Sugarmade (SGMD) 10-Q 21 Feb 19 2019 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2018	Feb. 14, 2019
Document And Entity Information
Entity Registrant Name	Sugarmade, Inc.
Entity Central Index Key	919,175
Document Type	10-Q
Document Period End Date	Dec. 31, 2018
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Is Entity's Reporting Status Current?	Yes
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		649,252,384
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2,019
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Ex Transition Period	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Unaudited) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Current assets:
Cash	$ 159,671	$ 42,121
Accounts receivable, net	340,444	453,623
Inventory, net	580,475	531,249
Loan receivables	171,023	157,872
Other current assets	1,986,443	756,565
Total current assets	3,238,056	1,941,432
Equipment, net	255,755	195,180
Intangible Asset	11,900	12,600
Other assets	38,751	38,751
Total Assets	3,544,462	2,187,963
Current liabilities:
Note payable due to bank	25,982	25,982
Accounts payable and accrued liabilities	1,565,006	1,707,641
Customer deposits	210,535	329,509
Unearned revenue	20,798	110,142
Other payable	298,743	241,771
Accrued interest	567,209	493,365
Accrued compensation and personnel related payables	24,528	869,673
Note Payable	20,000	20,000
Notes payable - related parties	23,000	23,000
Loans payable	172,948	329,029
Loans payable - related party	55,634	30,000
Convertible notes payable, net	876,386	2,399,941
Derivative liabilities	1,734,338	3,069,616
Warrants liabilities	14,480	40,400
Shares to be issued	50,000	2,691,000
Total current liabilities	5,659,587	12,381,069
Total liabilities	5,659,587	12,381,069
Stockholders' deficiency:
Preferred stock ($0.001 par value, 10,000,000 shares authorized, 2,000,000 and 0 issued and outstanding at December 31, 2018 and June 30, 2018, respectively)	2,000
Common stock ($0.001 par value, 1,990,000,000 shares authorized, 637,860,318 and 246,135,203 shares issued and outstanding at December 31, 2018 and June 30, 2018, respectively)	637,861	246,136
Additional paid-in capital	58,747,248	21,952,560
Shares issued advance for Investment	(18,000,000)
Shares to Be Issued, Preferred Shares		2,000,000
Shares to Be Issued, Common Shares		467,996
Accumulated deficiency	(43,502,231)	(34,859,799)
Total stockholders' equity (deficiency)	(2,115,125)	(10,193,106)
Total liabilities and stockholders' equity (deficiency)	$ 3,544,462	$ 2,187,963

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Dec. 31, 2018	Jun. 30, 2018
Condensed Consolidated Balance Sheets Unaudited
Preferred stock, par value	$ 0.001	$ 0.001
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	2,000,000
Preferred stock, shares outstanding	2,000,000
Common stock, par value	$ 0.001	$ 0.001
Common stock, shares authorized	1,990,000,000	1,990,000,000
Common stock, shares issued	637,860,318	246,135,203
Common stock, shares outstanding	637,860,318	246,135,203

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Consolidated Statements Of Operations
Revenues, net	$ 1,445,269	$ 938,754	$ 2,886,885	$ 2,115,968
Cost of goods sold	1,071,033	657,249	2,130,452	1,510,199
Gross profit	374,236	281,505	756,433	605,769
Operating expenses:
Selling, general and administrative expenses	3,823,085	1,033,316	4,736,957	2,052,304
Loss from operations	(3,448,849)	(751,811)	(3,980,524)	(1,446,535)
Non-operating income (expense):
Other income	1,451	(229,457)	5,101	(351,830)
Interest expense	(460,102)	(74,744)	(741,480)	(206,329)
Warrant Expense	3,195		25,920
Change in fair value of derivative liabilities	(2,019,927)	(4,924,302)	(3,661,383)	(5,064,955)
Loss on debt conversion			8,763
Loss on debt settlement	(94,207)		(255,882)
Amortization of debt discount	(31,591)		(59,597)
Loss on debt forgiveness	16,649		16,649
Total non-operating income (expense)	(2,584,531)	(5,223,504)	(4,661,909)	(5,618,114)
Net income (loss)	$ (6,033,380)	$ (5,975,315)	$ (8,642,432)	$ (7,064,649)
Weighted average shares basic and diluted	393,670,334	244,474,615	330,029,294	237,925,753
Weighted average basic and diluted loss per common share	$ (0.02)	$ (0.02)	$ (0.03)	$ (0.03)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows Statement (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net loss	$ (8,642,432)	$ (7,064,649)
Adjustments to reconcile net loss to cash flows from operating activities:
Initial valuation of debt discount	149,143	125,642
Loss on settlement	255,882
Change in exercise of warrant	(25,920)
Gain on debt forgiveness	(16,649)
Derivative Expense and amortization of debt discount	565,978	249,322
Stock based compensation	5,097,206	728,729
Change in fair value of derivative liability	3,661,383	5,064,955
Amortization of Intangible Assets	700
Depreciation and amortization	26,578	26,954
Changes in operating assets and liabilities
Accounts receivable	113,179	(121,244)
Inventory	(49,226)	50,626
Other assets		(61,157)
Prepayment, deposits and other receivables	(54,876)
Bank overdraft		51,554
Accounts payable and accrued liabilities	(40,876)	(166,510)
Customer deposits	(118,974)	(47,150)
Unearned revenue	(89,344)	(14,263)
Interest Payable	172,221
Accrued interest and other payables	56,972	65,830
Net cash used in operating activities	1,060,981	(1,111,362)
Cash flows from investing activities:
Acquisition of intangible assets		(11,775)
Acquisition of property and equipment	(87,154)	(133,131)
Net cash provided by (used in) investing activities	(87,154)	(144,906)
Cash flows from financing activities:
Proceeds from shares issuance	235,000
Proceeds from shares to be issued		361,478
Proceeds from convertible notes	1,022,500	702,653
Payment to Note payable-related parties		(16,666)
Proceeds (Repayment) from(to) loans	(5,261)	63,587
Proceeds from loan payable-related parties	25,634	(27,941)
Proceeds from advance share issuance	(2,121,000)	104,690
Loan receivable	(13,151)
Net cash provided by (used in) financing activities	(856,278)	1,187,801
Net increase (decrease) in cash	117,550	(68,467)
Cash, beginning of period	42,121	101,880
Cash, end of period	159,671	33,413
Supplemental disclosure of non-cash financing activities:
Shares issued for conversion of convertible debt	516,391
Reduction in derivative liability due to conversion	6,289,241
Debt discount related to convertible debt	1,888,248
Debts settled through shares issuance	$ 1,292,544	$ 564,415

