TRADE FINANCING	6 Months Ended
Dec. 31, 2017
Notes to Financial Statements
NOTE 5 - TRADE FINANCING	The Company entered into a Note Purchase Agreement for $65,000 dated January 4, 2017 with a third party. The amount was due on July 4, 2017 and carries interest at the rate of 18%. As of December 31, 2017, and June 30, 2017, the outstanding loan balance was $56,320 and $57,958 and accrued interest was $11,547 and $5,301 respectively. The loan maturity date has been extended until full settlement occurs without penalty. The Company has a trade financing agreement with a financial institution in Australia with a maximum limit of AUD $150,000 at an interest rate of 20.95% per annum. Upon default of the loan, the Company reached a settlement with its obligation with the entity in the amount of AUD $165,523. The amount is to be paid through application of its Export Market Development Grant and up to 25% of the Company's store sales in Australia. All of the amounts referenced are in Australian dollars. As of December 31, 2017, and June 30, 2017, the Company had outstanding balance of USD $51,264 and USD $53,210, respectively. On August 14, 2014 the Company entered into a trade finance agreement with an entity in the United States with a total maximum facility of $1,500,000 based on $1,000,000 towards sales invoiced and $500,000 towards purchase order financing. Original term is for 12 months with automatic renewal for each consecutive period thereafter with interest at base rate floor of 3.25 plus 4.5%. In the event of default, an additional 7% interest is added. As of December 31, 2017, and June 30, 2017, the Company had an outstanding balance of $128,468 and had renewed the loan term indefinitely until full settlement occurs. As of December 31, 2017, and June 30, 2017, the Company had an accrued interest balance of $48,828 and $39,062, respectively. On November 2, 2016, the Company entered into a merchant agreement with a capital funding group for a purchase price of $35,000 and purchased amount of $47,250. The Company is amortizing the excess of purchase amount over the purchase price, over the term of the financing of 21 months. Pursuant to the agreement, the Company cannot obtain future financing by selling receivables without consent from the lender. The Merchant holds a security interest in all accounts and proceeds. As of December 31, 2017 and June 30, 2017, the balance owed to the lender amounted to $17,981 and accrued interest of $8,167 and $4,667, respectively. The term has been extended indefinitely until full settlement occurs without penalty. On November 3, 2016, the Company entered into a payments rights purchase and sale agreement for $72,500 due in April 2017. The financing has a purchase price of $50,000 with the purchased amount of $72,500. The Company is amortizing the excess of purchased amount over purchase price, over the term of the financing of six months. The Company has to make daily payments of $575.40 to the lender. During the period ended December 31, 2017 there was no amortization of the excess purchased amount, as interest expense, in the accompanying financials. As of December 31, 2017 and June 30, 2017, the loan balance owed to the lender of $2,601 is in default. The loan has been charged an interest rate of 16% per annum while in default. During the three month and six month period ended December 31, 2017 the Company recorded interest expense of $105 and $210, respectively. During fiscal year 2019 this load was settled for $6,250. On November 29, 2016, the Company entered into a consignment agreement. It is a platform for funding advance inventory production. This facility allowed the Company to fund manufacturing with a consignment facility which pegs repayment to the sales of inventory. During the period ended June 30, 2017, the Company initially raised $21,928 for a purchase price of $26,313. This amount was paid off as of March 31, 2017. The difference of $4,385 was amortized over the period of financing. The Company again raised $114,888 for a purchase price of $133,342 in December 2016 due by December 2017. The difference of $18,454 is being amortized over the period of financing. As of December 31, 2017, and June 30, 2017, balance outstanding was $107,370, with $22,812 and $15,123 in accrued interest, respectively. As of December 31, 2017, the loan was not in default. As of November 2018, the loan balance is in default and there are no penalties for the default on this loan.

TRADE FINANCING

6 Months Ended

Dec. 31, 2017

The Company entered into a Note Purchase Agreement for $65,000 dated January 4, 2017 with a third party. The amount was due on July 4, 2017 and carries interest at the rate of 18%. As of December 31, 2017, and June 30, 2017, the outstanding loan balance was $56,320 and $57,958 and accrued interest was $11,547 and $5,301 respectively. The loan maturity date has been extended until full settlement occurs without penalty.

The Company has a trade financing agreement with a financial institution in Australia with a maximum limit of AUD $150,000 at an interest rate of 20.95% per annum. Upon default of the loan, the Company reached a settlement with its obligation with the entity in the amount of AUD $165,523. The amount is to be paid through application of its Export Market Development Grant and up to 25% of the Company's store sales in Australia. All of the amounts referenced are in Australian dollars. As of December 31, 2017, and June 30, 2017, the Company had outstanding balance of USD $51,264 and USD $53,210, respectively.

On August 14, 2014 the Company entered into a trade finance agreement with an entity in the United States with a total maximum facility of $1,500,000 based on $1,000,000 towards sales invoiced and $500,000 towards purchase order financing. Original term is for 12 months with automatic renewal for each consecutive period thereafter with interest at base rate floor of 3.25 plus 4.5%. In the event of default, an additional 7% interest is added. As of December 31, 2017, and June 30, 2017, the Company had an outstanding balance of $128,468 and had renewed the loan term indefinitely until full settlement occurs. As of December 31, 2017, and June 30, 2017, the Company had an accrued interest balance of $48,828 and $39,062, respectively.

On November 2, 2016, the Company entered into a merchant agreement with a capital funding group for a purchase price of $35,000 and purchased amount of $47,250. The Company is amortizing the excess of purchase amount over the purchase price, over the term of the financing of 21 months. Pursuant to the agreement, the Company cannot obtain future financing by selling receivables without consent from the lender. The Merchant holds a security interest in all accounts and proceeds. As of December 31, 2017 and June 30, 2017, the balance owed to the lender amounted to $17,981 and accrued interest of $8,167 and $4,667, respectively. The term has been extended indefinitely until full settlement occurs without penalty.

On November 3, 2016, the Company entered into a payments rights purchase and sale agreement for $72,500 due in April 2017. The financing has a purchase price of $50,000 with the purchased amount of $72,500. The Company is amortizing the excess of purchased amount over purchase price, over the term of the financing of six months. The Company has to make daily payments of $575.40 to the lender. During the period ended December 31, 2017 there was no amortization of the excess purchased amount, as interest expense, in the accompanying financials. As of December 31, 2017 and June 30, 2017, the loan balance owed to the lender of $2,601 is in default. The loan has been charged an interest rate of 16% per annum while in default. During the three month and six month period ended December 31, 2017 the Company recorded interest expense of $105 and $210, respectively. During fiscal year 2019 this load was settled for $6,250.

On November 29, 2016, the Company entered into a consignment agreement. It is a platform for funding advance inventory production. This facility allowed the Company to fund manufacturing with a consignment facility which pegs repayment to the sales of inventory. During the period ended June 30, 2017, the Company initially raised $21,928 for a purchase price of $26,313. This amount was paid off as of March 31, 2017. The difference of $4,385 was amortized over the period of financing. The Company again raised $114,888 for a purchase price of $133,342 in December 2016 due by December 2017. The difference of $18,454 is being amortized over the period of financing. As of December 31, 2017, and June 30, 2017, balance outstanding was $107,370, with $22,812 and $15,123 in accrued interest, respectively. As of December 31, 2017, the loan was not in default. As of November 2018, the loan balance is in default and there are no penalties for the default on this loan.