6. Notes Payable

12 Months Ended

Jun. 30, 2021

Debt Disclosure [Abstract]

Notes Payable

6. Notes Payable

Notes Payable – Related Parties

The following is a summary of notes payable – related parties at June 30, 2021 and 2020:

All notes are unsecured, bear interest at 3% per annum, and are due 360 days from the date of issuance, ranging from June 25, 2020 to June 25, 2022. Each entity has significant influence or common ownership with the Company’s Chief Executive Officer. Several of these notes are in default. The company has not received any notices of default or demands for payment. All notes are unsecured and those which are past-due are due on demand. As of June 30, 2021 and 2020, total accrued interest for Notes Payable-Related Parties was $182,147 and $37,365 respectively. The Company recorded interest expense from Notes Payable-Related Party for fiscal years ending June 30, 2021 and 2020, of $144,782 and $32,852 respectively.

Notes Payable

Notes payable includes the following:

	June 30,
	2021		2020
Pacific Stem - SBA EIDL	$	299,900	$	–
Dalrada - Ignite acquisition		17,500		–
Dalrada - Payroll Protection Program		–		21,042
Likido - COVID-19 Government loan		52,579		55,467
Prakat - Bank loan		45,838		16,708
	$	415,817	$	93,217

Pacific Stem and IHG’s EIDL loan include a 3.75% interest rate for up to 30 years; the payments are deferred for the first 2 years (during which interest will accrue), and payments of principal and interest are made over the remaining 28 years. The EIDL loan has no penalty for prepayment. The EIDL loans attach collateral which includes the following property that EIDL borrower owns or shall acquire or create immediately upon the acquisition or creation thereof: all tangible and intangible personal property, including, but not limited to: (a) inventory, (b) equipment, (c) instruments, including promissory notes (d) chattel paper, including tangible chattel paper and electronic chattel paper, (e) documents, (f) letter of credit rights, (g) accounts, including health-care insurance receivables and credit card receivables, (h) deposit accounts, (i) commercial tort claims, (j) general intangibles, including payment intangibles and software and (k) as-extracted collateral as such terms may from time to time be defined in the Uniform Commercial Code. The security interest the EIDL borrower grants includes all accessions, attachments, accessories, parts, supplies and replacements for the collateral, all products, proceeds and collections thereof and all records and data relating thereto. The EIDL loans are technically in default as a result of a change in ownership without SBA’s prior written consent. However, the Company is in currently remedying the default provision.

Likido’s COVID-19 Government Loan includes a 2.5% interest rate for up to 6 years; the payments are deferred for the first year (during which interest will accrue).

The note payable issued pursuant to the Ignite acquisition matures on June 1, 2023, bears no interest and has monthly repayments of $2,500.