cover delivery for the entire California. Therefore, the Company is not likely at this time to exercise its option to acquire the additional 30 % interest in Indigo. In addition, the Company is no longer involved in day-to-day operations of Indigo and going forward, the Company intends to pursue cannabis delivery independent from Indigo. As of October 1, 2020, the Company ceased to have control over the day-to-day business of Indigo and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting . Pursuant to the terms of the Indigo agreement, if the Company determines, in its discretion not to continue to make monthly payments, its 40 % ownership interest in Indigo will be decreased according to the payment then made. As of March 31, 2022, the Company did not receive any distributions or dividends from Indigo. In addition, the Company impaired $ 69,077 of the investment as of March 31, 2022 due to lack of providing financial information from Indigo. As of March 31, 2022, the Company still held approximately 32 % of the ownership of Indigo. As of March 31, 2022, the Company recorded equity method investment in affiliates at $ 372,330 , net with $ 69,077 loss from equity method investment. |
Unrealized Gain on Securities
Unrealized Gain on Securities | 9 Months Ended |
Mar. 31, 2022 | |
Unrealized Gain On Securities | |
Unrealized Gain on Securities | 15. Unrealized Gain on Securities In October 2019, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with iPower Inc., formerly known as BZRTH Inc. (“iPower”), a Nevada corporation, pursuant to which, among other things, the Company agreed to buy 100 % of the issued and outstanding capital stock of iPower in exchange for $ 870,000 in cash, $ 7,130,000 under a promissory note, up to 650,000 shares of Sugarmade’s common stock, and up to 3,500,000 Due to certain disputes that arose between the parties with respect to certain terms and conditions contained in the Share Exchange Agreement, the parties entered into a Rescission and Mutual Release Agreement on January 15, 2020 (the “Rescission Agreement”). Pursuant to the terms of the Rescission Agreement, iPower and its stockholders returned the shares of Sugarmade common stock and preferred stock and issued to Sugarmade 204,496 shares of the Company’s common stock valued at a current market value of $ 1,451,922 as of June 30, 2021. The shares are free trading. During the nine months ended March 31, 2022, the Company sold all the 204,496 shares of iPower Inc.’s common stock for total cash of $ 582,688 . For the periods ended March 31, 2022 and June 30, 2021, the Company recorded unrealized (loss) gain on securities amounted $( 870,132 ) and $ 1,451,922 , respectively. For the periods ended March 31, 2022 and June 30, 2021, the remaining value of securities amounted to current market value of $ 0 and $ 1,451,922 , respectively. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Accounts Payable and Accrued Li
Accounts Payable and Accrued Liabilities | 9 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Accrued Liabilities | 16. Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities amounted to $ 2,589,383 and $ 2,058,839 as of March 31, 2022 and June 30, 2021, respectively. Accounts payables are mainly payables to vendors and accrued liabilities are mainly accrued interest of convertible notes payables and accrued contingent liabilities. Schedule of Accounts Payable and Accrued Liabilities Accounts payable $ $ March 31, 2022 June 30, 2021 Accounts payable $ 2,003,091 $ 1,464,692 Accrued liabilities 327,434 310,528 Contingent liabilities 258,858 283,619 Total accounts payable and accrued liabilities: $ 2,589,383 $ 2,058,839 |
Other Payables
Other Payables | 9 Months Ended |
Mar. 31, 2022 | |
Other Payables | |
Other Payables | 17. Other Payables Other payables amounted to $ 549,856 and $ 750,485 as of March 31, 2022 and June 30, 2021, respectively. Other payables are mainly credit card payables. As of March 31, 2022, the Company had eight credit cards, one of which is an American Express charge card with no limit and zero interest. The remaining seven cards had an aggregate credit limit of $ 85,000 , and annual percentage rates ranging from 11.24 % to 29.99 %. As of March 31, 2022 and June 30, 2021, the Company had credit cards interest expense of $ 5,719 and $ 8,961 , respectively. |
Customer Deposits
Customer Deposits | 9 Months Ended |
Mar. 31, 2022 | |
Customer Deposits | |
Customer Deposits | 18. Customer Deposits Customer deposits amounted to $ 905,093 and $ 751,919 as of March 31, 2022 and June 30, 2021, respectively. Customer deposits are mainly advanced payments from customers. |
Convertible Notes
Convertible Notes | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Convertible Notes | 19. Convertible Notes As of March 31, 2022 and June 30, 2021, the balance owing on convertible notes, net of debt discount, with terms as described below was $ 1,435,180 1,439,116 Convertible notes issued prior to the year ended June 30, 2021 were as follows: Convertible note 1: On August 24, 2012, the Company issued a convertible promissory note with an accredited investor for $ 25,000 . The note has a term of six months 10 % and is convertible to common shares at a 25 % discount of the average of 30 days prior to the conversion date. As of March 31, 2022, the note is in default. Convertible note 2: On September 18, 2012, the Company issued a convertible promissory note with an accredited investor for $ 25,000 . The note has a term of six months 10 % and is convertible to common shares at a 25 % discount of the average of 30 days prior to the conversion date. As of March 31, 2022, the note is in default. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 19. Convertible Notes (continued) Convertible note 3: On December 21, 2012, the Company issued a convertible promissory note with an accredited investor for $ 100,000 . The note has a term of six months 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of March 31, 2022, the note is in default. Convertible note 4: On November 16, 2018, the Company issued a convertible promissory note with an accredited investor for $ 40,000 . The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $ 0.07 . As of March 31, 2022, the note is in default. Convertible note 5: On December 3, 2018, the Company issued a convertible promissory note with an accredited investor for $ 35,000 . The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $ 0.07 . As of March 31, 2022, the note is in default. Convertible note 6: On October 31, 2019, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 139,301 . The note is due 360 days after issuance and bears interest at a rate of 8% . The conversion price for the note is $ 0.008 per share. On October 1, 2020, the Company entered an amendment to settlement note to amend the conversion price at 60% of the lowest trading bid price in the 20 consecutive trading days immediately preceding to the conversion date. On November 10, 2021, the original note with unpaid interest was assigned to an accredited investor. See Convertible note 16 below. Convertible note 7: On November 1, 2019, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 100,000 . The note is due 360 days after issuance and bears interest at a rate of 8% . The conversion price for the note is $ 0.008 per share. On October 1, 2020, the Company entered an amendment to settlement note to amend the conversion price at 60% of the lowest trading bid price in the 20 consecutive trading days immediately preceding to the conversion date. On November 10, 2021, the original note with unpaid interest was assigned to an accredited investor. See Convertible note 16 below. Convertible note 8: On September 8, 2020, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 110,000 (includes a $ 10,000 original issue discount “OID”). The note is due 180 days after issuance and bears interest at a rate of 12% . The conversion price for the note is $0.01 per share. After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $ 0.01 or 65% of the lowest trading price of the common stock for the 20 prior trading days including the day upon which a conversion notice is received by the Company or its transfer agent. As of March 31, 2022, the note has been fully converted. Convertible note 9: On September 10, 2020, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 227,700 (includes a $ 20,700 OID and $ 7,000 legal expense). The note is due 360 days after issuance and bears interest at a rate of 8% . The conversion price for the note is 60% of the lowest trading bid for the 20 consecutive trading days prior to the conversion date. During the year ended June 30, 2021, the note holder converted $ 117,700 of the principal amount plus $ 7,352 accrued interest expense into 90,167,551 shares of the Company’s common stock. As of March 31, 2022, the note has been fully converted. Convertible note 10: On September 24, 2020, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 212,300 (includes a $ 19,300 OID). The note is due 180 days after issuance and bears interest at a rate of 12% . The conversion price for the note is $ 0.01 per share. After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $ 0.01 65% of the lowest trading price of the common stock for the 20 prior trading days including the day upon which a conversion notice is received by the Company or its transfer agent. During the periods ended March 31, 2022, the note holder converted $ 105,000 of the principal amount plus $ 28,960 accrued interest expense into 550,000,000 shares of the Company’s common stock. As of March 31, 2022, the note was in default. The Company recorded additional $ 63,690 principal due to default breach occurred during the nine months ended March 31, 2022. Convertible note 11: On October 8, 2020, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 231,000 (includes a $ 21,000 OID). The note is due 180 days after issuance and bears interest at a rate of 12% . The conversion price for the note is $ 0.01 per share. After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $ 0.01 or 65% of the lowest trading price of the common stock for the 20 prior trading days including the day upon which a conversion notice is received by the Company or its transfer agent. As of March 31, 2022, the note was in default. The Company recorded additional $ 69,300 principal due to the default that occurred during the nine months ended March 31, 2022. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 19. Convertible Notes (continued) Convertible note 12: On October 13, 2020, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 275,000 (includes a $ 25,000 OID). The note is due 180 days after issuance and bears interest at a rate of 12% . The conversion price for the note is $ 0.01 per share. After the six-month anniversary of this note, the conversion price shall be equal to the lower of the fixed price of $ 0.01 or 65% of the lowest trading price of the common stock for the 20 prior trading days including the day upon which a conversion notice is received by the Company or its transfer agent. As of March 31, 2022, the note was in default. The Company recorded additional $ 82,500 principal due to default breach occurred during the nine months ended March 31, 2022. Convertible note 13: On November 10, 2020, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 58,300 (includes a $ 5,300 OID). The note is due 360 days after issuance and bears interest at a rate of 8% . The conversion price for the note is 60% of the lowest trading bid for the 20 consecutive trading days prior to the conversion date. As of March 31, 2022, the note has been fully converted. Convertible note 14: On February 8, 2021, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 69,300 (includes a $ 6,300 OID). The note is due 360 days after issuance and bears interest at a rate of 8% . The conversion price for the note is 60% of the lowest trading bid for the 20 consecutive trading days prior to the conversion date. As of March 31, 2022, the note has been fully converted. Convertible note 15: On June 14, 2021, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 300,000 three years 1% 0.0036 85% 85,000 1,747 100,000,000 Convertible note 16: On November 10, 2021, the Company entered into an assignment and assumption agreement with the assignor and assignee for two assigned convertible notes in total face value of $ 277,903 239,300 38,603 360 10% 60% 20 84,000 200,000,000 Convertible note 17: On January 1, 2022, the Company issued a convertible promissory note with a service provider for a total amount of $ 450,000 . The note is due in three years and bear an interest rate of 1 %. The conversion price for the note is the lesser of $ 0.001 and 85 % of the lesser of (i) 5 days VWAP on the trading day preceding the conversion date, and (ii) the VWAP on the conversion date. “VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the common stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the common stock for such date (or the nearest preceding date) on the Trading Market on which the common stock is then listed or quoted as reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the common stock for such date (or the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the common stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the common stock are then reported in the “Pink Sheets” published by OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the common stock so reported, or (d) in all other cases, the fair market value of a share of common stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Debentures then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. Convertible note 18: On January 5, 2022, the Company issued a convertible promissory note with an accredited investor for a total amount of $ 485,000 (includes a $ 48,500 OID). The note is due in one year and bear an interest rate of 8 %. The note is convertible into the Company’s common stock at $ 0.001 par value per share. Convertible note 19: On March 23, 2022, the Company entered a convertible promissory note with an accredited investor for a total amount of $ 198,000 (includes a $ 18,000 OID). The note is due 360 days after issuance and bears interest at a rate of 8 %. The conversion price for the note is 65 % of the lowest trading bid for the 20 consecutive trading days prior to the conversion date. In connection with the convertible debt, debt discount balance as of March 31, 2022 and June 30, 2021 was $ 1,020,207 and $ 391,086 , respectively, and was being amortized and recorded as interest expenses over the term of the convertible debt. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Derivative liabilities
