CONVERTIBLE NOTES PAYABLE

6 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

CONVERTIBLE NOTES PAYABLE

NOTE 5 – CONVERTIBLE NOTES PAYABLE

On January 2, 2020, the Company executed a 10% convertible promissory note in which it agreed to borrow up to $300,000. The note is convertible at a price per share equal to the lower of (a) the Fixed Conversion Price (which is fixed at a price equal to $0.30); or (b) 80% of the lowest trading price of the Company’s common stock during the 5 consecutive trading days prior to the date on which lender elects to convert all or part of the Note. The initial deposit of $125,000 was made on January 15, 2020 and included a $25,000 OID. As required by ASC 470-20-30-6 the Company recognized and measured the embedded beneficial conversion feature at the commitment date of $200,000 which was credited to paid in capital, a $150,000 debt discount and a $75,000 loss on the issuance of convertible debt. As of December 31, 2021, all of the debt discount has been amortized to interest expense. On August 17, 2021, $30,000 of the note was converted into 144,231 shares of common stock per the terms of the agreement. As of December 31, 2021 and June 30, 2021, there is $120,000 and $150,000 and $52,499 and $40,250 of principal and interest, due on this loan, respectively.

During the six months ended December 31, 2021, the Company issued three new convertible promissory notes. They are as follows:

Note Holder	Date	Maturity Date	Interest Rate	Balance December 31, 2021
Power Up Lending Group Ltd (1)	10/1/2021	10/1/2022	10%	$	55,000
Fast Capital LLC (2)	10/26/2021	10/26/2022	10%	$	65,000
Sixth Street Lending LLC (3)	11/17/2021	11/17/2022	10%	$	55,000
			Total	$	175,000
			Less debt discount	$	(142,905)
				$	32,905

Conversion Terms\

(1) 61% of the average of the three lowest trading price for 15 days prior to conversion date.

(2) 61% of the lowest trading price for 15 days, including conversion date.

(3) 61% of the lowest trading price for 15 days prior to conversion date.

Total accrued interest on the three convertible notes as of December 31, 2021 is $3,210.

A summary of the activity of the derivative liability for the notes above is as follows:

Balance at June 30, 2021		—
Increase to derivative due to new issuances		460,210
Decrease to derivative due to conversion		—
Derivative loss due to mark to market adjustment		131,053
Balance at December 31, 2020	$	329,157

A summary of quantitative information about significant unobservable inputs (Level 3 inputs) used in measuring the Company’s derivative liability that are categorized within Level 3 of the fair value hierarchy as of December 31, 2021 is as follows:

Inputs	December 31, 2021		Initial Valuation
Stock price	$	.068		$0.14 – 0.24
Conversion price		$0.0305 - 0.052		$0.067 - 0.082
Volatility (annual)		327.6% – 663.3%		696.71% - 735.86%
Risk-free rate		0.18% - 0.29%		0.09% - 0.18%
Dividend rate		—		—
Years to maturity		.75 – .88		1