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Note 10 - Convertible Debentures

12 Months Ended

Jun. 30, 2023

NOTE 10 - CONVERTIBLE DEBENTURES

As of June 30, 2023, the Company’s convertible debentures have been summarized as follows:

SBI Investments LLC (“SBI”)

Original debt	Total penalties		Accrued interest as of June 30, 2023		Total balance settled through issuance of shares			Balance due as of June 30, 2023		Original interest rate*			Inception	Original due date
$	$		$		$			$
469,760		369,375		652,718		(599,254	)		892,599		12	%	May 12, 2017	November 12, 2017
105,000		68,045		456,363		-			629,408		8	%	May 19, 2017	November 19, 2017
119,227		249,675		986,862		-			1,355,764		8	%	May 18, 2017	November 18, 2017
469,760		220,917		794,593		(431,605	)		1,053,665		12	%	May 12, 2017	November 12, 2017
105,000		170,240		588,152		-			863,392		8	%	May 19, 2017	November 19, 2017
119,227		180,550		811,858		-			1,111,635		8	%	May 18, 2017	November 18, 2017
28,750		46,623		160,957		-			236,330		8	%	June 23, 2017	December 23, 2017
1,416,724		1,305,425		4,451,503		(1,030,859	)		6,142,793

On June 30, 2023, SBI acquired all of the issued and outstanding convertible debt of L2 Capital, reflected above.

As of June 30, 2022, the Company’s convertible debentures have been summarized as follows:

L2 capital Inc. (“L2”)

Original debt	Total penalties		Accrued interest as of June 30, 2022		Total balance settled through issuance of shares			Balance due as of June 30, 2022		Original interest rate*			Inception	Original due date
$	$		$		$			$
469,760		369,375		479,955		(599,254	)		719,836		12	%	May 12, 2017	November 12, 2017
105,000		68,045		334,543		-			507,588		8	%	May 19, 2017	November 19, 2017
119,227		249,675		724,455		-			1,093,357		8	%	May 18, 2017	November 18, 2017
693,987		687,095		1,538,953		(599,254	)		2,320,781

SBI Investments LLC (“SBI”)

Original debt	Total penalties		Accrued interest as of June 30, 2022		Total balance settled through issuance of shares			Balance due as of June 30, 2022		Original Interest rate*			Inception	Original due date
$	$		$		$			$
469,760		220,917		588,380		(431,605	)		847,452		12	%	May 12, 2017	November 12, 2017
105,000		170,240		419,177		-			694,417		8	%	May 19, 2017	November 19, 2017
119,227		180,550		594,299		-			894,076		8	%	May 18, 2017	November 18, 2017
28,750		46,623		114,705		-			190,078		8	%	June 23, 2017	December 23, 2017
722,737		618,330		1,716,561		(431,605	)		2,626,023

*In accordance with the default provisions of the original convertible debt agreements, the convertible debentures began accruing interest at 24% per annum following non-payment as of the due dates of the respective convertible debenture notes.

There were no settlements of convertible debentures into shares of common stock during the years ended June 30, 2023 and 2022.

The convertible debentures are convertible into common shares of the Company. On May 7, 2018, the Company entered into amended convertible debt agreements with L2 and SBI and fixed the conversion rate to a price of $0.0293 per common share.

JMJ Financial

On November 16, 2017, the Company entered into a debt agreement with JMJ Financial. A total of $200,000 was received. The convertible debenture became due on May 15, 2018 As of June 30, 2021, and 2022, $74,000 remains due.

The note becomes convertible in the event the Company breaches any of the default provisions. On January 16, 2018, the note was in default and accordingly became convertible. The conversion price is the lesser of $0.05 or 50% of the lowest trade price in the 25 trading days previous to the conversion. The lender is limited to holding no more than 4.99% of the issued and outstanding common stock at the time of conversion. After the expiration of 120 days following the delivery date of any consideration, the Company will have no right of prepayment without written consent of the lender.

A reconciliation of the Company’s convertible debenture is as follows:

Balance June 30, 2021	$	4,057,681
Interest	$	963,123
Balance, June 30, 2022	$	5,020,804
Interest	$	1,195,988
Balance, June 30, 2023	$	6,216,793

On March 25, 2021, the Company’s common shares were suspended from trading. As a result, the Company is not able to satisfy the conversion rights under the convertible debt agreements, the fair values of all derivative liabilities have been measured at $nil as at June 30, 2023 and 2022.