Sugarmade (SGMD) 10-Q/A 16 Aug 18 2018 Q3 Quarterly report (amended) Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2018	Aug. 15, 2018
Document And Entity Information
Entity Registrant Name	Sugarmade, Inc.
Entity Central Index Key	919,175
Document Type	10-Q/A
Document Period End Date	Mar. 31, 2018
Amendment Flag	true
Amendment Description	We are filing this amendment ("Amendment No. 1") to our Quarterly Report on Form 10-Q for the period ended March 31, 2018, originally filed with the Securities and Exchange Commission (the "SEC") on August 2, 2018, for the purposes of 1) correcting a typographical error in Part 1: Financial Information, specifically labeled Sugarmade, Inc. and Subsidiary Consolidated Balance Sheet and, 2) as an amendment to the certifications originally filed relative to Section 302 and 906 of the Sarbanes-Oxley Act of 2002. Amendment No. 1 corrects a misstatement that was caused by a clerical error where a previous version of the financial statement was not removed and replaced with an updated version. Specifically, relative to the Consolidated Statement of Operations and Statement of Cash Flows for the nine-month period ending on March 31, 2018. This Form 10-Q/A does not reflect events that may have occurred subsequent to the original filing date, and does not modify or update any related or other disclosures, including forward-looking statements, made in the Form 10-Q. Accordingly, this Form 10-Q/A should be read in conjunction with the Form 10-Q. Please refer to FN 2 below for more details.
Current Fiscal Year End Date	--06-30
Is Entity a Well-known Seasoned Issuer?	No
Is Entity a Voluntary Filer?	No
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		248,567,203
Document Fiscal Period Focus	Q3
Document Fiscal Year Focus	2,018

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Mar. 31, 2018	Jun. 30, 2017
Current assets:
Cash	$ 8,643	$ 101,880
Accounts receivable, net	352,520	113,218
Inventory, net	467,782	568,229
Loan receivables	396,334	10,000
Other current assets	173,398	190,338
Total current assets	1,398,677	983,665
Equipment, net	157,216	61,792
Intangible Asset	39,025	73,125
Other assets	32,351	27,081
Total Assets	1,627,269	1,145,663
Current liabilities:
Bank overdraft	13,260
Note payable due to bank	25,982	25,982
Accounts payable and accrued liabilities	1,309,111	1,503,920
Accounts payable - related party	23,600	23,086
Customer deposits	264,102	232,591
Customer overpayment	35,202
Unearned revenue	51,334	63,304
Other payable	239,826	223,482
Accrued interest	152,695	116,236
Accrued compensation and personnel related payables	11,403	11,403
Notes payable - related parties	48,000	70,666
Loans payable	223,143	192,801
Loans payable - related party	69,795	228,412
Convertible notes payable, net	718,797	1,502,023
Convertible notes payable, related party, net	50,000
Derivative liabilities	846,571	1,134,000
Warrants liabilities	15,654	25,250
Shares to be issued	4,072,086	893,000
Total current liabilities	8,170,558	6,246,156
Total liabilities	8,170,558	6,246,156
Stockholders' deficiency:
Preferred stock ($0.001 par value, 10,000,000 shares authorized, none issued and outstanding)
Common stock ($0.001 par value, 300,000,000 shares authorized, 247,395,774 and 226,734,372 shares issued and outstanding at March 31, 2018 and June 30, 2017, respectively)	247,397	226,735
Additional paid-in capital	23,577,063	20,768,185
Shares to be issued, investments	(16,800,000)
Shares to be issued, preferred stock	2,000,000	2,000,000
Shares to be issued, common stock	17,274,474	467,996
Accumulated (deficit)	(32,842,222)	(28,563,409)
Total stockholders' (deficiency)	(6,543,289)	(5,100,493)
Total liabilities and stockholder's deficiency	$ 1,627,269	$ 1,145,663

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2018	Jun. 30, 2017
Condensed Consolidated Balance Sheets Parenthetical
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued
Preferred stock, shares outstanding
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	300,000,000	300,000,000
Common stock, shares issued	247,395,774	226,734,372
Common stock, shares outstanding	247,395,774	226,734,372

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)		3 Months Ended		9 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenues, net			$ 903,950	$ 2,965,404	$ 2,759,595
Cost of goods sold
Materials and freight costs			614,414		1,839,874
Total cost of goods sold			614,414		1,839,874
Gross profit			289,536		919,721
Operating expenses:
Selling, general and administrative expenses			693,623		2,295,458
Total operating expenses			693,623		2,295,458
Loss from operations			(404,087)		(1,375,737)
Non-operating income (expense):
Other income					243
Interest expense			(72,471)		(169,022)
Change in fair value of derivative liabilities			(1,337,000)		(1,449,000)
Loss on conversion			(884,561)		(1,209,314)
Other expense
Total non-operating income (expense)			(2,294,032)		(2,827,093)
Net income (loss)			$ (2,698,119)		$ (4,202,830)
Basic net income (loss) per share
Diluted net income (loss) per share
Basic weighted average common shares outstanding			13,751,366		9,929,119
Diluted weighted average common shares outstanding	[1]		13,751,366		9,929,119
Restated [Member]
Revenues, net		$ 849,436		2,965,404
Cost of goods sold
Materials and freight costs		594,888		2,107,834
Total cost of goods sold		594,888		2,107,834
Gross profit		254,549		857,570
Operating expenses:
Selling, general and administrative expenses		797,196		2,849,789
Total operating expenses		797,196		2,849,789
Loss from operations		(542,647)		(1,992,219)
Non-operating income (expense):
Other income				14,206
Interest expense		(97,107)		(303,484)
Change in fair value of derivative liabilities		3,680,532		(1,384,423)
Loss on conversion		(250,640)		(250,640)
Other expense		(1,265)		(362,254)
Total non-operating income (expense)		3,331,520		(2,286,595)
Net income (loss)		$ 2,788,872		$ (4,278,813)
Basic net income (loss) per share		$ 0.01		$ (0.02)
Diluted net income (loss) per share		$ 0.01		$ (0.02)
Basic weighted average common shares outstanding		247,395,774		237,925,753
Diluted weighted average common shares outstanding		247,395,774		237,925,753
[1]	Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted

Consolidated Statements of Cash

Consolidated Statements of Cash Flows Statement (Unaudited) - USD ($)	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss		$ (4,202,830)
Adjustments to reconcile net loss to cash flows from operating activities:
Initial valuation of debt discount
Loss on settlement		1,209,314
Amortization of debt discount
Stock compensation expense		658,000
Change in fair value of derivative liability		1,449,000
Depreciation and amortization		30,942
Changes in operating assets and liabilities
Accounts receivable		(14,309)
Inventory		(154,883)
Other assets		(83,519)
Bank overdraft		(28,377)
Accounts payable and accrued liabilities		(53,086)
Customer deposits		43,480
Unearned revenue		(26,766)
Accrued interest and other payables		(130,869)
Net cash used in operating activities		(1,303,903)
Cash flows from investing activities:
Acquisition of intangible assets
Acquisition of property and equipment		(24,052)
Net cash provided by (used in) investing activities		(24,052)
Cash flows from financing activities:
Proceeds from shares to be issued		225,000
Proceeds from convertible notes		1,264,523
Proceeds from (repayments of) loan
Payment to Note payable - related parties		(10,000)
Repayment to loan payable		(776,505)
Proceeds from loans		700,910
Proceeds from loan payable- related parties
Proceeds from advance share issuance
Loan receivable		3,500
Net cash provided by (used in) financing activities		1,403,928
Net increase (decrease) in cash		75,973
Cash, beginning of period	$ 101,880	911
Cash, end of period	8,643	76,884
Cash paid during the period for:
Interest
Income taxes		13,395
Supplemental disclosure of non-cash financing activities:
Debts settled through shares issuance
Restated [Member]
Cash flows from operating activities:
Net loss	(4,278,813)
Adjustments to reconcile net loss to cash flows from operating activities:
Initial valuation of debt discount	125,642
Loss on settlement	250,460
Amortization of debt discount	364,663
Stock compensation expense	789,229
Change in fair value of derivative liability	1,384,423
Depreciation and amortization	85,807
Changes in operating assets and liabilities
Accounts receivable	(239,302)
Inventory	100,447
Other assets	(374,664)
Bank overdraft	13,260
Accounts payable and accrued liabilities	(194,809)
Customer deposits	66,713
Unearned revenue	(11,970)
Accrued interest and other payables	53,317
Net cash used in operating activities	(1,865,597)
Cash flows from investing activities:
Acquisition of intangible assets	(13,999)
Acquisition of property and equipment	(133,132)
Net cash provided by (used in) investing activities	(147,131)
Cash flows from financing activities:
Proceeds from shares to be issued	1,322,685
Proceeds from convertible notes	652,653
Proceeds from (repayments of) loan
Payment to Note payable - related parties	(22,666)
Repayment to loan payable
Proceeds from loans	30,342
Proceeds from loan payable- related parties	(158,617)
Proceeds from advance share issuance	95,094
Loan receivable
Net cash provided by (used in) financing activities	1,919,491
Net increase (decrease) in cash	(93,237)
Cash, beginning of period	101,880
Cash, end of period	8,643
Cash paid during the period for:
Interest
Income taxes
Supplemental disclosure of non-cash financing activities:
Debts settled through shares issuance	$ 993,250

Nature of Business

Nature of Business	9 Months Ended
	Mar. 31, 2018
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/our Company”) is a publicly traded company incorporated in the state of Delaware. Our previous legal name was Diversified Opportunities, Inc.  Our Company primarily operates through our subsidiary, Sugarmade, Inc., a California corporation (“SWC Group, Inc., - CA”). We are headquartered in Monrovia, California, a suburb of Los Angeles, with an additional warehouse location in Southern California. As of date of this filing, we employ 21 full and part-time workers and contractors. As of the end of the reporting period, March 31, 2018, we were involved in several businesses including, 1) the supply of products to the quick service restaurant sub-sector of the restaurant industry, 2) as a distributor of paper products derived from non-wood sources and, 3) as a marketer of culinary seasoning products Seasoning Stix and Sriracha Seasoning Stix. As of the date of this filing, we are involved in several businesses including: 1) Supplying the hydroponic and indoor/outdoor cultivation agricultural market sectors, including the cannabis cultivation, processing and distribution sectors. While we supply products to these industries, none of our operations involve the cultivation, processing, distribution or the engagement in any business operations regarding the cultivation, processing or distribution of any cannabis product or any product containing cannabis. While our entrance into this business sector was announced during late November 2017, we did not begin to recognize revenues from this operation until later in calendar 2018. 2) The supply of genetic and custom printed products to the quick service restaurant sub-sector of the restaurant industry and, 3) As a marketer and distributor of culinary seasoning products Seasoning Stix and Sriracha Seasoning Stix. During the first calendar quarter of 2018, our management team and our board of directors determined the business operation of acting as a distributor of paper products derived from non-wood sources was no longer strategic to the Company and thus, this business operation was discontinued. Our board of directors believes the Company has a significant market opportunity to act as a supplier to the legal cannabis cultivation, processing and distribution market sectors. We approach these markets as a supplier of products to legal market participants and do not engage in the business of cultivating, processing or distributing cannabis or any products that contain cannabis. While our primary focus has been on companies engaged in such business operations on the west coast of the United States, our business has significantly expanded as legal medical and recreational cannabis business activities have proliferated into many other states. While our business is rapidly expanding across most of the United States, California remains an important marketplace due both the sheer size of the State’s economy and due to the rapid embrace of legalization. We also believe the Company has strong revenue expansion opportunities within the retail hydroponic agricultural sector as these businesses are complementary to our current business. We are currently in process of analyzing several acquisitions for expansion in this area. During 2017, Sugarmade announced the signing of an exclusive distribution agreement for California, Oregon and Washington with privately held Plantation Corp. for its breakthrough BudLife preservation technology based on integration of specialized gases and natural agents that dramatically extends the useful life of medical marijuana up to six (6) months by actively monitoring the internal containers environment and automatically adjusting its atmosphere as needed. Sugarmade has conducted initial product prototype testing of the BudLife product, realizing positive results. Sugamade plans to move forward as Plantation’s distribution partner upon availability of the BudLife product line. We plan to continue our business pursuits relative to our CarryOutSuppies.com business, which is a producer and wholesaler of custom printed and generic supplies servicing more than 2,000 quick service restaurants. Our products include double poly paper cups for cold beverage; disposable, clear, plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, food containers, soup containers, plastic spoons and many other similar products for this market sector. CarryOutSupplies.com was founded in 2009. Carryoutsupplies management estimates it holds and approximately 25% to 40% market share of generic and printed products within the take out frozen yogurt and ice cream industries. As of the end of the reporting period, March 31, 2018, we were also a distributor of paper made from 100% reclaimed sugarcane fiber, enhanced with bamboo. Sugarcane fiber, called bagasse, is a discarded byproduct of sugarcane production. As of the date of this filing, we have discontinued this business operation, as our board of directors determined superior revenue growth opportunities existed elsewhere within the marketplace. Sugarmade is also a distributor of culinary seasoning products Sriracha Stix and Seasoning Stix. During September of 2016, the Company completed negotiations for and signed an agreement with HUY FONG FOODS, INC. (“HFFI”), the maker of Sriracha Hot Chili Sauce, under which the Company became a party to a license with Huy Fong Foods, Inc. gaining permission from Huy Fong Foods, Inc. to use the licensed marks for the limited products and purposes permitted by the license. Based on this agreement and a separate marketing and sales agreement signed with Seasoning Stixs International, LLC, the Company markets a culinary seasoning product named Sriracha Seasoning Stixs. Sriracha Seasoning Stixs are encapsulated Huy Fong Sriracha Sauce and other seasonings in the form of a stick, which are inserted into meat, fish and poultry prior to cooking. All trademarks, service marks and intellectual property remain the property of the respective owners. In the future, we plan to continue to concentrate primarily on the hydroponic and cultivation market place, in addition to the quick service restaurant supply sector. In addition, we are currently analyzing expanding our business operations into the hydroponic and cultivation retail sector via direct acquisitions of participants in that market sector.

