NOTE 3 - COMMITMENTS AND CONTINGENCIES

9 Months Ended

Mar. 31, 2020

Notes

NOTE 3 - COMMITMENTS AND CONTINGENCIES

NOTE 3 - COMMITMENTS AND CONTINGENCIES

Litigation

The Company may, from time to time, be involved in various legal disputes resulting from the ordinary course of operating its business. Management is currently not able to predict the outcome of any such cases. However, management believes that the amount of ultimate liability, if any, with respect to such actions will not have a

material effect on the Company's financial position or results of operations.

At the time of reporting, no litigations are pending.

Indemnities and Guarantees

During the normal course of business, the Company has made certain indemnities and guarantees under which it may be required to make payments in relation to certain transactions. These indemnities include certain agreements with the Company's officers, under which the Company may be required to indemnify such person for liabilities arising out of their employment relationship. The duration of these indemnities and guarantees varies and, in certain cases, is indefinite. The majority of these indemnities and guarantees do not provide for any limitation of the maximum potential future payments the Company could be obligated to make. Historically, the Company has not been obligated to make significant payments for these obligations and no liabilities have been recorded for these indemnities and guarantees in the accompanying consolidated balance sheet.

Leases

Effective from June 30, 2019 the Company has closed the site in Witten and relocated its headquarters to Hamburg. The Company leases office facilities from an unrelated third party at 1,110 Euros per month, which includes 177 Euros for sales tax. The office lease contract is beginning in January 2020 and expires June 2026.

The Company also leases an automobile under an operating lease. The lease provides for a lease payment of 538 Euros per month beginning June 2018 expiring May 2020.  

The following table reconciles future minimum operating lease payments to the discounted lease liability as of June 30, 2019:

Minimum Lease Payments Under Operating Leases
		Office	Automobile	Total
Year ending June 30,
2020	$	3,073	1,181	4,254
2021		12,291	-	12,291
2022		12,291	-	12,291
2023		12,291	-	12,291
2024		12,291	-	12,291
Thereafter		24,582	-	24,582
Total Operating Lease Obligations	$	76,819	1,181	78,000
Less: Amount representing imputed interest	$	(4,632)	(3)	(4,635)
Present Value of minimum lease payments	$	72,187	1,178	73,365

Weighted average discount rate	2%
Weighted average remaining term	6.16	years

License Agreement

Pursuant to the contracts dated May 2, 2018 and November 11, 2018 between Sangui GmbH respectively Sangui KG and a former contractor, Sangui KG grants that contractor a license fee on the license income received by Sangui for his previous services as a co-inventor. The license fee is 10% analogously to the remuneration regulation of the German Law on Employee Inventions (ArbnErfG).