Derivative liabilities | 9 Months Ended |
Mar. 31, 2022 | |
Derivative Liabilities | |
Derivative liabilities | 20. Derivative liabilities The derivative liability is derived from the conversion features in note 19 and stock warrant in note 21 All were valued using the weighted-average Binomial option pricing model using the assumptions detailed below. As of March 31, 2022 and June 30, 2021, the derivative liability was $ 5,425,741 and $ 2,217,361 , respectively. The Company recorded $ 2,853,569 loss and $ 506,559 gain from changes in derivative liability during the nine months ended March 31, 2022 and 2021, respectively. The Binomial model with the following assumption inputs: Schedule of Binomial Model Assumptions Inputs June 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % March 31, 2022 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.74 2.45 % Expected Volatility 103 164 % Fair value of the derivative is summarized as below: Schedule of Fair Value of Derivative Beginning Balance, June 30, 2021 $ 2,217,361 Additions $ 1,568,862 Mark to Market $ 2,853,589 Cancellation of Derivative Liabilities Due to Cash Repayment $ — Reclassification to APIC Due to Conversions $ (1,214,071 ) Ending Balance, March 31, 2022 5,425,741 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Stock warrants
Stock warrants | 9 Months Ended |
Mar. 31, 2022 | |
Stock Warrants | |
Stock warrants | 21. Stock warrants On September 7, 2018, the Company entered into a settlement agreement with several investors to settle all disputes by issuing additional unrestricted shares. In connection with the note each individual investor will also receive warrants equal to the number of the shares the investors own as of the effective date of the settlement agreement. The warrants have a life of five years 56,730 289 1,042 On February 4, 2020, the Company entered into a warrant agreement with an accredited investor for up to 10,000,000 0.008 five years 80,000 4,000 20,000 As of March 31, 2022 and June 30, 2021, the total fair value of the warrant liability was $ 4,289 21,042 |
Note payable
Note payable | 9 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Note payable | 22. Note payable Note Payable Due to Bank During October 2011, we entered into a revolving demand note (line of credit) arrangement with HSBC Bank USA, with a revolving borrowing limit of $ 150,000 0.25 5.5 In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate. 25,982 25,982 Notes Payable Due to Non-related Parties On June 15, 2018, the Company entered into a promissory note with an accredited investor. The original principal amount was $ 20,000 8 20,000 20,000 13,800 11,000 On October 6, 2020, the Company entered into a promissory note with Darryl Kuecker, and Shirley Ann Hunt (the “Trustee”) for borrowing $ 1,390,000 with annual interest rate of 6 % due in 30 years. Darryl Kuecker, Trustee of the 2002 Darry Kuecker Revocable Trust as to an undivided 36 % interest, and Shirley Ann Hunt, Trustee of the 2002 Shirley Ann Hunt Revocable Trust as to an undivided 64 % interest. Principal and interest shall be payable on monthly basis , in installments of $ 8,333.75 , beginning on November 1, 2020 and until September 1, 2050. Payments to be divided and made separately to each beneficiary per the beneficiary’s instruction: $ 3,000.15 to Darryl Kuecker, Trustee and $ 5,333.60 to Shirley Hunt, Trustee. As of March 31, 2022 and June 30, 2021, the Company had an outstanding balance of $ 1,366,476 and $ 1,378,222 , respectively. For the periods ended March 31, 2022 and year ended June 30, 2021, the Company paid interest expense of $ 112,817 and $ 57,892 , respectively. On May 12, 2021, the Company issued a promissory note to the Lemon Glow shareholders. The original principal amount was $ 3,976,000 and the note bears interest at the rate of 5 % per year 36 monthly payments commencing on June 15, 2021. As of March 31, 2022 and June 30, 2021, the note had a remaining balance of $ 3,463,389 and $ 3,626,000 , respectively. As of March 31, 2022 and June 30, 2021, the note had accrued interest balance of $ 132,533 and $ 0 , respectively. On May 17, 2021, the Company issued a note to Hyundai financing in total principal amount of $ 13,047 . The monthly payment was $ 251 per month. During the period ended March 31, 2022, the loan has been fully paid off. As of March 31, 2022 and June 30, 2021, the note had an outstanding balance of $ 0 and $ 13,047 , respectively. Notes Payable Due to Related Parties On January 23, 2013, the Company issued a promissory note to a former employee of the Company. The original principal amount was $ 40,000 and the note bears no interest. The note was payable upon demand. As of March 31, 2022 and June 30, 2021, this note had a balance of $ 0 and $ 15,427 , respectively. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Loans payable
Loans payable | 9 Months Ended |
Mar. 31, 2022 | |
Loans Payable | |
Loans payable | 23. Loans payable On October 1, 2017, the Company issued a straight promissory note to Greater Asia Technology Limited (Greater Asia) for borrowing $ 100,000 with maturity date on June 30, 2018 ; the note bears an interest rate of 33.33 %. As of March 31, 2022 and June 30, 2021, the note was in default and the outstanding balance under this note was $ 36,695 and $ 49,541 , respectively. During the year ended June 30, 2019, the Company entered into a series of short-term loan agreements with Greater Asia Technology Limited (Greater Asia) for borrowing $ 375,000 , with interest rate at 40 % - 50 % of the principal balance. As of March 31, 2022 and June 30, 2021, the outstanding balance with Greater Asia loans were $ 100,000 and $ 100,000 , respectively. On June 6, 2019, SWC entered into an equipment loan agreement with a bank with maturity on June 21, 2024 . The monthly payment is $ 648 . As of March 31, 2022 and June 30, 2021, the outstanding balance under this loan were $ 13,771 and $ 19,506 , respectively. On July 28, 2020, we entered into a loan borrowed $ 159,900 3.75 731 500,000 731 2,527 On January 25, 2021, we entered into a loan borrowed $ 96,595 1.00 The Company accounting for the PPP loan under Topic 470: (a). Initially record the cash inflow from the PPP loan as a financial liability and would accrue interest in accordance with the interest method under ASC Subtopic 835-30; (b). Not impute additional interest at a market rate; (c). Continue to record the proceeds from the loan as a liability until either (1) the loan is partly or wholly forgiven and the debtor has been legally released or (2) the debtor pays off the loan; (d). Would reduce the liability by the amount forgiven and record a gain on extinguishment once the loan is partly or wholly forgiven and legal release is received. As of March 31, 2022 and June 30, 2021, the total outstanding PPP loan balance was $ 606,495 256,495 On November 20, 2020, the Company entered into a loan with the Business Backer for borrowing $ 215,760 . The note bears an interest at rate of 4 % and is due in 15 months. The weekly installment payment is $ 3,425 . As of March 31, 2022 and June 30, 2021, the outstanding loan balance under this note was $ 0 and $ 109,925 , respectively. On February 15, 2021, the Company entered into a loan with Manuel Rivera for borrowing $ 100,000 with maturity date on September 15, 2021 ; the note bears a monthly interest of $ 3,500 for 7 months. The Company shall pay the investor a fee of $70,000 within 45 days of its first harvest. As of December 31, 2021 and June 30, 2021, the outstanding loan balance under this note was $ 100,000 and $ 100,000 , respectively. As of March 31, 2022 and June 30, 2021, the unpaid interest expense under this note was $ 45,500 and $ 14,000 , respectively. On March 24, 2021, the Company entered into auto loan agreement with John Deere Financial for an auto loan of $ 69,457 60 2.85 55,015 65,726 On August 4, 2021, the Company entered into a loan with Coastline Lending Group of $ 490,000 3,471 36 8.5 August 14, 2024 490,000 On October 1, 2021, the Company entered into five auto loan agreements with Ally Auto to purchase five Ram Cargo Vans in total finance amount of $ 124,332 for 60 months at annual percentage rate of 6.44 %. The monthly payment is $ 418 per vehicle. As of March 31, 2022, the Company has an outstanding balance of $ 113,971 . Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 23. Loans payable (continued) On October 5, 2021, the Company entered into an auto loan agreement with Hitachi Capital America Corp. to purchase one Ram Cargo Van in total finance amount of $ 32,464 60 8.99 587 30,210 On October 5, 2021, the Company entered into two auto loan agreements with Hitachi Capital America Corp. to purchase two Ram Cargo Vans in total finance amount of $ 64,730 60 8.99 674 60,235 On March 1, 2022, the Company entered into a short term loan with WNDR Group Inc. for borrowing $ 100,000 . The note bears an monthly interest rate of 2 % with maturity date on December 31, 2022 . As of March 31, 2022 and June 30, 2021, the Company had an outstanding loan balance of $ 1,705,750 874,962 830,788 701,193 392,605 308,588 |
Loans Payable _ Related Parties
Loans Payable – Related Parties | 9 Months Ended |
Mar. 31, 2022 | |
Loans Payable Related Parties | |
Loans Payable – Related Parties | 24. Loans Payable – Related Parties On January 23, 2013, SWC received a loan from an officer for $ 40,000 0 12,682 On July 7, 2016, SWC received a loan from an officer. The amount of the loan bears no interest and amortized on a monthly basis over the life of the loan. As of March 31, 2022 and June 30, 2021, the balance of the loans payable were $ 60,592 49,447 On November 21, 2016, SWC received a loan from an officer. The amount of the loan bears no interest and due in September 30, 2017 0 83,275 On September 1, 2017, the Company had related party transaction with LMK Capital LLC, a related party company owned by Jimmy Chan, the Company’s CEO. The amount of the loan payable/receivable bears no interest and is due on demand. As of March 31, 2022 and June 30, 2021, the balance of the loan payable to LMK were $ 93,502 and $ 15,427 , respectively, and the balance of loan receivable were $ 0 and $ 0 , respectively. On May 25, 2021, Lemon Glow received a loan from an officer. The amount of the loan bears no interest and due on demand. As of March 31, 2022 and June 30, 2021, the balance of the loans were $ 3,000 and $ 3,000 , respectively. On December 14, 2021, SWC received a loan from an officer. The amount of the loan bears no interest and due on June 14, 2022 51,821 0 As of March 31, 2022 and June 30, 2021, the Company had an outstanding balance of $ 208,915 163,831 |
Shares to Be Issued
Shares to Be Issued | 9 Months Ended |
Mar. 31, 2022 | |
Shares To Be Issued | |
Shares to Be Issued | 25. Shares to Be Issued On April 19, 2018, the Company entered into a consulting agreement with TAAD, LLP. (“the Consultant”) to provide certain financial reporting preparation services. The Company will grant the Consultant 5,000,000 20,000,000 5,000,000 51,500 27,500 Starting July 1, 2021, Mr. Jimmy Chan, the Company’s CEO, receives an annual salary of $ 250,000 50,000,000 10 50,000,000 50,000,000 224,327 110,577 As of March 31, 2022 and June 30, 2021, the Company had total potential shares to be issued to the consulting agreement of $ 275,827 138,077 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Stockholder_s Equity (Deficienc
