Notes Payable

12 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Notes Payable

Note 7 – Notes Payable

	June 30,		June 30,
	2022		2022
A.      Note Payable - PPP#2	$	–	$	–
B.      Note Payable - EIDL		150,000		150,000
Total	$	150,000	$	150,000

A.	On March 26, 2021, the Company was granted a of $104,000 (PPP #2) pursuant to the PPP that was scheduled to mature in March 2026. PPP #2 loan had an interest rate of 1% per annum, was unsecured, and guaranteed by the Small Business Administration (the “SBA”). In July 2021, the SBA approved the forgiveness of PPP #2 loan of $104,000, and we recognized a gain on extinguishment of PPP #2 loan of $104,000 during the year ended June 30, 2022.
B.	In July 2020, the Company received a loan of $150,000 from the SBA under its Economic Injury Disaster Loan (EIDL) assistance program. The EIDL loan is payable over 30 years, bears interest at a rate of 3.75% per annum and secured by all tangible and intangible property of the Company. As of June 30, 2021 and 2022, the outstanding balance of the note payable was $150,000, respectively.
	Pursuant to the terms of the SBA EIDL loan agreement, the Company is required to make monthly installment payments of approximately $700 starting in July 2021. However, the Company was not able to pay the required monthly installment due from July 2021 to April 2023.
	In May 2023, the Company was able to cure the payment delay with the SBA. As a result, the Company paid a total of $3,000 which was first applied as a partial payment to accrued interest of approximately $14,000. In addition, the Company also started paying the monthly installment of $700 in July, 2023. This payment and any additional payments will be applied as a partial payment to accrued interest until the Company becomes current with the interest due. This is pursuant to the instruction of the SBA.
	As of June 30, 2023, the outstanding loan balance of the loan amounted to $150,000 and accrued interest of $14,000 which is reported as part of Accounts Payable and Accrued Expenses in the accompanying Balance Sheet.