Note 13 - Stockholders' Equity

6 Months Ended

Dec. 31, 2019

Notes to Financial Statements

Stockholders' Equity Note Disclosure [Text Block]

NOTE 13 . STOCKHOLDERS' EQUITY

Convertible Preferred Stock

Each issued Series B Voting, Convertible Preferred Stock is convertible, under certain conditions, into

20

shares of common stock and carries a vote of

20

shares of common stock in all matters brought before the shareholders for a vote. On

February 7, 2019,

the Company converted

383,919

shares of Series B Voting, Convertible Preferred Stock to

7,678,380

shares of common stock per the request of the shareholder and pursuant to the stock designation. After the conversion, there remain

53,032

shares of Series B Voting, Convertible Preferred Stock outstanding as of

December 31, 2019

.

Shares Issued for Services

On

August 15, 2019

the Company issued

175,000

shares of its common stock, par value

$0.001,

 as partial payment for services to be rendered in connection with an investment banking engagement letter. The fair market value of the shares, as determined by the closing price of CNCG stock listed at

$0.87

on the OTCQB exchange on

August 15, 2019,

was determined to be

$152,250.

The terms of the engagement provide for an earn-out of the shares over a

6

-month period from the effective date of the agreement. Accordingly, the Company releases a portion of the shares each month. For the

six

month period ended

December 31, 2019

, the Company incurred an expense of

$114,292

attributed to the release of shares due to

137

days of performance under the engagement. As a non-cash expense for the

three

month period ended

December 31, 2019,

the amount of

$76,751

was recorded as additional paid in capital as detailed on the Condensed Consolidated Statements of Stockholders' Equity. The engagement letter also contains a provision for payment of an additional

175,000

shares if the Company is successful in effectuating an up-listing to a national exchange during the term of the engagement. Because of the uncertainty of success, the Company has

not

accrued any liability for the remittance of these shares and will expense the payment, if any, at the time of issuance.