Accounting Policies, by Policy (Policies)
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9 Months Ended |
Mar. 31, 2023 |
Accounting Policies [Abstract] |
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Interim Financial Statements |
Interim Financial Statements
These unaudited condensed consolidated financial
statements for the three and nine months ended March 31, 2023 and 2022, respectively, reflect all adjustments including normal recurring
adjustments, which, in the opinion of management, are necessary to present fairly the financial position, results of operations and cash
flows for the periods presented in accordance with the accounting principles generally accepted in the United States of America.
These interim unaudited condensed consolidated
financial statements should be read in conjunction with the Company’s consolidated financial statements and notes thereto for the
fiscal years ended June 30, 2022, and 2021, respectively, which are included in the Company’s Annual Report on Form 10-K for the
fiscal year ended June 30, 2022 filed with the United States Securities and Exchange Commission on September 28, 2022. The Company assumes
that the users of the interim financial information herein have read, or have access to, the audited consolidated financial statements
for the preceding period, and that the adequacy of additional disclosure needed for a fair presentation may be determined in that context.
The results of operations for the three and six months ended December 31, 2022 are not necessarily indicative of results for the entire
year ending June 30, 2023.
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Use of Estimates |
Use of Estimates
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The preparation
of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from
those estimates. Estimates are used in the determination of depreciation and amortization, the valuation for non-cash issuances of
common stock, and the website, income taxes and contingencies, valuing convertible preferred stock for a “beneficial conversion
feature” (“BCF”) and warrants among others. |
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Cash and Cash Equivalents |
Cash and Cash Equivalents
| ● | The Company classifies as cash and cash equivalents amounts on deposit in the banks and cash temporarily in various instruments with original maturities of three months or less at the time of purchase. The Company places its cash and cash equivalents on deposit with financial institutions in the United States. The Federal Deposit Insurance Corporation (“FDIC”) covers $250,000 for substantially all depository accounts. The Company from time to time may have amounts on deposit in excess of the insured limits. |
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Fair Value of Financial Instruments |
Fair Value of Financial Instruments
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Statement of
financial accounting standard FASB Topic 820, Disclosures about Fair Value of Financial Instruments, requires that the Company disclose
estimated fair values of financial instruments. The carrying amounts reported in the statements of financial position for assets
and liabilities qualifying as financial instruments are a reasonable estimate of fair value. |
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Inventories |
Inventories
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Inventories
consisting of packaged food items and supplies are stated at the lower of cost (FIFO) or net realizable value, including provisions
for spoilage commensurate with known or estimated exposures which are recorded as a charge to cost of sales during the period spoilage
is incurred. The Company has no minimum purchase commitments with its vendors. |
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Advertising Costs |
Advertising Costs
| ● | Advertising costs are expensed when incurred and are included in advertising and promotional expense in the accompanying statements of operations. Although not traditionally thought of by many as “advertising costs”, the Company includes expenses related to graphic design work, package design, website design, domain names, and product samples in the category of “advertising costs”. The Company recorded advertising costs of $38,960 and $218,820 for the three months ended March 31, 2023 and 2022, respectively. The Company recorded advertising costs of $ 129,295 and $684,611 for the nine months ended March 31, 2023 and 2022, respectively. |
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Income Taxes |
Income Taxes
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The Company
has not generated any taxable income, and, therefore, no provision for income taxes has been provided. Deferred income taxes
are reported for timing differences between items of income or expense reported in the financial statements and those reported for
income tax purposes in accordance with FASB Topic 740, “Accounting for Income Taxes”, which requires the use of the asset/liability
method of accounting for income taxes. Deferred income taxes and tax benefits are recognized for the future tax consequences attributable
to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases,
and for tax loss and credit carry-forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to
apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company provides
for deferred taxes for the estimated future tax effects attributable to temporary differences and carry-forwards when realization
is more likely than not. |
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A valuation
allowance has been recorded to fully offset the deferred tax asset even though the Company believes it is more likely than not that
the assets will be utilized |
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The Company’s
