Related Party Transactions

9 Months Ended

Mar. 31, 2024

Related Party Transactions

Related Party Transactions

Note 10 — Related Party Transactions

In March 2020, the Company entered into a promissory note with the Chief Executive Officer for $600,000 in exchange for a total of a $565,000 cash payment. The note matured in December 2020 and $500,000 of principal payments have been made to date. The note is in default and due upon demand and the interest rate was increased to 12%. As of March 31, 2024 and June 30, 2023, the total unpaid principal and interest is $163,344 and $152,363, respectively. This principal amount of $100,000 is classified as current debt, related party on the March 31, 2024 and June 30, 2023 balance sheet.

In April 2020, the Company entered into a promissory note with the Chief Technology Officer for $50,000. The note matured on January 1, 2021 and $42,183 of principal payments have been made to date. The note is in default and due upon demand and the interest rate was increased to 12%. As of March 31, 2024 and June 30, 2023, the total unpaid principal and interest is $13,985 and $13,134, respectively. This principal amount of $7,817 is classified as current debt, related party on the March 31, 2024 and June 30, 2023 balance sheet.

During the quarter ended March 31, 2024, the Company entered into two promissory notes with executives of the Company (see Note 5) with a total value of $65,000. The notes mature in 120 days and accrue interest at 12%. As of March 31, 2024, the total unpaid principal and interest is approximately $66,261. This principal amount of $65,000 is classified as current debt, related party on the March 31, 2024 balance sheet.