Nature of Business

Nature of Business	6 Months Ended
	Dec. 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, Sugarmade, Inc. operates much of its business activities through our subsidiary, Sugarmade, Inc., a California corporation ("SWC Group, Inc., - CA''). Sugarmade, Inc. was founded in 2010. In 2014, CarryOutSupplies.com was acquired by Sugarmade, Inc., creating the Company as it is today. As of the end of the reporting period, December 31, 2018, we were involved in several businesses including, the supply of products to the quick service restaurant sub-sector of the restaurant industry and as an importer, distributor and marketer of hydroponic supplies to various agricultural sectors. We had previously been a marketer of culinary seasoning products Seasoning Stix and Sriracha Seasoning Stix and a marketer of tree-free paper products. These products were discontinued during 2018 in order to focus the majority of our corporate resources on the marketing of hydroponic supplies. The marketplace in which we plan to be mainly engaged is generally referred to as hydroponic agricultural supplies. While some of our customers are engaged in the legal cultivation, processing and/or distribution of cannabis or cannabis containing products, our Company neither sells any products containing cannabis nor do we handle, process, or distribute any products containing cannabis. Our Board of Directors believes the legal cannabis-related agricultural supply sector could be highly lucrative for the Company, and thus we plan to pursue a strategy of expanding operations. According to a January 2019 report issued by Arcview Market Research, the worldwide consumer market for cannabis during 2018 was valued at approximately $12.8 billion, up significantly from the 2017 estimated value of $9.5 billion. The market is expected to grow at approximately 27% compounded annually through the year 2022. While our business is rapidly expanding across most of the United States and across the west coast, California remains an important marketplace due both the sheer size of the State’s economy and due to the rapid embrace of legalization. As of the end of the reporting period, there still remains a significant bottleneck in licensing of California cultivation operations. We are expecting increased business activity as California regulators begin to issue cultivation licenses in mass, although there can be no assurances that any such increased business activity from the state will actually occur. We also believe the Company has strong revenue expansion opportunities within several sub sectors of the hydroponic agricultural sector, where we are not currently engaged. Many of these businesses would be complementary to our current business operations. We are currently in process of analyzing several acquisitions for expansion in this area. Our legacy business operation, CarryOutSupplies.com, 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 when the founders gained first-hand experience within the restaurant industry of the difficulty for restaurant owners to acquire custom printed supplies at a reasonable cost. Many quick service restaurants wish to acquire custom printed products, such as those embossed with logos, but the minimum order size for such customization had been cost prohibitive. With that in mind, carry out supplies was founded to provide products to this underserved section of the market. Since that time, the company has become a key supplier to many popular U.S. franchises, particularly in the frozen dessert segments. The company estimates it holds at least a 20% market share of generic and printed products within the take-out frozen yogurt and ice cream industries. In December of 2017, we announced a Master Marketing Agreement with BizRight, LLC where the Company would market BizRight’s products. The Company also gained an option to acquire all of BizRight’s operations. We began recognizing revenues under this marketing agreement during late calendar 2018 and expect to begin recognizing an increasing amount of revenue under the Master Marketing Agreement as we move further into calendar 2019. Also during 2017, Sugarmade announced the signing of an exclusive distribution agreement for California, Oregon and Washington with privately held Plantation Corp. for its 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. Sugarmade plans to move forward as Plantation’s distribution partner upon availability of the BudLife product line. As of the end of the reporting period, the Company is awaiting final product availability in order to begin marketing the products under the Agreement. During October 2018, the Company signed a Letter of Intent to acquire Sky Unlimited, LLC doing business as Athena United, a Southern California-based, supplier of hydroponic cultivation supplies to the wholesale sector and to large commercial cultivators. Athena United operates its ecommerce website at www.AthenaUnited.com. Under the terms of the Agreement, which contains both binding and non-binding elements, Sugarmade will acquire all of the outstanding capital stock and the business operations for a combination of cash and common shares of Sugarmade. Athena United, and its associated operations, is believed to be one of the larger operators in this market sector and is producing revenues of approximately $40 million per year, is profitable, and cash flow positive. Should the Company be successful in its acquisition efforts, the operation would be integrated under the Sugarmade corporate umbrella with Sugarmade assuming all operations and recognizing all revenues and profits. During January of 2019, the Company announced its intention to acquire a retail location of Washington State-based Hydro4Less. The operation is expected to produce approximately $5 million in revenues and to be profitable during calendar 2019. Additionally, via the pending transaction, Sugarmade will gain an option to purchase two additional Hydro4Less retail operations, which are currently producing in excess of $20 million annually. Should all three Hydro4Less acquisitions close, Sugarmade will increase its annual revenues by approximately $25 million per year. Via the marketing agreement with BizRight, LLC and the acquisitions of Athena United and Hydro4Less, the Company believes it could become one of the largest and fast growing market participants in the cannabis and other agricultural supply/hydroponic industries. As has been also outlined and disclosed in other corporate filings, there can be no assurances these acquisitions will close and that such revenues will be realized by the Company.

Summary of Significant Accounti

Summary of Significant Accounting Policies	6 Months Ended
	Dec. 31, 2018
Summary Of Significant Accounting Policies
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of presentation The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America 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, 2018, 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 year ended June 30, 2018. The interim results for the period ended December 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 six months ended December 31, 2018 and for the fiscal year ended June 30, 2018. 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 Sugarmade applies 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. 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 $126,262 as of December 31, 2018 and of $453,623 as of June 30, 2018. 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 December 31, 2018 and June 30, 2018, the balance for the inventory totaled $580,475 and $531,249, respectively. Obsolescence reserve at December 31, 2018 and June 30, 2018 were $16,177 and $120,486, respectively. Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset's expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company, as of June 30, 2018, performed an impairment test of all of its intangible assets. Based on the company’s analysis, the company had an impairment of $65,625. 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 December 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 Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. 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. 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 Binomial option-pricing model for the six months ended December 31, 2018. Carrying Value Fair Value Measurements at As of December 31, 2018 December 31, Using Fair Value Hierarchy 2018 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 1,734,338 $ — $ — $ 1,734,338 Total $ 1,734,338 $ — $ — $ 1,734,338 June 30, 2018 December 31, 2018 Expected life (years) 0.5 0.5 Risk-free interest rate 2.06 % 2.56 % Expected volatility 151 % 154 % Carrying Value Fair Value Measurements at As of June 30, 2018 June 30, Using Fair Value Hierarchy 2018 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 3,069,616 $ — $ — $ 3,069,616 Total $ 3,069,616 $ — $ — $ 3,069,616 Derivative instruments The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date. Segment Reporting FASB ASC Topic 280, “Segment Reporting”, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. 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 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. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. ASC 606, Revenue from Contracts with Customers, was issued jointly by the FASB and IASB on May 28, 2014. It was originally effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016, for public entities. Early application was not permitted (however, early adoption was optional for entities reporting under IFRSs). On August 12, 2015, the FASB issued an ASU, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred for one year the effective date of the new revenue standard for public and nonpublic entities reporting under U.S. GAAP. The Company is currently evaluating the impact of this guidance on its financial statements and related disclosures.

Concentration

Concentration	6 Months Ended
	Dec. 31, 2018
Risks and Uncertainties [Abstract]
Concentration	3. Concentration Customers For the six months ended December 31, 2018 and 2017, our Company earned net revenues of $2,886,885 and $2,115,968 respectively. The vast majority of these revenues for the period ending December 31, 2018 were derived from a large number of customers, whereas the vast majority of these revenues for the period ending December 31, 2017 were derived from a limited number of customers. No customers accounted for over 10% of the Company’s total revenues for the period ended December 31, 2018. Suppliers For the six months ended December 31, 2018, we purchased products for sale from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company's inventory is purchased from two (2) suppliers. The two (2) suppliers accounted as follows: Two suppliers accounted for 26.19% and 25.96% of the Company's total inventory purchase for the six months ended December 31, 2018, respectively.

