NOTE 5. PREPAID CONSULTING

The Company issued restricted common stock shares to its directors and advisors for future services, which shares are recorded as issued and outstanding at the time they are granted and issued, and the related share-based compensation expense is incurred as services are performed. Compensation expense not incurred is accounted for as prepaid consulting expense. On June 12, 2022, the Company issued 1,000,000 restricted common stock shares to advisors and directors for future services.  The shares were valued at $0.46 per share for a total value of $456,639, to be vested over a period of three years, for their future services. On January 1, 2023, the Company issued 100,000 restricted common stock shares to John Bennett, the then Chief Financial Officer for future services.  The shares were valued at $0.14 per share for a total value of $14,000, to be vested over a period of 18 months. During the fiscal year ended June 30, 2024, the Company expensed $140,857 of this amount, which resulted in a prepaid consulting balance of $152,213.

During the quarter ended September 30, 2024, the Company expensed $38,053 in consulting services, and no additional prepaid consulting assets were recognized. During the quarter ended December 31, 2024, the Company expensed $38,053 of prepaid consulting, with no additional prepaid assets recognized. During the quarter ended March 31, 2025, the Company issued 349,000 shares for consulting services, of which 278,250 shares were related to prepaid consulting services. Accordingly, the Company recognized and additional prepaid expense of $61,817 and expensed $38,053. As a result, the prepaid consulting balance as of March 31, 2025, was $99,870.