RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

12 Months Ended

Jun. 30, 2025

Accounting Changes and Error Corrections [Abstract]

RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

NOTE N - RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS

The Company has restated the consolidated financial statements at June 30, 2024 and for the year then ended (which were included in the Company’s Form 10-K filed with the SEC on September 25, 2024) in order to correct the accounting for(1) the acquisition of GOe3, LLC on March 15, 2024 (2) the writeoff of prepaid deposits of $225,000 at June 30, 2024 (3) the writeoff of property and equipment (net) of $126,607 at June 30, 2024, (4) the writeoff of intangible properties of $25,000 at June 30, 2024, and (5) the calculation of derivative liability at June 30, 2024.

As previously recorded, the Company capitalized goodwill of $7,685,636 from the acquisition of GOe3, LLC and credited $1,921,409 to the stockholders’ equity account titled “Exchange Shares to be issued” and credited $5,764,227 to the liability account titled “Contingent Consideration”. Since GOe3, LLC had no meaningful operations prior to the Company’s acquisition and since the fair value of GOe3, LLC’s identifiable net assets at the March 15, 2024 acquisition date was negative $84, the Company has restated the goodwill amount to $0, the “Exchange shares to be issued” stockholders’ equity account amount to $0, and the “Contingent consideration” liability account amount to $0.

As previously reported at June 30, 2024, the Company recorded a $327,947 derivative liability relating to two convertible notes payable to Tri-Bridge Ventures, LLC with a total face value of $300,000. The Company has restated the derivative liability from $327,947 to the correct amount of $498,000.

NOTE N - RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (cont’d)

The effect of the restatement adjustments on the consolidated balance sheet at June 30, 2024 follows:

	As previously reported			Restatement Adjustments			As Restated
Cash and cash equivalents	$	115,747		$	-		$	115,747
Accounts receivable		184,692			-			184,692
Prepaid deposits		225,000			(225,000	)(2)		-
Total current assets		525,439			(225,000	)		300,439
Property and equipment (net)		126,607			(126,607	)(3)		-
Goodwill		7,685,636			(7,685,636	)(1)		-
Intangible properties		25,000			(25,000	)(4)		-
Total other assets		7,837,243			(7,837,243	)		-
Total assets	$	8,362,682		$	(8,062,243	)	$	300,439
Accounts payable	$	90,785		$	-		$	90,785
Accrued interest		85,650			-			85,650
Accrued executive compensation		58,333			-			58,333
Notes payable - third party		435,000			-			435,000
Loans payable - related parties		68,269			-			68,269
Contingent consideration		5,764,227			(5,764,227	)(1)		-
Derivative liability		327,947			170,053	(5)		498,000
Total current liabilities and total liabilities		6,830,211			(5,594,174	)		1,236,037
Series K preferred stock		-			-			-
Series N preferred stock		18,645			-			18,645
Class A common stock		1,468,844			-			1,468,844
Additional paid in capital:								-
Class A common stock		162,898,727			-			162,898,727
Preferred stock		1,861,142			-			1,861,142
Exchange shares to be issued		1,921,409			(1,921,409	)(1)		-
Common stock to be issued		30,000			-			30,000
Accumulated deficit		(166,666,296	)		(546,660	)		(167,212,956	)
Total stockholders’ equity (deficiency)		1,532,471			(2,468,069	)		(935,598	)
Total liabilities and stockholders’ equity (deficiency)	$	8,362,682		$	(8,062,243	)	$	300,439

The effect of the restatement adjustments on the consolidated statement of operations for the year ended June 30, 2024 follows:

	As previously reported			Restatement Adjustments			As Restated
Revenue	$	1,057,685		$	-		$	1,057,685
Less: shared revenue		576,630			-			576,630
Net revenue		481,055			-			481,055
Total operating expenses		693,039			-			693,039
Loss from operations		(211,984	)		-			(211,984	)
Gain (loss) on derivative liability		1,545,336			(170,053	)(5)		1,375,283
					(692,603	)(6)		(692,603	)
Forgiveness of debt and accrued interest		196,832			-			196,832
Gain on sale of assets		180,378			-			180,378
Writeoff of prepaid deposits		-			(225,000	)(2)		(225,000	)
Writeoff of property and equipment (net)		-			(126,607	)(3)		(126,607	)
Writeoff of intangible properties		-			(25,000	)(4)		(25,000	)
Interest expense		(205,878	)		-			(205,878	)
Amortization of debt discounts		(692,603	)		692,603	(6)		-
Total other income (expense)		1,024,065			(546,660	)		477,405
Income (loss) before provision of income taxes		812,081			(546,660	)		265,421
Provision for income taxes		-			-			-
Net income (loss)	$	812,081		$	(546,660	)	$	265,421
Basic and diluted income (loss) per common share	$	0.00		$	(0.00	)	$	0.00

NOTE N - RESTATEMENT OF PREVIOUSLY ISSUED FINANCIAL STATEMENTS (cont’d)

The effect of the restatement adjustments on the consolidated statement of cash flows for the year ended June 30, 2024 follows:

	As previously reported			Restatement Adjustments			As Restated
Net income (loss)	$	812,081		$	(546,660	)	$	265,421
Adjustments to reconcile net income to net cash used in operating activities								-
(Gain) loss on derivative liability		(1,545,336	)		170,053	(6)		(1,375,283	)
					692,603	(6)		692,603
Amortization of debt discounts		692,603			(692,603	)(6)		-
Gain on sale of assets		(180,378	)		-			(180,378	)
Depreciation		16,145			-			16,145
Writeoff of prepaid deposits		-			225,000	(2)		225,000
Writeoff of property and equipment (net)		-			126,607	(3)		126,607
Writeoff of intangible properties		-			25,000	(4)		25,000
Exchange of stock and issuance of								-
Series N Preferred Stock for bonus compensation		182,500			-			182,500
Net acquisition of FTT		25,000			-			25,000
Issuance of Series L Preferred Stock for compensation		120,000			-			120,000
Changes in operating assets and liabilities:								-
Accounts receivable		(184,692	)		-			(184,692	)
Prepaid deposits		(225,000	)		-			(225,000	)
Accounts payable		59,128			-			59,128
Accrued interest		130,878			-			130,878
Accrued executive compensation		58,333			-			58,333
Net cash used in operating activities		(38,738	)		-			(38,738	)
Net cash provided by financing activities		136,185			-			136,185
Net increase in cash and cash equivalents		97,447			-			97,447
Cash and cash equivalents, beginning of period		18,300			-			18,300
Cash and cash equivalents, end of period	$	115,747		$	-		$	115,747