Stockholder’s Equity (Deficiency) | 9 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholder’s Equity (Deficiency) | 26. Stockholder’s Equity (Deficiency) The Company is authorized to issue 10,000,000,000 shares of $ 0.001 par value common stock and 10,000,000 shares of $ 0.001 par value preferred stock. On April 22, 2020, the Company filed an amendment to increase the total authorized shares to 10,010,000,000 – 10,000,000,000 of which are designated as common stock, par $ 0.001 per share and 10,000,000 of which are designated as preferred stock, par value $ 0.001 per share. On March 2, 2022, the Company filed with the Delaware Secretary of State a certificate of amendment (the “Amendment”) to the Company’s certificate of incorporation (the “Certificate of Incorporation”). The Amendment had the effect of increasing the Company’s authorized common stock from 10,000,000,000 shares to 20,000,000,000 shares. Share issuances during the three months ended September 30, 2021 During the three months ended September 30, 2021, the Company issued 375,600,448 385,266 During the three months ended September 30, 2021, the Company issued 660,571,429 1,849,600 During the three months ended September 30, 2021, the Company issued 2,000,000 5,600,000 Share issuances during the three months ended December 31, 2021 During the three months ended December 31, 2021, the Company issued 214,285,714 150,000 During the three months ended December 31, 2021, the Company issued 369,999,999 444,000 As of December 31, 2021 and June 30, 2021, the Company had 9,022,993,267 7,402,535,677 As of December 31, 2021 and June 30, 2021, the Company had 2,541,500 541,500 As of December 31, 2021 and June 30, 2021, the Company had 1 1 Share issuances during the three months ended March 31, 2022 Material Definitive Agreement On January 6, 2022, Sugarmade, Inc. (the “ Company Purchase Agreement Dutchess Equity Line 10,000,000 Term Total Commitment Under the terms of the Purchase Agreement, Dutchess will not be obligated to purchase shares of common stock unless and until certain conditions are met, including but not limited to a Registration Statement on Form S-1 (the “ Registration Statement Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 26. Stockholder’s Equity (Continued) From time to time during the Term, the Company, in its sole discretion, may provide Dutchess with one or more drawdown notices (each, a “ Drawdown Notice Drawdown Notice Shares Investment Amount The maximum number of shares of common stock to be purchased pursuant to any single Drawdown Notice cannot exceed the lesser of (i) $250,000; (ii) 200% of the average daily traded value of the Drawdown Notice Shares during the five days immediately preceding the Drawdown Notice date; or (iii) that number of shares that would cause Dutchess to beneficially own 4.99% of the number of shares of the common stock outstanding immediately prior to the issuance of the Drawdown Notice Shares. In order to deliver a Drawdown Notice and sell Drawdown Notice Shares to Dutchess, certain conditions set forth in the Purchase Agreement must be met, including: (a) the representations and warranties of the Company shall be true and correct in all material respects as of the date of the Purchase Agreement and the applicable closing date; (b) since the date of the Company’s most recent filing with the Securities and Exchange Commission (the “SEC”), no event that had or is reasonably likely to have a material adverse effect has occurred; (c) the Company has no knowledge of an event it reasonably deems more likely than not to have the effect of causing the Registration Statement to be suspended or otherwise ineffective within 15 days following the delivery of the Drawdown Notice; and (d) the Company shall have performed, satisfied and complied in all material respects its obligations under the Purchase Agreement. Notwithstanding the forgoing, the Company shall not issue any Drawdown Notice Shares if the issuance of such shares would exceed the aggregate number of shares of common stock which the Company may issue without breaching the Company’s obligations under the rules and regulations of the principal market upon which the common stock trades, or if the issuance would violate such principal market’s shareholder approval requirements. The Purchase Agreement contains customary representations, warranties, and covenants by, among, and for the benefit of the parties. Unless earlier terminated, the Purchase Agreement will terminate automatically on the earlier to occur of: (i) the end of the 36-month Term; (ii) the date that the Company sells and Dutchess purchases the Total Commitment amount; (iii) the date that the Registration Statement is no longer effective; or (iv) the occurrence of certain specified insolvency or bankruptcy-related events. The Company may terminate the Purchase Agreement at any time by written notice to Dutchess in the event of a material breach of the agreement by Dutchess. The Purchase Agreement also provides for mutual cross-indemnification of the parties and their affiliates in the event that either party incurs losses, liabilities, obligations, claims, damages, liabilities, costs, and expenses resulting from a breach of representations, warranties, covenants, or agreements under the Purchase Agreement; an untrue or misleading statement or misleading omission in the Registration Statement or any preliminary or final prospectus pursuant thereto; or a violation or alleged violation of federal or state securities laws and regulations. During the three months ended March 31, 2022, the Company issued 850,000,000 275,747 During the three months ended March 31, 2022, the Company issued 300,000,000 171,943 As of March 31, 2022 and June 30, 2021, the Company had 10,172,993,267 7,402,535,677 As of March 31, 2022 and June 30, 2021, the Company had 2,541,500 541,500 As of March 31, 2022 and June 30, 2021, the Company had 1 1 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Commitments and contingencies
Commitments and contingencies | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 27. Commitments and contingencies On February 23, 2018, the Company entered into lease agreement for a new office space as part of the plan to expand operation, the lease commenced on March 1, 2018. The term of the lease is for five ( 5 st 11,770 3 737,367 The Company’s warehouse along with ancillary office space is located at 20529 East Walnut Drive North, Diamond Bar, California, where we lease approximately 11,627 5 13,022 On February 1, 2021, the Company entered into lease agreement with Magnolia Extracts, LLC dba Nug Ave-Lynwood, a California limited liability company for a certain regulatory permit issued by the City of Lynwood authorizing commercial retailer non-storefront operations at 11118 Wright Road, Lynwood, CA 90262. The lease was set to commence on February 1, 2021. The lease payment shall equal $10,000 per month and the lease term is on month-by-month basis. Parties have agreed that the first month’s rent payment shall equal $7,000 and the Company owed the landlord a refundable security deposit of $20,000 within 10 days of the commencement date. On June 3, 2021, the Company entered into lease agreement with William Chung, a related party of the Company for a 2021 Ford Transit Connect Van. The lease payment shall be $ 926 On June 3, 2021, the Company entered into lease agreement with William Chung, a related party of the Company for two 2021 Hyundai Accent. The lease payment shall be $ 612 On June 3, 2021, the Company entered into lease agreement with William Chung, a related party of the Company for a 2021 Hyundai Accent. The lease payment shall be $ 616 Schedule of Supplemental Disclosures Related to Operating Lease Nine Months Ended March 31, 2022 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 231,694 Other Information Cash paid for amounts included in the measurement of lease liabilities for the nine months ended March 31, 2022 $ 180,398 Remaining lease term – operating leases (in years) 2.00 Average discount rate – operating leases 10 % The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Short-term right-of-use assets $ 250,032 Long-term right-of-use assets $ 299,229 Total operating lease assets $ 549,261 Short-term operating lease liabilities $ 265,335 Long-term operating lease liabilities $ 325,781 Total operating lease liabilities $ 591,116 Maturities of the Company’s lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Operating Period ending March 31, 2022 Lease 2023 $ 311,926 2024 171,184 2025 176,320 2026 15,096 Total lease payments 674,526 Less: Imputed interest/present value discount (83,410 ) Present value of lease liabilities $ 591,116 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 |
Subsequent events
Subsequent events | 9 Months Ended |
Mar. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent events | 28. Subsequent events Subsequent Share Issuances On April 1, 2022, there was one note holder elected to convert $ 52,027 847,000,000 On April 14, 2022, the Company issued 26,190,000 shares of the Company’s common stock in exchange for certain private equity and debt capital finder’s service. Subsequent to March 31, 2022, the Company issued 192,665,527 22,846 Member Interest Purchase Agreements On March 28, 2022, SugarRush Inc., a wholly owned subsidiary of Sugarmade Inc. (“Purchaser”) entered into a Membership Interest Purchase Agreement (“Agreement”) with Boulevard Nightlife Group, LLC, a California limited liability company (“BNG”) and Loud Media LLC, a California limited liability company (“LM” and together with BNG, each a “Seller”, and collectively, “Sellers”). Sellers each own a fifty percent membership interest (“MI”) and together own a one hundred percent MI of Saguaro Delivery, LLC, a California limited liability company, and which 100% MI represents all of the issued and outstanding MIs of the Company. Purchaser is pursuing a non-storefront retail or delivery license with both the Los Angeles (“City”) Department of Cannabis Regulation (“DCR”) and the California Department of Cannabis Control (“DCC”) with regard to the following location: 8212 Sunset Blvd., Los Angeles CA 90046 (the “Licensed Premises”). Pursuant to the terms and conditions of this Agreement, Sellers hereby agree to sell to Purchaser and Purchaser hereby agrees to purchase from Sellers the Purchased MIs, with each Seller selling to Purchaser a twenty-five and one half percent (25.5%) MI, or fifty-one percent (51%) of the Purchased MIs. The total purchase price for the Purchased MIs to be paid by the Purchaser to the Sellers at the Closing shall be Fifty-one Thousand Dollars ($51,000.00), or ($1,000.00/ per Purchased MI) (the “Purchase Price”). The Purchase Price shall be paid by delivery of cash or check in the amount of Twenty-Five Thousand Five Hundred Dollars ($25,500.00) to each Seller by Purchaser at Closing. As of May 17, 2022, the Company had not made any payments to the sellers. On May 19, 2022, the Company entered into an addendum to the Membership Interest Purchase Agreement dated March 28, 2022. Pursuant to the addendum, both parties agreed to modify the effective date of the Agreement to the date that the addendum is fully executed. In addition, the purchase price was modified to be paid toward improvements needed to the property, the costs associated with obtaining a delivery license as well as the costs of operations, not including the initial cost of the initial cannabis to initially stock the delivery. All future expenses, that exceed $ 51,000 Stock Purchase Agreement On March 28, 2022, SugarRush Inc., a wholly owned subsidiary of Sugarmade Inc. (“Purchaser”) entered into a Stock Purchase Agreement (“Agreement”) with Boulevard Nightlife Group, LLC, a California limited liability company (“BNG”) and Loud Media LLC, a California limited liability company (“LM” and together with BNG, each a “Seller”, and collectively, “Sellers”). Sellers each constitute the only two members of the non-profit mutual benefit corporation and are in the process of converting this entity to a for-profit corporation. Of the for-profit corporation each of the Sellers will own 500 1,000 Pursuant to the terms and conditions of this Agreement, Sellers hereby agree to sell to Purchaser and Purchaser hereby agrees to purchase from Sellers the Purchased Shares, with each Seller selling to Purchaser exactly 300 shares of the Common Stock, or thirty percent (30%) of the Purchased Shares. The total purchase price for the Purchased Shares to be invested into the construction and operation of the Project, as further provided for in Section 1.3 below, shall be Two Hundred Fifty Thousand Dollars ($250,000.00), or ($833.33/ per Purchased Share). The Purchase Price shall be paid by Purchaser, as needed and toward the construction costs and operation of the business. As of May 17, 2022, the Company paid $50,000 cash as deposit to the sellers. On May 19, 2022, the Company entered into an addendum to the Stock Purchase Agreement dated March 28, 2022. Pursuant to the addendum, both parties agreed to modify the effective date of the Agreement to the date that the addendum is fully executed. In addition, the purchase price was modified to be paid by Purchaser, as needed and toward the construction costs and operation of the business. Purchaser shall have discretion to pay individual invoices for construction or pay a general contractor directly for all phases of work to be completed. In the even the project requires additional infusion of capital over and above two hundred and fifty thousand dollars ($ 250,000 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 28. Subsequent events (Continued) Promissory Note Agreement On April 27, 2022, the Company entered into a promissory note agreement with an accredited investor for a total amount of 144,200 15,450 April 27, 2023 12% 17,334 ten payments each in the amount of $ 16,153.40 Cultivation and Supply Agreement On April 28, 2022, Lemon Glow Company, Inc. (“Lemon Glow”), a wholly owned subsidiary of Sugarmade, Inc. (the “Company”) and Cannabis Global, Inc. (“Cannabis Global”) entered into a Cultivation and Supply Agreement (the “Agreement”). Cannabis Global owns a majority stake of Natural Plant Extract of California, Inc. which operates a licensed cannabis manufacturing and distribution operation in Lynwood, California. The Agreement provides that during the Spring 2022 cannabis cultivation season, Lemon Glow will outsource the cultivation of cannabis to licensed growers in Lake County, California; oversee