Equity Transaction - Exclusive

Equity Transaction - Exclusive License Rights	6 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Equity Transaction - Exclusive License Rights	4. 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 supplier 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. As of December 31, 2018, the shares to be issued in connection with the acquisition of exclusive license rights has been issued and the transaction has not been fully completed. $550,000 in cash has been paid and reflected as a prepaid deposit in other current assets on our balance sheet.

Legal Proceedings

Legal Proceedings	6 Months Ended
	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Legal Proceedings	5. Legal Proceedings From time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of date of this filing, there were no legal claims currently pending or, to our knowledge, threatened against our Company that, in the opinion of our management, would be likely to have a material adverse effect on our financial position, results of operations or cash flows, except as follows: • The Company has filed a lawsuit in Contra Costa County, California, 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. Stephen Pinto is the Company's former Chairman. The defendants have filed a counterclaim alleging that they were induced to make a series of investments in the Company by material misrepresentations and/or omissions made by the Company. As of the date of this filing, the parties have settled all issues. • 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 plaintiffs. 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. 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, 2018, 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, plus interest until the date of complete payoff. • 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. As of December 31, 2018, the shares have not been issued yet. There can be no assurances the ultimate liability relative to these law suits will not exceed what is outlined above.

Other Current Assets

Other Current Assets	6 Months Ended
	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Current Assets	6. Other Current Assets As of December 31, 2018 and June 30, 2018, other current assets consisted of the following: For the periods ended December 31, 2018 June 30, 2018 Prepaid Deposit $ 1,725,000 $ 355,500 Prepaid Inventory 103,213 92,737 Employees Advance 46,303 41,303 Prepaid Expenses 89,726 246,260 Other 22,201 20,765 Total: $ 1,986,443 $ 756,565

Intangible Asset

Intangible Asset	6 Months Ended
	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Asset	7. Intangible Asset On August 21, 2017, the Company entered into an intellectual property assignment agreement with Sound Decisions to revamp the company’s shoplifty website to generate and attract more traffic from potential customers. The Company made a payment of $14,000 for the website (intellectual property). The Company amortized this use right as intangible asset over ten years, and recorded amortization expense of $700 and $1,400 as of December 31, 2018 and June 30, 2018, respectively.

Convertible Notes

Convertible Notes	6 Months Ended
	Dec. 31, 2018
Convertible Notes
Convertible Notes	8. Convertible Notes As of December 31, 2018 and June 30, 2018, the balance owing on convertible notes, net of debt discount, with terms as described below was $876,386 and $2,399,941, respectively. Convertible notes issued prior the year ended June 30, 2017 were as follows: 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 December 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 December 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 December 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. As of December 31, 2018, the note has been fully converted. 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. As of December 31, 2018, the note has been fully converted . Convertible note 6: 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. As of December 31, 2018, the note has been fully converted. Convertible note 7: 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. As of December 31, 2018, the note has been fully converted. Convertible note 8: 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. As of December 31, 2018, the note has been fully converted. Convertible note 9: 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. As of December 31, 2018, the note has been fully converted. Convertible note 10: 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. As of December 31, 2018, the note has been fully converted. Convertible note 11: On March 1, 2017, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has been purchased by other investor in total amount of $156,067 with 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 September 30, 2018, there were $92,500 has been converted into the Company’s common stock and the Company incurred two conversion default penalties in total of $60,751. As of June 30, 2018, the remaining principal balance was $124,318. As of December 31, 2018, the Company converted $63,567 and the remaining balance of note was $60,751. Convertible note 12: 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. As of December 31, 2018, the note has been fully converted. Convertible note 13: 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. As of December 31, 2018, the note has been fully converted. Convertible note 14: 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. As of December 31, 2018, the note has been fully converted. Convertible note 15 & 16: 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 funding. 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 had outstanding balance of $921,004 as of the year ended June 30, 2018. The fair value of the warrants were $40,400 as of June 30, 2018. During the six months ended December 31, 2018, the Company converted $525,000 into the Company’s common stock, the remaining balance of the note was $396,004 as of December 31, 2018 and the fair value of the warrant liability was $14,480. As of December 31, 2018, the note is in default and bears a default interest rate of 22% per annum. Convertible notes issued during the year ended June 30, 2018 were as follows: Convertible note 17: 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. As of December 31, 2018, the note has been fully converted. Convertible note 18: 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. As of December 31, 2018, the note has been fully converted. Convertible note 19: 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. As of December 31, 2018, the note has been fully converted. Convertible note 20: 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. As of December 31, 2018, the note has been fully converted. Convertible note 21: 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. As of December 31, 2018, the note has been fully converted. Convertible note 22: 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 December 31, 2018, the note has been fully converted. Convertible notes issued during the six months ended December 31, 2018 were as follows: Convertible note 23: On September 20, 2018, the Company entered a convertible promissory note with an investor for a total amount of $267,500 (includes $5,000 legal fee and an OID of $12,500). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. Convertible note 24: On October 5, 2018, the Company entered a convertible promissory note with an investor for a total amount of $250,000 (includes $5,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 45% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. Convertible note 25: On November 1, 2018, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07. Convertible note 26: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $80,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07. Convertible note 27: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $40,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07. Convertible note 28: On December 3, 2018, the Company entered into a convertible promissory note with an accredited investor for $35,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07. Convertible note 29: On December 26, 2018, the Company entered a convertible promissory note with an investor for a total amount of $250,000 (includes $5,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 45% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of the period ended December 31, 2018, the Company’s convertible notes consisted of following: Balance Conversion Balance as of Default Addition/ in # of as of Interest Conversion 06.30.2018 Penalty (Repayment) principal shares 12.31.2018 Due Date Rate Price 25,000 — — — — 25,000 2/24/2013 14 % 75% of the average of 30 days prior to the conversion date. 25,000 — — — — 25,000 3/18/2013 14 % 75% of the average of 30 days prior to the conversion date. 100,000 — — — — 100,000 6/21/2013 14 % 75% of the average of 30 days prior to the conversion date. 20,000 — — 20,000 1,160,391 — 7/17/2017 10 % 40% discount of average price of last 20 trading days prices 25,000 — — 25,000 1,426,674 — 7/17/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 50,000 — — 50,000 2,931,188 — 8/8/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 80,000 — — 80,000 4,530,846 — 7/20/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 66,023 — — 66,023 3,712,324 — 8/24/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 50,000 — — 50,000 2,390,805 — 8/9/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 75,000 — — 75,000 4,378,547 — 7/31/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 124,318 — — 63,567 3,919,404 60,751 12/1/2017 10 % 45% discount of lowest price of last 20 trading days prices 70,000 — — 70,000 4,067,072 — 9/23/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 30,000 — — 30,000 1,500,010 — 8/16/2017 8 % Greater of 40% discount to average of 3 lowest trading price during last 20 trading days or $.05 200,000 — — 200,000 11,557,652 — 9/30/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 921,004 — — 525,000 17,521,702 396,004 5/12/2018 22 % 45% discount of lowest price of last 20 trading days prices 150,000 — — 150,000 3,745,330 — 5/3/2018 10 % 45% discount to average of 3 lowest trading price during last 20 trading days 164,900 — — 164,900 6,596,000 — 7/17/2018 8 % The conversion price shall be $0.025 per share 35,000 — — 35,000 691,184 — 8/22/2018 8 % 40% discount of average two lowest price of last 20 trading days prices 15,000 — — 15,000 294,114 — 9/26/2018 8 % 40% discount of average two lowest price of last 20 trading days prices 50,000 — — 50,000 1,000,000 — 12/7/2018 8 % The conversion price shall be $0.05 per share — — 267,500 — — 267,500 9/15/2019 8 % 55% discount of lowest price of last 20 trading days prices — — 250,000 — — 250,000 10/5/2019 8 % 45% discount of average three lowest price of last 20 trading days prices — — 100,000 — — 100,000 10/31/2019 8 % The conversion price shall be $0.07 per share — — 80,000 — — 80,000 11/15/2019 8 % The conversion price shall be $0.07 per share — — 40,000 — — 40,000 11/15/2019 8 % The conversion price shall be $0.07 per share — — 35,000 — — 35,000 12/2/2019 8 % The conversion price shall be $0.07 per share — — 250,000 — — 250,000 12/26/2019 8 % 45% discount of average three lowest price of last 20 trading days prices 2,426,245 — 1,022,500 1,819,490 75,167,248 1,629,255 In connection with the convertible debt, debt discount balance as of December 31, 2018 and June 30, 2018 were $752,869 and $26,303 respectively and were being amortized and recorded as interest expenses over the term of the convertible debt. As of the period ended December 31, 2018, the Company’s debt discount consisted of following: Note Date Due Date OID Amortization in FY 2018 Debt Discount Balance at 6/30/2018 Amortization in 6 months ended 12/31/2018 Debt Discount Balance at 12/31/2018 8/22/2017 8/22/2018 $ 35,000 $ 29,918 $ 5,082 $ 5,082 $ — 9/26/2017 9/26/2018 15,000 11,384 3,616 3,616 — 7/17/2017 7/17/2018 164,900 160,445 4,455 4,455 — 12/7/2017 12/7/2018 50,000 36,849 13,151 13,151 — 9/20/2018 9/15/2019 12,500 — — 3,542 8,958 9/20/2018 9/15/2019 250,000 — — 70,833 179,167 10/5/2018 10/5/2019 5,000 — — 1,192 3,808 10/5/2018 10/5/2019 245,000 — — 58,397 186,603 11/1/2018 11/1/2019 84,286 — — 13,855 70,431 11/16/2018 11/16/2019 36,571 — — 4,509 32,063 11/16/2018 11/16/2019 18,286 — — 2,254 16,031 12/3/2018 12/3/2019 10,000 — — 767 9,233 12/26/2018 12/26/2019 5,000 — — 68 4,932 12/26/2018 12/26/2019 245,000 — — 3,356 241,644 Total: $ 41,302 $ 26,303 $ 185,077 $ 752,869