effective tax rate differs from the statutory rates associated with taxing jurisdictions because of permanent and temporary timing
differences as well as a valuation allowance. |
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Revenue Recognition |
Revenue Recognition
| ● | The Company generates its revenue by selling its nighttime snack products wholesale to retailers and wholesalers. All sources of revenue are recorded pursuant to FASB Topic 606 Revenue Recognition, to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This includes a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a performance obligation. In addition, this revenue generation requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. |
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The Company
revenue from contracts with customers provides that an entity should recognize revenue to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those
goods or services. |
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The Company
incurs costs associated with product distribution, such as freight and handling costs. The Company has elected to treat these costs
as fulfillment activities and recognizes these costs at the same time that it recognizes the underlying product revenue. As this
policy election is in line with the Company’s previous accounting practices, the treatment of shipping and handling activities
under FASB Topic 606 did not have any impact on the Company’s results of operations, financial condition and/or financial statement
disclosures. |
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The adoption
of ASC 606 did not result in a change to the accounting for any of the Company’s revenue streams that are within the scope
of the amendments. The Company’s services that fall within the scope of ASC 606 are recognized as revenue as the Company satisfies
its obligation to the customer. |
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In May 2014,
the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which updates revenue recognition guidance relating to contracts
with customers. This standard states that an entity should recognize revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods
or services. This standard is effective for annual reporting periods, and interim periods therein, beginning after July 1, 2018.
The Company adopted ASU 2014-09 and its related amendments (collectively known as “ASC 606”) during the first quarter
of fiscal 2019 using the full retrospective method. |
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Management
reviewed ASC 606-10-32-25 which states “Consideration payable to a customer includes cash amounts that an entity pays,
or expects to pay, to the customer (or to other parties that purchase the entity’s goods or services from the customer). Consideration
payable to a customer also includes credit or other items (for example, a coupon or voucher) that can be applied against amounts
owed to the entity (or to other parties that purchase the entity’s goods or services from the customer). An entity shall account
for consideration payable to a customer as a reduction of the transaction price and, therefore, of revenue unless the payment to
the customer is in exchange for a distinct good or service (as described in paragraphs 606-10-25-18 through 25-22) that the customer
transfers to the entity. If the consideration payable to a customer includes a variable amount, an entity shall estimate the transaction
price (including assessing whether the estimate of variable consideration is constrained) in accordance with paragraphs 606-10-32-5
through 32-13.” |
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If the consideration
payable to a customer is a payment for a distinct good service, then in accordance with ASC 606-10-32-26, the entity should account
for it the same way that it accounts for other purchases from suppliers (expense). Further, “if the amount of consideration
payable to the customer exceeds the fair value of the distinct good or service that the entity receives from the customer, then the
entity shall account for such an excess as a reduction of the transaction price. If the entity cannot reasonably estimate the fair
value of the good or service received from the customer, it shall account for all of the consideration payable to the customer as
a reduction of the transaction price.” |
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Under ASC 606-10-32-27,
if the consideration payable to a customer is accounted for as a reduction of the transaction price, “an entity shall
recognize the reduction of revenue when (or as) the later of either of the following events occurs: |
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a) |
The
entity recognizes revenue for the transfer of the related goods or services to the customer. |
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b) |
The entity
pays or promises to pay the consideration (even if the payment is conditional on a future event). That promise might be implied by
the entity’s customary business practices.” |
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Management
reviewed each arrangement to determine if each fee paid is for a distinct good or service and should be expensed as incurred or if
the Company should recognize the payment as a reduction of revenue. |
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The Company
recognizes revenue upon shipment based on meeting the transfer of control criteria. The Company has made a policy election to treat
shipping and handling as costs to fulfill the contract, and as a result, any fees received from customers are included in the transaction
price allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of sales for amounts
paid to applicable carriers. |
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Recent Accounting Pronouncements |
revenue generation requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers.