Restatement of Financial Statem

Restatement of Financial Statements	9 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Restatement of Financial Statements	2. Restatement of Financial Statements On August 2, 2018, the Company mistakenly filed a wrong version of Form 10-Q for the period ended March 31, 2018, the Consolidated Statement of Operations for the three and nine months ended March 31, 2018 and Statement of Cash Flows for the nine-month period ending on March 31, 2018 was misstated. Below is a summary of the adjustments/restatement of the mistakenly filed 10-Q. For the Three Months Ended March 31, 2018 For the Nine Months Ended March 31, 2018 (Original) (Adjustment) (Restated) (Original) (Adjustment) (Restated) Revenues, net $ 2,965,404 $ (2,115,968 ) $ 849,436 $ 5,081,372 $ (2,115,968 ) $ 2,965,404 Cost of goods sold: 2,107,834 (1,512,946 ) 594,888 3,618,033 (1,510,199 ) 2,107,834 Total cost of goods sold 2,107,834 (1,512,946 ) 594,888 3,618,033 (1,510,199 ) 2,107,834 Gross profit 857,570 (603,021 ) 254,549 1,463,339 (605,769 ) 857,570 Operating expenses: Selling, general and administrative expenses 2,849,789 (2,052,593 ) 797,196 4,901,953 (2,052,164 ) 2,849,789 Total operating expenses 2,849,789 (2,052,593 ) 797,196 4,901,953 (2,052,164 ) 2,849,789 Loss from operations (1,992,220 ) 1,449,573 (542,647 ) (3,438,615 ) 1,446,396 (1,992,219 ) Non-operating income (expense): Other income 14,206 (14,206 ) — 29,281 (15,075 ) 14,206 Interest expense (303,484 ) 206,377 (97,107 ) (509,813 ) 206,329 (303,484 ) Change in fair value of derivative liabilities (1,384,423 ) 5,064,955 3,680,532 (6,449,378 ) 5,064,955 (1,384,423 ) Loss on conversion — (250,640 ) (250,640 ) — (250,640 ) (250,640 ) Other expense (612,894 ) 611,629 (1,265 ) (979,799 ) 617,545 (362,254 ) Total non-operating income (expense) (2,286,594 ) 5,618,114 3,331,520 (7,909,709 ) 5,623,114 (2,286,595 ) Net income (loss) (4,278,814 ) 7,067,686 2,788,872 (11,348,323 ) 7,069,509 (4,278,814 ) Basic net income (loss) per share (0.02 ) 0.03 0.01 (0.05 ) 0.03 (0.02 ) Diluted net income (loss) per share (0.02 ) 0.03 0.01 (0.05 ) 0.03 (0.02 ) Basic weighted average common shares outstanding 247,395,774 — 247,395,774 237,925,753 — 237,925,753 Diluted weighted average common shares outstanding * 247,395,774 — 247,395,774 237,925,753 — 237,925,753 For the Nine Months Ended March 31, 2018 (Original) (Adjustment) (Restated) Cash flows from operating activities: Net loss (11,348,323 ) 7,069,509 (4,278,814 ) Adjustments to reconcile net loss to cash flows from operating activities: 125,642 — 125,642 Initial valuation of debt discount Loss on settlement — 250,460 250,460 Amortization of debt discount 314,677 49,986 364,663 Stock based compensation 926,754 (137,525 ) 789,229 Change in fair value of derivative liability 9,578,061 (8,193,638 ) 1,384,423 Depreciation and amortization — 85,807 85,807 Changes in assets and liabilities: Accounts receivable (239,302 ) — (239,302 ) Inventory 100,447 — 100,447 Other assets (374,664 ) — (374,664 ) Bank overdraft 13,260 — 13,260 Accounts payable and accrued liabilities (194,809 ) — (194,809 ) Customer deposits 66,713 — 66,713 Unearned revenue (11,970 ) — (11,970 ) Accrued interest and Other payables 3,317 50,000 53,317 Net cash used in operating activities 954,390 (2,819,987 ) (1,865,597 ) Cash flows from investing activities: Acquisition of intangible assets (13,999 ) — (13,999 ) Acquisition of property and equipment (133,132 ) — (133,132 ) Net cash used in investing activities (147,131 ) — (147,131 ) Cash flows from financing activities: Proceeds from shares to be issued 361,478 961,207 1,322,685 Proceeds from convertible notes 702,653 (50,000 ) 652,653 Repayment of notes payable — — — Payment to Note payable-related parties (22,666 ) — (22,666 ) Proceeds from loans 30,342 — 30,342 Repayment of loan payable-related parties (158,617 ) — (158,617 ) Repayment of loans — — — Proceeds from advance share issuance 95,094 — 95,094 Loan receivable — — — Net cash provided by financing activities 1,008,284 911,207 1,919,491 Net increase (decrease) in cash (93,237 ) — (93,237 ) Cash paid during the period for: Cash, beginning of period 101,880 — 101,880 Cash, end of period 8,643 — 8,643 Interest — — — Income taxes — — — Supplemental disclosure of non-cash financing activities Debts settled through shares issuance 993,250 — 993,250

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Mar. 31, 2018
Summary Of Significant Accounting Policies
Summary of Significant Accounting Policies	3. 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 and the rules and regulations of the United States Securities and Exchange Commission 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 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, 2017, 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 period ended June 30, 2017. The interim results for the period ended March 31, 2018 are not necessarily indicative of the results for the full fiscal year. Principles of consolidation The condensed consolidated unaudited financial statements include the accounts of our Company and its wholly-owned subsidiaries, Sugarmade-CA and SWC. All significant intercompany transactions and balances have been eliminated in consolidation. Going concern The Company sustained continued losses from operations during the nine months ended March 31, 2018 and for the fiscal year ended June 30, 2017. 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 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 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 is endeavoring to increase revenue-generating operations. While priority is on generating cash from operations through the sale of the Company’s products, management is also seeking 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. Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 605, Revenue Recognition Adoption of ASC Topic 606, "Revenue from Contracts with Customers" Sugarmade, Inc. is planning on implementing Topic 606. Results for reporting periods beginning within the next fiscal year will be presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Sugarmade experienced no impact to the opening balance of the accumulated deficit or revenues for any quarterly period as a result of applying Topic 606. Sugarmade will apply 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 Sugarmade’s revenue is recognized at the time control of the products transfers to the customer. Additionally, Sugarmade has substantially increased its accounting and financial staffs and enhanced its information technology and accounting systems software to ensure proper and effective implementation of Topic 606. 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 currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). We have not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash. 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 customer’s 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 allowances of $352,520 as of March 31, 2018 and of $113,218 as of June 30, 2017. 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, 2018 and June 30, 2017, the balance for the inventory totaled $467,782 and $568,229, respectively. Obsolescence reserve at March 31, 2018 and June 30, 2017 were $134,526 and $70,332, respectively. Intangible assets, net Intangible assets with finite lives are amortized over their estimated useful life. The Company monitors conditions related to these assets to determine whether events and circumstances warrant a revision to the remaining amortization period. The Company tests its intangible assets with finite lives for potential impairment whenever management concludes events or changes in circumstances indicate that the carrying amount may not be recoverable. The original estimate of an asset's useful life and the impact of an event or circumstance on either an asset's useful life or carrying value involve significant judgment. Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized. As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of October 2, 2008, and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as open tax years in these jurisdictions. We have identified the U.S. federal and California as our “major” tax jurisdictions and generally, we remain subject to Internal Revenue Service examination of our 2013 U.S. federal income tax returns. However, we have certain tax attribute carryforwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized. We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. We have no interest or penalties as of March 31, 2018. 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 Black-Scholes-Merton 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. Share-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 share-based payment, whichever is more readily determinable. Loss per share We calculate basic earnings per share (“EPS”) by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income or 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 EPS when their effect is dilutive. As of March 31, 2018, there are approximately 31,915,377 potential shares issuable upon conversion of convertible debts and 505,000 shares of warrants were excluded in calculating diluted loss per share for the six-months ended March 31, 2018 due to the fact that issuance of the shares is anti-dilutive as a result of the Company’s net loss. 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 2 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Black-Scholes option-pricing model for the nine months ended March 31, 2018. Carrying Value Fair Value Measurements at As of March 31, 2018 March 31, Using Fair Value Hierarchy 2018 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 846,571 $ — $ — $ 846,571 Total $ 846,571 $ — $ — $ 846,571 June 30, 2017 March 31, 2018 Expected life (years) 0.74 0.34 Risk-free interest rate 1.68 % 1.60%~1.88 % Expected volatility 161 % 205 % Carrying Value Fair Value Measurements at As of June 30, 2017 June 30, Using Fair Value Hierarchy 2017 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 1,134,000 $ — $ — $ 1,134,000 Total $ 1,134,000 $ — $ — $ 1,134,000 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 Black-Scholes- Merton 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. Refer to Note 7 for details. 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. FASB ASC Topic 280 has no effect on the Company’s financial statements as substantially all of its operations are conducted in one industry segment – paper and paper-based products such as paper cups, cup lids, food containers, etc. New accounting pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of adoption of this ASU on the consolidated financial statements. In May 2014, the FASB issued No. 2014-09, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB approved a one-year deferral of the effective date of the new revenue recognition standard. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue versus Net). In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing. In May 2016, the FASB issued ASU 2016-11, Revenue from Contracts with Customers (Topic 606) and Derivatives and Hedging (Topic 815) - Rescission of SEC Guidance Because of ASU 2014-09 and 2014-16, and ASU 2016-12, Revenue from Contracts with Customers (Topic 606) - Narrow Scope Improvements and Practical Expedients. These ASUs clarify the implementation guidance on a few narrow areas and adds some practical expedients to the guidance Topic 606. The Company is evaluating the effect that these ASUs will have on its consolidated financial statements and related disclosures. On March 30, 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which includes amendments to accounting for income taxes at settlement, forfeitures, and net settlements to cover withholding taxes. The amendments in ASU 2016-09 are effective for public companies for fiscal years beginning after December 31, 2016, and interim periods within those annual periods. The Company adopted this new guidance on January 1, 2017 and this standard does not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. This ASU is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently assessing the potential impact of ASU 2016-15 on its financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16—Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU improves the accounting for the income tax consequences of intra-entity transfers of assets other than invent tory. For public business entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company does not anticipate that the adoption of this ASU will have a significant impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. Early adoption is permitted, including adoption in an interim period. The standard should be applied using a retrospective transition method to each period presented. The Company does not anticipate that the adoption of this ASU will have a significant impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The standard should be applied prospectively on or after the effective date. The Company will evaluate the impact of adopting this standard prospectively upon any transactions of acquisitions or disposals of assets or businesses. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements.

