Stockholders’ Equity (Deficit)

12 Months Ended

Jun. 30, 2023

Equity [Abstract]

Stockholders’ Equity (Deficit)

Note 8 - Stockholders’ Equity (Deficit)

Preferred Stock

On March 17, 2009, the Company filed an Amended and Restated Articles of Incorporation and created two new series of preferred stock, the first of which is designated Series A Preferred Stock and the second of which is designated as Series B Preferred Stock. The total number of shares of Common Stock which this corporation has authority to issue is 1,000,000,000 shares of Common Stock and 10,000,000 shares of Preferred Stock of which 5,000,000 shares are designated as Series A Preferred Stock, and 5,000,000 shares are designated as Series B Preferred Stock, with the rights, preferences and privileges of the Series B Preferred Stock to be designated by the Board of Directors. Each share of Common Stock and Preferred Stock has a par value of $0.001. As of June 30, 2023, and 2022, there are no shares of Series A or Series B Preferred Stock issued and outstanding.

Common Stock

Year Ending June 30, 2023

During the year ended June 30, 2023, the Company issued 3,500,000 shares of common stock with a fair value of $85,000 for services provided to the Company. These shares of common stock were valued based on the closing price of the Company’s common stock on the date the Company entered into the agreement related to the issuance.

Year Ending June 30, 2022

During the year ended June 30, 2022, the Company issued 12,071,785 shares of common stock and 12,071,785 fully vested warrant to purchase common stock over a period of 5 years with an exercise price of $0.09 per share in exchange for net cash proceeds of $785,000.

During the year ended June 30, 2022, the Company issued 33,715,228 shares of common stock to warrant holders who exercised their 50,110,000 warrants on a cashless basis.

During the year ended June 30, 2022, the Company issued 6,181,818 shares of common stock to option holders who exercised their 8,500,000 options on a cashless basis.

During the year ended June 30, 2022, the Company issued 778,609 shares of common stock with a fair value of $87,000 to the warrant and option holders who exercised their cashless exercise options above. These shares of common stock were valued based on the closing price of the Company’s common stock on the date the shares were issued.

During the year ended June 30, 2022, the Company issued 4,500,000 shares of common stock to consultants and employees valued at $225,000 for services rendered. These shares of common stock were valued based on the closing price of the Company’s common stock on the date the Company entered into the agreement related to the issuance.

During the year ended June 30, 2022, the Company issued 6,855,700 shares of common stock with a fair value of $718,000 to settle $316,000 of liabilities related to former accrued payroll (see Note 6) and $31,000 of additional liabilities. A loss on settlement of $371,000 was recognized. In addition, during the year ended June 30, 2022, the Company issued 4,328,247 shares of common stock with a fair value of valued at $211,000 to settle outstanding liabilities of $211,000. These shares of common stock were valued based on the closing price of the Company’s common stock on the date the Company entered into the agreements related to such issuance.

Stock Options

The Company has not adopted a formal stock option plan. However, it has assumed outstanding stock options resulting from the acquisition of its wholly owned subsidiary, Hydrodynamic Technology, Inc. In addition, the Company has made periodic non-plan grants. A summary of the stock option activity from June 30, 2023 and 2022 is as follows:

	Options			Weighted Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)
Outstanding at June 30, 2021		11,000,000		$	0.03		6.07
- Granted		–			–		–
- Forfeited		–			–		–
- Exercised		(8,500,000	)		0.03		6.07
- Expired		(1,250,000	)		0.03		–
Outstanding at June 30, 2022		1,250,000		$	0.03		0.43
- Granted		–			–		–
- Forfeited		–			–		–
- Exercised		–			–		–
- Expired		(1,250,000	)		0.03		–
Outstanding at June 30, 2023		–		$	–		–

Warrants

A summary of the Company’s warrant activity and related information from as of June 30, 2023 and 2022 is as follows. 

	Warrants			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (Years)
Outstanding at June 30, 2021		98,966,049		$	0.07		4.49
- Granted		12,571,785			0.09		5.00
- Exercised		(50,110,000	)		–		–
- Expired		–			–		–
Outstanding at June 30, 2022		61,427,834			0.09		2.81
- Granted		–			–		–
- Exercised		(7,500,000	)		0.05		–
- Expired		(270,600	)		0.05		–
Outstanding at June, 2023 vested and exercisable		53,657,234		$	0.09		2.18

There was no intrinsic value of the outstanding warrants as of June 30, 2023, as the exercise price of these warrants were greater than the market price. The following table summarizes additional information concerning warrants outstanding and exercisable at June 30, 2023.

		Warrants Outstanding						Warrants Exercisable
				Weighted		Weighted				Weighted
				Average		Average				Average
Exercise		Number		Remaining		Exercise		Number		Remaining
Price		of Shares		Life (Years)		Price		of Shares		Life (Years)
$	0.03 - 0.04		10,855,918		3.30	$	0.03		10,855,918		3.30
$	0.09		23,841,323		3.01	$	0.09		23,841,323		3.01
$	0.12		18,959,993		0.49	$	0.12		18,959,993		0.49
			53,657,234						53,657,234

Year Ending June 30, 2023

During the year ended June 30, 2023, the Company issued 4,090,909 shares of common stock upon cashless exercise of 7,500,000 warrants.

Year Ending June 30, 2022

During the year ended June 30, 2022, the Company granted warrants to purchase 12,071,785 shares of common stock in relation to the issuance of common stock (see Common Stock above).

On August 1, 2021, the Company granted a service provider a warrant exercisable for 500,000 shares of common stock at an exercise price of $0.09 per share, these warrants were valued at $40,000.

The fair value of the warrant awards was estimated using the Black-Scholes method based on the following weighted-average assumptions:

	June 30,
	2022
Risk-free interest rate		0.66%
Contractual terms (years)		5 years
Expected volatility		258%
Expected dividend yield		0%

The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of measurement corresponding with the expected term of the warrants; the contractual terms represents full contractual term the warrants; expected volatility is based upon historical volatility of the Company’s common stock; and the expected dividend yield is based on the fact that the Company has not paid dividends in the past and does not expect to pay dividends in the future.