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The Company
revenue from contracts with customers provides that an entity should recognize revenue to depict the transfer of promised goods or
services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those
goods or services. |
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The Company
incurs costs associated with product distribution, such as freight and handling costs. The Company has elected to treat these costs
as fulfillment activities and recognizes these costs at the same time that it recognizes the underlying product revenue. As this
policy election is in line with the Company’s previous accounting practices, the treatment of shipping and handling activities
under FASB Topic 606 did not have any impact on the Company’s results of operations, financial condition and/or financial statement
disclosures. |
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The adoption
of ASC 606 did not result in a change to the accounting for any of the Company’s revenue streams that are within the scope
of the amendments. The Company’s services that fall within the scope of ASC 606 are recognized as revenue as the Company satisfies
its obligation to the customer. |
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In May 2014,
the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which updates revenue recognition guidance relating to contracts
with customers. This standard states that an entity should recognize revenue to depict the transfer of promised goods or services
to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods
or services. This standard is effective for annual reporting periods, and interim periods therein, beginning after July 1, 2018.
The Company adopted ASU 2014-09 and its related amendments (collectively known as “ASC 606”) during the first quarter
of fiscal 2019 using the full retrospective method. |
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Management
reviewed ASC 606-10-32-25 which states “Consideration payable to a customer includes cash amounts that an entity pays,
or expects to pay, to the customer (or to other parties that purchase the entity’s goods or services from the customer). Consideration
payable to a customer also includes credit or other items (for example, a coupon or voucher) that can be applied against amounts
owed to the entity (or to other parties that purchase the entity’s goods or services from the customer). An entity shall account
for consideration payable to a customer as a reduction of the transaction price and, therefore, of revenue unless the payment to
the customer is in exchange for a distinct good or service (as described in paragraphs 606-10-25-18 through 25-22) that the customer
transfers to the entity. If the consideration payable to a customer includes a variable amount, an entity shall estimate the transaction
price (including assessing whether the estimate of variable consideration is constrained) in accordance with paragraphs 606-10-32-5
through 32-13.” |
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● |
If the consideration
payable to a customer is a payment for a distinct good service, then in accordance with ASC 606-10-32-26, the entity should account
for it the same way that it accounts for other purchases from suppliers (expense). Further, “if the amount of consideration
payable to the customer exceeds the fair value of the distinct good or service that the entity receives from the customer, then the
entity shall account for such an excess as a reduction of the transaction price. If the entity cannot reasonably estimate the fair
value of the good or service received from the customer, it shall account for all of the consideration payable to the customer as
a reduction of the transaction price.” |
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Under ASC 606-10-32-27,
if the consideration payable to a customer is accounted for as a reduction of the transaction price, “an entity shall
recognize the reduction of revenue when (or as) the later of either of the following events occurs: |
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a) |
The
entity recognizes revenue for the transfer of the related goods or services to the customer. |
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b) |
The entity
pays or promises to pay the consideration (even if the payment is conditional on a future event). That promise might be implied by
the entity’s customary business practices.” |
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Management
reviewed each arrangement to determine if each fee paid is for a distinct good or service and should be expensed as incurred or if
the Company should recognize the payment as a reduction of revenue. |
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The Company
recognizes revenue upon shipment based on meeting the transfer of control criteria. The Company has made a policy election to treat
shipping and handling as costs to fulfill the contract, and as a result, any fees received from customers are included in the transaction
price allocated to the performance obligation of providing goods with a corresponding amount accrued within cost of sales for amounts
paid to applicable carriers. |
Concentration of Credit Risk
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Financial instruments that potentially subject the Company to concentrations
of credit risk consist principally of cash deposits at financial institutions. At various times during the year, the Company may exceed
the federally insured limits. To mitigate this risk, the Company places its cash deposits only with high credit quality institutions.
Management believes the risk of loss is minimal. At March 31, 2023 and June 30, 2022, the Company did not have any uninsured cash deposits. |
Beneficial Conversion Feature
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For conventional
convertible debt where the rate of conversion is below market value, the Company records any BCF intrinsic value as additional paid
in capital and related debt discount. |
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When the Company
records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument.
