NOTES PAYABLE AND RELATED PARTY LOANS

3 Months Ended

Sep. 30, 2025

Debt Disclosure [Abstract]

NOTES PAYABLE AND RELATED PARTY LOANS

NOTE 6 – NOTES PAYABLE AND RELATED PARTY LOANS

The Company enters into loan agreements with both related and non-related parties in order to fund their ongoing film production activities. To that extent, the Company had the following outstanding debt as of September 30, 2025 and June 30, 2025:

	As of
	September 30, 2025			June 30, 2025
Current notes payable; Issued December 2023-January 2024; 15% stated interest rate; Due April 1, 2024 - in default	$	190,000		$	190,000
Current notes payable; Issued July 2024-September 2024; 10% stated interest rate; Due March 28, 2025 - in default		13,493			13,493.00
Current loan payable; Issued October 2024; 6.5% average interest rate; Due February 16, 2026; net of deferred financing costs		3,479,849			3,417,593
Current notes payable; Issued September 2024; 20% stated interest rates; Due upon the earlier of a sale of a film or closing of a senior debt facility - in default		150,000			150,000
Current notes payable; Issued June 2023-May 2024; 15% stated interest rate; Due February 1, 2026		1,255,000			1,255,000
Current notes payable; Issued October 2024-December 2024; 10% stated interest rate; Due January 25, 2026		8,352,332			9,708,656
Any and all sums due shall be due on or before August 24, 2025 or extended as stated - in default		300,000			300,000
Any and all sums due shall be due on July 4, 2025 or extended as stated - in default		225,000			225,000
Current notes payable; Issued July 2024-September 2025; 10%-20% stated interest rates; Due upon the earlier of a sale of a film or closing of a senior debt facility		1,230,000			1,080,000
Current notes payable; Issued July 2025; 10%-20% stated interest rates; Due August 9, 2025 - in default		120,000			-
Current notes payable; Issued July 2024-September 2024; 15% stated interest rate; Due upon sale of film		125,000			125,000
Tax credit assignment loans; Issued January of 2024; Participation in future tax receivable; No stated interest rate or due date		750,000			750,000
Related party notes payable to a beneficial owner; Issued October-November of 2023; 15% stated interest rate;  Due February 1, 2026 (refer to Note 8)		2,880,000			2,880,000
Total notes payable		19,070,674			20,094,742
Less current maturities		(19,070,674	)		(20,094,742	)
Total notes payable, non-current portion	$	-		$	-

As of September 30, 2025, approximately $998,000 of notes were in default as a result of provisions in the respective note agreements related to various maturity dates or requiring payment upon sale of a film, which has yet to be fulfilled by the Company. As of the date of the filing, approximately $998,000 were still in default and bore an interest rate of 10% to 20%.

During the three months ended September 30, 2025, the Company entered into certain note agreements totaling approximately $1.0 million. These notes bear interest at rates of 10% to 20%, and mature dependent upon factors related to future film sales or the closing of a senior debt facility.

During the three months ended September 30, 2025, the Company repaid approximately $2.0 million of notes payable.

In addition to the stated interest rates on the loans, certain loans include a net profit participation feature whereby the lender may receive an additional return based on the performance of the film underwritten by the loan. Certain of these loans are collateralized by interests in film rights the Company owns. Additionally, certain of these notes are guaranteed by an individual who is a related party. To that extent, none of the participation features were triggered as of September 30, 2025. In addition, certain tax credit assignment loans totaling $750,000 were entered into during fiscal year 2024 whereby the lenders agreed to be paid (on a dollar per dollar basis) from the proceeds of a refundable tax credit related to the production of the Nutcracker film. While the tax credit was not received as of September 30, 2025, the Company expects to receive the credit in the near future and has therefore classified the tax assignment loans as current. In order to receive this tax credit, the Company must have an audit performed on the required financial information, which is currently in-process.