Annual report pursuant to Section 13 and 15(d)

Refinancing Agreement

Refinancing Agreement
12 Months Ended
Jun. 30, 2021
Refinancing Agreement [Abstract]  
Refinancing Agreement
12. Refinancing Agreement   In April 2021, the Company extinguished certain convertible promissory notes held by Eagle Equities, LLC by way of full settlement of approximately $2,511,214, consisting of 2,325,200 in principal and $186,014 interest, paid as follows:
        (i) 1,500 shares B Preferred, valued at $1,500,000 as a part of the Preferred offering; and
        (ii) $1,300,000 in cash from the proceeds of the offering.
      Since the debt was exchanged in whole, the fair value of the consideration paid should be compared to the fair value of the debt settled (including related derivative liabilities), with the variance accounted for as a gain or loss on settlement.


Debt principal ($2,325,200) plus interest payable ($186,014)   $ 2,511,214  
Derivative liability     1,287,662  
Unamortized debt of discount     (340,795 )
Cash paid from Escrow account     (1,300,000 )
1,500 shares of Preferred B     (1,500,001 )
Gain on extinguishment of debt upon refinancing   $ 658,080  

Below is a reconciliation of the loss on debt extinguishment as presented on the Company’s statement of operations for the fiscal year ended June 30, 2021:

Loss on convertible notes upon conversion   $ 2,100,435  
(Gain) upon refinancing     (658,080 )
Loss on extinguishment debt   $ 1,442,325