and co-manage the cultivation; and sell cannabis to Cannabis Global conforming to its specifications. Lemon Glow will cultivate only the cannabis chemovars (commonly called “strains”) approved by Cannabis Global. The cultivation will be conducted in accordance with regulations adopted by California’s Department of Cannabis Control; Lake County, California; and other state and local governmental entities that may have legal jurisdiction over the cultivation. Under the terms of the Agreement, Lemon Glow will present a cultivation, harvest, and processing plan to Cannabis Global by May 15, 2022 (the “Plan”). Lemon Glow will begin executing the Plan as soon as practicable thereafter with the harvest expected to occur mid-October 2022 (the “Harvest”). The Harvest will be stored as “Fresh Frozen” cannabis. Fresh Frozen cannabis is immediately flash frozen upon harvest, instead of the traditional process of drying and curing cannabis. Under the terms of the Agreement, Cannabis Global is obligated to purchase the Harvest, up to 25,000 pounds (the “Target Yield”). Cannabis Global has an option to increase the Target Yield for subsequent growing seasons by 25% within 45 days of the current Harvest. Cannabis Global is required to pay Lemon Glow $28.00 per pound for the Fresh Frozen cannabis, up to the Target Yield. If the Target Yield is achieved, the aggregate purchase price would be $700,000 (the “Purchase Price”). The Purchase Price shall be paid as a series of cash payments and a convertible promissory note, as more fully described below. The cash portion of the Purchase Price will be paid in cash as five $ 40,000 monthly installments 100,000 The other portion of the Purchase Price is a $ 400,000 April 28, 2023 8% Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 28. Subsequent events (Continued) Events of default include, but are not limited to, failure to pay principal or interest; failure of Cannabis Global common stock to remain listed for trading on OTC Markets or a principal U.S. national securities exchange for a period of five trading days; notice to Lemon Glow that Cannabis Global cannot or will refuse to convert principal or interest into common stock; failure by Cannabis Global to convert principal or interest into common stock not remedied for three days; any default on other indebtedness in excess of $ 100,000 Upon an event of default, Lemon Glow may declare the entire unpaid principal and interest due to be payable immediately; convert the unpaid principal and interest due at the Conversion Price; or exercise such other rights as Lemon Glow may have under the Convertible Note, the Agreement, other transaction documents or applicable law. Lemon Glow may transfer, sell, pledge, hypothecate or otherwise grant a security interest in the Convertible Note, subject to certain specified restrictions. The choice of law provision provides for Nevada law to govern the Convertible Note. Ownership of harvested cannabis will transfer to Cannabis Global upon receipt of the cannabis or upon Lemon Glow notifying Cannabis Global that it has packaged the Target Yield (the “Completion Notice”). Upon receipt of the Completion Notice, Cannabis Global has 30 days to pick up the Target Yield. If Cannabis Global has not taken possession of the cannabis within 30 days, Cannabis Global will become responsible for the ongoing cost of storage, including utilities and labor. Cannabis Global is obligated to use its best efforts to take possession of the entire Harvest within 180 days. After the 180-day period, any remaining amounts of the Harvest not picked up by Cannabis Global are considered abandoned by Cannabis Global and will become Lemon Glow’s property. Under the terms of the Agreement, Lemon Glow warrants it shall have good title, right and authority to sell all of the cannabis, free and clear of all liens, encumbrances and restrictions of any kind. The parties agree to maintain in confidence all matters and activities relating to or undertaken pursuant to the Agreement. The Agreement contains a cross-indemnification and hold harmless provision, which includes attorney fees. The Agreement is non-assignable without mutual consent. Upon the expiration of a 15-day notice period commencing upon receipt of a notice of default which remains uncured, the non-defaulting party may immediately terminate the Agreement, seek equitable relief and damages, or cure such default at the defaulting party’s expense. The Agreement also includes an appendix forecasting future cannabis harvests. The forecasts are not legally binding upon the parties, but the parties have agreed in principle to use them when entering into renewals or new similar agreements for subsequent growing seasons. The choice of law provision provides for California law to govern the Agreement. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and the rules and regulations of the United States Securities and Exchange Commission (the “SEC”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation. These interim unaudited condensed consolidated financial statements should be read in conjunction with our Company’s Annual Report on Form 10-K for the year ended June 30, 2021, which contains our audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the fiscal year ended June 30, 2021. The interim results for the period ended March 31, 2022 are not necessarily indicative of the results for the full fiscal year. |
Principles of consolidation | Principles of consolidation The unaudited condensed consolidated financial statements include the accounts of our Company, its wholly-owned subsidiaries, SWC, Lemon Glow, Sugarrush, and its majority owned subsidiary, NUG Avenue, as well as Indigo, an equity investee. All significant intercompany transactions and balances have been eliminated in consolidation. |
Going concern | Going concern The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required. Our unaudited condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These unaudited condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern. Management endeavors to increase revenue-generating operations. While the Company’s priority is on generating cash from operations, management also seeks to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced, and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock. |
Business combinations | Business combinations The Company applies the provisions of Financial Accounting Standards Board’s (the “FASB”) Accounting Standards Codification (“ASC”) 805, Business Combinations, in accounting for its acquisitions. It requires the Company to recognize separately from goodwill the assets acquired and the liabilities assumed, at the acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred over the acquisition date fair values of the net assets acquired and the liabilities assumed. The Company used third party valuation company to determine the assets acquired and liabilities assumed with the corresponding offset to goodwill. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates. |
Revenue recognition | Revenue recognition We recognize revenue in accordance with ASC No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied. Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer. |
Property, plant and equipment | Property, plant and equipment Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows: Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 5 Furniture and equipment 1 15 Vehicles 2 5 Leasehold improvements 5 30 Building 31.5 Production molding 5 Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset. Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income. The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the three and nine months ended March 31, 2022 and 2021. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset’s expected future discounted cash flows or market value, if readily determinable. Based on its review, there was $ 0 43,800 Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) |
Leases | Leases In February 2016, the FASB established Topic 842, Leases, by issuing Accounting Standards Update (“ASU”) No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations. The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements. The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities. The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. Under ASC 840, leases were classified as either capital or operating, and the classification significantly impacted the effect the contract had on the company’s financial statements. Capital lease classification resulted in a liability that was recorded on a company’s balance sheet, whereas operating leases did not impact the balance sheet. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the acquisition method. Intangible assets represent purchased intangible assets including developed technology and in-process research and development, technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames. Purchased finite-lived intangible assets are capitalized and amortized over their estimated useful lives. Technologies acquired or licensed from other companies, customer relationships, non-compete covenants, backlog, and trademarks and tradenames are capitalized and amortized over the lesser of the terms of the agreement, or estimated useful life. We capitalized the cannabis cultivation license acquired as part of a business combination. |
Stock-based compensation | Stock-based compensation Stock-based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk-free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Stock-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the stock-based payment, whichever is more readily determinable. |
Loss per share | Loss per share We calculate basic loss per share by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted loss per share is computed by dividing net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted earning per share when their effect is dilutive. |
Fair value of financial instruments | Fair value of financial instruments ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows: Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - include other inputs that are directly or indirectly observable in the marketplace. Level 3 - unobservable inputs which are supported by little or no market activity. The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the three and nine months ended March 31, 2022. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) |
Income Taxes | Income Taxes The Company accounts for income taxes using the asset and liability approach that requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. In estimating future tax consequences, the Company generally considers all expected future events other than enactments of changes in the tax law. For deferred tax assets, management evaluates the probability of realizing the future benefits of such assets. The Company establishes valuation allowances for its deferred tax assets when evidence suggests it is unlikely that the assets will be fully realized. The Company recognizes the tax effects of an uncertain tax position only if it is more likely than not to be sustained based solely on its technical merits as of the reporting date and then only in an amount more likely than not to be sustained upon review by the tax authorities. Income tax positions that previously failed to meet the more likely than not threshold are recognized in the first subsequent financial reporting period in which that threshold is met. Previously recognized tax positions that no longer meet the more likely than not threshold are derecognized in the first subsequent financial reporting period in which that threshold is no longer met. The Company classifies potential accrued interest and penalties related to unrecognized tax benefits within the accompanying consolidated statements of operations and comprehensive income (loss) as income tax expense. |
Derivative instruments | Derivative instruments The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. |
Segment Reporting | Segment Reporting FASB ASC Topic 280, “Segment Reporting”, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. The Company’s financial statements reflect that substantially all of its operations are conducted in two industry segments – (1) paper and paper-based products such as paper cups, cup lids, food containers, etc., which accounts for approximately 54 % of the Company’s revenues as of March 31, 2022; and (2) cannabis products delivery service and sales, which accounted for approximately 46 % of the Company’s total revenues as of March 31, 2022. A reconciliation of the Company’s segment operating income and cost of goods sold to the unaudited condensed consolidated statements of operations for the three and nine months ended March 31, 2022 and 2021 is as follows: Schedule of Segment Operating Income March 31, 2022 March 31, 2021 Three Months Ended March 31, 2022 March 31, 2021 Segment operating income Paper and paper-based products $ 690,103 $ 333,853 Cannabis products delivery 595,197 70,990 Total operating income $ 1,285,300 $ 404,843 March 31, 2022 March 31, 2021 Three Months Ended March 31, 2022 March 31, 2021 Segment cost of goods sold Paper and paper-based products $ 495,217 $ 229,818 Cannabis products delivery - - Total cost of goods sold $ 495,217 $ 229,818 March 31, 2022 March 31, 2021 Nine Months Ended March 31, 2022 March 31, 2021 Segment operating income Paper and paper-based products $ 1,667,461 $ 1,209,476 Cannabis products delivery 2,022,445 1,642,346 Total operating income $ 3,689,906 $ 2,851,822 March 31, 2022 March 31, 2021 Nine Months Ended March 31, 2022 March 31, 2021 Segment cost of goods sold Paper and paper-based products $ 1,344,029 $ 854,787 Cannabis products delivery - 647,460 Total cost of goods sold $ 1,344,029 $ 1,502,247 |
