WARRANTS

12 Months Ended

Jun. 30, 2022

Guarantees and Product Warranties [Abstract]

WARRANTS

NOTE 11 – WARRANTS

On January 5, 2022, the Company issued warrants to purchase up to 900,000 shares of common stock to Coventry in conjunction with convertible debt. The warrants are exercisable for 5 years, with a price of $0.175. Using the fair value calculation, the relative fair value between the debt issued and the warrants was calculated to determine the warrants recorded equity amount of $63,908, accounted for in additional paid in capital.

On January 20, 2022, the Company issued warrants to purchase up to 700,000 and 350,000 shares of common stock to Mast Hill in conjunction with convertible debt. The warrants are exercisable for 5 years, with a price of $0.50 and $1.00, respectively. Using the fair value calculation, the relative fair value between the debt issued and the warrants was calculated to determine the warrants recorded equity amount of $45,652, accounted for in additional paid in capital.

The warrants were evaluated for purposes of classification between liability and equity. The warrants do not contain features that would require a liability classification and are therefore considered equity.

The Black Scholes pricing model was used to estimate the fair value of the warrants issued with the following inputs:

Number of Warrants	$	900,000		$	700,000		$	350,000
Share price	$	0.11		$	0.05		$	0.05
Exercise Price	$	0.175		$	0.50		$	1.00
Term		5 years			5 years			5 years
Volatility		638.91	%		634.09	%		634.09	%
Risk Free Interest Rate		1.43			1.62			1.62
Dividend rate		—			—			—
Intrinsic value	$	—		$	—		$	—

A summary of the status of the Company’s outstanding stock options and changes during the year ended June 30, 2022 is presented below:

Warrants	Warrants		Weighted Average Exercise Price		Aggregate Intrinsic Value
Warrants outstanding at June 30, 2021		—	$	—
Granted		1,950,000	$	0.44
Exercised		—	$	—
Expired		—	$	—
Warrants outstanding at June 30, 2022		1,950,000	$	0.44
Warrants exercisable at June 30, 2022		1,950,000	$	0.44	$	—