|6 Months Ended
Dec. 31, 2021
|Subsequent Events [Abstract]
NOTE 12 – SUBSEQUENT EVENTS
Shares issued for conversion of convertible debt
In January 2022, the Company issued an aggregate of shares of its common stock at a contractual conversion price of $0.01, as a result of the conversion of principal of $26,000 and interest of $2,222 underlying certain outstanding convertible notes converted during such period. The Company reclassified $17,333 from put premium liabilities to additional paid in capital following conversions.
Sixth Street Lending Securities Purchase Agreements
January 4, 2022 Securities Purchase Agreement
Effective January 4, 2022, the Company entered into a securities purchase agreement with Sixth Street Lending LLC, pursuant to which Sixth Street purchased a convertible promissory note (the “January 4, 2022 Sixth Street”) from the Company in the aggregate principal amount of $63,750, such principal and the interest thereon convertible into shares of the Company’s common stock at the option of Sixth Street any time after the six-month anniversary of the January 4, 2022 Sixth Street. The January 4, 2022 Sixth Street contains an original discount of $3,750. The Company intends to use the net proceeds from the January 4, 2022 Sixth Street for general working capital purposes. The maturity date of the January 4, 2022 Sixth Street Note is January 4, 2023. The January 4, 2022 Sixth Street Note bears interest at a rate of 8% per annum, which interest may be paid by the Company to Sixth Street in shares of the Company’s common stock; but shall not be payable until the January 4, 2022 Sixth Street Note becomes payable, whether at the maturity date or upon acceleration or by prepayment.
During the first 60 to 180 days following the date of these notes, the Company has the right to prepay the principal and accrued but unpaid interest due under the above notes issued to Sixth Street, together with any other amounts that the Company may owe the holder under the terms of the note, at a premium ranging from 110% to 129% as defined in the note agreement. After this initial 180-day period, the Company does not have a right to prepay such notes.
The conversion price for the above Sixth Street notes shall be equal to a 35% discount of the market price which means the average of the lowest three trading prices of the Common Stock for the ten trading days immediately prior to the delivery of a Notice of Conversion. Notwithstanding the foregoing, Sixth Street shall be restricted from effecting a conversion if such conversion, along with other shares of the Company’s common stock beneficially owned by Sixth Street and its affiliates, exceeds % of the outstanding shares of the Company’s common stock. These notes are treated as stock settled debt under ASC 480 and accordingly the Company recorded a total of $34,327 put premium.
Shares issued for exercise of warrants
In January 2022, the Company issued 208,242 and a corresponding reduction of income available to common stockholders upon the alternate cashless exercise of these warrants. shares of common stock from the alternate cashless exercise of 14 Series A warrants. The Company recognized the value of the effect of a down round feature in such warrants when triggered. Upon the occurrence of the triggering event that resulted in a reduction of the strike price, the Company measured the value of the effect of the feature as the difference between the fair value of the warrants without the down round feature or before the strike price reduction and the fair value of the warrants with a strike price corresponding to the reduced strike price upon the down round feature being triggered. Accordingly, the Company recognized deemed dividend of $
In January 2022, the Company received aggregate gross proceeds of $50,000 from the exercise of 1,250 Series B Warrants and issued shares of common stock.
Shares issued for services
On January 20, 2022, the Board approved the issuance of 20,000, being the average closing prices of the stock for the month of January 2022, the date of grant. The shares were issued on January 21, 2022.shares of the Company’s common stock for legal services rendered in January 2022. The shares of common stock were valued at approximately $ per share or $
On January 24, 2022, the Company issued 45,030, being the closing price of the stock on the date of grant to such consultant. The Company recorded accrued expenses of $45,030 for the services rendered as of December 31, 2021. shares of the Company’s common stock to a consultant for services rendered from October 2021 to December 2021. The Company issued shares of the Company’s common stock valued at approximately $ per share or $