Loans and Promissory Notes

9 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

Loans and Promissory Notes

NOTE 10 – LOANS AND PROMISSORY NOTES

A. SHORT TERM NOTES PAYABLE:

In the course of its business, the Company has obtained short-term loans from individuals and institutional investors.

As of March 31, 2019, the Company had $973,310 in short-term notes payable with $2,214,980 accrued and unpaid interest. These notes bear interest rates ranging from 0% to 36% per annum.

B. CONVERTIBLE PROMISSORY NOTES:

1. ISSUANCE OF NEW CONVERTIBLE PROMISSORY NOTES

During the quarter ended March 31, 2019, the Company did not issue any new convertible promissory note.

2. CONVERSIONS OF CONVERTIBLE PROMISSORY NOTES

During the quarter ended March 31, 2019, a number of holders of the Company’s convertible promissory notes converted certain amounts of principal and accrued interest in connection with those convertible promissory note(s) totaling 6,304,166,551 shares of Common Stock of the Company. (Note 14 – Common Stock).

3. CONVERTIBLE PROMISSORY NOTES OUTSTANDING AS OF MARCH 31, 2019

As of March 31, 2019, the Company had a net balance of $370,048 in convertible promissory notes, which included $595,207 in face value and $225,158 in note discounts. The derivative liabilities associated with these notes are $637,913 as of March 31, 2019.

The Company relies on the results a professional, independent valuation firm to record the value of derivative liabilities, discounts, and change in fair value of derivatives in connection with these convertible notes and warrants, if any, that are related to the convertible notes. The Company intends and prefers to repay the outstanding notes in cash as much as practical.