The discount is amortized over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the
unamortized amounts is immediately expensed. |
Beneficial Conversion Feature – Series
B Preferred Stock (deemed dividend):
Each share of the Company’s Series B
Preferred Stock, par value $0.001 per share (the “B Preferred” or “B Preferred Stock”) has a
liquidation preference of $1,000 and has no voting rights except as to matters pertaining to the rights and privileges of the B
Preferred. Each share of B Preferred is convertible at the option of the holder thereof into (i) 5,000 shares of the
Registrant’s common stock (one share for each $0.20 of liquidation preference) (the “Conversion Shares”) and (ii)
5,000 common stock purchase warrants, expiring April 16, 2026 (the “Warrants”). The Warrants carried an initial exercise
price of $0.30 per share. Subsequent financing events and debt extinguishment resulted in adjustments to the exercise price of all
warrants created from conversion of B Preferred from $0.30 per share to approximately $0.14364 per share through March 31,
2023. The exercise price of these warrants can continue to adjust as the result of subsequent financing events and stock
transactions. These adjustments can result in an exercise price that is either higher, or lower, than the price as of March 31,
2023.
Based on the guidance in ASC 470-20-20, on
issuance date the Company determined that a BCF existed, as the effective conversion price for the B Preferred at issuance was less
than the fair value of the common stock which the shares of B Preferred are convertible into. A BCF feature based on the intrinsic
value of the date of issuances for the B Preferred was approximately $4.4 million.
Debt Issue Costs
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The Company
may pay debt issue costs in connection with raising funds through the issuance of debt whether convertible or not or with other consideration.
These costs are recorded as debt discounts and are amortized over the life of the debt to the statement of operations. |
Equity Issuance Costs
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The Company
accounts for costs related to the issuance of equity as a charge to Paid in Capital and records the equity transaction net of issuance
costs. |
Original Issue Discount
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If debt is
issued with an original issue discount, the original issue discount is recorded to debt discount, reducing the face amount of the
note and is amortized over the life of the debt to the statement of operations as interest expense. If a conversion of the underlying
debt occurs, a proportionate share of the unamortized amounts is immediately expensed. |
Stock Settled Debt
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In certain
instances, the Company will issue convertible notes which contain a provision in which the price of the conversion feature is priced
at a fixed discount to the trading price of the Company’s common shares as traded in the over-the-counter market. In
these instances, the Company records a liability, in addition to the principal amount of the convertible note, as stock-settled debt
for the fixed value transferred to the convertible note holder from the fixed discount conversion feature. |
Stock-Based Compensation
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The Company
accounts for share-based awards issued to employees in accordance with FASB ASC 718. Accordingly, employee share-based payment compensation
is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period. Additionally,
share-based awards to non-employees are expensed over the period in which the related services are rendered at their fair value.
The Company applies ASC 718, “Equity Based Payments to Non-Employees”, with respect to options and warrants issued to
non-employees. |
Customer Concentration
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During the nine months ended March 31, 2023, the Company had one customer account for approximately 34% of the gross sales. One other customer accounted for approximately 31% of gross sales, and two other customers accounted for between 10 and 12% of gross sales. During the nine months ended March 31, 2022, the Company had one customer account for approximately 30% of the gross sales. One other customer accounted for approximately 23% of gross sales, and two other customers accounted for between 10 and 15% of gross sales. During the three months ended March 31, 2023, the Company had one customer
account for approximately 94% of the gross sales. During the three months ended March 31, 2022, the Company had one customer account for
approximately 44% of the gross sales and another customer account for approximately 36% of gross sales.
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Vendor Concentration
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During the three-month period ended March 31,
2023, no vendors accounted for more than 15% of the Company’s operating expenses. During the nine-month period ended March 31, 2023,
no vendor accounted for more than 19% of the Company’s operating expenses.
During the three-month period ended March 31, 2022, no vendors accounted
for more than 9% of the Company’s operating expenses. During the nine-month period ended March 31, 2022 no vendor accounted for
more than 9% of the Company’s operating expenses.