Derivative Liabilities

Derivative Liabilities	6 Months Ended
	Dec. 31, 2018
Derivative Liabilities
Derivative Liabilities [Text Block]	9. Derivative liabilities The derivative liability is derived from the conversion features in note 8 and stock warrant in note 10. All were valued using the Binomial option pricing model using the assumptions detailed below. As of December 31, 2018 and June 30, 2018, the derivative liability was $1,734,338 and $3,069,616, respectively. The Company recorded $2,019,927 loss and $140,653 loss from changes in derivative liability during the three months ended September 30, 2018 and 2017, respectively. The Binomial Option Price Model with the following assumption inputs: December 31, 2018 Annual dividend yield — Expected life (years) 0.5-1.00 Risk-free interest rate 2.49-2.72 % Expected volatility 118-175 % September 30, 2018 Annual dividend yield — Expected life (years) 0.5-1.00 Risk-free interest rate 2.15-2.37 % Expected volatility 87-123 % June 30, 2018 Annual dividend yield — Expected life (years) 0.15-1.00 Risk-free interest rate 1.08-2.12 % Expected volatility 103-202 % Fair value of the derivative is summarized as below: Beginning Balance, June 30, 2018 $ 3,069,616 Additions 427,076 Mark to Market 1,641,457 Reclassification to APIC due to conversions (2,714,433 ) Balance, September 30, 2018 $ 2,423,716 Additions 865,503 Mark to Market 2,019,927 Reclassification to APIC due to conversions (3,574,808 ) Balance, December 31, 2018 $ 1,734,338

Stock warrants

Stock warrants	6 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Stock warrants	10. 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 Binomial 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 December 31, 2018 and June 30, 2018, the fair value of the warrant liability was $14,480 and $40,400, respectively. The Binomial Option Price Model with the following assumption inputs: Warrants liability December 31, 2018 Annual dividend yield — Expected life (years) 0.5 Risk-free interest rate 2.45 % Expected volatility 138 % Warrants issued in May 2017 June 30, 2018 Annual dividend yield — Expected life (years) 0.5 Risk-free interest rate 2.06 % Expected volatility 151 % Below is the movement of warrants for the period ending December 31, 2018: Number of Weighted Average Weighted Average Remaining Outstanding at June 30, 2016 131,250 $ 0.20 Expired 131,250 0.20 4 Granted 505,000 $ 0.15 3.86 Outstanding at June 30, 2017 505,000 0.20 Exercised — — Granted — $ — Outstanding at June 30, 2018 505,000 $ 0.15 0.5 Granted — — Exercised — — Outstanding at December 31, 2018 505,000 $ 0.15 0.5 Note pa able 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 December 31, 2018 and June 30, 2018, the loan principal balance was $25,982. As of December 31, 2018, the note is in default. Note pa able 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 December 31, 2018 and June 30, 2018, this note had a balance of $18,000. 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 December 31, 2018 and June 30, 2018, this note had a balance of $5,000 and $20,000, respectively. As of December 31, 2018 and June 30, 2018, the Company has an outstanding balance of notes payable due to related parties of $23,000, respectively.

Stockholder's Deficiency

Stockholder's Deficiency	6 Months Ended
	Dec. 31, 2018
Stockholders Deficiency
Stockholder's Deficiency	11. Stockholder’s Deficiency The Company is authorized to issue 1,990,000,000 shares of $.001 par value common stock and 10,000,000 shares of $.001 par value preferred stock. During the year ended June 30, 2018, the Company issued 1,171,429 shares of common stock for cash in total amount of $82,000. During the year ended June 30, 2018, the Company issued 4,736,842 shares of common stock for services in total amount of $180,000. During the year ended June 30, 2018, the Company issued 13,492,560 shares of common stock to settle the old debt in total amount of $306,810. During the three months ended September 30, 2018, the Company issued 27,301,360 shares of common stock to settle debt in total amount of $872,859. During the three months ended September 30, 2018, the Company issued 2,971,154 shares of common stock for services in total amount of $197,500. During the three months ended September 30, 2018, the Company issued 3,700,000 shares of common stock for cash in total amount of $185,000. During the three months ended December 31, 2018, the Company issued 6,632,605 shares of common stock to settle the old debt in total amount of $346,982, net with $263,616 share to be issued, common stock. During the three months ended December 31, 2018, the Company issued 47,865,888 shares of common stock for debt conversions in total amount of $1,015,391. During the three months ended December 31, 2018, the Company issued 4,142,857 shares of common stock for cash in total amount of $220,000. During the three months ended December 31, 2018, the Company issued 89,111,251 shares of common stock for service in total amount of $6,082,851, net with $390,830 share to be issued, common stock. During the three months ended December 31, 2018, the Company issued 10,000,000 shares of common stock for a LOI deposit in total amount of $11,175,000. During the three months ended December 31, 2018, the Company issued 200,000,000 shares of common stock for award to the certain master purchase agreement in total amount of $18,000,000. The acquisition has not been fully completed as of December 31, 2018. As of December 31, 2018 and June 30, 2018, the Company had 637,860,318 and 246,135,203 shares of its common stock issued and outstanding.

