NOTES PAYABLE |
9 Months Ended |
|---|---|
Mar. 31, 2026 | |
| NOTES PAYABLE | |
| NOTES PAYABLE | 9. NOTES PAYABLE
On June 15, 2022, the Company entered into a Loan Agreement and Promissory Note with BHP Capital NY, Inc. (“BHP”) in the amount of $500,000. The note matured on January 15, 2023, and bears a flat interest charge of $130,000 that shall not be reduced or pro-rated in the event of prepayment. In addition, upon an event of default, the Note bares default interest of 18% per annum. Effective April 1, 2024, the lender agreed to reduce the default interest to 10% per annum. This note is secured by assets and equipment of the Company. As further inducement to enter this note, the Company issued BHP 16,000 shares or restricted common stock. These shares were valued at $123,200 using the closing market price of the Company’s common stock on the date of issuance and were recorded as a debt discount that was amortized to interest expense over the term of the note. The Company accrued $12,500 of interest expense during each of the three months ended March 31, 2026 and 2025 and recorded $38,056 of interest expense during the nine months ended March 31, 2026 and 2025. As of March 31, 2026, this note was in default due to nonpayment before the maturity date. |