MACHINERY AND EQUIPMENT

6 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

MACHINERY AND EQUIPMENT

NOTE 4 – MACHINERY AND EQUIPMENT

Long lived assets, including property and equipment and certain intangible assets to be held and used by the Company are reviewed for impairment whenever events or changes in circumstances indicate that the carrying value of the assets may not be recoverable. Impairment losses are recognized if expected future cash flows of the related assets are less than their carrying values. Measurement of an impairment loss is based on the fair value of the asset. Long-lived assets and certain identifiable intangibles to be disposed of are reported at the lower of carrying amount or fair value less cost to sell.

Property and Equipment and intangible assets are first recorded at cost. Depreciation and/or amortization is computed using the straight-line method over the estimated useful lives of the various classes of assets between three and five years. Leasehold improvements are being depreciated over ten years, and the building over twenty years.

Maintenance and repair expenses, as incurred, are charged to expense. Betterments and renewals are capitalized in plant and equipment accounts. Cost and accumulated depreciation applicable to items replaced or retired are eliminated from the related accounts with any gain or loss on the disposition included as income.

Property, Plant and equipment stated at cost, less accumulated depreciation for continuing operations consisted of the following:   

	December 31, 2021		June 30, 2021
Machinery and Equipment	$	117,135	$	117,135
Less: accumulated depreciation		21,298		8,118
Fixed assets, net	$	95,837	$	109,017

Depreciation expense

Depreciation expense for the six months ended December 31, 2021 and 2020 was $13,117 and $0, respectively.

Our capitalized software cost, less accumulated amortization consisted of the following:   

	December 31, 2021		June 30, 2021
Software	$	18,000	$	18,000
Less: accumulated depreciation		5,750		2,750
Software, net	$	12,251	$	15,250

Amortization expense

Amortization expense for the years ended December 31, 2021 and 2020 was $3,000 and $0, respectively.