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CONVERTIBLE NOTES PAYABLE

3 Months Ended

Sep. 30, 2022

NOTE 5 – CONVERTIBLE NOTES PAYABLE

During the three months ended September 30, 2022, the Company issued, paid and or converted the following new convertible promissory notes.


Note Holder	Date	Maturity Date	Interest Rate			Balance June 30, 2022			Additions		Conversions			Balance September 30, 2022
Fast Capital LLC ⁽¹⁾	10/26/2021	10/26/2022		10	%	$	30,000		$	—	$	(30,000	)	$	—
ONE44 Capital LLC ⁽³⁾	1/13/2022	1/13/2023		10	%	$	160,000		$	—	$	(15,000	)	$	145,000
Mast Hill Fund, L.P. ⁽⁴⁾	1/20/2022	1/20/2023		12	%	$	350,000		$	—	$	(2,040	)	$	347,960
Sixth Street Lending LLC ⁽⁵⁾	2/1/2022	2/1/2023		10	%	$	80,000		$	—	$	(80,000	)	$	—
ONE44 Capital LLC ⁽³⁾	3/22/2022	3/22/2023		10	%	$	120,000		$	—	$	—		$	120,000
Sixth Street Lending LLC ⁽⁵⁾	4/13/2022	4/13/2023		10	%	$	55,000		$	—	$	—		$	55,000
1800 Diagonal Lending LLC ⁽⁵⁾	5/23/2022	5/23/2023		10	%	$	55,000		$	—	$	—		$	55,000
Coventry Enterprises, LLC ⁽²⁾	6/3/2022	6/3/2023		10	%	$	480,000		$	—	$	—		$	480,000
1800 Diagonal Lending LLC ⁽⁵⁾	7/26/2022	7/26/2023		10	%	$	—		$	59,250	$	—		$	59,250
Mast Hill Fund, L.P. ⁽⁶⁾	9/19/2022	9/19/2023		12	%	$	—		$	290,000	$	—		$	290,000
		Total				$	1,330,000		$	349,250	$	(127,040	)	$	1,552,210
		Less debt discount				$	(424,889	)						$	(322,716	)
		Convertible notes payable, net				$	905,111							$	1,229,494

Conversion Terms

(1)

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

(2)

Convertible only upon an event of default. 90% of the lowest trading price for 10 days prior to conversion date.

(3)

60% of the lowest trading price for 20 days, including conversion date.

(4)

Convertible only upon an event of default. Conversion would then be $0.10.

(5)

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

(6)

Convertible at $0.0015

Total accrued interest on the above convertible notes as of September 30, 2022, is $116,507.

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

Schedule of derivative liability
Balance at June 30, 2021	$	—
Increase to derivative due to new issuances		1,648,566
Decrease to derivative due to conversion/payments		(18,162	)
Derivative gain due to mark to market adjustment		(967,422	)
Balance at June 30, 2022		662,982
Increase to derivative due to new issuances		93,333
Decrease to derivative due to conversions		(155,049	)
Derivative gain due to mark to market adjustment		5,739
Balance at September 30, 2022	$	607,005

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 September 30, 2022 is as follows:

Schedule of fair value hierarchy
Inputs	September 30, 2022		Initial Valuation
Stock price	$	0.002		$0.006 – 0.10
Conversion price	$	.001		$0.001 - 0.03
Volatility (annual)		154.28% – 188.08%		210.52% - 377.36%
Risk-free rate		3.20% - 4.05%		0.47% - 3.06 %
Dividend rate		—		—
Years to maturity		.29 – .64		1