Related Party Transactions

Related Party Transactions	6 Months Ended
	Dec. 31, 2018
Related Party Transactions
Related Party Transactions	12. Related party transactions As of December 31, 2018 and June 30, 2018, the Company had outstanding balance of $23,000 owed to various related parties.

Loans payable

Loans payable	6 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Loans payable	13. Loans payable 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 October 2017, they are no long a related party. As of June 30, 2018, the outstanding balance under this note was $150,820. As of December 31, 2018, the note has been fully settled into 1,508,200 shares of the Company’s common stock. 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 December 31, 2018 and June 30, 2018, the outstanding balance with Greater Asia loans were $168,008 and $140,125, respectively. As of December 31, 2018. the note was in default. On July 1, 2016, the Company entered into a repayment agreement with its employee for $20,280 at no interest. As of December 31, 2018 and June 30, 2018, the Company has an outstanding balance of $4,084 and $4,285. On January 30, 2018, SGMD entered a straight promissory note with an individual with one or more on demand loan with maturity date on January 30, 2019 and no interest shall be charged to the Company. As of December 31, 2018, the outstanding balance under this note was $10,000. As of December 31, 2018 and June 30, 2018, the Company had an outstanding loan balance of $172,948 and $329,029, respectively.

Loans payable - related parties

Loans payable - related parties	6 Months Ended
	Dec. 31, 2018
Related Party Transactions [Abstract]
Loans payable - related parties	14. Loan payable – related parties 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 December 31, 2018 and June 30, 2018, the balance of the loan were $30,000 and $30,000, respectively. From time to time, SWC would receive short-term loans from company former director for its working capital needs. As of , 2018 and June 30, 2018, the Company had outstanding balance of $25,634 and $0, respectively. As of December 31, 2018 and June 30, 2018, the total loan payable to related party was $55,634 and $30,000, respectively.

Shares to be issued - liability

Shares to be issued - liability	6 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Shares to be issued - liability	15. Shares to be issued – liability During the year ended June 30, 2018, the Company had entered into multiple private placement agreements and had increased potential shares to be issued under liability in total amount of $1,798,000. During the three months ended September 30, 2018, the Company issued 3,700,000 shares of the Company’s common stock for cash in total amount of $185,000. Share to be issued is reduced by $185,000 due to such issuance. During the three months ended September 30, 2018, the Company had entered into a multiple private placement agreement and had increased potential shares under liability by 1,000,000 shares, for total amount of $50,000. During the three months ended December 31, 2018, the Company issued 45,307,142 shares of the Company’s common stock for cash & services in total amount of $2,506,000. Share to be issued is reduced by $2,506,000 due to such issuance. As of December 31, 2018 and June 30, 2018, the Company had balance of $50,000 and $2,691,000 share to be issued.

Shares to be issued - equity

Shares to be issued - equity	6 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Shares to be issued - equity	16. Shares to be issued –equity As of the year ended June 30, 2018, the Company had entered into multiple private placement agreements and had increased potential shares to be issued under common stock in total amount of $467,996. During the three months ended September 30, 2018, the Company had entered into multiple private placement agreements and had increased potential shares to be issued under common stock in total amount of $95,000. The shares have been issued as of December 31, 2018. During the three months ended September 30, 2018, the Company had entered into multiple service agreements and had increased potential shares to be issued for service compensation in total amount of $137,000. The shares have been issued as of December 31, 2018. During the three months ended September 30, 2018, the Company had entered into debt settlement and had increased potential shares to be issued for debt settlement under common stock in total amount of $174,450. The shares have been issued as of December 31, 2018. As of the three months ended September 30, 2018 and year ended June 30, 2018, the Company had entered into multiple private placement agreements and had increased potential shares to be issued under preferred stock in total amount of $2,000,000, respectively. The shares have been issued as of December 31, 2018. As of December 31, 2018, the Company had total potential shares to be issued under common stock and preferred stock in total amount of $0.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Dec. 31, 2018
Commitments And Contingencies
Commitments and Contingencies	17. Commitments and contingencies On February 23, 2018 the Company entered into lease agreement for a new office space as part of the plan to expand operation, the lease 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 1 st st

Subsequent Event

Subsequent Event	6 Months Ended
	Dec. 31, 2018
Subsequent Event
Subsequent Event	18. Subsequent events On January 8, 2019, the Company issued a convertible note to an accredited investor for proceeds to the Company in the amount of $105,000. On January 22, 2019, the Company issued a convertible note to an accredited investor for proceeds to the Company in the amount of $100,000. On January 23, 2019, the Company issued 2,364,066 shares of the Company’s common stock for debt conversions in total amount of $75,000. On January 24, 2019, the Company issued a convertible note to an accredited investor for proceeds to the Company in the amount of $53,000. On February 6, 2019, the Company issued 4,995,084 shares of the Company’s common stock for debt conversions in total amount of $127,000. On February 21, 2019, the Company entered into an acknowledgement and representation letter with BizRight LLC under the terms and consideration of the master marketing agreement dated December 13, 2017. BizRight LLC has executed an asset purchase agreement with BZRCH, Inc., a Nevada corporation to retain all or part of BizRight’s assets.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Dec. 31, 2018
Disclosure Summary Of Significant Accounting Policies Policies Abstract
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, 2018, 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 year ended June 30, 2018. The interim results for the period ended December 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 six months ended December 31, 2018 and for the fiscal year ended June 30, 2018. 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 Sugarmade applies 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.
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 $126,262 as of December 31, 2018 and of $453,623 as of June 30, 2018.
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 December 31, 2018 and June 30, 2018, the balance for the inventory totaled $580,475 and $531,249, respectively. Obsolescence reserve at December 31, 2018 and June 30, 2018 were $16,177 and $120,486, respectively.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset's expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company, as of June 30, 2018, performed an impairment test of all of its intangible assets. Based on the company’s analysis, the company had an impairment of $65,625.
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 December 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 Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. 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.
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 Binomial option-pricing model for the six months ended December 31, 2018. Carrying Value Fair Value Measurements at As of December 31, 2018 December 31, Using Fair Value Hierarchy 2018 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 1,734,338 $ — $ — $ 1,734,338 Total $ 1,734,338 $ — $ — $ 1,734,338 June 30, 2018 December 31, 2018 Expected life (years) 0.5 0.5 Risk-free interest rate 2.06 % 2.56 % Expected volatility 151 % 154 % Carrying Value Fair Value Measurements at As of June 30, 2018 June 30, Using Fair Value Hierarchy 2018 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 3,069,616 $ — $ — $ 3,069,616 Total $ 3,069,616 $ — $ — $ 3,069,616
Derivative Instruments	Derivative instruments The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense). Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.
Segment Reporting	Segment Reporting FASB ASC Topic 280, “Segment Reporting”, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company. 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 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. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting. The new standard contains several amendments that will simplify the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. The Company is currently evaluating the impact of this new standard on its consolidated financial statements. ASC 606, Revenue from Contracts with Customers, was issued jointly by the FASB and IASB on May 28, 2014. It was originally effective for annual reporting periods (including interim reporting periods within those periods) beginning after December 15, 2016, for public entities. Early application was not permitted (however, early adoption was optional for entities reporting under IFRSs). On August 12, 2015, the FASB issued an ASU, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date, which deferred for one year the effective date of the new revenue standard for public and nonpublic entities reporting under U.S. GAAP. The Company is currently evaluating the impact of this guidance on its financial statements and related disclosures.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	6 Months Ended
	Dec. 31, 2018
Disclosure Summary Of Significant Accounting Policies Tables Abstract
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 Binomial option-pricing model for the six months ended December 31, 2018. Carrying Value Fair Value Measurements at As of December 31, 2018 December 31, Using Fair Value Hierarchy 2018 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 1,734,338 $ — $ — $ 1,734,338 Total $ 1,734,338 $ — $ — $ 1,734,338 June 30, 2018 December 31, 2018 Expected life (years) 0.5 0.5 Risk-free interest rate 2.06 % 2.56 % Expected volatility 151 % 154 % Carrying Value Fair Value Measurements at As of June 30, 2018 June 30, Using Fair Value Hierarchy 2018 Level 1 Level 2 Level 3 Liabilities Derivative liabilities $ 3,069,616 $ — $ — $ 3,069,616 Total $ 3,069,616 $ — $ — $ 3,069,616