New accounting pronouncements | New accounting pronouncements In December 2019, the FASB issued ASU 2019-12, “Simplifying the Accounting for Income Taxes”. The pronouncement simplifies the accounting for income taxes by removing certain exceptions to the general principles in ASC Topic 740, “Income Taxes”. The pronouncement also improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. ASU 2019-12 was effective for us beginning in the first quarter of fiscal 2021, with early adoption permitted. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and period ended March 31, 2022. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022 2. Summary of Significant Accounting Policies (continued) In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivative and Hedging (Topic 815), which clarifies the interaction of rules for equity securities, the equity method of accounting, and forward contracts and purchase options on certain types of securities. The guidance clarifies how to account for the transition into and out of the equity method of accounting when considering observable transactions under the measurement alternative. The ASU is effective for annual reporting periods beginning after December 15, 2020, including interim reporting periods within those annual periods, with early adoption permitted. The Company adopted this ASU on the consolidated financial statements in the year ended June 30, 2021. The adoption had no material impact on the consolidated financial statements in the year ended June 30, 2021 and period ended March 31, 2022. In August 2020, the FASB issued ASU 2020-06, “ Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815 – 40) ASU 2020-06 On March 2021, the FASB issued ASU 2021-03, “ Intangibles—Goodwill and Other (Topic 350): Accounting Alternative for Evaluating Triggering Events ASU 2021-03 On April 2021, the FASB issued ASU 2021-04, “ Earnings Per Share (Topic 260), Debt— Modifications and Extinguishments (Subtopic 470-50), Compensation—Stock Compensation (Topic 718), and Derivatives and Hedging— Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity-Classified Written Call Options” ASU 2021-04 On July 2021, the FASB issued ASU 2021-05, “ Leases (Topic 842): Lessors—Certain Leases with Variable Lease Payments On July 2021, the FASB issued ASU 2021-07, “ Stock Compensation (Topic 718): Stock Compensation ASU 2021-07 to On August 2021, the FASB issued ASU 2021-08, “ Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers ” ASU 2021-08 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Estimated Useful Lives of Property and Equipment | Schedule of Estimated Useful Lives of Property and Equipment Machinery and equipment 3 5 Furniture and equipment 1 15 Vehicles 2 5 Leasehold improvements 5 30 Building 31.5 Production molding 5 |
Schedule of Segment Operating Income | A reconciliation of the Company’s segment operating income and cost of goods sold to the unaudited condensed consolidated statements of operations for the three and nine months ended March 31, 2022 and 2021 is as follows: Schedule of Segment Operating Income March 31, 2022 March 31, 2021 Three Months Ended March 31, 2022 March 31, 2021 Segment operating income Paper and paper-based products $ 690,103 $ 333,853 Cannabis products delivery 595,197 70,990 Total operating income $ 1,285,300 $ 404,843 March 31, 2022 March 31, 2021 Three Months Ended March 31, 2022 March 31, 2021 Segment cost of goods sold Paper and paper-based products $ 495,217 $ 229,818 Cannabis products delivery - - Total cost of goods sold $ 495,217 $ 229,818 March 31, 2022 March 31, 2021 Nine Months Ended March 31, 2022 March 31, 2021 Segment operating income Paper and paper-based products $ 1,667,461 $ 1,209,476 Cannabis products delivery 2,022,445 1,642,346 Total operating income $ 3,689,906 $ 2,851,822 March 31, 2022 March 31, 2021 Nine Months Ended March 31, 2022 March 31, 2021 Segment cost of goods sold Paper and paper-based products $ 1,344,029 $ 854,787 Cannabis products delivery - 647,460 Total cost of goods sold $ 1,344,029 $ 1,502,247 |
Other Current Assets (Tables)
Other Current Assets (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | As of March 31, 2022 and June 30, 2021, other current assets consisted of the following: Schedule of Other Current Assets Prepaid Inventory 75,254 — For the period ended March 31, 2022 June 30, 2021 Prepaid Deposit $ 132,776 $ 113,988 Prepaid Inventory 75,254 — Prepaid Expenses 35,864 35,590 Other 9,262 32,879 Total: $ 253,155 $ 182,457 |
Property, Plant and Equipment_2
Property, Plant and Equipment, net (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property Plant and Equipment | As of March 31, 2022 and June 30, 2021, property, plant and equipment consisted of the following: Schedule of Property Plant and Equipment Office and equipment $ 820,149 $ 820,149 Fixed Assets March 31, 2022 June 30, 2021 Office and equipment $ 820,149 $ 820,149 Motor vehicles 421,277 166,079 Land 2,554,767 1,922,376 Building 197,609 — Leasehold Improvement 478,904 365,620 Total 4,472,706 3,274,224 Less: accumulated depreciation (682,243 ) (524,884 ) Property, Plant and Equipment, net $ 3,790,462 $ 2,749,340 |
Accounts Payable and Accrued _2
Accounts Payable and Accrued Liabilities (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Schedule of Accounts Payable and Accrued Liabilities Accounts payable $ $ March 31, 2022 June 30, 2021 Accounts payable $ 2,003,091 $ 1,464,692 Accrued liabilities 327,434 310,528 Contingent liabilities 258,858 283,619 Total accounts payable and accrued liabilities: $ 2,589,383 $ 2,058,839 |
Derivative liabilities (Tables)
Derivative liabilities (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Derivative Liabilities | |
Schedule of Binomial Model Assumptions Inputs | Schedule of Binomial Model Assumptions Inputs June 30, 2021 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.01 0.46 % Expected Volatility 89 236 % March 31, 2022 Annual Dividend Yield — Expected Life (Years) 0.50 3.00 Risk-Free Interest Rate 0.74 2.45 % Expected Volatility 103 164 % |
Schedule of Fair Value of Derivative | Fair value of the derivative is summarized as below: Schedule of Fair Value of Derivative Beginning Balance, June 30, 2021 $ 2,217,361 Additions $ 1,568,862 Mark to Market $ 2,853,589 Cancellation of Derivative Liabilities Due to Cash Repayment $ — Reclassification to APIC Due to Conversions $ (1,214,071 ) Ending Balance, March 31, 2022 5,425,741 |
Commitments and contingencies (
Commitments and contingencies (Tables) | 9 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Supplemental Disclosures Related to Operating Lease | Schedule of Supplemental Disclosures Related to Operating Lease Nine Months Ended March 31, 2022 Lease Cost Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations) $ 231,694 Other Information Cash paid for amounts included in the measurement of lease liabilities for the nine months ended March 31, 2022 $ 180,398 Remaining lease term – operating leases (in years) 2.00 Average discount rate – operating leases 10 % The supplemental balance sheet information related to leases for the periods are as follows: Operating leases Short-term right-of-use assets $ 250,032 Long-term right-of-use assets $ 299,229 Total operating lease assets $ 549,261 Short-term operating lease liabilities $ 265,335 Long-term operating lease liabilities $ 325,781 Total operating lease liabilities $ 591,116 |
Schedule of Maturities of Lease Liabilities | Maturities of the Company’s lease liabilities are as follows: Schedule of Maturities of Lease Liabilities Operating Period ending March 31, 2022 Lease 2023 $ 311,926 2024 171,184 2025 176,320 2026 15,096 Total lease payments 674,526 Less: Imputed interest/present value discount (83,410 ) Present value of lease liabilities $ 591,116 |
Nature of Business (Details Nar
Nature of Business (Details Narrative) - USD ($) | Feb. 08, 2021 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Oct. 02, 2020 | Oct. 01, 2020 |
Revenue | $ 1,285,300 | $ 404,843 | $ 3,689,906 | $ 2,851,822 | ||||||
Decrease in adjusted revenue percentage | 7.50% | |||||||||
Increase in tax revenue | 1.00% | |||||||||
Equity method investment | 372,330 | 372,330 | $ 441,407 | |||||||
Loss from equity method investment | $ 8,330 | $ 69,077 | $ 2,114 | $ 123,412 | ||||||
Cannabis Tax [Member] | ||||||||||
Revenue | $ 308,560,000 | |||||||||
Cannabis Excise Tax [Member] | ||||||||||
Revenue | 157,370,000 | |||||||||
Cannabis Cultivation Tax [Member] | ||||||||||
Revenue | 38,980,000 | |||||||||
Cannabis Sales Tax [Member] | ||||||||||
Revenue | $ 112,210,000 | |||||||||
Nug Avenue, Inc. [Member] | ||||||||||
Ownership percentage | 70.00% | |||||||||
Indigo Dye Group Corp. [Member] | ||||||||||
Equity method investment | $ 59,370 | |||||||||
Ownership percentage | 32.00% | |||||||||
Indigo Dye Group Corp. [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | ||||||||||
Equity method investment | $ 505,449 | $ 505,449 | ||||||||
Ownership percentage | 40.00% | 40.00% |
Schedule of Estimated Useful Li
Schedule of Estimated Useful Lives of Property and Equipment (Details) | 3 Months Ended |
Mar. 31, 2022 | |
Machinery and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 3 years |
Machinery and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 1 year |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 15 years |
Vehicles [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 2 years |
Vehicles [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Leasehold Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Leasehold Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 30 years |
Building [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 31 years 6 months |
Manufactured Product, Other [Member] | |
Property, Plant and Equipment [Line Items] | |
Property and equipment, useful life | 5 years |
Schedule of Segment Operating I
Schedule of Segment Operating Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Product Information [Line Items] | ||||
Total operating income | $ (1,381,757) | $ (601,251) | $ (3,819,278) | $ (2,046,421) |
Total cost of goods sold | 495,217 | 229,818 | 1,344,029 | 1,502,247 |
Operating Segments [Member] | ||||
Product Information [Line Items] | ||||
Total operating income | 1,285,300 | 404,843 | 3,689,906 | 2,851,822 |
Total cost of goods sold | 495,217 | 229,818 | 1,344,029 | 1,502,247 |
Operating Segments [Member] | Paper and paper-based products [Member] | ||||
Product Information [Line Items] | ||||
Total operating income | 690,103 | 333,853 | 1,667,461 | 1,209,476 |
Total cost of goods sold | 495,217 | 229,818 | 1,344,029 | 854,787 |
Operating Segments [Member] | Cannabis Products Delivery [Member] | ||||
Product Information [Line Items] | ||||
Total operating income | 595,197 | 70,990 | 2,022,445 | 1,642,346 |
Total cost of goods sold | $ 647,460 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Details Narrative) - USD ($) | Mar. 31, 2022 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 |
Product Information [Line Items] | ||||
Impairment of long-lived assets | $ 0 | $ 43,800 | ||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Paper and paper-based products [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | 54.00% | |||
Revenue Benchmark [Member] | Product Concentration Risk [Member] | Cannabis Products [Member] | ||||
Product Information [Line Items] | ||||
Concentration Risk, Percentage | 46.00% | |||
Property, Plant and Equipment [Member] | ||||
Product Information [Line Items] | ||||
Impairment expenses | $ 0 | $ 0 | $ 0 |
Concentration (Details Narrativ
Concentration (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Concentration Risk [Line Items] | ||||
Revenue | $ 1,285,300 | $ 404,843 | $ 3,689,906 | $ 2,851,822 |
Suppliers One [Member] | Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 68.80% | 74.03% | ||
Suppliers Two [Member] | Revenue Benchmark [Member] | Supplier Concentration Risk [Member] | ||||
Concentration Risk [Line Items] | ||||
Concentration risk, percentage | 23.75% | 19.89% |
Noncontrolling Interest and D_2
Noncontrolling Interest and Deconsolidation of VIE (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Dec. 31, 2020 | Oct. 02, 2020 | Oct. 01, 2020 | Sep. 30, 2020 | |
Nonconsolidated affiliate - equity method | $ 372,330 | $ 372,330 | $ 441,407 | ||||||
Net assets value | 17,402,271 | 17,402,271 | 19,432,951 | ||||||
Gain on deconsolidation | $ 313,928 | ||||||||
Loss from equity method investment | $ 8,330 | 69,077 | $ 2,114 | $ 123,412 | |||||
Indigo Dye Group [Member] | |||||||||
Percentage of outstanding equity | 29.00% | ||||||||
Gain on deconsolidation | $ 313,928 | ||||||||
Indigo Dye Group Corp. [Member] | |||||||||
Percentage of outstanding equity | 32.00% | ||||||||
Proceeds option to acquire additional interest percentage | 30.00% | 30.00% | |||||||
Nonconsolidated affiliate - equity method | $ 59,370 | ||||||||
Indigo Dye Group Corp. [Member] | Variable Interest Entity, Not Primary Beneficiary [Member] | |||||||||
Net assets value | $ 326,812 | ||||||||
Indigo Dye Group Corp. [Member] | Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||||||
Percentage of outstanding equity | 40.00% | 40.00% | |||||||
Nonconsolidated affiliate - equity method | $ 505,449 | $ 505,449 |