Concentration

Concentration	9 Months Ended
	Mar. 31, 2018
Risks and Uncertainties [Abstract]
Concentration	4. Concentration Customers For the three months ended March 31, 2018 and March 31, 2017, our Company earned net revenues of $2,965,404 and $903,950 respectively. For the nine months ended March 31, 2018 and March 31, 2017, our Company earned net revenues of $5,081,372 and $2,759,595 respectively. The vast majority of these revenues for the period ending March 31, 2018 were derived from a large number of customers, whereas the vast majority of these revenues for the period ending March 31, 2017 were derived from a limited number of customers. No customers accounted for over 10% of the Company’s total revenues for the year ended March 31, 2018. Suppliers For the nine months end March 31, 2018, we purchased products for sale by CarryOutSupplies from several contract manufacturers located in Asia. A substantial portion of the Company’s inventory is purchased from one supplier that functions as an independent foreign procurement agent. One supplier accounted for 65% and two suppliers each accounted for 8% of the Company’s total inventory purchase in the nine- months ended March 31, 2018 and March 31, 2017 respectively.

Equity Transaction - Exclusive

Equity Transaction - Exclusive License Rights	9 Months Ended
	Mar. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Equity Transaction - Exclusive License Rights	5. Equity Transaction - Exclusive License Rights On December 13, 2017, we entered into a Master Marketing Agreement with BizRight Hydroponic, Inc. (“BizRight”), a leading marketer and manufacturer of cannabis and hydroponic growth supplies, which offers a range of hydroponics-related products including: HPS grow lights, electronic ballasts, HPS Bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other cannabis-related grow and storage products. BizRight operates the ZenHydro.com website and other e-commerce properties, and sells various products to distributors and retailers. Under the terms of the Master Marketing Agreement, all products procured, developed and imported by BizRight will be sold by the Company. The expected term of the exclusive license rights is 20 years. BizRight and its owners will be compensated via a combination of cash and common shares in Sugarmade. Effective the contract date, Bizright will be compensated Two hundred million (200,000,000) common shares. Sugarmade will compensate BizRight and its owners six million dollars ($6,000,000) in cash. The amount due will be divided over 3 payments equally and are contingent upon the filing of the S-1 and significant funding. The shares to be issued in connection with the acquisition of exclusive license rights were booked under share to be issued- contra equity account. The shares to be issued were valued at $16,800,000, or $0.084 per share which was the share price on December 13, 2017, the acquisition date.

Litigation

Litigation	9 Months Ended
	Mar. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Litigation	6. Litigation As of the date of this filing, the Company is a plaintiff, in Contra Costa County, California, in a suit alleging breach of fiduciary duty, conspiracy to commit breach of fiduciary duty, fraud, conspiracy to commit fraud, conversion, breach of contract, and interference with contractual relations against, Diversified Products Group Inc. (DPG), Stephen Pinto, Lewis Cohen and Heidi Estiva, who were former sales agents for the Company. Pinto is the Company’s former Chairman of the board of directors. The Company plans to actively pursue this case. During November of 2014, the Company received notice that a cross complaint had been filed against the Company. The complaint alleges the parties were induced to make a series of investments in the Company by the material misrepresentations and omissions made by the Company. The Company believes the allegations are without merit. The Company plans to vigorously defend against such claims. No changes have occurred as of the filing date of this report. On May 24, 2014, the Labor Commissioner, State of California issued an Order, Decision or Award of the Labor Commissioner against the Company in the amount of $56,365. On October 28, 2014, the Company entered into a settlement agreement, which was effective October 28, 2014, to resolve a judgment against the Company via the issuance of 502,533 restricted shares and a $30,000 cash payment. On December 11, 2013, the Company was served with a complaint from two Convertible Note Holders and investors in the Company, Lovitt & Hannan, Inc. Salary Deferral Plan FBO J. Thomas Hannan, Attorney at Law 401K Plan and Trust, and Kevin M. Kearney. The Company’s former CEO, Scott Lantz, was also named in the suit. On February 21, 2017, the Company signed a settlement agreement with the plaintiff 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 the two notes outstanding within one (1) week. The parties had estimated the value of the notes at approximately $80,000. The Company agreed to pay the plaintiff $97,000 within one hundred and twenty (120) days of the settlement with the remaining balance of $50,000 due within one hundred and eighty (180) days of the settlement. Upon receipt of all payments, plaintiffs will surrender for cancellation 230,000 of the Company’s shares within ten (10) days. The parties agreed that all claims against the Company would be satisfied through such payments and that the matter would be fully resolved. As of June 30, 2017, third-parties had purchased two (2) notes of approximately $80,000, reducing the Company’s exposure by $80,000. As of the date of this filing the balance for accrued legal settlement for Hannan vs Sugarmade has been reduced to $227,000. There can be no assurances the ultimate liability relative to these law suits will not exceed what is outlined above.

Convertible Notes

Convertible Notes	9 Months Ended
	Mar. 31, 2018
Convertible Notes
Convertible Notes	7. Convertible Notes As of March 31, 2018 and June 30, 2017, the balance owing on convertible notes with term as describe below was $818,797 and $1,502,023, respectively. Convertible note 1: On August 24, 2012, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 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, 2018, the note is in default. Convertible note 2: On September 18, 2012, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 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, 2018, the note is in default. Convertible note 3: On December 21, 2012, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of six (6) months with an interest rate of 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, 2018, the note is in default. Convertible note 4: On December 19, 2016, the Company entered into a convertible promissory note with an accredited investor for $20,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount. Convertible note 5: On January 17, 2017, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares. This convertible promissory note has been fully converted in the quarter ended March 31, 2018. Convertible note 6: On January 17, 2017, the Company entered into a convertible promissory note with an accredited investor for $20,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares. Convertible note 9: On January 20, 2017, the Company entered into a convertible promissory note with an accredited investor for $80,000. The note has a term of seven (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares. Convertible note 7: On January 24, 2017, the Company entered into a convertible promissory note with an accredited investor for $43,000. The note has a term of twelve (12) months with an interest of 8% and is convertible to common shares at a 45% discount to the then current market price of our shares. This convertible promissory note has been fully converted in the quarter ended March 31, 2018. Convertible note 8: On February 8, 2017, the Company entered into a convertible promissory note with an accredited investor for $50,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares. This convertible promissory note has been fully converted in the quarter ended March 31, 2018. Convertible note 11: On February 9, 2017, the Company entered into a convertible promissory note with an accredited investor for $50,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares. Convertible note 15: On February 15, 2017, the Company entered into a convertible promissory note with an accredited investor for $63,000. The note has a term of nine (9) months with an interest rate of 8% and is convertible to common shares at 40% discount to the then current market price of our shares. This convertible promissory note has been fully converted in the quarter ended March 31, 2018. Convertible note 16: On February 16, 2017, the Company entered into a convertible promissory note with an accredited investor for $30,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares. This convertible promissory note has been fully converted in the quarter ended March 31, 2018. Convertible note 10: On February 24, 2017, the Company entered into a convertible promissory note with an accredited investor for $66,023. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares. Convertible note 12: On February 28, 2017, the Company entered into a convertible promissory note with an accredited investor for $75,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount. Convertible note 13: On March 1, 2017, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of nine (9) months with an interest rate of 10% and is convertible to common shares at a 45% discount to the then current market price of our shares. As of March 31, 2018, the note is in default. Convertible note 14: On March 23, 2017, the Company entered into a convertible promissory note with an accredited investor for $70,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares. Convertible note 17: On March 31, 2017, the Company entered into a convertible promissory note with an accredited investor for $200,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount to the then current market price of our shares. Convertible note 18 & 19: On May 17, 2017, the Company entered a convertible promissory note with an investor for a total amount of $1,375,000 (after $10,000 legal and due diligence fee) with an OID of $125,000, the note will be fulfilled through a series of fundings. The note is due 12 months after each funding date and bear an interest rate of 10%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. In connection with the note, the investor will also receive warrants and is calculated based on 15% of the maturity amount. The warrants have a life of four years with exercise price of $0.15 per share and have cashless exercise option. The Company received $460,000 (net with OID of $45,000) from this note during the year ended June 30, 2017. The fair value of the warrants were $40,400 at grant date. As of June 30, 2017, the Company had outstanding convertible note payable to this investor for $460,000 (net with OID of $45,000), the fair value of the warrant liability was $25,250. On July 17, 2017, the Company entered into a convertible promissory note with an accredited investor for $164,900. 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 $0.025. On August 3, 2017, the Company entered into a convertible promissory note with an accredited investor for $150,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 45% discount to average of 3 lowest trading price during last 20 trading days. On August 22, 2017, the Company entered into a convertible promissory note with an accredited investor for $35,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount of average two lowest price of last 20 trading days prices. On September 15, 2017, the Company entered into a convertible promissory note with an accredited investor for $150,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 45% discount to average of 3 lowest trading price during last 20 trading days. On September 26, 2017, the Company entered into a convertible promissory note with an accredited investor for $15,000. The note has a term of six (6) months with an interest rate of 8% and is convertible to common shares at a 40% discount of average two lowest price of last 20 trading days prices. On December 7, 2017, the Company entered into a convertible promissory note with an accredited investor for $50,000. 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 $0.05. As of March 31, 2018, the Company’s convertible notes consisted of following: Conversion Balance Principal Default in # of as of Interest Amount Penalty Repayment principal shares 12.31.17 Due Date Rate Conversion Price 25,000.00 — — — — 25,000.00 7/1/2016 10 % 75% of the average of 30 days prior to the conversion date. 25,000.00 — — — — 25,000.00 7/1/2016 10 % 75% of the average of 30 days prior to the conversion date. 100,000.00 — — — — 100,000.00 7/1/2016 10 % 75% of the average of 30 days prior to the conversion date. 20,000.00 — — 20,000.00 737,748 — 7/17/2017 8 % Greater of 40% discount to average of 3 lowest trading price during last 20 trading days or $.05 50,000.00 — — 50,000.00 2,931,188 — 8/8/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 80,000.00 — — 80,000.00 4,530,846 — 7/20/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 66,023.00 — — 66,023.00 3,712,324 — 8/24/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 75,000.00 — — 75,000.00 4,378,547 — 7/31/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 100,000.00 — — — — 100,000.00 12/1/2017 10 % Greater of 40% discount to average of 3 lowest trading price during last 20 trading days or $.05 70,000.00 — — 70,000.00 4,067,072 — 9/23/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 200,000.00 — — 200,000.00 11,557,652 — 9/30/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 340,000.00 — — 125,000 11,320,929 215,000.00 5/12/2018 10 % 45% discount of lowest price of last 20 trading days prices 150,000.00 — — — — 150,000.00 5/3/2018 10 % 45% discount to average of 3 lowest trading price during last 20 trading days 150,000.00 — — — — 150,000.00 6/15/2018 10 % 42% discount to average of 3 lowest trading price during last 20 trading days 164,900.00 — — 164,900 6,596,000 — 7/17/2018 8 % The conversion price shall be $0.025 per share 35,000.00 — — — — 35,000.00 8/22/2018 8 % 40% discount of average two lowest price of last 20 trading days prices 15,000.00 — — — — 15,000.00 9/26/2018 8 % 40% discount of average two lowest price of last 20 trading days prices 50,000 — — — — 50,000 12/7/2018 8 % The conversion price shall be $0.05 per share 1,788,423 865,000 In connection with the convertible debt, debt discount balance as of March 31, 2018 and June 30, 2017 were $96,203 and $45,000 respectively and were being amortized and recorded as interest expenses over the term of the convertible debt.