Other Current Assets (Tables)

Other Current Assets (Tables)	6 Months Ended
	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Other Current Assets	As of December 31, 2018 and June 30, 2018, other current assets consisted of the following: For the periods ended December 31, 2018 June 30, 2018 Prepaid Deposit $ 1,725,000 $ 355,500 Prepaid Inventory 103,213 92,737 Employees Advance 46,303 41,303 Prepaid Expenses 89,726 246,260 Other 22,201 20,765 Total: $ 1,986,443 $ 756,565

Convertible Notes (Tables)

Convertible Notes (Tables)	6 Months Ended
	Dec. 31, 2018
Disclosure Convertible Notes Tables Abstract
Schedule of Promissory Notes	As of the period ended December 31, 2018, the Company’s convertible notes consisted of following: Balance Conversion Balance as of Default Addition/ in # of as of Interest Conversion 06.30.2018 Penalty (Repayment) principal shares 12.31.2018 Due Date Rate Price 25,000 — — — — 25,000 2/24/2013 14 % 75% of the average of 30 days prior to the conversion date. 25,000 — — — — 25,000 3/18/2013 14 % 75% of the average of 30 days prior to the conversion date. 100,000 — — — — 100,000 6/21/2013 14 % 75% of the average of 30 days prior to the conversion date. 20,000 — — 20,000 1,160,391 — 7/17/2017 10 % 40% discount of average price of last 20 trading days prices 25,000 — — 25,000 1,426,674 — 7/17/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 50,000 — — 50,000 2,931,188 — 8/8/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 80,000 — — 80,000 4,530,846 — 7/20/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 66,023 — — 66,023 3,712,324 — 8/24/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 50,000 — — 50,000 2,390,805 — 8/9/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 75,000 — — 75,000 4,378,547 — 7/31/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 124,318 — — 63,567 3,919,404 60,751 12/1/2017 10 % 45% discount of lowest price of last 20 trading days prices 70,000 — — 70,000 4,067,072 — 9/23/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 30,000 — — 30,000 1,500,010 — 8/16/2017 8 % Greater of 40% discount to average of 3 lowest trading price during last 20 trading days or $.05 200,000 — — 200,000 11,557,652 — 9/30/2017 8 % 40% discount of average two lowest price of last 20 trading days prices 921,004 — — 525,000 17,521,702 396,004 5/12/2018 22 % 45% discount of lowest price of last 20 trading days prices 150,000 — — 150,000 3,745,330 — 5/3/2018 10 % 45% discount to average of 3 lowest trading price during last 20 trading days 164,900 — — 164,900 6,596,000 — 7/17/2018 8 % The conversion price shall be $0.025 per share 35,000 — — 35,000 691,184 — 8/22/2018 8 % 40% discount of average two lowest price of last 20 trading days prices 15,000 — — 15,000 294,114 — 9/26/2018 8 % 40% discount of average two lowest price of last 20 trading days prices 50,000 — — 50,000 1,000,000 — 12/7/2018 8 % The conversion price shall be $0.05 per share — — 267,500 — — 267,500 9/15/2019 8 % 55% discount of lowest price of last 20 trading days prices — — 250,000 — — 250,000 10/5/2019 8 % 45% discount of average three lowest price of last 20 trading days prices — — 100,000 — — 100,000 10/31/2019 8 % The conversion price shall be $0.07 per share — — 80,000 — — 80,000 11/15/2019 8 % The conversion price shall be $0.07 per share — — 40,000 — — 40,000 11/15/2019 8 % The conversion price shall be $0.07 per share — — 35,000 — — 35,000 12/2/2019 8 % The conversion price shall be $0.07 per share — — 250,000 — — 250,000 12/26/2019 8 % 45% discount of average three lowest price of last 20 trading days prices 2,426,245 — 1,022,500 1,819,490 75,167,248 1,629,255 As of the period ended December 31, 2018, the Company’s debt discount consisted of following: Note Date Due Date OID Amortization in FY 2018 Debt Discount Balance at 6/30/2018 Amortization in 6 months ended 12/31/2018 Debt Discount Balance at 12/31/2018 8/22/2017 8/22/2018 $ 35,000 $ 29,918 $ 5,082 $ 5,082 $ — 9/26/2017 9/26/2018 15,000 11,384 3,616 3,616 — 7/17/2017 7/17/2018 164,900 160,445 4,455 4,455 — 12/7/2017 12/7/2018 50,000 36,849 13,151 13,151 — 9/20/2018 9/15/2019 12,500 — — 3,542 8,958 9/20/2018 9/15/2019 250,000 — — 70,833 179,167 10/5/2018 10/5/2019 5,000 — — 1,192 3,808 10/5/2018 10/5/2019 245,000 — — 58,397 186,603 11/1/2018 11/1/2019 84,286 — — 13,855 70,431 11/16/2018 11/16/2019 36,571 — — 4,509 32,063 11/16/2018 11/16/2019 18,286 — — 2,254 16,031 12/3/2018 12/3/2019 10,000 — — 767 9,233 12/26/2018 12/26/2019 5,000 — — 68 4,932 12/26/2018 12/26/2019 245,000 — — 3,356 241,644 Total: $ 41,302 $ 26,303 $ 185,077 $ 752,869

Derivative liabilities (Tables)