Legal Proceedings (Details Narr
Legal Proceedings (Details Narrative) - USD ($) | Feb. 21, 2017 | Mar. 31, 2022 | Jun. 30, 2021 |
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Litigation settlement, amount | $ 227,000 | ||
Accrued interest | $ 1,435,180 | $ 1,439,116 | |
Third parties [Member] | Two (2) Notes [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-Based Payments and Postretirement Benefits [Line Items] | |||
Accrued interest | $ 80,000 | 80,000 | |
Interest Payable | $ 227,000 |
Cash (Details Narrative)
Cash (Details Narrative) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Cash, FDIC insured amount | $ 250,000 | |
Cash and Cash Equivalents, at Carrying Value | 148,236 | $ 1,396,944 |
Cash in hands | $ 74,481 | $ 2,026 |
Accounts Receivable (Details Na
Accounts Receivable (Details Narrative) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Credit Loss [Abstract] | ||
Accounts receivable, net of allowance | $ 652,526 | $ 435,598 |
Allowance for doubtful accounts | $ 321,560 | $ 259,761 |
Loans Receivable (Details Narra
Loans Receivable (Details Narrative) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Receivables [Abstract] | ||
Loan receivables amount | $ 196,000 | $ 196,000 |
Loan receivables current | 196,000 | 0 |
Loan receivables noncurrent | $ 0 | $ 196,000 |
Inventory (Details Narrative)
Inventory (Details Narrative) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Inventory Disclosure [Abstract] | ||
Inventory, net | $ 527,212 | $ 441,582 |
Inventory valuation reserves | $ 0 | $ 0 |
Schedule of Other Current Asset
Schedule of Other Current Assets (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid Deposit | $ 132,776 | $ 113,988 |
Prepaid Inventory | 75,254 | |
Prepaid Expenses | 35,864 | 35,590 |
Other | 9,262 | 32,879 |
Total: | $ 253,155 | $ 182,457 |
Intangible Asset (Details Narra
Intangible Asset (Details Narrative) - USD ($) | Apr. 01, 2017 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense | $ 492,937 | $ 494,954 | ||||
Intangible assets acquired | $ 10,648,378 | |||||
Intangible asset, useful life | 9 years | |||||
Amortization expense | 492,454 | $ 0 | ||||
Intellectual Property [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization expense | $ 2,500 | $ 1,400 | ||||
Intellectual Property [Member] | Wagner Bartosch, Inc [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Value of shares issued for acquiring | $ 75,000 | |||||
Amortization period | 10 years |
Goodwill (Details Narrative)
Goodwill (Details Narrative) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 757,648 | $ 757,648 |
Schedule of Property Plant and
Schedule of Property Plant and Equipment (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total | $ 4,472,706 | $ 3,274,224 |
Less: accumulated depreciation | (682,243) | (524,884) |
Property, Plant and Equipment, net | 3,790,462 | 2,749,340 |
Office Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 820,149 | 820,149 |
Automobiles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 421,277 | 166,079 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 2,554,767 | 1,922,376 |
Building [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | 197,609 | |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total | $ 478,904 | $ 365,620 |
Property, Plant and Equipment_3
Property, Plant and Equipment, net (Details Narrative) - USD ($) | 9 Months Ended | 12 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Impairment Effects on Earnings Per Share [Line Items] | |||
Depreciation expenses | $ 157,359 | $ 105,982 | |
Property, Plant and Equipment [Member] | |||
Impairment Effects on Earnings Per Share [Line Items] | |||
Impairment for property, plant, and equipment | $ 0 | $ 0 | $ 0 |
Equity Method Investments in _2
Equity Method Investments in Affiliates (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Dec. 31, 2020 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Oct. 01, 2020 | |
Schedule of Investments [Line Items] | |||||
Equity Method Investments | $ 372,330 | $ 441,407 | |||
Equity Method Investment, Realized Gain (Loss) on Disposal | $ 69,077 | ||||
Indigo Dye Group Corp. [Member] | |||||
Schedule of Investments [Line Items] | |||||
Impaired financing receivable, recorded investment | 32.00% | ||||
Proceeds option to acquire additional interest percentage | 30.00% | 30.00% | |||
Equity Method Investments | $ 59,370 | ||||
Indigo Dye Group [Member] | |||||
Schedule of Investments [Line Items] | |||||
Impaired financing receivable, recorded investment | 29.00% | 32.00% | |||
Terms of arrangements | As of October 1, 2020, the Company ceased to have control over the day-to-day business of Indigo and it was deconsolidated and recorded as an investment in nonconsolidated affiliate at its $564,819 estimated fair value and changed to equity method of accounting | ||||
Variable interest, percentage | 40.00% | ||||
Impaired financing receivable, recorded investment | $ 69,077 |
Unrealized Gain on Securities (
Unrealized Gain on Securities (Details Narrative) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Oct. 31, 2019 | Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2022 | Jun. 30, 2021 | |
Unrealized gain loss on securities | $ 870,132 | $ 1,451,922 | |||
Remaining value on securities | 1,451,922 | ||||
Common Stock [Member] | |||||
Shares issue, shares | 300,000,000 | 369,999,999 | |||
iPower Inc [Member] | |||||
Sale of Stock, Number of Shares Issued in Transaction | 204,496 | ||||
Sale of Stock, Consideration Received on Transaction | $ 582,688 | ||||
Share Exchange Agreement [Member] | iPower Inc [Member] | |||||
Percentage of outstanding equity | 100.00% | ||||
Business combination, consideration transferred | $ 870,000 | ||||
Promissory note | $ 7,130,000 | ||||
Share Exchange Agreement [Member] | iPower Inc [Member] | Common Stock [Member] | |||||
Shares issue, shares | 650,000 | ||||
Share Exchange Agreement [Member] | iPower Inc [Member] | Series B Preferred Stock [Member] | |||||
Shares issue, shares | 3,500,000 | ||||
Rescission Agreement [Member] | iPower Inc [Member] | |||||
Stock repurchased, fair value | $ 1,451,922 | ||||
Rescission Agreement [Member] | iPower Inc [Member] | Post Forward Split [Member] | |||||
Shares repurchased during the period | 204,496 |
Schedule of Accounts Payable an
Schedule of Accounts Payable and Accrued Liabilities (Details) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 2,003,091 | $ 1,464,692 |
Accrued liabilities | 327,434 | 310,528 |
Contingent liabilities | 258,858 | 283,619 |
Total accounts payable and accrued liabilities: | $ 2,589,383 | $ 2,058,839 |
Accounts Payable and Accrued _3
Accounts Payable and Accrued Liabilities (Details Narrative) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Payables and Accruals [Abstract] | ||
Accounts payable and acrued liabilities | $ 2,589,383 | $ 2,058,839 |
Other Payables (Details Narrati
Other Payables (Details Narrative) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)Integer | Jun. 30, 2021USD ($) | |
Other payables amount | $ 549,856 | $ 750,485 |
Number of credit cards | Integer | 8 | |
Seven Credit Cards [Member] | ||
Credit card limit amount | $ 85,000 | |
Interest expense | $ 5,719 | $ 8,961 |
Seven Credit Cards [Member] | Minimum [Member] | ||
Credit cards annual interest rates percentage | 11.24% | |
Seven Credit Cards [Member] | Maximum [Member] | ||
Credit cards annual interest rates percentage | 29.99% |
Customer Deposits (Details Narr
Customer Deposits (Details Narrative) - USD ($) | Mar. 31, 2022 | Jun. 30, 2021 |
Customer Deposits | ||
Deposit assets | $ 905,093 | $ 751,919 |
Convertible Notes (Details Narr
Convertible Notes (Details Narrative) | Mar. 23, 2022USD ($)Integer | Jan. 05, 2022USD ($)$ / shares | Jan. 01, 2022USD ($)$ / shares | Nov. 10, 2021USD ($)Integer | Jun. 14, 2021USD ($)$ / shares | Feb. 08, 2021USD ($)Integer | Nov. 10, 2020USD ($)Integer | Oct. 13, 2020USD ($)Integer$ / shares | Oct. 08, 2020USD ($)Integer$ / shares | Sep. 24, 2020USD ($)$ / shares | Sep. 10, 2020USD ($)Integer | Sep. 08, 2020USD ($)Integer$ / shares | Nov. 02, 2019USD ($)Integer$ / shares | Oct. 31, 2019USD ($)Integer$ / shares | Dec. 03, 2018USD ($)$ / shares | Nov. 16, 2018USD ($)$ / shares | Dec. 21, 2012USD ($) | Sep. 18, 2012USD ($) | Aug. 24, 2012USD ($) | Sep. 24, 2020USD ($)Integer$ / shares | Mar. 31, 2022USD ($)shares | Jun. 30, 2021USD ($)shares |
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Convertible notes payable, net, current | $ 1,435,180 | $ 1,439,116 | ||||||||||||||||||||
Convertible debt, debt discount | $ 1,020,207 | $ 391,086 | ||||||||||||||||||||
Convertible Note 1 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 25,000 | |||||||||||||||||||||
Debt instrument term | 6 months | |||||||||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 25.00% | |||||||||||||||||||||
Convertible Note 2 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 25,000 | |||||||||||||||||||||
Debt instrument term | 6 months | |||||||||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 25.00% | |||||||||||||||||||||
Convertible Note 3 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 100,000 | |||||||||||||||||||||
Debt instrument term | 6 months | |||||||||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 25.00% | |||||||||||||||||||||
Convertible Note 4 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 40,000 | |||||||||||||||||||||
Debt instrument term | 1 year | |||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.07 | |||||||||||||||||||||
Convertible Note 5 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 35,000 | |||||||||||||||||||||
Debt instrument term | 1 year | |||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.07 | |||||||||||||||||||||
Convertible Note 6 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 139,301 | |||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.008 | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Convertible Note 7 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 100,000 | |||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.008 | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Convertible Note 8 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 110,000 | |||||||||||||||||||||
Debt instrument term | 180 days | |||||||||||||||||||||
Debt instrument interest rate | 12.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Original issue discount | $ 10,000 | |||||||||||||||||||||
Convertible Note 9 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 227,700 | |||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Original issue discount | $ 20,700 | |||||||||||||||||||||
Legal Fees | $ 7,000 | |||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 90,167,551 | |||||||||||||||||||||
Convertible Note 9 [Member] | Accredited Investor [Member] | Principal Amount [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt conversion, converted amount | $ 117,700 | |||||||||||||||||||||
Convertible Note 9 [Member] | Accredited Investor [Member] | Accrued Interest [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt conversion, converted amount | $ 7,352 | |||||||||||||||||||||
Convertible Note 10 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 212,300 | $ 212,300 | ||||||||||||||||||||
Debt instrument term | 180 days | |||||||||||||||||||||
Debt instrument interest rate | 12.00% | 12.00% | ||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | $ 0.01 | ||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Original issue discount | $ 19,300 | |||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 550,000,000 | |||||||||||||||||||||
Additional principal amount due to breach | $ 63,690 | |||||||||||||||||||||
Convertible Note 10 [Member] | Accredited Investor [Member] | Principal Amount [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt conversion, converted amount | 105,000 | |||||||||||||||||||||
Convertible Note 10 [Member] | Accredited Investor [Member] | Accrued Interest [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt conversion, converted amount | 28,960 | |||||||||||||||||||||
Convertible Note 11 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 231,000 | |||||||||||||||||||||
Debt instrument term | 180 days | |||||||||||||||||||||
Debt instrument interest rate | 12.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Original issue discount | $ 21,000 | |||||||||||||||||||||
Additional principal amount due to breach | 69,300 | |||||||||||||||||||||
Convertible Note 12 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 275,000 | |||||||||||||||||||||
Debt instrument term | 180 days | |||||||||||||||||||||
Debt instrument interest rate | 12.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.01 | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Original issue discount | $ 25,000 | |||||||||||||||||||||
Additional principal amount due to breach | $ 82,500 | |||||||||||||||||||||
Convertible Note 13 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 58,300 | |||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Original issue discount | $ 5,300 | |||||||||||||||||||||
Convertible Note 14 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 69,300 | |||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Original issue discount | $ 6,300 | |||||||||||||||||||||
Convertible Note 15 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 300,000 | |||||||||||||||||||||
Debt instrument term | 3 years | |||||||||||||||||||||
