Stockholders' deficit

12 Months Ended

Jun. 30, 2019

Stockholders' Equity Note [Abstract]

Stockholders' deficit

11. Stockholders’ deficit

For the year ended June 30, 2019, the Company issued or recognized:

· Approximately 1,707,000 shares of common stock for gross proceeds of approximately $1,678,000.

· Approximately 1,449,000 shares of common stock for the conversion of approximately $232,000 of convertible debt and accrued interest.

· Approximately 265,000 shares of common stock for approximately $137,000 of services.

· Approximately 622,000 shares of common stock for the cashless exercise of options under the 2013 Equity Incentive Plan. (See Note 11).

· Approximately $2,947,000 in stock-based compensation related to options issued inside and outside the 2013 Equity Incentive Plan

· Approximately $27,000 in discounts relating to notes payable.

For the year ended June 30, 2018, the Company issued or recognized:

· Approximately 30,303,000 shares of common stock for gross proceeds of approximately $16,362,000, net of approximately $2,082,000 in issuance costs.

· 200,000 shares of common stock representing $300,000 of stock subscription receivable. Proceeds were received subsequent to June 30, 2018.

· Approximately 2,768,000 shares of common stock for the conversion of approximately $311,000 of convertible debt and $132,000 of accrued interest.

· 150,000 shares of common stock in connection with a legal settlement. The estimated fair value based on the closing price on the date of the settlement was approximately $144,000 and was a reduction of the provision for franchisee rescissions and refunds. In connection with the settlement, the Company guaranteed the shareholder would receive proceeds of $200,000 from the sale of the shares. See Note 15.

· Approximately 502,000 shares of common stock for approximately $1,161,000 of marketing and other services.

· Approximately 628,000 shares of common stock for the cashless exercise of options under the 2013 Equity Incentive Plan. (See Note 11).

· Approximately $1,636,000 in stock-based compensation related to options issued inside and outside the 2013 Equity Incentive Plan

· Approximately $780,000 in derivative liability.