MACHINERY AND EQUIPMENT

12 Months Ended

Jun. 30, 2022

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

	June 30, 2022			June 30, 2021
Machinery and Equipment	$	150,483		$	117,072
Office Equipment		3,097			—
Vehicles		41,720			—
Less: accumulated depreciation		(39,701	)		(8,118	)
Property and equipment, net	$	155,599		$	108,954

Depreciation expense

Depreciation expense for the years ended June 30, 2022 and 2021 was $36,021 and $10,931, respectively.

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

	June 30, 2022		June 30, 2021
Software	$	—	$	18,000
Less: accumulated depreciation		—		(2,750	)
Software, net	$	—	$	15,250

During the fourth quarter the Company determined that the software was no longer being used and chose to write off the asset and the associated accumulated amortization for a loss of $$10,750.

Amortization expense

Amortization expense for the years ended June 30, 2022 and 2021 was $4,500 and $0, respectively.