Debt instrument interest rate | 1.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 85.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.0036 | |||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 100,000,000 | |||||||||||||||||||||
Convertible Note 15 [Member] | Accredited Investor [Member] | Principal Amount [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt conversion, converted amount | $ 85,000 | |||||||||||||||||||||
Convertible Note 15 [Member] | Accredited Investor [Member] | Accrued Interest [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt conversion, converted amount | $ 1,747 | |||||||||||||||||||||
Convertible Note 16 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 277,903 | |||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||
Debt instrument interest rate | 10.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 60.00% | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Debt conversion, converted instrument, shares issued | shares | 200,000,000 | |||||||||||||||||||||
Debt principal payment | $ 239,300 | |||||||||||||||||||||
Debt unpaid interest | $ 38,603 | |||||||||||||||||||||
Convertible Note 16 [Member] | Accredited Investor [Member] | Principal Amount [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt conversion, converted amount | $ 84,000 | |||||||||||||||||||||
Convertible Note 17 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 450,000 | |||||||||||||||||||||
Debt instrument term | 3 years | |||||||||||||||||||||
Debt instrument interest rate | 1.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 85.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.001 | |||||||||||||||||||||
Convertible Note 18 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 485,000 | |||||||||||||||||||||
Debt instrument term | 1 year | |||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||
Debt instrument conversion price | $ / shares | $ 0.001 | |||||||||||||||||||||
Original issue discount | $ 48,500 | |||||||||||||||||||||
Convertible Note 19 [Member] | Accredited Investor [Member] | ||||||||||||||||||||||
Short-Term Debt [Line Items] | ||||||||||||||||||||||
Debt instrument face amount | $ 198,000 | |||||||||||||||||||||
Debt instrument term | 360 days | |||||||||||||||||||||
Debt instrument interest rate | 8.00% | |||||||||||||||||||||
Debt instrument conversion percentage | 65.00% | |||||||||||||||||||||
Debt instrument trading days | Integer | 20 | |||||||||||||||||||||
Original issue discount | $ 18,000 |
Schedule of Binomial Model Assu
Schedule of Binomial Model Assumptions Inputs (Details) | 9 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Jun. 30, 2021 | |
Measurement Input, Expected Dividend Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | ||
Measurement Input, Expected Term [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input, term | 6 months | 6 months |
Measurement Input, Expected Term [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input, term | 3 years | 3 years |
Measurement Input, Risk Free Interest Rate [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 0.74 | 0.01 |
Measurement Input, Risk Free Interest Rate [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 2.45 | 0.46 |
Expected Volatility [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 103 | 89 |
Expected Volatility [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair value measurement input | 164 | 236 |
Schedule of Fair Value of Deriv
Schedule of Fair Value of Derivative (Details) | 9 Months Ended |
Mar. 31, 2022USD ($) | |
Derivative Liabilities | |
Derivative liabilities, beginning balance | $ 2,217,361 |
Additions | 1,568,862 |
Mark to Market | 2,853,589 |
Cancellation of Derivative Liabilities Due to Cash Repayment | |
Reclassification to APIC Due to Conversions | (1,214,071) |
Derivative liabilities, ending balance | $ 5,425,741 |
Derivative liabilities (Details
Derivative liabilities (Details Narrative) - USD ($) | 9 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | |
Derivative Liabilities | |||
Derivative liability | $ 5,425,741 | $ 2,217,361 | |
Derivative, loss on derivative | $ 2,853,569 | ||
Derivative, gain on derivative | $ 506,559 |
Stock warrants (Details Narrati
Stock warrants (Details Narrative) - USD ($) | Sep. 07, 2018 | Mar. 31, 2022 | Jun. 30, 2021 | Feb. 04, 2020 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Fair value of warrant liability | $ 4,289 | $ 21,042 | ||
Settlement Agreement [Member] | Investor [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrant term | 5 years | |||
Fair Value of Warrants | $ 56,730 | |||
Fair value of warrant liability | 289 | 1,042 | ||
Warrant Agreement [Member] | Accredited Investor [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrant term | 5 years | |||
Fair value of warrant liability | $ 4,000 | $ 20,000 | $ 80,000 | |
Warrants exercise price | $ 0.008 | |||
Warrant Agreement [Member] | Accredited Investor [Member] | Maximum [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Warrants to purchase common stock | 10,000,000 |
Note payable (Details Narrative
Note payable (Details Narrative) - USD ($) | May 17, 2021 | May 12, 2021 | Oct. 06, 2020 | Oct. 31, 2011 | Mar. 31, 2022 | Jun. 30, 2021 | Dec. 20, 2018 | Jun. 15, 2018 | Jan. 23, 2013 |
Line of Credit Facility [Line Items] | |||||||||
Accrued interest | $ 679,776 | $ 509,997 | |||||||
Promissory Note [Member] | Trustee [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Original principal amount | $ 1,390,000 | ||||||||
Outstanding balance | 1,366,476 | 1,378,222 | |||||||
Accrued interest | 112,817 | 57,892 | |||||||
Debt Instrument, Interest Rate During Period | 6.00% | ||||||||
Debt Instrument, Term | 30 years | ||||||||
Debt instrument, frequency of periodic payment | monthly basis | ||||||||
Debt instrument, periodic payment | $ 8,333.75 | ||||||||
Promissory Note [Member] | Lemon Glow Shareholders [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Interest rate | 5.00% | ||||||||
Original principal amount | $ 3,976,000 | ||||||||
Outstanding balance | 3,463,389 | 3,626,000 | |||||||
Accrued interest | 132,533 | 0 | |||||||
Debt Instrument, Term | 36 months | ||||||||
Promissory Note [Member] | Former Employee [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Original principal amount | $ 40,000 | ||||||||
Notes Payable, Related Parties, Current | 0 | 15,427 | |||||||
Promissory Note [Member] | Accredited Investor [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Original principal amount | $ 20,000 | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 8.00% | ||||||||
Outstanding balance | 20,000 | 20,000 | |||||||
Accrued interest | 13,800 | 11,000 | |||||||
Promissory Note [Member] | Darry l Kuecker Trustee [Member] | Trustee [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Related party undivided interest | 36.00% | ||||||||
Debt instrument, periodic payment | $ 3,000.15 | ||||||||
Promissory Note [Member] | Shirley ann hunt [Member] | Trustee [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Related party undivided interest | 64.00% | ||||||||
Debt instrument, periodic payment | $ 5,333.60 | ||||||||
Hyundai Financing [Member] | Promissory Note [Member] | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Original principal amount | $ 13,047 | ||||||||
Outstanding balance | 0 | 13,047 | |||||||
Debt instrument, periodic payment | $ 251 | ||||||||
Revolving Credit Facility [Member] | HSBC [Member] | UNITED STATES | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit maximum borrowing capacity | $ 150,000 | ||||||||
Debt instrument basis spread on variable rate | 0.25% | ||||||||
Interest rate | 5.50% | ||||||||
Line of credit covenant terms | In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate. | ||||||||
Line of credit | $ 25,982 | $ 25,982 |
Loans payable (Details Narrativ
Loans payable (Details Narrative) - USD ($) | Oct. 05, 2021 | Oct. 01, 2021 | Aug. 04, 2021 | Jul. 27, 2021 | Mar. 24, 2021 | Mar. 01, 2021 | Feb. 15, 2021 | Nov. 20, 2020 | Jul. 28, 2020 | Jun. 06, 2019 | Oct. 01, 2017 | Mar. 31, 2022 | Jun. 30, 2021 | Jan. 25, 2021 | Jun. 30, 2019 |
Unpaid interest expense | $ 679,776 | $ 509,997 | |||||||||||||
Outstanding loan balance | 1,705,750 | 701,193 | |||||||||||||
Outstanding loan balance, current | 874,962 | 392,605 | |||||||||||||
Outstanding loan balance, noncurrent | 830,788 | 308,588 | |||||||||||||
SWC Group, Inc. [Member] | Equipment Loan Agreement [Member] | |||||||||||||||
Debt instrument due date | Jun. 21, 2024 | ||||||||||||||
Outstanding balance | 13,771 | 19,506 | |||||||||||||
Debt periodic payment | $ 648 | ||||||||||||||
Business Backer [Member] | |||||||||||||||
Original principal amount | $ 215,760 | ||||||||||||||
Debt instrument interest rate | 4.00% | ||||||||||||||
Outstanding balance | 0 | 109,925 | |||||||||||||
Debt periodic payment | $ 3,425 | ||||||||||||||
John Deere Financial [Member] | |||||||||||||||
Original principal amount | $ 69,457 | ||||||||||||||
Debt instrument interest rate | 2.85% | ||||||||||||||
Outstanding balance | 55,015 | 65,726 | |||||||||||||
Debt instrument term | 60 months | ||||||||||||||
Coastline lending group [Member] | |||||||||||||||
Original principal amount | $ 490,000 | ||||||||||||||
Debt instrument due date | Aug. 14, 2024 | ||||||||||||||
Debt instrument interest rate | 8.50% | ||||||||||||||
Debt instrument term | 36 months | ||||||||||||||
Periodic payment terms, payment to be paid | $ 3,471 | ||||||||||||||
Outstanding loan balance | 490,000 | ||||||||||||||
Ram Cargo Vans [Member] | Five Auto Loan Agreement [Member] | |||||||||||||||
Debt periodic payment | $ 418 | ||||||||||||||
Debt instrument term | 60 months | ||||||||||||||
Outstanding loan balance | $ 124,332 | 113,971 | |||||||||||||
Debt instrument interest rate | 6.44% | ||||||||||||||
Hitachi Capital America [Member] | Auto Loan Agreement [Member] | |||||||||||||||
Debt instrument term | 60 months | ||||||||||||||
Outstanding loan balance | $ 32,464 | 30,210 | |||||||||||||
Debt instrument interest rate | 8.99% | ||||||||||||||
Payment principal | $ 587 | ||||||||||||||
Hitachi Capital America [Member] | Two Auto Loan Agreement [Member] | |||||||||||||||
Debt instrument term | 60 months | ||||||||||||||
Outstanding loan balance | $ 64,730 | 60,235 | |||||||||||||
Debt instrument interest rate | 8.99% | ||||||||||||||
Payment principal | $ 674 | ||||||||||||||
WNDR Group Inc [Member] | |||||||||||||||
Original principal amount | $ 100,000 | ||||||||||||||
Debt instrument due date | Dec. 31, 2022 | ||||||||||||||
Debt instrument interest rate | 2.00% | ||||||||||||||
Promissory Note [Member] | Greater Asia Technology Limited [Member] | |||||||||||||||
Original principal amount | $ 100,000 | ||||||||||||||
Debt instrument due date | Jun. 30, 2018 | ||||||||||||||
Debt instrument interest rate | 33.33% | ||||||||||||||
Outstanding balance | 36,695 | 49,541 | |||||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | |||||||||||||||
Original principal amount | $ 375,000 | ||||||||||||||
Outstanding balance | 100,000 | 100,000 | |||||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | Minimum [Member] | |||||||||||||||
Debt instrument interest rate | 40.00% | ||||||||||||||
Short Term Loans [Member] | Greater Asia Technology Limited [Member] | Maximum [Member] | |||||||||||||||
Debt instrument interest rate | 50.00% | ||||||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | CARES Act [Member] | |||||||||||||||
Original principal amount | $ 500,000 | $ 159,900 | |||||||||||||
Debt instrument interest rate | 3.75% | ||||||||||||||
Debt periodic payment | $ 731 | ||||||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | Minimum [Member] | CARES Act [Member] | |||||||||||||||
Debt periodic payment | 731 | ||||||||||||||
July 2020 PPP Note [Member] | Bank of America [Member] | Maximum [Member] | CARES Act [Member] | |||||||||||||||
Debt periodic payment | $ 2,527 | ||||||||||||||
January 2021 PPP Note [Member] | Bank of America [Member] | CARES Act [Member] | |||||||||||||||
Original principal amount | $ 96,595 | ||||||||||||||
Debt instrument interest rate | 1.00% | ||||||||||||||
Outstanding balance | 606,495 | 256,495 | |||||||||||||
Promissory Notes [Member] | Manuel Rivera [Member] | |||||||||||||||
Original principal amount | $ 100,000 | ||||||||||||||
Debt instrument due date | Sep. 15, 2021 | ||||||||||||||
Outstanding balance | 100,000 | 100,000 | |||||||||||||
Debt Instrument, Increase, Accrued Interest | $ 3,500 | ||||||||||||||
Debt instrument term | 7 months | ||||||||||||||
Debt instrument, description | The Company shall pay the investor a fee of $70,000 within 45 days of its first harvest. | ||||||||||||||
Unpaid interest expense | $ 45,500 | $ 14,000 |
Loans Payable _ Related Parti_2
Loans Payable – Related Parties (Details Narrative) - USD ($) | Dec. 14, 2021 | Nov. 21, 2016 | Jan. 23, 2013 | Mar. 31, 2022 | Jun. 30, 2021 |
Short-Term Debt [Line Items] | |||||
Loans payable | $ 1,705,750 | $ 701,193 | |||
Due to Related Parties | 208,915 | 163,831 | |||
LMK Capital LLC [Member] | Chief Executive Officer [Member] | |||||
Short-Term Debt [Line Items] | |||||
Loans payable | 93,502 | 15,427 | |||
Due from Related Parties, Current | 0 | 0 | |||
Lemon Glow [Member] | Officer [Member] | |||||
Short-Term Debt [Line Items] | |||||
Loans payable | 3,000 | 3,000 | |||
Loans Payable 1 [Member] | SWC Group, Inc. [Member] | Officer [Member] | |||||
Short-Term Debt [Line Items] | |||||
Proceeds from related party debt | $ 40,000 | ||||
Loans payable | 0 | 12,682 | |||
Loans Payable 2 [Member] | SWC Group, Inc. [Member] | Office [Member] | |||||