Derivative Liabilities

Derivative Liabilities	9 Months Ended
	Mar. 31, 2018
Derivative Liabilities
Derivative Liabilities	8. Derivative liabilities The derivative liability is derived from the conversion features in note 5 and stock warrant in note 7. All were valued using the weighted-average Black-Scholes-Merton option pricing model using the assumptions detailed below. As of March 31, 2018 and June 30, 2017, the derivative liability was $846,571 and $1,134,000, respectively. The Company recorded $6,449,378 loss and $1,449,000 loss from changes in derivative liability during the nine months ended March 31, 2018 and 2017, respectively. The Black- Scholes model with the following assumption inputs: March 31, 2018 Annual dividend yield — Expected life (years) 0.01 – 1 year Risk-free interest rate 1.29% – 1.76% Expected volatility 103% - 206% June 30, 2017 Annual dividend yield — Expected life (years) 0.01 Risk-free interest rate 0.21 % Expected volatility 449 % Fair value of the derivative is summarized as below: Beginning Balance, December 31, 2017 5,039,978 Additions — Mark to Market (3,680,532 ) Reclassification to APIC due to conversions (512,875 ) Balance, March 31, 2018 846,571

Stock warrants

Stock warrants	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Stock warrants	9. Stock warrants In connection with the issuance of the promissory notes in 2012, the investors in the aggregate received two-year warrants to purchase up to a total of 50,000 shares of common stock at an exercise price of $0.50 per share, and two-year warrants purchasing up to a total of 81,250 shares of common stock at an exercise price of $0.01 per share. For purposes of accounting for the detachable warrants issued in connection with the convertible notes, the fair value of the warrants was estimated using the Black-Scholes-Merton option pricing formula. The value of all warrants granted at the date of issuance totaled $508,413 and was recorded as a discount to the notes payable. The amount was amortized over the nine (9) month term of the respective convertible note as additional interest expense. On various dates during June 2014 and December 2014 the Company and holders of certain convertible notes agreed to cancel warrants to purchase common shares in the Company and to extend the due dates on the Notes to July 1, 2016. $0.50 warrants and “Bonus Warrants” priced at $0.01, as defined in the original Convertible Note Purchase Agreements we cancelled pertaining to the Note and warrants acquired on the following dates for the following Convertible Notes and amounts. These warrants were expired on July 1, 2016. On May 17, 2017, the Company entered a promissory note with an investor for a total amount of $1,375,000 (after $10,000 legal and due diligence fee) with an OID of $125,000, the note will be fulfilled through a series of funding. In connection with the note, the investor will also receive warrants and is calculated based on 15% of the maturity amount. The warrants have a life of four years with an exercise price of $0.15 per share and have cashless exercise option. The fair value of the warrants at the grant date was $40,400. As of March 31, 2018 and June 30, 2017, the fair value of the warrant liability was $15,653 and $25,250, respectively. The Black-Scholes model with the following assumption inputs: Warrants liability March 31, 2018 Annual dividend yield — Expected life (years) 3.61 Risk-free interest rate 1.89 % Expected volatility 424 % Warrants issued in May 2017 June 30, 2017 Annual dividend yield — Expected life (years) 3.86 Risk-free interest rate 1.89 % Expected volatility 440 % Warrants issued in 2012 with extension to July 1, 2016 June 30, 2016 Annual dividend yield — Expected life (years) 0.01 Risk-free interest rate 0.21 % Expected volatility 449 % Below is the movement of warrants for the period ending March 31, 2018: Number of Weighted Average Weighted Average Remaining Outstanding at June 30, 2015 131,250 $ 0.20 Granted — — Exercised — — Outstanding at June 30, 2016 131,250 0.20 Expired 131,250 0.20 Granted 505,000 $ 0.15 4 Outstanding at June 30, 2017 505,000 $ 0.15 3.86 Granted — — Exercised — — Outstanding at March 31, 2018 505,000 $ 0.15 3.61 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. The line of credit bears a variable interest rate of one quarter percent (0.25%) above the prime rate (3.25% as of December 31, 2013). 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. As of March 31, 2018 and June 30, 2017, the loan principal balance was $25,982. Note payable due to related party On January 23, 2013, the Company entered into a promissory note with its former employee of the Company who owns less than 5% of the Company’s stock. The original principal amount was $40,000 and the note bore no interest. The note was payable upon demand. As of March 31, 2018 and June 30, 2017, this note had a balance of $18,000. On December 31, 2013, the Company entered into a promissory note with Kalvin Kwong (an employee of the Company, who owns less than 5% of the Company’s stock). The principal amount was $20,000 and the interest rate on the note was 10%. The note had a term of six (6) months. However, this note was now payable upon demand per the oral agreement with the lender. As of March 31, 2018 and June 30, 2017, this note had a balance of $20,000. On January 13, 2014, the Company entered into a promissory note with an employee (an employee of the Company, who owns less than 5% of the Company’s stock). The principal amount was $25,000 and the note bore no interest. The note had a term of twenty-four (24) months and was due on January 13, 2016, and became payable upon demand after January 13, 2016. As of March 31, 2018 and June 30, 2017, this note had a balance of $0 and $12,666, respectively. On January 14, 2015, the Company entered into a promissory note with Richard Ko (an employee of the Company, who owns less than 5% of the Company’s stock). The principle amount was $30,000 and the note bore no interest. The note had a term of one (1) year and was due on January 14, 2016, and became payable upon demand after January 14, 2016. As of March 31, 2018 and June 30, 2017, this note had a balance of $10,000 and $20,000, respectively. As of March 31, 2018 and June 30, 2017, the Company has an outstanding balance of notes payable due to related parties of 48,000 and $70,666, respectively.

Stockholder's Deficiency

Stockholder's Deficiency	9 Months Ended
	Mar. 31, 2018
Stockholders Deficiency
Stockholder's Deficiency	10. Stockholder’s Deficiency The Company is authorized to issue 300,000,000 shares of $.001 par value common stock and 10,000,000 shares of$.001 par value preferred stock. As of March 31 and June 30, 2017, the Company had 247,395,774 and 226, 734, 372 shares of its common stock issued and outstanding.

Common shares Shares issued for

Common shares Shares issued for services	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Common shares Shares issued for services	11. Common shares to be issued for services In September 2017, the Company issued 4,736,842 shares of commons stock for services. The fair value of the shares were valued at $0.04, the closing price of the grant date. In December 2017, the Company issued 7,860,000 shares of commons stock for services. The fair value of the shares were valued at $0.04, the closing price of the grant date. In March 2018, the Company issued 1,075,000 shares of commons stock for services. The fair value of the shares were valued at $0.197, the closing price of the grant date.

Related Party Transactions

Related Party Transactions	9 Months Ended
	Mar. 31, 2018
Related Party Transactions
Related Party Transactions	12. Related party transactions As of March 31, 2018, the Company had outstanding balance of $117,795 owed to various related parties. See note 8 and 13 for the details.

Loans payable

Loans payable	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Loans payable	13. Loans payable On January 25, 2017, SWC entered into an agreement with a lending company for $100,000 for its working capital needs. As of March 31, 2018 and June 30, 2017, the Company has an outstanding balance of $0 and $10,036, respectively. During the year ended June 30, 2017, the Company entered 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, 2018 and June 30, 2017, the outstanding balance with Greater Asia loans were $175,590 and $140,125, respectively. On July 1, 2016, the Company entered into a repayment agreement with its employee for $20,280 at no interest. As of March 31, 2018 and June 30, 2017, the Company has an outstanding balance of $6,285. Repayment on this loan will be repaid at a later date with no interest being accrued. On January 6, 2015, the Company entered into repayment agreement with its former employee for a loan of $9,500 at no interest. As of March 31, 2018 and June 30, 2017, the Company has an outstanding balance of $4,076. On July 2, 2015, the Company entered into a repayment agreement with an individual for $22,583 at no interest. As of March 31, 2018 and June 30, 2017, the Company has an outstanding balance of $13,936. On March 5, 2013, the Company entered an equipment loan agreement with Toyota financial services with maturity date of April 4, 2018. As of March 31, 2018 and June 30, 2017, the balance under this loan were $1,077 and $4,308, respectively. On July 1, 2012, CarryOutSupplies entered an equipment loan agreement with a bank with maturity on June 1, 2017. The monthly payment is $255. As of March 31, 2018 and June 30, 2017, the outstanding balance under this loan were $0 and $261, respectively. As of March 31, 2018 and June 30, 2017, the Company had an outstanding loan balance of $1,599 from one (1) vendor of the Company.

Loans payable - related parties

Loans payable - related parties	9 Months Ended
	Mar. 31, 2018
Related Party Transactions [Abstract]
Loans payable - related parties	14. Loan payable – related parties On June 26, 2017, SGMD entered a straight promissory note with a company (whose major shareholder is the former director of the Company) for borrowing $150,820 with maturity date on March 31, 2018; the note bears an interest rate of 12%, commencing on October 31, 2017, and on the last day of each moth thereafter until the notes is paid in full, the Company shall make an interest payment. As of June 30, 2017, the outstanding balance under this note was $150,820 with $6,033 interest discount to loan payable. As of March 31, 2018 and June 30, 2017, the outstanding balance under this note was $150,820, respectively. On July 7, 2016, SWC received a loan from an employee. The amount of the loan bore no interest and amortized on a monthly basis over the life of the loan. As of March 31, 2018 and June 30, 2017, the balance of the loan were $0 and $34,015, respectively. On November 21, 2016, SGMD received a loan from the Company’s director. The amount of the loan bore no interest and amortized on a monthly basis over the life of the loan. As of March 31, 2018 and June 30, 2017, the balance of the loan from Sugarmade were $16,336 and $9,252, respectively. On December 1, 2016, SGMD received a loan from an employee for $12,500 with an interest charge of $12,500. This amount was recorded as interest owed to the loan payable amount and is to be amortized on a monthly basis over the life of the loan. The loan is due on December 1, 2017. As of March 31, 2018 and June 30, 2017, the balance is $52,293 and 40,265, respectively. From time to time, SWC would receive short-term loans from LMK Capital, LLC (“LMK”) for its working capital needs. As of March 31, 2018 and June 30, 2017, the Company had outstanding balance of $13,952 and 34,107, respectively, borrowed from LMK Capital., LLC, a company affiliated with CEO Chan.

