NOTE 7 - COMMITMENTS AND CONTINGENCIES

12 Months Ended

Jun. 30, 2020

Notes

NOTE 7 - COMMITMENTS AND CONTINGENCIES

NOTE 7 – COMMITMENTS AND CONTINGENCIES

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. The Company has recorded a reserve for indemnities and guarantees of $-0- as of June 30, 2020 and 2019.

Leases

Effective from June 30, 2020 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 1,100 Euros ($1,217) per month. 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 538Euros ($595) 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, 2020:

Minimum Lease Payments Under Operating Leases
		Office
Year ending June 30,
2021	$	12,710
2022		12,938
2023		13,171
2024		13,408
Thereafter		27,547
Total Operating Lease Obligations	$	79,774
Less: Amount representing imputed interest	$	(4,741)
Present Value of minimum lease payments	$	75,033
Weighted average discount rate		2%
Weighted average remaining term		6.00	years

License Agreement

As part of an out-of-court settlement of a lawsuit between Sastomed GmbH and a former employee of Sangui regarding the recognition of the inventor's property, Sangui also issued 2,238,095 of its shares to the employee in addition to a license fee on the revenues generated by the license agreement with Sastomed (see Note 2), The subject of the settlement was also the assumption of all legal costs by this employee. Under the agreement between Sangui and Sastomed, Sangui is entitled to half of this reimbursement. The liability of the shares issued was ($38,048) and after deducting Sangui's portion of costs incurred that were reimbursed ($10,868), the net amounts settled was $27,180 and was reported under accrued payables as of June 30, 2019. A loss of settlement of $6,714 was recorded during the year ended June 30, 2020.