STOCKHOLDERS EQUITY (DEFICIT) |
9 Months Ended |
|---|---|
Mar. 31, 2026 | |
| STOCKHOLDERS EQUITY (DEFICIT) | |
| STOCKHOLDERS' EQUITY (DEFICIT) | 12. STOCKHOLDERS’ EQUITY (DEFICIT)
Preferred Stock
Series A Preferred Stock
In March 2015, the Company filed with the State of Nevada a Certificate of Designation establishing the designations, preferences, limitations and relative rights of 1,000,000 shares of the Company’s Series A preferred stock. Each share of Series A preferred stock has a par value of $0.001. Holders of the Series A preferred stock have the right to vote in aggregate, on all shareholder matters equal to 1,000 votes per share of Series A preferred stock not subject to adjustment for a stock split or reverse stock split. The shares of Series A preferred stock are not convertible into shares of common stock.
The Company has 1,000,000 shares of Series A preferred stock authorized, with 500,000 shares issued and outstanding as of March 31, 2026 and June 30, 2025, which were issued in March 2015 to members of the Company’s Board of Directors in consideration for services.
Series B Preferred Stock
On December 21, 2015, the Company filed a Certificate of Designation for a new Series B convertible preferred stock with the State of Nevada following approval by the board of directors of the Company. Five Hundred Thousand (500,000) shares of the Company's authorized preferred stock were designated as the Series B convertible preferred stock, par value of $0.001 per share and with a stated value of $0.001 per share (the “Stated Value”). Holders of Series B preferred stock shall be entitled to receive dividends, when and as declared by the Board of Directors out of funds legally available therefor. At any time and from time to time after the issuance of shares of the Series B preferred stock, each issued share of Series B preferred stock is convertible into 100 shares of the Company’s common stock (“Conversion Ratio”). The Conversion Ratio is subject to adjustment if the Company enters into a merger or spin off transaction but is not subject to adjustment for a stock split or reverse stock split. The holders of the Series B preferred stock shall have the right to vote together with holders of common stock, on an as “converted basis”, on any matter that the Company's shareholders may be entitled to vote on, either by written consent or by proxy. Upon any liquidation, dissolution or winding-up of the Company, the holders of the Series B preferred stock shall be entitled to receive out of the assets of the Company, whether such assets are capital or surplus, for each share of Series B preferred stock an amount equal to the Stated Value, and all other amounts in respect thereof then due and payable prior to any distribution or payment shall be made to the holders of any junior securities. The number of authorized Series B preferred stock was later increased to 1,000,000 shares.
The Company had 130,000 and 130,000 shares issued and outstanding as of March 31, 2026 and June 30, 2025, respectively.
Common Stock
As of March 31, 2026, we were authorized to issue up to 300,000,000 shares of common stock with a par value of $0.001.
The Company had 6,236,580 and 6,186,580 common shares issued and outstanding as of March 31, 2026 and June 30, 2025, respectively.
During the nine months ended March 31, 2026, the Company issued 50,000 shares of its common stock. In addition, 100,000 shares of its common stock vested but have not been issued. This resulted in $106,708 in stock-based compensation expense. As of March 31, 2026, the Company had a total of 125,000 shares of common stock that had been granted for services and compensation that had vested, but not issued. As a result, we have a common stock payable of $83,708 outstanding.
During the nine months ended March 31, 2025, the Company issued 97,088 shares of its common stock to as part of the purchase price of Healthy Lifestyle USA LLC. Additionally, the Company issued 825,000 shares of its common stock and recognized $550,292 in stock-based compensation based on grant date fair values and vesting terms of awards granted for services and compensation. As of March 31, 2025, 25,000 shares of the 825,000 shares of common stock granted for services and compensation had not been issued. As a result, we recorded common stock payable of $26,250 as of March 31, 2025. The Company also agreed to issued 150,000 shares of its common stock to a third-party vendor to settle $91,568 of payables. The grant date fair value of these shares was $148,445 resulting in a $56,887 loss on settlement of payables. |