Shares to be issued

Shares to be issued	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Shares to be issued	15. Shares to be issued On October 1, 2017, the Company entered a consulting agreement with a consultant for services related in fulfillment and customer services in relation to Sriracha Seasoning Stix project. The service term is twelve months, the company will issue 660,000 restricted common shares to the consultant in lieu of $21,120. The fair value of the 660,000 shares at grant date was $19,800. On October 1, 2017, the Company entered a consulting agreement with a consultant for services related to analytic of e-commerce sales and intelligent reports in relation to Sriracha Seasoning Stix project. The service term is twelve months, the company will issue 1,200,000 restricted common shares to the consultant in lieu of $38,400. The fair value of the 1,200,000 shares at grant date was $36,000. On October 1, 2017, the Company entered into a promissory note agreement with principle of $100,000 and a fixed interest of $25,000. Amortized over nine months, the monthly principle and interest payment is $13,888.88. Maturity date of the note is June 30, 2018. On October 26, 2017, the Company was committed to issue 1,638,819 common shares from the company’s 2017 employee benefit plan to a consultant for e-commerce marketing and media production services, in relations to Sriracha Stix and Seasoning Stix project. The fair value of 1,638,819 common shares at grant date was $54,081. As of the date of this filing, these were have not been issued. On November 8, 2017, the Company received a notice from a convertible note holder informing the Company the note originally dated March 1, 2017 was in default due to the Company’s lack of timely reporting. The note began accruing interest on August 8, 2017, after it was exchanged in an agreement on that date. As a result of the default, the interest rate on the note was raised from 10% to the default rate of 22% per annum and the outstanding balance due increased by 15%. As of the date of the notice on November 8, 2017, and after the adjustments outlined herein, the balance on the note will increase by $9,461. On November 14, 2017, the company sold 400,000 restricted common shares to an investor for $20,000, at a price per share equal $0.05. On November 30, 2017, the Company issued 737,748 common shares in exchange for the conversion of $20,000 of convertible debt and accrued interest of $1,394. On December 7, 2017 the Company entered into a convertible promissory note with an accredited investor for $50,000. The note has a term of twelve (12) months with an interest rate of 8% and is convertible into common shares at a fixed price per share equal to $0.05. On December 7, 2017, The Company received a notice from a convertible note holder informing the Company the note dated May 12, 2017 was in default due to the Company’s lack of timely reporting. As a result of the default, the interest rate on the note was raised from 10% to 22%. As a result of the late filing of the Company’s fiscal year ending June 30, 2017 on Form 10-K, the balance due on the note increased by 15%. As a result of the late filing of the Company’s fiscal quarter ending March 31, 2018 on Form 10-Q, the balance due on the note is increased by an additional 15%. After the accrual of interest and the increases outlined herein, the balance on the note may be increase by $86,876. On December 12, 2017, the Company entered a consulting agreement with a consultant for services related to audit procedures, tax consultant, identifying and consummation of strategic alliances, merger and acquisitions that benefit the company. The service term is twelve months, the company will issue 1,000,000 restricted common shares to the consultant in lieu of $40,000. The fair value of the 1,000,000 shares at grant date was $80,000. On December 12, 2017, the Company entered a consulting agreement with a consultant for services related to identifying and consummation of strategic alliances, merger and acquisitions that benefit the company. The service term is twelve months, the company will issue 5,000,000 restricted common shares to the consultant in lieu of $200,000. The fair value of the 5,000,000 shares at grant date was $400,000. On December 13, 2017, the company signed a definitive exclusive master marketing agreement with BizRight Hydroponics Inc. the term of the agreement for the period of 20 years. BizRight will be compensated with both cash and restricted common shares. Effective date of the contract Bizright will be compensated with 200,000,000 restricted common shares in lieu of first initial payment of $2,000,000 and $2,000,000 cash upon first major funding and $4,000,000 due upon second major funding, the maximum share earn out is 450,000,000 total based on monthly revenue of $2,500,000 or $30,000,000 annualized. The fair market value of 200,000,000 restricted common shares at grant date was $16,800,000. On December 14, 2017, the Company sold 1,000,000 restricted common shares to an investor for $50,000, at a price per share equal to $0.05. On December 21, 2017, the Company sold 5,000,000 restricted common shares to an accredited investor for $250,000, at a price per share equal to $0.05. At December 31, 2017, the Company was obligated to issue 2,000,000 shares of Series B Convertible Preferred Stock for three EB-5 investments with the total amount of $1,500,000. The Company received $2,000,000 proceeds during the year ended June 30, 2017 with fair value of $2,000,000. On April 1, 2015, the Company completed a series of transactions and amended its Articles of Incorporation creating a series of preferred stock of 10,000,000 shares, which shall be designated Series B Convertible Preferred Stock, par value $0.001 per share (the “Series B Preferred Stock”). Series B will not be eligible for dividends. Five years from the date of issue (the “Conversion Date”), assuming the Series B investor is approved for l-526 under the U.S Government’s EB-5 Investment Program, each Preferred Share will automatically convert into that number of Common Shares having a “fair market value” of the Initial Investment plus a five (5) percent annualized return on Initial Investment. Fair market value will be determined by averaging the closing sale price of a Common Share for the 40 trading days immediately preceding the date of conversion on the U.S. stock exchange on which Common Shares are publicly traded. The offering was made pursuant to SEC Rule 506 Section 4(2), which provides exemption from registration for transactions, which are not public offerings. The funds received were used for general working capital purposes and to accelerate order deliveries to customers. Subsequent to , 2017, the Company was obligated to issue 6,400,000 restricted common shares for equity financing of $95,000. Subsequent to December 31, 2017, the company was obligated to issue 3,117,629 restricted common shares for debt conversion. On December 1, 2016, the Company modified its agreement with Bao Coc International Paper and BAO COC INTERNATIONAL PAPER AND PLASTIC COMPANY LIMITED ("Bao Cao"), of the Socialist Republic of Vietnam. Under the terms of the revised agreement, the Company shall purchase products manufactured by the current contract manufacturers and distribute such products to various quick service restaurant and institutions in the United States. Revenues from such products shall belong to Sugarmade. The price of these products will be determined from time to time in mutual agreement between the Parties. Sugarmade shall be responsible for compensating the contract manufacturer and collection of monies from the end customer with all revenues belonging to the Company. The company is obligated to issue 5,000,000 restricted common shares, the fair market value of the 5,000,000 shares was $400,000. As of March 31, 2018, these shares had yet to be issued and were recorded as a liability for stock to be issued – common shares. As of December 31, 2017, the Company was obligated to issue 1,638,819 restricted common shares for past services. The market value of the shares issued was $0.033 per share. The fair market value of the 1,628,819 shares was $54,081, and was recorded as a liability for stock to be issued – common shares. As of December 31, 2017, the Company was obligated to issue 7,860,000 shares to its employees as year-end bonus, the fair value of the 7,860,000 shares was $494,648, and was recorded as a liability for stock to be issued – common shares. Subsequent to March 31, 2018, the Company was obligated to issue 15,850, 000 restricted common shares for equity financing of $780,000. Subsequent to March 31, 2018, the company was obligated to issue 8,104,200 restricted common shares for debt conversion. As of March 31, 2018, the Company was obligated to issue 1,075,000 shares to its employees as year-end bonus, the fair value of the 1,075,000 shares was $198,025, and was recorded as a liability for stock to be issued – common shares.

Commitments and Contingencies

Commitments and Contingencies	9 Months Ended
	Mar. 31, 2018
Commitments And Contingencies
Commitments and Contingencies	16. Commitments and contingencies On April 1, 2015, the Company entered into a lease for general office and warehouse in City of Industry, California with a lease term of one year. The monthly rent was $11,884. The Company renewed the lease to March 31, 2016, effective April 1, 2016 to March 31, 2017, increasing the rent from $11,884 to $13,238. On March 6, 2017, the Company executed a Fifth Amendment to the Lease, in which the Monthly rent increased from $13,238 to $15,043 effective from April 1, 2017 to March 31, 2018. As of March 31, 2018, the Monthly rent is $15,043. As of April 1, 2018, the have vacated and return the property to the property owner and have no further lease commitment associated with this property. 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 is set to commence Commencing March 1, 2018. The term of the lease is for a (5) Five Years with 1 month free on the 1st year of the term. The monthly rent on the 1st year will be $11,770 with a 3% increase for each subsequent year. Total commitment for the full term of the lease will be $737,367. As of the date of this filing, this property became the headquarter of the company.

Subsequent Event

Subsequent Event	9 Months Ended
	Mar. 31, 2018
Subsequent Event
Subsequent Event	17. Subsequent events On June 26, 2018, the Company entered into a straight promissory note with a Nevada Company that is managed by one of our former director Mr. Yu for $150,820. The note has a term of six (6) months with an interest rate of 12%. On March 19, 2018, the Nevada Company agreed to settled the outstanding principle and interest balance of $150,820 for 1,508,200 shares of restricted common shares. The fair value of the 1,508,200 shares at settlement date was $0.175 per share x share counts. On July 17, 2018, the Company entered into a convertible promissory note with a Nevada Company that is managed by one of our former director Mr. Yu for $164,900. The note has a term of twelve (12) months with an interest rate of 8% and is convertible into common shares at a fixed price of $0.025. On March 20, 2018, the Company issued 4,530,846 common shares in exchange for the conversion of $164,900 of convertible debt and accrued interest of $5,225. On March 20, 2018, the Company entered a consulting agreement with a consultant for services related to sourcing and quality control. The service term is nine months, the company will issue 1,000,000 restricted common shares to the consultant in lieu of $50,000. The fair value of the 1,000,000 shares at grant date was $184,900. On April 2, 2018 the Company sold 1,000,000 restricted common shares to an accredited investor for $50,000, at a price per share equal to $0.05. On August 3, 2018, the Company entered into a convertible promissory note with an accredited investor for $150,000. The note has a term of nine (9) months with an interest rate of 10% and is convertible into common shares at a 45% discount. On April 3, 2018, the Company issued 2,234,696 common shares in exchange for the conversion of $159,781 of convertible debt and accrued interest of $9,781. On April 18, 2018 the Company sold 1,428,571 restricted common shares to an accredited investor for $100,000, at a price per share equal to $0.07. On April 19, 2018 the Company sold 1,171,429 restricted common shares to an accredited investor for $82,000, at a price per share equal to $0.07. On April 20, 2018 the Company sold 1,828,571 restricted common shares to an accredited investor for $128,000, at a price per share equal to $0.07. On May 8, 2018 the Company sold 2,400,000 restricted common shares to an accredited investor for $120,000, at a price per share equal to $0.05. On May 10, 2018 the Company sold 1,000,000 restricted common shares to an accredited investor for $50,000, at a price per share equal to $0.05. On May 11, 2018 the Company sold 300,000 restricted common shares to an accredited investor for $15,000, at a price per share equal to $0.05. On May 14, 2018 the Company sold 1,000,000 restricted common shares to an accredited investor for $50,000, at a price per share equal to $0.05. On May 14, 2018 the Company sold 1,000,000 restricted common shares to an accredited investor for $50,000, at a price per share equal to $0.05. On May 28, 2018 the Company sold 1,000,000 restricted common shares to an accredited investor for $50,000, at a price per share equal to $0.05. On June 8, 2018 the Company entered into a consulting agreement for services to assist the Company in exploring and identifying corporate acquisitions and other strategies to accelerate the Company’s growth. In return for the consultant’s services, the Company will issue 500,000 restricted common shares for $500.00 at a discounted price per share equal to $0.001. The fair value of the 500,000 shares at the grant date was $70,000. Additionally, consultant will be compensated $10,000 per month for the period of Six (6) months, consultant may choose to convert any portion of this cash compensation to common shares; such shares will be value at 15% discount to the lowest closing price for the seven (7) trading days before such election is made. On June 8, 2018 the Company entered into a consulting agreement for services to assist the Company in exploring and identifying corporate acquisitions and other strategies to accelerate the Company’s growth. In return for the consultant’s services, the Company will issue 500,000 restricted common shares for $1,000.00 at a discounted price per share equal to $0.001. The fair value of the 500,000 shares at the grant date was $70,000. Additionally, consultant will be compensated $15,000 per month for the period of Six (6) months, consultant may choose to convert any portion of this cash compensation to common shares; such shares will be value at 15% discount to the lowest closing price for the seven (7) trading days before such election is made.