Short-Term Debt [Line Items] | |||||
Loans payable | 60,592 | 49,447 | |||
Loans Payable 3 [Member] | SWC Group, Inc. [Member] | Officer [Member] | |||||
Short-Term Debt [Line Items] | |||||
Loans payable | 0 | 83,275 | |||
Debt maturity date | Sep. 30, 2017 | ||||
Loans Payable 4 [Member] | SWC Group, Inc. [Member] | Officer [Member] | |||||
Short-Term Debt [Line Items] | |||||
Loans payable | $ 51,821 | $ 0 | |||
Debt maturity date | Jun. 14, 2022 |
Shares to Be Issued (Details Na
Shares to Be Issued (Details Narrative) - USD ($) | Jul. 02, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Jun. 30, 2021 | Apr. 19, 2018 |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Annual Salary | $ 455,864 | $ 174,634 | $ 1,396,026 | $ 368,616 | |||
Mr. Jimmy Chan [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Shares reserved for future issuance | 224,327 | 224,327 | 110,577 | ||||
Annual Salary | $ 250,000 | ||||||
Shares issued for shares based compensation | 50,000,000 | ||||||
Bonus percentage | 10.00% | ||||||
Mr. Jimmy Chan [Member] | Fiscal Year 2022 [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Shares reserved for future issuance | 50,000,000 | 50,000,000 | 50,000,000 | ||||
Mr. Jimmy Chan [Member] | Fiscal Year 2021 [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Shares reserved for future issuance | 50,000,000 | 50,000,000 | 50,000,000 | ||||
Consulting Agreement [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Shares reserved for future issuance | 275,827 | 275,827 | 138,077 | ||||
Consulting Agreement [Member] | The Consultant [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Stock granted | 5,000,000 | ||||||
Shares reserved for future issuance | 51,500 | 51,500 | 27,500 | ||||
Consulting Agreement [Member] | The Consultant [Member] | Fiscal Year 2022 [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Shares reserved for future issuance | 20,000,000 | 20,000,000 | 20,000,000 | ||||
Consulting Agreement [Member] | The Consultant [Member] | Fiscal Year 2021 [Member] | |||||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | |||||||
Shares reserved for future issuance | 5,000,000 | 5,000,000 | 5,000,000 |
Stockholder_s Equity (Deficie_2
Stockholder’s Equity (Deficiency) (Details Narrative) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||||
Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 02, 2022 | Jan. 06, 2022 | Jun. 30, 2021 | Apr. 22, 2020 | Apr. 21, 2020 | |
Class of Stock [Line Items] | ||||||||||
Shares authorizied for issuance | 10,000,000,000 | 10,000,000,000 | ||||||||
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | ||||||
Preferred Stock, Shares Authorized | 10,000,000 | 10,000,000 | 10,000,000 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Common Stock, Shares Authorized | 20,000,000,000 | 20,000,000,000 | 20,000,000,000 | 10,010,000,000 | 10,000,000,000 | |||||
Stock issued for acquisition, value | ||||||||||
Stock issued during period value new issues | $ 444,000 | $ 1,012,000 | ||||||||
Common stock, shares issued | 10,172,993,267 | 9,022,993,267 | 10,172,993,267 | 7,402,535,677 | ||||||
Common stock, shares outstanding | 10,172,993,267 | 9,022,993,267 | 10,172,993,267 | 7,402,535,677 | ||||||
Common stock, conversion basis | The maximum number of shares of common stock to be purchased pursuant to any single Drawdown Notice cannot exceed the lesser of (i) $250,000; (ii) 200% of the average daily traded value of the Drawdown Notice Shares during the five days immediately preceding the Drawdown Notice date; or (iii) that number of shares that would cause Dutchess to beneficially own 4.99% of the number of shares of the common stock outstanding immediately prior to the issuance of the Drawdown Notice Shares. | |||||||||
Purchase Agreement [Member] | Dutchess [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Shares reserved for future issuance | 10,000,000 | |||||||||
Common Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Debt conversion, converted instrument, shares issued | 850,000,000 | 214,285,714 | 375,600,448 | |||||||
Debt conversion, converted amount | $ 275,747 | $ 150,000 | $ 385,266 | |||||||
Stock issued during period shares new issues | 300,000,000 | 369,999,999 | ||||||||
Stock issued during period value new issues | $ 171,943 | $ 444,000 | ||||||||
Common Stock [Member] | Lemon Glow Acquisition [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock issued for acquisition, shares | 660,571,429 | |||||||||
Stock issued for acquisition, value | $ 1,849,600 | |||||||||
Preferred Class B [Member] | Lemon Glow Acquisition [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Stock issued for acquisition, shares | 2,000,000 | |||||||||
Stock issued for acquisition, value | $ 5,600,000 | |||||||||
Series B Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred Stock, Shares Authorized | 2,999,999 | 2,999,999 | 2,999,999 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 2,541,500 | 2,541,500 | 2,541,500 | 541,500 | ||||||
Preferred stock, shares outstanding | 2,541,500 | 2,541,500 | 2,541,500 | 541,500 | ||||||
Series C Preferred Stock [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Preferred Stock, Shares Authorized | 1 | 1 | 1 | |||||||
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 | $ 0.001 | |||||||
Preferred stock, shares issued | 1 | 1 | 1 | 1 | ||||||
Preferred stock, shares outstanding | 1 | 1 | 1 | 1 | ||||||
Minimum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common Stock, Shares Authorized | 10,000,000,000 | |||||||||
Maximum [Member] | ||||||||||
Class of Stock [Line Items] | ||||||||||
Common Stock, Shares Authorized | 20,000,000,000 |
Schedule of Supplemental Disclo
Schedule of Supplemental Disclosures Related to Operating Lease (Details) - USD ($) | 9 Months Ended | |
Mar. 31, 2022 | Jun. 30, 2021 | |
Loss Contingencies [Line Items] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 180,398 | |
Remaining lease term - operating leases (in years) | 2 years | |
Average discount rate - operating leases | 10.00% | |
Short-term Right-of-use assets | $ 250,032 | $ 243,406 |
Long-term Right-of-use assets | 299,229 | 486,253 |
Total operating lease assets | 549,261 | |
Short-term operating lease liabilities | 265,335 | 239,521 |
Long-term operating lease liabilities | 325,781 | $ 524,149 |
Total operating lease liabilities | 591,116 | |
General and Administrative Expense [Member] | ||
Loss Contingencies [Line Items] | ||
Operating lease cost | $ 231,694 |
Schedule of Maturities of Lease
Schedule of Maturities of Lease Liabilities (Details) | Mar. 31, 2022USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 311,926 |
2024 | 171,184 |
2025 | 176,320 |
2026 | 15,096 |
Total lease payments | 674,526 |
Less: Imputed interest/present value discount | (83,410) |
Present value of lease liabilities | $ 591,116 |
Commitments and contingencies_2
Commitments and contingencies (Details Narrative) | Jun. 03, 2021USD ($) | Feb. 01, 2021 | Feb. 23, 2018USD ($)ft² | Mar. 31, 2022USD ($) |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Lease commitment | $ 674,526 | |||
Operating lease, payments | $ 180,398 | |||
Ford Transit Connect Van [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Operating lease, payments | $ 926 | |||
Two Hyundai Accent [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Operating lease, payments | 612 | |||
Hyundai Accent [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Operating lease, payments | $ 616 | |||
Lease Agreement [Member] | Magnolia Extracts LLC [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Lessee, Operating Lease, Description | The lease was set to commence on February 1, 2021. The lease payment shall equal $10,000 per month and the lease term is on month-by-month basis. Parties have agreed that the first month’s rent payment shall equal $7,000 and the Company owed the landlord a refundable security deposit of $20,000 within 10 days of the commencement date. | |||
Lease Agreement [Member] | Building [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Lease term | 5 years | |||
Monthly rent | $ 11,770 | |||
Yearly increase in rent percentage | 3.00% | |||
Lease commitment | $ 737,367 | |||
Lease Agreement [Member] | Warehouse [Member] | ||||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||||
Lease term | 5 years | |||
Monthly rent | $ 13,022 | |||
Area under lease | ft² | 11,627 |
Subsequent events (Details Narr
Subsequent events (Details Narrative) - USD ($) | May 19, 2022 | Apr. 28, 2022 | Apr. 27, 2022 | Apr. 14, 2022 | Apr. 01, 2022 | Mar. 28, 2022 | May 23, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Oct. 15, 2022 | Mar. 31, 2022 | Jun. 30, 2021 |
Subsequent Event [Line Items] | ||||||||||||
Shares issued for cash, value | $ 444,000 | $ 1,012,000 | ||||||||||
Common stock, shares outstanding | 9,022,993,267 | 10,172,993,267 | 7,402,535,677 | |||||||||
Original issuance discount | $ 1,020,207 | $ 391,086 | ||||||||||
Stock Purchase Agreement [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Purchase agreement description | Pursuant to the terms and conditions of this Agreement, Sellers hereby agree to sell to Purchaser and Purchaser hereby agrees to purchase from Sellers the Purchased Shares, with each Seller selling to Purchaser exactly 300 shares of the Common Stock, or thirty percent (30%) of the Purchased Shares. The total purchase price for the Purchased Shares to be invested into the construction and operation of the Project, as further provided for in Section 1.3 below, shall be Two Hundred Fifty Thousand Dollars ($250,000.00), or ($833.33/ per Purchased Share). The Purchase Price shall be paid by Purchaser, as needed and toward the construction costs and operation of the business. As of May 17, 2022, the Company paid $50,000 cash as deposit to the sellers. | |||||||||||
Interest Purchase Agreements [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Purchase agreement description | Pursuant to the terms and conditions of this Agreement, Sellers hereby agree to sell to Purchaser and Purchaser hereby agrees to purchase from Sellers the Purchased MIs, with each Seller selling to Purchaser a twenty-five and one half percent (25.5%) MI, or fifty-one percent (51%) of the Purchased MIs. The total purchase price for the Purchased MIs to be paid by the Purchaser to the Sellers at the Closing shall be Fifty-one Thousand Dollars ($51,000.00), or ($1,000.00/ per Purchased MI) (the “Purchase Price”). The Purchase Price shall be paid by delivery of cash or check in the amount of Twenty-Five Thousand Five Hundred Dollars ($25,500.00) to each Seller by Purchaser at Closing. As of May 17, 2022, the Company had not made any payments to the sellers. | |||||||||||
Cultivation and Supply Agreement [Member] | Forecast [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Balloon payment to be paid | $ 100,000 | |||||||||||
Seller [Member] | Stock Purchase Agreements [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock, shares outstanding | 500 | |||||||||||
Sellers [Member] | Stock Purchase Agreements [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Common stock, shares outstanding | 1,000 | |||||||||||
Subsequent Event [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Shares issued for services, shares | 26,190,000 | |||||||||||
Property maintenance cost | $ 51,000 | |||||||||||
Subsequent Event [Member] | Stock Purchase Agreement [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Shares issued for cash, shares | 192,665,527 | |||||||||||
Shares issued for cash, value | $ 22,846 | |||||||||||
Additional equity capital | $ 250,000 | |||||||||||
Subsequent Event [Member] | Promissory Note Agreement [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt instrument, face amount | $ 144,200 | |||||||||||
Original issuance discount | $ 15,450 | |||||||||||
Debt maturity date | Apr. 27, 2023 | |||||||||||
Interest rate | 12.00% | |||||||||||
Interest expenses | $ 17,334 | |||||||||||
Debt frequency of periodic payment | ten payments each in the amount of $16,153.40 | |||||||||||
Debt periodic payment | $ 16,153.40 | |||||||||||
Subsequent Event [Member] | Cultivation and Supply Agreement [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt frequency of periodic payment | monthly installments | |||||||||||
Debt periodic payment | $ 40,000 | |||||||||||
Cultivation and supply agreement, description | Under the terms of the Agreement, Cannabis Global is obligated to purchase the Harvest, up to 25,000 pounds (the “Target Yield”). Cannabis Global has an option to increase the Target Yield for subsequent growing seasons by 25% within 45 days of the current Harvest. Cannabis Global is required to pay Lemon Glow $28.00 per pound for the Fresh Frozen cannabis, up to the Target Yield. If the Target Yield is achieved, the aggregate purchase price would be $700,000 (the “Purchase Price”). The Purchase Price shall be paid as a series of cash payments and a convertible promissory note, as more fully described below. | |||||||||||
Subsequent Event [Member] | Cultivation and Supply Agreement [Member] | Convertible Promissory Note [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt instrument, face amount | $ 400,000 | |||||||||||
Debt maturity date | Apr. 28, 2023 | |||||||||||
Debt interest rate | 8.00% | |||||||||||
Debt indebtness | $ 100,000 | |||||||||||
Subsequent Event [Member] | Note Holder [Member] | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Debt conversion, converted instrument, shares issued | 52,027 | |||||||||||
Debt conversion, converted instrument, amount | $ 847,000,000 |