Equity Transactions

6 Months Ended

Dec. 31, 2018

Equity [Abstract]

Equity Transactions

NOTE 7 – EQUITY TRANSACTIONS

Common Stock

During the six months ended December 31, 2018, the Company issued 15,048,042 shares for $602,922 in consulting services, $61,255 of which was accrued at June 30, 2018.

During the six months ended December 31, 2018, the Company issued 757,800 shares of common stock at the fair market value of $43,463 for payment of debenture interest.

During the six months ended December 31, 2018, the Company issued 16,714,339 shares of common stock at the fair market value of $708,840 in connection with debenture derivative liabilities, relieving $126,842 of the derivative liability, and resulting in $401,355 of additional interest expense.

Common Stock Issuable

As of December 31, 2018, the company owed a total of 19,653,779 shares of common stock. 3,500,000 shares were in exchange for extinguishment of a $150,000 debenture, with a fair value of $280,000. 991,279 shares were for the settlement of a derivative liability related to price protection in the extinguishment agreement, with a fair value of $39,651. 600,000 shares were in relation to the extension of debt, with a fair value of $36,000. 14,250,000 shares were in relation to a new debenture borrowing of $615,000 in aggregate, valued at $150,524. 312,500 shares were in relation to the sale of shares for cash, valued at $12,500. These subscribed shares also included 702,250 warrants to purchase shares of common stock at $0.04 per share. The shares are included in the weighted average shares outstanding for purposes of calculation earning per share for the three and six months ended December 31, 2018.

15,173,333 shares with a fair value of $491,105, were issued, reducing shares issuable, during the six months ended December 31, 2018.

Stock Warrants

A summary of activity of the Company’s stock warrants for the six months ended December 31, 2018 is presented below (unaudited):

					Weighted
	Weighted				Average		Weighted
	Average				Remaining		Average
	Exercise		Number of		Contractual		Grant Date
	Price		Warrants		Term in Years		Fair Value
Balance as of June 30, 2018	$	0.11		36,781,726		2.80	$	0.09
Expired		-		-				-
Granted		0.10		8,964,708				0.04
Exercised		-		-				-
Cancelled		-		-				-
		-
Balance as of December 31, 2018	$	0.11		45,746,434		2.29	$	0.08
Vested and exercisable as of December 31, 2018	$	0.11		45,746,434		2.29	$	0.08

Outstanding warrants at December 31, 2018 expire during the period February 2019 to December 2023 and have exercise prices ranging from $0.03 to $0.30, valued at $4,805,468. These warrants are issued for salary conversions of employees and consultants, and the origination warrants related to debentures.