Summary of Significant Accoun23

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Mar. 31, 2018
Summary Of Significant Accounting Policies Policies
Basis of presentation	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 and the rules and regulations of the United States Securities and Exchange Commission 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 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, 2017, 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 period ended June 30, 2017. The interim results for the period ended March 31, 2018 are not necessarily indicative of the results for the full fiscal year.
Principles of consolidation	Principles of consolidation The condensed consolidated unaudited financial statements include the accounts of our Company and its wholly-owned subsidiaries, Sugarmade-CA and SWC. All significant intercompany transactions and balances have been eliminated in consolidation.
Going concern	Going concern The Company sustained continued losses from operations during the nine months ended March 31, 2018 and for the fiscal year ended June 30, 2017. 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 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 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 is endeavoring to increase revenue-generating operations. While priority is on generating cash from operations through the sale of the Company’s products, management is also seeking 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.
Use of estimates	Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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 Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC”) No. 605, Revenue Recognition Adoption of ASC Topic 606, "Revenue from Contracts with Customers" Sugarmade, Inc. is planning on implementing Topic 606. Results for reporting periods beginning within the next fiscal year will be presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting under Topic 605. Sugarmade experienced no impact to the opening balance of the accumulated deficit or revenues for any quarterly period as a result of applying Topic 606. Sugarmade will apply 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 Sugarmade’s revenue is recognized at the time control of the products transfers to the customer. Additionally, Sugarmade has substantially increased its accounting and financial staffs and enhanced its information technology and accounting systems software to ensure proper and effective implementation of Topic 606.
Cash	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 currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). We have not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash.
Accounts receivable	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 customer’s 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 allowances of $352,520 as of March 31, 2018 and of $113,218 as of June 30, 2017.
Inventory	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, 2018 and June 30, 2017, the balance for the inventory totaled $467,782 and $568,229, respectively. Obsolescence reserve at March 31, 2018 and June 30, 2017 were $134,526 and $70,332, respectively.
Intangible assets, net	Intangible assets, net Intangible assets with finite lives are amortized over their estimated useful life. The Company monitors conditions related to these assets to determine whether events and circumstances warrant a revision to the remaining amortization period. The Company tests its intangible assets with finite lives for potential impairment whenever management concludes events or changes in circumstances indicate that the carrying amount may not be recoverable. The original estimate of an asset's useful life and the impact of an event or circumstance on either an asset's useful life or carrying value involve significant judgment.
Income taxes	Income taxes We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized. As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of October 2, 2008, and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as open tax years in these jurisdictions. We have identified the U.S. federal and California as our “major” tax jurisdictions and generally, we remain subject to Internal Revenue Service examination of our 2013 U.S. federal income tax returns. However, we have certain tax attribute carryforwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized. We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. We have no interest or penalties as of March 31, 2018.
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 Black-Scholes-Merton 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. Share-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 share-based payment, whichever is more readily determinable.
Loss per share	Loss per share We calculate basic earnings per share (“EPS”) by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income or 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 EPS when their effect is dilutive. As of March 31, 2018, there are approximately 31,915,377 potential shares issuable upon conversion of convertible debts and 505,000 shares of warrants were excluded in calculating diluted loss per share for the six-months ended March 31, 2018 due to the fact that issuance of the shares is anti-dilutive as a result of the Company’s net loss.
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 2 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Black-Scholes option-pricing model for the nine months ended March 31, 2018. Carrying Value Fair Value Measurements at As of March 31, 2018 March 31, Using Fair Value Hierarchy 2018 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 846,571 $ — $ — $ 846,571 Total $ 846,571 $ — $ — $ 846,571 June 30, 2017 March 31, 2018 Expected life (years) 0.74 0.34 Risk-free interest rate 1.68 % 1.60%~1.88 % Expected volatility 161 % 205 % Carrying Value Fair Value Measurements at As of June 30, 2017 June 30, Using Fair Value Hierarchy 2017 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 1,134,000 $ — $ — $ 1,134,000 Total $ 1,134,000 $ — $ — $ 1,134,000
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 Black-Scholes- Merton 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. Refer to Note 7 for details.
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. FASB ASC Topic 280 has no effect on the Company’s financial statements as substantially all of its operations are conducted in one industry segment – paper and paper-based products such as paper cups, cup lids, food containers, etc.
New Accounting Pronouncements Not Yet Adopted	New accounting pronouncements not yet adopted In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company is in the process of evaluating the impact of adoption of this ASU on the consolidated financial statements. In May 2014, the FASB issued No. 2014-09, Revenue from Contracts with Customers, which supersedes the revenue recognition requirements in Accounting Standards Codification 605 - Revenue Recognition and most industry-specific guidance throughout the Codification. The standard requires that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In August 2015, the FASB approved a one-year deferral of the effective date of the new revenue recognition standard. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. Earlier application is permitted only as of annual reporting periods beginning after December 31, 2016, including interim reporting periods within that reporting period. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606), Principal versus Agent Considerations (Reporting Revenue versus Net). In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606), Identifying Performance Obligations and Licensing. In May 2016, the FASB issued ASU 2016-11, Revenue from Contracts with Customers (Topic 606) and Derivatives and Hedging (Topic 815) - Rescission of SEC Guidance Because of ASU 2014-09 and 2014-16, and ASU 2016-12, Revenue from Contracts with Customers (Topic 606) - Narrow Scope Improvements and Practical Expedients. These ASUs clarify the implementation guidance on a few narrow areas and adds some practical expedients to the guidance Topic 606. The Company is evaluating the effect that these ASUs will have on its consolidated financial statements and related disclosures. On March 30, 2016, the FASB issued ASU No. 2016-09, Improvements to Employee Share-Based Payment Accounting, which includes amendments to accounting for income taxes at settlement, forfeitures, and net settlements to cover withholding taxes. The amendments in ASU 2016-09 are effective for public companies for fiscal years beginning after December 31, 2016, and interim periods within those annual periods. The Company adopted this new guidance on January 1, 2017 and this standard does not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326), which requires entities to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. This replaces the existing incurred loss model and is applicable to the measurement of credit losses on financial assets measured at amortized cost. This guidance is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early application will be permitted for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. The Company is currently evaluating the impact that the standard will have on its consolidated financial statements and related disclosures. In August 2016, the FASB issued ASU No. 2016-15, Classification of Certain Cash Receipts and Cash Payments. ASU 2016-15 clarifies the presentation and classification of certain cash receipts and cash payments in the statement of cash flows. This ASU is effective for public business entities for fiscal years, and interim periods within those years, beginning after December 15, 2017. Early adoption is permitted. The Company is currently assessing the potential impact of ASU 2016-15 on its financial statements and related disclosures. In October 2016, the FASB issued ASU No. 2016-16—Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory. This ASU improves the accounting for the income tax consequences of intra-entity transfers of assets other than invent tory. For public business entities, the amendments in this update are effective for annual reporting periods beginning after December 15, 2017, including interim reporting periods within those annual reporting periods. Early adoption is permitted. The Company does not anticipate that the adoption of this ASU will have a significant impact on its consolidated financial statements. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The guidance requires that a statement of cash flows explain the change during the period in the total of cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. Therefore, amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. The standard is effective for fiscal years beginning after December 15, 2017, and interim period within those fiscal years. Early adoption is permitted, including adoption in an interim period. The standard should be applied using a retrospective transition method to each period presented. The Company does not anticipate that the adoption of this ASU will have a significant impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business, which clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions or disposals of assets or businesses. The standard is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The standard should be applied prospectively on or after the effective date. The Company will evaluate the impact of adopting this standard prospectively upon any transactions of acquisitions or disposals of assets or businesses. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment. The guidance removes Step 2 of the goodwill impairment test, which requires a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The guidance should be adopted on a prospective basis for the annual or any interim goodwill impairment tests beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company is currently evaluating the impact of adopting this standard on its consolidated financial statements.

Restatement of Financial Stat24

Restatement of Financial Statements (Tables)	9 Months Ended
	Mar. 31, 2018
Accounting Changes and Error Corrections [Abstract]
Schedule of Restated Financials	For the Three Months Ended March 31, 2018 For the Nine Months Ended March 31, 2018 (Original) (Adjustment) (Restated) (Original) (Adjustment) (Restated) Revenues, net $ 2,965,404 $ (2,115,968 ) $ 849,436 $ 5,081,372 $ (2,115,968 ) $ 2,965,404 Cost of goods sold: 2,107,834 (1,512,946 ) 594,888 3,618,033 (1,510,199 ) 2,107,834 Total cost of goods sold 2,107,834 (1,512,946 ) 594,888 3,618,033 (1,510,199 ) 2,107,834 Gross profit 857,570 (603,021 ) 254,549 1,463,339 (605,769 ) 857,570 Operating expenses: Selling, general and administrative expenses 2,849,789 (2,052,593 ) 797,196 4,901,953 (2,052,164 ) 2,849,789 Total operating expenses 2,849,789 (2,052,593 ) 797,196 4,901,953 (2,052,164 ) 2,849,789 Loss from operations (1,992,220 ) 1,449,573 (542,647 ) (3,438,615 ) 1,446,396 (1,992,219 ) Non-operating income (expense): Other income 14,206 (14,206 ) — 29,281 (15,075 ) 14,206 Interest expense (303,484 ) 206,377 (97,107 ) (509,813 ) 206,329 (303,484 ) Change in fair value of derivative liabilities (1,384,423 ) 5,064,955 3,680,532 (6,449,378 ) 5,064,955 (1,384,423 ) Loss on conversion — (250,640 ) (250,640 ) — (250,640 ) (250,640 ) Other expense (612,894 ) 611,629 (1,265 ) (979,799 ) 617,545 (362,254 ) Total non-operating income (expense) (2,286,594 ) 5,618,114 3,331,520 (7,909,709 ) 5,623,114 (2,286,595 ) Net income (loss) (4,278,814 ) 7,067,686 2,788,872 (11,348,323 ) 7,069,509 (4,278,814 ) Basic net income (loss) per share (0.02 ) 0.03 0.01 (0.05 ) 0.03 (0.02 ) Diluted net income (loss) per share (0.02 ) 0.03 0.01 (0.05 ) 0.03 (0.02 ) Basic weighted average common shares outstanding 247,395,774 — 247,395,774 237,925,753 — 237,925,753 Diluted weighted average common shares outstanding * 247,395,774 — 247,395,774 237,925,753 — 237,925,753 For the Nine Months Ended March 31, 2018 (Original) (Adjustment) (Restated) Cash flows from operating activities: Net loss (11,348,323 ) 7,069,509 (4,278,814 ) Adjustments to reconcile net loss to cash flows from operating activities: 125,642 — 125,642 Initial valuation of debt discount Loss on settlement — 250,460 250,460 Amortization of debt discount 314,677 49,986 364,663 Stock based compensation 926,754 (137,525 ) 789,229 Change in fair value of derivative liability 9,578,061 (8,193,638 ) 1,384,423 Depreciation and amortization — 85,807 85,807 Changes in assets and liabilities: Accounts receivable (239,302 ) — (239,302 ) Inventory 100,447 — 100,447 Other assets (374,664 ) — (374,664 ) Bank overdraft 13,260 — 13,260 Accounts payable and accrued liabilities (194,809 ) — (194,809 ) Customer deposits 66,713 — 66,713 Unearned revenue (11,970 ) — (11,970 ) Accrued interest and Other payables 3,317 50,000 53,317 Net cash used in operating activities 954,390 (2,819,987 ) (1,865,597 ) Cash flows from investing activities: Acquisition of intangible assets (13,999 ) — (13,999 ) Acquisition of property and equipment (133,132 ) — (133,132 ) Net cash used in investing activities (147,131 ) — (147,131 ) Cash flows from financing activities: Proceeds from shares to be issued 361,478 961,207 1,322,685 Proceeds from convertible notes 702,653 (50,000 ) 652,653 Repayment of notes payable — — — Payment to Note payable-related parties (22,666 ) — (22,666 ) Proceeds from loans 30,342 — 30,342 Repayment of loan payable-related parties (158,617 ) — (158,617 ) Repayment of loans — — — Proceeds from advance share issuance 95,094 — 95,094 Loan receivable — — — Net cash provided by financing activities 1,008,284 911,207 1,919,491 Net increase (decrease) in cash (93,237 ) — (93,237 ) Cash paid during the period for: Cash, beginning of period 101,880 — 101,880 Cash, end of period 8,643 — 8,643 Interest — — — Income taxes — — — Supplemental disclosure of non-cash financing activities Debts settled through shares issuance 993,250 — 993,250