Derivative liabilities (Tables)	6 Months Ended
	Dec. 31, 2018
Disclosure Derivative Liabilities Tables Abstract
Schedule of changes in derivative liability	The Binomial Option Price Model with the following assumption inputs: December 31, 2018 Annual dividend yield — Expected life (years) 0.5-1.00 Risk-free interest rate 2.49-2.72 % Expected volatility 118-175 % September 30, 2018 Annual dividend yield — Expected life (years) 0.5-1.00 Risk-free interest rate 2.15-2.37 % Expected volatility 87-123 % June 30, 2018 Annual dividend yield — Expected life (years) 0.15-1.00 Risk-free interest rate 1.08-2.12 % Expected volatility 103-202 % Fair value of the derivative is summarized as below: Beginning Balance, June 30, 2018 $ 3,069,616 Additions 427,076 Mark to Market 1,641,457 Reclassification to APIC due to conversions (2,714,433 ) Balance, September 30, 2018 $ 2,423,716 Additions 865,503 Mark to Market 2,019,927 Reclassification to APIC due to conversions (3,574,808 ) Balance, December 31, 2018 $ 1,734,338

Stock warrants (Tables)

Stock warrants (Tables)	6 Months Ended
	Dec. 31, 2018
Notes to Financial Statements
Schedule of Warrants Outstanding	As of December 31, 2018 and June 30, 2018, the fair value of the warrant liability was $14,480 and $40,400, respectively. The Binomial Option Price Model with the following assumption inputs: Warrants liability December 31, 2018 Annual dividend yield — Expected life (years) 0.5 Risk-free interest rate 2.45 % Expected volatility 138 % Warrants issued in May 2017 June 30, 2018 Annual dividend yield — Expected life (years) 0.5 Risk-free interest rate 2.06 % Expected volatility 151 % Below is the movement of warrants for the period ending December 31, 2018: Number of Weighted Average Weighted Average Remaining Outstanding at June 30, 2016 131,250 $ 0.20 Expired 131,250 0.20 4 Granted 505,000 $ 0.15 3.86 Outstanding at June 30, 2017 505,000 0.20 Exercised — — Granted — $ — Outstanding at June 30, 2018 505,000 $ 0.15 0.5 Granted — — Exercised — — Outstanding at December 31, 2018 505,000 $ 0.15 0.5

Summary of Significant Accoun_4

Summary of Significant Accounting Policies (Details)	6 Months Ended	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
Expected Volatility [Member]
Expected volatility	154.00%	151.00%
Risk Free Interest Rate [Member]
Risk-free interest rate	2.56%	2.06%
Expected Life [Member]
Expected life (years)	6 months	6 months

Summary of Significant Accoun_5

Summary of Significant Accounting Policies (Details 2) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Derivative Liabilities	$ 1,734,338	$ 3,069,616
Liabilities [Member]
Derivative Liabilities	1,734,338	3,069,616
Liabilities [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative Liabilities
Liabilities [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative Liabilities
Liabilities [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative Liabilities	$ 1,734,338	$ 3,069,616

Summary of Significant Accoun_6

Summary of Significant Accounting Policies (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2018	Jun. 30, 2018
Disclosure Summary Of Significant Accounting Policies Details Narrative Abstract
Cash issued to Federal Deposit Insurance Corporation	$ 250,000
Inventory, Net	580,475	$ 531,249
Inventory Obsolescence Reserve	$ 16,177	$ 120,486

Concentration (Details Narrativ

Concentration (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Risks and Uncertainties [Abstract]
Net Revenue	$ 1,445,269	$ 938,754	$ 2,886,885	$ 2,115,968

Legal Proceedings (Details Narr

Legal Proceedings (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

Other Current Assets (Details)

Other Current Assets (Details) - USD ($)	Dec. 31, 2018	Jun. 30, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid Deposit	$ 1,725,000	$ 355,500
Prepaid Inventory	103,213	92,737
Employees Advance	46,303	41,303
Prepaid Expenses	89,726	246,260
Others	22,201	20,765
Total	$ 1,986,443	$ 756,565

Intangible Asset (Details Narra

Intangible Asset (Details Narrative) - USD ($)	6 Months Ended		12 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization Expense	$ 700		$ 1,400

Convertible Notes (Details)

Convertible Notes (Details) - USD ($)	6 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Convertible Debt, Addition/(Repayment)	$ 1,022,500	$ 702,653
ConvertibleNotesPayableTwentySevenMember
Convertible Principal Amount
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)	250,000
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 250,000
Convertible Debt Due Date	Dec. 26, 2019
ConvertibleNotesPayableTwentyFiveMember
Convertible Principal Amount
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)	40,000
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 40,000
Convertible Debt Due Date	Nov. 15, 2019
Convertible Notes [Member]
Convertible Principal Amount	$ 20,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 20,000
Conversion of Principal Amount, Shares	1,160,391
Convertible Debt
Convertible Debt Due Date	Jul. 17, 2017
ConvertibleNotesPayableFiveMember
Convertible Principal Amount	$ 25,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 25,000
Conversion of Principal Amount, Shares	1,426,674
Convertible Debt
Convertible Debt Due Date	Jul. 17, 2017
ConvertibleNotesPayableSixMember
Convertible Principal Amount	$ 50,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 50,000
Conversion of Principal Amount, Shares	2,931,188
Convertible Debt
Convertible Debt Due Date	Aug. 8, 2017
ConvertibleNotesPayableSevenMember
Convertible Principal Amount	$ 80,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 80,000
Conversion of Principal Amount, Shares	4,530,846
Convertible Debt
Convertible Debt Due Date	Jul. 20, 2017
ConvertibleNotesPayableEightMember
Convertible Principal Amount	$ 66,023
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 66,023
Conversion of Principal Amount, Shares	3,712,324
Convertible Debt
Convertible Debt Due Date	Aug. 24, 2017
ConvertibleNotesPayableNineMember
Convertible Principal Amount	$ 50,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 50,000
Conversion of Principal Amount, Shares	2,390,805
Convertible Debt
Convertible Debt Due Date	Aug. 9, 2017
ConvertibleNotesPayableTenMember
Convertible Principal Amount	$ 75,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 75,000
Conversion of Principal Amount, Shares	4,378,547
Convertible Debt
Convertible Debt Due Date	Jul. 31, 2017
ConvertibleNotesPayableElevenMember
Convertible Principal Amount	$ 124,318
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 63,567
Conversion of Principal Amount, Shares	3,919,404
Convertible Debt	$ 60,751
Convertible Debt Due Date	Dec. 1, 2017
Derivative Liabilities [Default Label]
Convertible Principal Amount	$ 70,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 70,000
Conversion of Principal Amount, Shares	4,067,072
Convertible Debt
Convertible Debt Due Date	Sep. 23, 2017
ConvertibleNotesPayableThirteenMember
Convertible Principal Amount	$ 30,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 30,000
Conversion of Principal Amount, Shares	1,500,010
Convertible Debt
Convertible Debt Due Date	Aug. 16, 2017
ConvertibleNotesPayableFourteenMember
Convertible Principal Amount	$ 200,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 200,000
Conversion of Principal Amount, Shares	11,557,652
Convertible Debt
Convertible Debt Due Date	Sep. 30, 2017
ConvertibleNotesPayableSixteenMember
Convertible Principal Amount	$ 150,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 150,000
Conversion of Principal Amount, Shares	3,745,330
Convertible Debt
Convertible Debt Due Date	May 3, 2018
ConvertibleNotesPayableSeventeenMember
Convertible Principal Amount	$ 164,900
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 164,900
Conversion of Principal Amount, Shares	6,596,000
Convertible Debt
Convertible Debt Due Date	Jul. 17, 2018
ConvertibleNotesPayableEighteenMember
Convertible Principal Amount	$ 35,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 35,000
Conversion of Principal Amount, Shares	691,184
Convertible Debt
Convertible Debt Due Date	Aug. 22, 2018
ConvertibleNotesPayableFifteenMember
Convertible Principal Amount	$ 921,004
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 525,000
Conversion of Principal Amount, Shares	17,521,702
Convertible Debt	$ 396,004
Convertible Debt Due Date	May 12, 2018
ConvertibleNotesPayableNinteenMember
Convertible Principal Amount	$ 15,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 15,000
Conversion of Principal Amount, Shares	294,114
Convertible Debt
Convertible Debt Due Date	Sep. 26, 2018
ConvertibleNotesPayableTwentyMember
Convertible Principal Amount	$ 50,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount	$ 50,000
Conversion of Principal Amount, Shares	1,000,000
Convertible Debt
Convertible Debt Due Date	Dec. 7, 2018
ConvertibleNotesPayableTwentyOneMember
Convertible Principal Amount
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)	267,500
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 267,500
Convertible Debt Due Date	Sep. 15, 2019
ConvertibleNotesPayableTwentyTwoMember
Convertible Principal Amount
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)	250,000
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 250,000
Convertible Debt Due Date	Oct. 5, 2019
Convertible Notes Payable [Member]
Convertible Principal Amount	$ 2,426,245
Convertible Debt, Addition/(Repayment)	1,022,500
Conversion of Principal Amount	$ 1,819,490
Conversion of Principal Amount, Shares	75,167,248
Convertible Debt	$ 1,629,255
ConvertibleNotesPayableOneMember
Convertible Principal Amount	25,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 25,000
Convertible Debt Due Date	Feb. 24, 2013
Document And Entity Information [Default Label]
Convertible Principal Amount	$ 25,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 25,000
Convertible Debt Due Date	Mar. 18, 2013
ConvertibleNotesPayableThreeMember
Convertible Principal Amount	$ 100,000
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 100,000
Convertible Debt Due Date	Jun. 21, 2013
ConvertibleNotesPayableTwentyThreeMember
Convertible Principal Amount
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)	100,000
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 100,000
Convertible Debt Due Date	Oct. 31, 2019
ConvertibleNotesPayableTwentyFourMember
Convertible Principal Amount
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)	80,000
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 80,000
Convertible Debt Due Date	Nov. 15, 2019
ConvertibleNotesPayableTwentySixMember
Convertible Principal Amount
Convertible Debt, Default Penalty
Convertible Debt, Addition/(Repayment)	35,000
Conversion of Principal Amount
Conversion of Principal Amount, Shares
Convertible Debt	$ 35,000
Convertible Debt Due Date	Dec. 2, 2019