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Receivables Concentration
| ● | As
of March 31, 2023, the Company had receivables due from eight customers. One of which accounted for 73% of the total balance, one of
which accounted for 9% of the total balance and one of which accounted for 7% of the total balance. As of June 30, 2022, the Company
had receivables due from six customers, one of which accounted for over 59% of the outstanding balance. One of the remaining five
accounted for 13.5% of the outstanding balance and one accounted for 11% of the outstanding balance. |
Income/Loss Per Share
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In accordance
with ASC Topic 260 – Earnings Per Share, the basic loss per common share is computed by dividing net loss available to common
stockholders by the weighted average number of common stock outstanding. Diluted loss per common share is computed similar to basic
loss per common share except that the denominator is increased to include the number of additional shares of common stock that would
have been outstanding if the potential common stock had been issued and if the additional shares of common stock were dilutive. Potential
common stock consists of the incremental common stock issuable upon convertible notes, stock options and warrants, and classes of
shares with conversion features. The computation of basic loss per share for the three and nine months ended March 31, 2023 and 2022
excludes potentially dilutive securities because their inclusion would be antidilutive. As a result, the computations of net loss
per share for each period presented is the same for both basic and fully diluted losses per share. |
Reclassification
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The Company
may make certain reclassifications to prior period amounts to conform with the current year’s presentation. Such reclassifications
would not have a material effect on its consolidated statement of financial position, results of operations or cash flows. |
Recent Accounting Pronouncements
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In August 2020,
the FASB issued ASU 2020-06 to simplify the current guidance for convertible instruments and the derivatives scope exception for
contracts in an entity’s own equity. Additionally, the amendments affect the diluted EPS calculation for instruments that may
be settled in cash or shares and for convertible instruments. The update also provides for expanded disclosure requirements to increase
transparency. For SEC filers, excluding smaller reporting companies, this update is effective for fiscal years beginning after December
15, 2022 including interim periods within those fiscal years. The adoption of this guidance does not materially impact our financial
statements and related disclosures. |
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The Company has implemented
all new accounting pronouncements that are in effect and that may impact its financial statements and does not believe that there are
any other new accounting pronouncements that have been issued that might have a material impact on its financial position or results
of operations. |
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Concentration of Credit Risk |
Concentration of Credit Risk
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Financial instruments that potentially subject the Company to concentrations
of credit risk consist principally of cash deposits at financial institutions. At various times during the year, the Company may exceed
the federally insured limits. To mitigate this risk, the Company places its cash deposits only with high credit quality institutions.
Management believes the risk of loss is minimal. At March 31, 2023 and June 30, 2022, the Company did not have any uninsured cash deposits. |
|
Beneficial Conversion Feature |
Beneficial Conversion Feature
|
● |
For conventional
convertible debt where the rate of conversion is below market value, the Company records any BCF intrinsic value as additional paid
in capital and related debt discount. |
|
● |
When the Company
records a BCF, the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument.
The discount is amortized over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the
unamortized amounts is immediately expensed. |
Beneficial Conversion Feature – Series
B Preferred Stock (deemed dividend):
Each share of the Company’s Series B
Preferred Stock, par value $0.001 per share (the “B Preferred” or “B Preferred Stock”) has a
liquidation preference of $1,000 and has no voting rights except as to matters pertaining to the rights and privileges of the B
Preferred. Each share of B Preferred is convertible at the option of the holder thereof into (i) 5,000 shares of the
Registrant’s common stock (one share for each $0.20 of liquidation preference) (the “Conversion Shares”) and (ii)
5,000 common stock purchase warrants, expiring April 16, 2026 (the “Warrants”). The Warrants carried an initial exercise
price of $0.30 per share. Subsequent financing events and debt extinguishment resulted in adjustments to the exercise price of all
warrants created from conversion of B Preferred from $0.30 per share to approximately $0.14364 per share through March 31,
2023. The exercise price of these warrants can continue to adjust as the result of subsequent financing events and stock
transactions. These adjustments can result in an exercise price that is either higher, or lower, than the price as of March 31,
2023.
Based on the guidance in ASC 470-20-20, on
issuance date the Company determined that a BCF existed, as the effective conversion price for the B Preferred at issuance was less
than the fair value of the common stock which the shares of B Preferred are convertible into. A BCF feature based on the intrinsic
value of the date of issuances for the B Preferred was approximately $4.4 million.
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Debt Issue Costs |
Debt Issue Costs
|
● |
The Company
may pay debt issue costs in connection with raising funds through the issuance of debt whether convertible or not or with other consideration.