Summary of Significant Accoun25

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Mar. 31, 2018
Summary Of Significant Accounting Policies Tables
Schedule of fair value of derivative liabilities	The Company used Level 2 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Black-Scholes option-pricing model for the nine months ended March 31, 2018. Carrying Value Fair Value Measurements at As of March 31, 2018 March 31, Using Fair Value Hierarchy 2018 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 846,571 $ — $ — $ 846,571 Total $ 846,571 $ — $ — $ 846,571 June 30, 2017 March 31, 2018 Expected life (years) 0.74 0.34 Risk-free interest rate 1.68 % 1.60%~1.88 % Expected volatility 161 % 205 % Carrying Value Fair Value Measurements at As of June 30, 2017 June 30, Using Fair Value Hierarchy 2017 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 1,134,000 $ — $ — $ 1,134,000 Total $ 1,134,000 $ — $ — $ 1,134,000

Convertible Notes (Tables)

Convertible Notes (Tables)	9 Months Ended
	Mar. 31, 2018
Convertible Notes Tables
Schedule of Promissory Notes	As of March 31, 2018, the Company’s convertible notes consisted of following: Conversion Balance Principal Default in # of as of Interest Amount Penalty Repayment principal shares 12.31.17 Due Date Rate Conversion Price 25,000.00 — — — — 25,000.00 7/1/2016 10 % 75% of the average of 30 days prior to the conversion date. 25,000.00 — — — — 25,000.00 7/1/2016 10 % 75% of the average of 30 days prior to the conversion date. 100,000.00 — — — — 100,000.00 7/1/2016 10 % 75% of the average of 30 days prior to the conversion date. 20,000.00 — — 20,000.00 737,748 — 7/17/2017 8 % Greater of 40% discount to average of 3 lowest trading price during last 20 trading days or $.05 50,000.00 — — 50,000.00 2,931,188 — 8/8/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 80,000.00 — — 80,000.00 4,530,846 — 7/20/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 66,023.00 — — 66,023.00 3,712,324 — 8/24/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 75,000.00 — — 75,000.00 4,378,547 — 7/31/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 100,000.00 — — — — 100,000.00 12/1/2017 10 % Greater of 40% discount to average of 3 lowest trading price during last 20 trading days or $.05 70,000.00 — — 70,000.00 4,067,072 — 9/23/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 200,000.00 — — 200,000.00 11,557,652 — 9/30/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 340,000.00 — — 125,000 11,320,929 215,000.00 5/12/2018 10 % 45% discount of lowest price of last 20 trading days prices 150,000.00 — — — — 150,000.00 5/3/2018 10 % 45% discount to average of 3 lowest trading price during last 20 trading days 150,000.00 — — — — 150,000.00 6/15/2018 10 % 42% discount to average of 3 lowest trading price during last 20 trading days 164,900.00 — — 164,900 6,596,000 — 7/17/2018 8 % The conversion price shall be $0.025 per share 35,000.00 — — — — 35,000.00 8/22/2018 8 % 40% discount of average two lowest price of last 20 trading days prices 15,000.00 — — — — 15,000.00 9/26/2018 8 % 40% discount of average two lowest price of last 20 trading days prices 50,000 — — — — 50,000 12/7/2018 8 % The conversion price shall be $0.05 per share 1,788,423 865,000

Derivative liabilities (Tables)

Derivative liabilities (Tables)	9 Months Ended
	Mar. 31, 2018
Derivative Liabilities Tables
Schedule of changes in derivative liability	March 31, 2018 Annual dividend yield — Expected life (years) 0.01 – 1 year Risk-free interest rate 1.29% – 1.76% Expected volatility 103% - 206% June 30, 2017 Annual dividend yield — Expected life (years) 0.01 Risk-free interest rate 0.21 % Expected volatility 449 % Fair value of the derivative is summarized as below: Beginning Balance, December 31, 2017 5,039,978 Additions — Mark to Market (3,680,532 ) Reclassification to APIC due to conversions (512,875 ) Balance, March 31, 2018 846,571

Stock warrants (Tables)

Stock warrants (Tables)	9 Months Ended
	Mar. 31, 2018
Notes to Financial Statements
Schedule of Warrants Outstanding	Warrants liability March 31, 2018 Annual dividend yield — Expected life (years) 3.61 Risk-free interest rate 1.89 % Expected volatility 424 % Warrants issued in May 2017 June 30, 2017 Annual dividend yield — Expected life (years) 3.86 Risk-free interest rate 1.89 % Expected volatility 440 % Warrants issued in 2012 with extension to July 1, 2016 June 30, 2016 Annual dividend yield — Expected life (years) 0.01 Risk-free interest rate 0.21 % Expected volatility 449 % Below is the movement of warrants for the period ending March 31, 2018: Number of Weighted Average Weighted Average Remaining Outstanding at June 30, 2015 131,250 $ 0.20 Granted — — Exercised — — Outstanding at June 30, 2016 131,250 0.20 Expired 131,250 0.20 Granted 505,000 $ 0.15 4 Outstanding at June 30, 2017 505,000 $ 0.15 3.86 Granted — — Exercised — — Outstanding at March 31, 2018 505,000 $ 0.15 3.61

Restatement of Financial Stat29

Restatement of Financial Statements (Details) - USD ($)		3 Months Ended		9 Months Ended
		Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenues, net			$ 903,950	$ 2,965,404	$ 2,759,595
Cost of goods sold
Total cost of goods sold			614,414		1,839,874
Gross profit			289,536		919,721
Operating expenses:
Selling, general and administrative expenses			693,623		2,295,458
Total operating expenses			693,623		2,295,458
Loss from operations			(404,087)		(1,375,737)
Non-operating income (expense):
Other income					243
Interest expense			(72,471)		(169,022)
Change in fair value of derivative liabilities			(1,337,000)		(1,449,000)
Loss on conversion			(884,561)		(1,209,314)
Other expense
Total non-operating income (expense)			(2,294,032)		(2,827,093)
Net income (loss)			$ (2,698,119)		$ (4,202,830)
Basic net income (loss) per share
Diluted net income (loss) per share
Basic weighted average common shares outstanding			13,751,366		9,929,119
Diluted weighted average common shares outstanding	[1]		13,751,366		9,929,119
Original [Member]
Revenues, net		$ 2,965,404		5,081,372
Cost of goods sold
Total cost of goods sold		2,107,834		3,618,033
Gross profit		857,570		1,463,339
Operating expenses:
Selling, general and administrative expenses		2,849,789		4,901,953
Total operating expenses		2,849,789		4,901,953
Loss from operations		(1,992,220)		(3,438,615)
Non-operating income (expense):
Other income		14,206		29,281
Interest expense		(303,484)		(509,813)
Change in fair value of derivative liabilities		(1,384,423)		6,449,378
Loss on conversion
Other expense		(612,894)		(979,799)
Total non-operating income (expense)		(2,286,594)		(7,909,709)
Net income (loss)		$ (4,278,814)		$ (11,348,323)
Basic net income (loss) per share		$ (0.02)		$ (0.05)
Diluted net income (loss) per share		$ (0.02)		$ (0.05)
Basic weighted average common shares outstanding		247,395,774		237,925,753
Diluted weighted average common shares outstanding		247,395,774		237,925,753
Adjustment [Member]
Revenues, net		$ (2,115,968)		$ (2,115,968)
Cost of goods sold
Total cost of goods sold		(1,512,946)		(1,510,199)
Gross profit		(603,021)		(605,769)
Operating expenses:
Selling, general and administrative expenses		(2,052,593)		(2,052,164)
Total operating expenses		(2,052,593)		(2,052,164)
Loss from operations		1,449,573		1,446,396
Non-operating income (expense):
Other income		(14,206)		(15,075)
Interest expense		206,377		206,329
Change in fair value of derivative liabilities		5,064,955		(5,064,955)
Loss on conversion		(250,640)		(250,640)
Other expense		611,629		617,545
Total non-operating income (expense)		5,618,114		5,623,114
Net income (loss)		$ 7,067,686		$ 7,069,509
Basic net income (loss) per share		$ 0.03		$ 0.03
Diluted net income (loss) per share		$ 0.03		$ 0.03
Basic weighted average common shares outstanding
Diluted weighted average common shares outstanding
Restated [Member]
Revenues, net		$ 849,436		$ 2,965,404
Cost of goods sold
Total cost of goods sold		594,888		2,107,834
Gross profit		254,549		857,570
Operating expenses:
Selling, general and administrative expenses		797,196		2,849,789
Total operating expenses		797,196		2,849,789
Loss from operations		(542,647)		(1,992,219)
Non-operating income (expense):
Other income				14,206
Interest expense		(97,107)		(303,484)
Change in fair value of derivative liabilities		3,680,532		(1,384,423)
Loss on conversion		(250,640)		(250,640)
Other expense		(1,265)		(362,254)
Total non-operating income (expense)		3,331,520		(2,286,595)
Net income (loss)		$ 2,788,872		$ (4,278,813)
Basic net income (loss) per share		$ 0.01		$ (0.02)
Diluted net income (loss) per share		$ 0.01		$ (0.02)
Basic weighted average common shares outstanding		247,395,774		237,925,753
Diluted weighted average common shares outstanding		247,395,774		237,925,753
[1]	Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted

Restatement of Financial Stat30

Restatement of Financial Statements (Details 2) - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Cash flows from operating activities:
Net loss		$ (2,698,119)		$ (4,202,830)
Adjustments to reconcile net loss to cash flows from operating activities:
Initial valuation of debt discount
Loss on settlement				1,209,314
Amortization of debt discount
Stock compensation expense				658,000
Change in fair value of derivative liability		1,337,000		1,449,000
Depreciation and amortization				30,942
Changes in operating assets and liabilities
Accounts receivable				(14,309)
Inventory				(154,883)
Other assets				(83,519)
Bank overdraft				(28,377)
Accounts payable and accrued liabilities				(53,086)
Customer deposits				43,480
Unearned revenue				(26,766)
Accrued interest and other payables				(130,869)
Net cash used in operating activities				(1,303,903)
Cash flows from investing activities:
Acquisition of intangible assets
Acquisition of property and equipment				(24,052)
Net cash provided by (used in) investing activities				(24,052)
Cash flows from financing activities:
Proceeds from shares to be issued				225,000
Proceeds from convertible notes				1,264,523
Proceeds from (repayments of) loan
Payment to Note payable - related parties				(10,000)
Repayment to loan payable				(776,505)
Proceeds from loans				700,910
Proceeds from loan payable- related parties
Proceeds from advance share issuance
Loan receivable				3,500
Net cash provided by (used in) financing activities				1,403,928
Net increase (decrease) in cash				75,973
Cash, beginning of period			$ 101,880	911
Cash, end of period	$ 8,643	$ 76,884	8,643	76,884
Cash paid during the period for:
Interest
Income taxes				13,395
Supplemental disclosure of non-cash financing activities:
Debts settled through shares issuance
Original [Member]
Cash flows from operating activities:
Net loss	(4,278,814)		(11,348,323)
Adjustments to reconcile net loss to cash flows from operating activities:
Initial valuation of debt discount			125,642
Loss on settlement
Amortization of debt discount			314,677
Stock compensation expense			926,754
Change in fair value of derivative liability	1,384,423		(6,449,378)
Depreciation and amortization
Changes in operating assets and liabilities
Accounts receivable			(239,302)
Inventory			100,447
Other assets			(374,664)
Bank overdraft			13,260
Accounts payable and accrued liabilities			(194,809)
Customer deposits			66,713
Unearned revenue			(11,970)
Accrued interest and other payables			3,317
Net cash used in operating activities			954,390
Cash flows from investing activities:
Acquisition of intangible assets			(13,999)
Acquisition of property and equipment			(133,132)
Net cash provided by (used in) investing activities			(147,131)
Cash flows from financing activities:
Proceeds from shares to be issued			361,478
Proceeds from convertible notes			702,653
Proceeds from (repayments of) loan
Payment to Note payable - related parties			(22,666)
Repayment to loan payable
Proceeds from loans			30,342
Proceeds from loan payable- related parties			(158,617)
Proceeds from advance share issuance			95,094
Loan receivable
Net cash provided by (used in) financing activities			1,008,284
Net increase (decrease) in cash			(93,237)
Cash, beginning of period			101,880
Cash, end of period	8,643		8,643
Cash paid during the period for:
Interest
Income taxes
Supplemental disclosure of non-cash financing activities:
Debts settled through shares issuance			993,250
Adjustment [Member]
Cash flows from operating activities:
Net loss	7,067,686		7,069,509
Adjustments to reconcile net loss to cash flows from operating activities:
Initial valuation of debt discount
Loss on settlement			250,460
Amortization of debt discount			49,986
Stock compensation expense			(137,525)
Change in fair value of derivative liability	(5,064,955)		5,064,955
Depreciation and amortization			85,807
Changes in operating assets and liabilities
Accounts receivable
Inventory
Other assets
Bank overdraft
Accounts payable and accrued liabilities
Customer deposits
Unearned revenue
Accrued interest and other payables			50,000
Net cash used in operating activities			(2,819,987)
Cash flows from investing activities:
Acquisition of intangible assets
Acquisition of property and equipment
Net cash provided by (used in) investing activities
Cash flows from financing activities:
Proceeds from shares to be issued			961,207
Proceeds from convertible notes			(50,000)
Proceeds from (repayments of) loan
Payment to Note payable - related parties
Repayment to loan payable
Proceeds from loans
Proceeds from loan payable- related parties
Proceeds from advance share issuance
Loan receivable
Net cash provided by (used in) financing activities			911,207
Net increase (decrease) in cash
Cash, beginning of period
Cash, end of period
Cash paid during the period for:
Interest
Income taxes
Supplemental disclosure of non-cash financing activities:
Debts settled through shares issuance
Restated [Member]
Cash flows from operating activities:
Net loss	2,788,872		(4,278,813)
Adjustments to reconcile net loss to cash flows from operating activities:
Initial valuation of debt discount			125,642
Loss on settlement			250,460
Amortization of debt discount			364,663
Stock compensation expense			789,229
Change in fair value of derivative liability	(3,680,532)		1,384,423
Depreciation and amortization			85,807
Changes in operating assets and liabilities
Accounts receivable			(239,302)
Inventory			100,447
Other assets			(374,664)
Bank overdraft			13,260
Accounts payable and accrued liabilities			(194,809)
Customer deposits			66,713
Unearned revenue			(11,970)
Accrued interest and other payables			53,317
Net cash used in operating activities			(1,865,597)
Cash flows from investing activities:
Acquisition of intangible assets			(13,999)
Acquisition of property and equipment			(133,132)
Net cash provided by (used in) investing activities			(147,131)
Cash flows from financing activities:
Proceeds from shares to be issued			1,322,685
Proceeds from convertible notes			652,653
Proceeds from (repayments of) loan
Payment to Note payable - related parties			(22,666)
Repayment to loan payable
Proceeds from loans			30,342
Proceeds from loan payable- related parties			(158,617)
Proceeds from advance share issuance			95,094
Loan receivable
Net cash provided by (used in) financing activities			1,919,491
Net increase (decrease) in cash			(93,237)
Cash, beginning of period			101,880
Cash, end of period	$ 8,643		8,643
Cash paid during the period for:
Interest
Income taxes
Supplemental disclosure of non-cash financing activities:
Debts settled through shares issuance			$ 993,250

Summary of Significant Accoun31

Summary of Significant Accounting Policies (Details)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Expected life (years)	4 months 2 days	8 months 26 days
Risk-free interest rate		1.68%
Expected volatility	205.00%	161.00%
Minimum [Member]
Risk-free interest rate	1.60%
Maximum [Member]
Risk-free interest rate	1.88%

Summary of Significant Accoun32

Summary of Significant Accounting Policies (Details 2) - USD ($)	Mar. 31, 2018	Dec. 31, 2017	Jun. 30, 2017
Derivative Liabilities	$ 846,571	$ 5,039,978	$ 1,134,000
Liabilities [Member]
Derivative Liabilities	846,571		1,134,000
Liabilities [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative Liabilities
Liabilities [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative Liabilities
Liabilities [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative Liabilities	$ 846,571		$ 1,134,000

Summary of Significant Accoun33

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	9 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Summary Of Significant Accounting Policies Details Narrative
Cash issued to Federal Deposit Insurance Corporation	$ 250,000
Inventory, Net	467,782	$ 568,229
Inventory Obsolescence Reserve	$ 134,527	$ 70,332

Concentration (Details Narrativ

Concentration (Details Narrative) - USD ($)	3 Months Ended	9 Months Ended
	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Risks and Uncertainties [Abstract]
Net Revenue	$ 903,950	$ 2,965,404	$ 2,759,595

Litigation (Details Narrative)

Litigation (Details Narrative) - USD ($)	Feb. 21, 2017	Oct. 28, 2014	May 24, 2014
Commitments and Contingencies Disclosure [Abstract]
Litigation Settlement, Amount	$ 227,000		$ 56,365
Restricted Shares Issued		502,533
Litigation Cash Paid		$ 30,000

Convertible Notes (Details)

Convertible Notes (Details) - Convertible Notes [Member] - USD ($)	3 Months Ended
	Mar. 31, 2018	Dec. 31, 2017
Convertible Principal Amount	$ 25,000	$ 25,000
Convertible Debt
Convertible Debt Due Date	Jul. 1, 2016	Jul. 1, 2016
Convertible Principal Amount	$ 25,000	$ 25,000
Convertible Debt
Convertible Debt Due Date	Jul. 1, 2016	Jul. 1, 2016
Convertible Principal Amount	$ 100,000	$ 100,000
Convertible Debt
Convertible Debt Due Date	Jul. 1, 2016	Jul. 1, 2016
Convertible Principal Amount	$ 20,000
Conversion of Convertible Debt, Shares	737,748
Convertible Debt	$ 20,000
Convertible Debt Due Date	Jul. 17, 2017	Jul. 17, 2017
Convertible Principal Amount	$ 50,000
Conversion of Convertible Debt, Shares	2,931,188
Convertible Debt	$ 50,000
Convertible Debt Due Date	Aug. 8, 2017	Aug. 8, 2017
Convertible Principal Amount	$ 80,000
Conversion of Convertible Debt, Shares	4,530,846
Convertible Debt	$ 80,000
Convertible Debt Due Date	Jul. 20, 2017	Jul. 20, 2017
Convertible Principal Amount	$ 66,023
Conversion of Convertible Debt, Shares	3,712,324
Convertible Debt	$ 66,023
Convertible Debt Due Date	Aug. 24, 2017	Aug. 24, 2017
Convertible Principal Amount	$ 75,000
Conversion of Convertible Debt, Shares	4,378,547
Convertible Debt	$ 75,000
Convertible Debt Due Date	Jul. 31, 2017	Jul. 31, 2017
Convertible Principal Amount	$ 100,000	$ 100,000
Convertible Debt
Convertible Debt Due Date	Dec. 1, 2017	Dec. 1, 2017
Convertible Principal Amount	$ 70,000
Conversion of Convertible Debt, Shares	4,067,072
Convertible Debt	$ 70,000
Convertible Debt Due Date	Sep. 23, 2017	Sep. 23, 2017
Convertible Principal Amount	$ 200,000
Conversion of Convertible Debt, Shares	11,557,652
Convertible Debt	$ 200,000
Convertible Debt Due Date	Sep. 30, 2017	Sep. 30, 2017
Convertible Principal Amount	$ 340,000	$ 215,000
Conversion of Convertible Debt, Shares	11,320,929
Convertible Debt	$ 340,000
Convertible Debt Due Date	May 12, 2018	May 12, 2018
Convertible Principal Amount	$ 150,000	$ 150,000
Convertible Debt	$ 150,000
Convertible Debt Due Date	May 3, 2018	May 3, 2018
Convertible Principal Amount	$ 150,000	$ 150,000
Convertible Debt	$ 150,000
Convertible Debt Due Date	Jun. 15, 2018	Jun. 15, 2018
Convertible Principal Amount	$ 164,900
Conversion of Convertible Debt, Shares	6,596,000
Convertible Debt	$ 164,900
Convertible Debt Due Date	Jul. 17, 2018	Jul. 17, 2018
Convertible Principal Amount	$ 35,000	$ 35,000
Convertible Debt
Convertible Debt Due Date	Aug. 22, 2018	Aug. 22, 2018
Convertible Principal Amount	$ 15,000	$ 15,000
Convertible Debt
Convertible Debt Due Date	Sep. 26, 2018	Sep. 26, 2018
Convertible Principal Amount	$ 50,000	$ 50,000
Convertible Debt
Convertible Debt Due Date	Dec. 7, 2018	Dec. 7, 2018
Convertible Principal Amount	$ 1,788,423	$ 865,000

Derivative liabilities (Details

Derivative liabilities (Details)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2016
Expected life (years)	4 months 2 days	8 months 26 days
Risk-free interest rate		1.68%
Expected volatility	205.00%	161.00%
Minimum [Member]
Risk-free interest rate	1.60%
Maximum [Member]
Risk-free interest rate	1.88%
Derivative [Member]
Annual dividend yield
Expected life (years)	3 years 7 months 10 days	3 years 10 months 9 days	4 days
Risk-free interest rate	1.89%	1.89%	0.21%
Expected volatility	424.00%	440.00%	449.00%
Derivative [Member] | Minimum [Member]
Expected life (years)	4 days
Risk-free interest rate	1.29%
Expected volatility	103.00%
Derivative [Member] | Maximum [Member]
Expected life (years)	1 year
Risk-free interest rate	1.76%
Expected volatility	206.00%

Derivative liabilities (Detai38

Derivative liabilities (Details 2)	3 Months Ended
	Mar. 31, 2018USD ($)
Derivative Liabilities Details 2
Balance Beginning	$ 5,039,978
Additions
Mark to Market	(3,680,532)
Reclassification to APIC due to conversions	(512,875)
Ending Balance	$ 846,571

Stock warrants (Details)

Stock warrants (Details) - Stock Warrant [Member] - $ / shares	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2016
Number of Shares
Outstanding	505,000	131,250	131,250
Granted		505,000
Exercised
Forfeited		131,250
Outstanding	505,000	505,000	131,250
Weighted Average Exercise Price
Outstanding	$ 0.15	$ 0.20	$ 0.20
Granted		0.15
Exercised		0.20
Outstanding	$ 0.15	$ 0.15	$ 0.20
Weighted Average Remaining contractual life
Granted		4 years
Outstanding	3 years 7 months 10 days	3 years 10 months 9 days

Stock warrants (Details 2)

Stock warrants (Details 2)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017	Jun. 30, 2016
Expected life (years)	4 months 2 days	8 months 26 days
Risk-free interest rate		1.68%
Expected volatility	205.00%	161.00%
Derivative [Member]
Annual dividend yield
Expected life (years)	3 years 7 months 10 days	3 years 10 months 9 days	4 days
Risk-free interest rate	1.89%	1.89%	0.21%
Expected volatility	424.00%	440.00%	449.00%

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative) - USD ($)	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2016
Commitments And Contingencies Details Narrative
Monthly Rent	$ 15,043	$ 13,328	$ 11,884