Derivative liabilities (Details

Derivative liabilities (Details)	3 Months Ended	6 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2018	Jun. 30, 2018
Expected Volatility [Member]
Expected volatility		154.00%	151.00%
Expected Life [Member]
Expected life (years)		6 months	6 months
Risk Free Interest Rate [Member]
Risk-free interest rate		2.56%	2.06%
Derivative [Member] | Annual Dividend Yield [Member]
Annual Dividend Yield
Stock Warrant [Member] | Expected Volatility [Member]
Expected volatility		138.00%	151.00%
Stock Warrant [Member] | Expected Life [Member]
Expected life (years)		6 months	6 months
Stock Warrant [Member] | Annual Dividend Yield [Member]
Annual Dividend Yield
Stock Warrant [Member] | Risk Free Interest Rate [Member]
Risk-free interest rate		2.45%	20.60%
Maximum [Member] | Derivative [Member] | Expected Volatility [Member]
Expected volatility	123.00%	175.00%	202.00%
Maximum [Member] | Derivative [Member] | Expected Life [Member]
Expected life (years)	1 year	1 year	1 year
Maximum [Member] | Derivative [Member] | Risk Free Interest Rate [Member]
Risk-free interest rate	2.37%	2.72%	2.12%
Minimum [Member] | Derivative [Member] | Expected Volatility [Member]
Expected volatility	87.00%	118.00%	103.00%
Minimum [Member] | Derivative [Member] | Expected Life [Member]
Expected life (years)	6 months	6 months	5 months 19 days
Minimum [Member] | Derivative [Member] | Risk Free Interest Rate [Member]
Risk-free interest rate	2.15%	2.49%	1.08%

Derivative liabilities (Detai_2

Derivative liabilities (Details 2) - USD ($)	3 Months Ended			6 Months Ended
	Dec. 31, 2018	Sep. 30, 2018	Dec. 31, 2017	Dec. 31, 2018	Dec. 31, 2017
Balance Beginning		$ 3,069,616		$ 3,069,616
Mark to Market	$ (2,019,927)		$ (4,924,302)	(3,661,383)	$ (5,064,955)
Ending Balance	1,734,338			1,734,338
Derivative [Member]
Balance Beginning	2,423,716	3,069,616		3,069,616
Additions	865,503	427,076
Mark to Market	2,019,927	1,641,457
Reclassification to APIC due to conversions	(3,574,808)	(2,714,433)
Ending Balance	$ 1,734,338	$ 2,423,716		$ 1,734,338

Stock warrants (Details)

Stock warrants (Details) - Stock Warrant [Member] - $ / shares	6 Months Ended	12 Months Ended
	Dec. 31, 2018	Jun. 30, 2017	Jun. 30, 2016
Number of Shares
Outstanding	505,000	505,000	131,250
Granted			131,250
Exercised			505,000
Outstanding	505,000	505,000	505,000
Weighted Average Exercise Price
Outstanding	$ 0.15	$ .20	$ 0.20
Granted			0.20
Exercised			.15
Outstanding	$ .15	$ .15	$ .20
Weighted Average Remaining contractual life
Granted			4 years
Outstanding	6 months	6 months	3 years 10 months 10 days

Stock warrants (Details 2)

Stock warrants (Details 2)	3 Months Ended	6 Months Ended	12 Months Ended
	Sep. 30, 2018	Dec. 31, 2018	Jun. 30, 2018
Risk Free Interest Rate [Member]
Risk-free interest rate		2.56%	2.06%
Expected Volatility [Member]
Expected volatility		154.00%	151.00%
Expected Life [Member]
Expected life (years)		6 months	6 months
Derivative [Member] | Annual Dividend Yield [Member]
Annual Dividend Yield
Stock Warrant [Member] | Annual Dividend Yield [Member]
Annual Dividend Yield
Stock Warrant [Member] | Risk Free Interest Rate [Member]
Risk-free interest rate		2.45%	20.60%
Stock Warrant [Member] | Expected Volatility [Member]
Expected volatility		138.00%	151.00%
Stock Warrant [Member] | Expected Life [Member]
Expected life (years)		6 months	6 months

Commitments and Contingencies (

Commitments and Contingencies (Details Narrative)	1 Months Ended
	Mar. 31, 2018USD ($)
Commitments And Contingencies Details Narrative
Monthly Rent	$ 11,770
Lease Term	5 years