These costs are recorded as debt discounts and are amortized over the life of the debt to the statement of operations. |
|
Equity Issuance Costs |
Equity Issuance Costs
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● |
The Company
accounts for costs related to the issuance of equity as a charge to Paid in Capital and records the equity transaction net of issuance
costs. |
|
Original Issue Discount |
Original Issue Discount
|
● |
If debt is
issued with an original issue discount, the original issue discount is recorded to debt discount, reducing the face amount of the
note and is amortized over the life of the debt to the statement of operations as interest expense. If a conversion of the underlying
debt occurs, a proportionate share of the unamortized amounts is immediately expensed. |
|
Stock Settled Debt |
Stock Settled Debt
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● |
In certain
instances, the Company will issue convertible notes which contain a provision in which the price of the conversion feature is priced
at a fixed discount to the trading price of the Company’s common shares as traded in the over-the-counter market. In
these instances, the Company records a liability, in addition to the principal amount of the convertible note, as stock-settled debt
for the fixed value transferred to the convertible note holder from the fixed discount conversion feature. |
|
Stock-Based Compensation |
Stock-Based Compensation
|
● |
The Company
accounts for share-based awards issued to employees in accordance with FASB ASC 718. Accordingly, employee share-based payment compensation
is measured at the grant date, based on the fair value of the award, and is recognized as an expense over the requisite service period. Additionally,
share-based awards to non-employees are expensed over the period in which the related services are rendered at their fair value.
The Company applies ASC 718, “Equity Based Payments to Non-Employees”, with respect to options and warrants issued to
non-employees. |
|
Customer Concentration |
Customer Concentration
| ● |
During the nine months ended March 31, 2023, the Company had one customer account for approximately 34% of the gross sales. One other customer accounted for approximately 31% of gross sales, and two other customers accounted for between 10 and 12% of gross sales. During the nine months ended March 31, 2022, the Company had one customer account for approximately 30% of the gross sales. One other customer accounted for approximately 23% of gross sales, and two other customers accounted for between 10 and 15% of gross sales. During the three months ended March 31, 2023, the Company had one customer
account for approximately 94% of the gross sales. During the three months ended March 31, 2022, the Company had one customer account for
approximately 44% of the gross sales and another customer account for approximately 36% of gross sales.
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|
Vendor Concentration |
Vendor Concentration
| ● |
During the three-month period ended March 31,
2023, no vendors accounted for more than 15% of the Company’s operating expenses. During the nine-month period ended March 31, 2023,
no vendor accounted for more than 19% of the Company’s operating expenses.
During the three-month period ended March 31, 2022, no vendors accounted
for more than 9% of the Company’s operating expenses. During the nine-month period ended March 31, 2022 no vendor accounted for
more than 9% of the Company’s operating expenses.
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|
Receivables Concentration |
Receivables Concentration
| ● | As
of March 31, 2023, the Company had receivables due from eight customers. One of which accounted for 73% of the total balance, one of
which accounted for 9% of the total balance and one of which accounted for 7% of the total balance. As of June 30, 2022, the Company
had receivables due from six customers, one of which accounted for over 59% of the outstanding balance. One of the remaining five
accounted for 13.5% of the outstanding balance and one accounted for 11% of the outstanding balance. |
|
Income/Loss Per Share |
Income/Loss Per Share
|
● |
In accordance
with ASC Topic 260 – Earnings Per Share, the basic loss per common share is computed by dividing net loss available to common
stockholders by the weighted average number of common stock outstanding. Diluted loss per common share is computed similar to basic
loss per common share except that the denominator is increased to include the number of additional shares of common stock that would
have been outstanding if the potential common stock had been issued and if the additional shares of common stock were dilutive. Potential
common stock consists of the incremental common stock issuable upon convertible notes, stock options and warrants, and classes of
shares with conversion features. The computation of basic loss per share for the three and nine months ended March 31, 2023 and 2022
excludes potentially dilutive securities because their inclusion would be antidilutive. As a result, the computations of net loss
per share for each period presented is the same for both basic and fully diluted losses per share. |
|
Reclassification |
Reclassification
|
● |
The Company
may make certain reclassifications to prior period amounts to conform with the current year’s presentation. Such reclassifications
would not have a material effect on its consolidated statement of financial position, results of operations or cash flows. |
|