XML 58 R15.htm IDEA: XBRL DOCUMENT v3.23.3
CONVERTIBLE NOTES
12 Months Ended
Jun. 30, 2023
Convertible Notes  
CONVERTIBLE NOTES

NOTE 8 - CONVERTIBLE NOTES

 

On March 28, 2022, the Company received short term financing from a private investor under a 10% Fixed Convertible Secured Promissory Note in the principal amount of $400,000 (the “Note”). The Note bears interest at a fixed rate of 10% per annum with all principal and interest due at maturity on July 31, 2022. The Note is secured by a security interest and lien on all equipment located at our Troy mine in Mariposa County, California. At the option of the investor, and at any time prior to the maturity date, the principal and interest owing under the Note may be converted into shares of our common stock at a conversion price equal to 50% of the lowest closing market price for our common stock during the five trading days preceding the conversion. 

 

On February 27, 2023, the Company repaid $15,000 of the Note. On April 28, 2023, $75,000 of the Note was assigned to Rock Bay Partners (“Rock Bay”). During Q4, Rock Bay converted $39,300 of the $75,000 into 7,000,000 shares of common stock.

  

On June 8, 2022, the Company executed a 10% convertible promissory note with Fast Capital LLC (“Fast Capital”). The note is convertible at a price per share equal to the 65% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days up to the date on which lender elects to convert all or part of the Note. 

 

On February 7, 2023, the Company executed a 12% convertible promissory note with Quick Capital LLC (“Quick Capital”). The note is convertible at the lessor of 1) $0.05, or a price per share equal to the 65% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which lender elects to convert all or part of the Note.  In addition the Company issued Quick Capital warrants to purchase up to 1,211,111 shares of common stock. The Warrants are exercisable for shares of the Company’s common stock at a price of $0.05 per share and expire 5 five years from the date of issuance.

 

On February 8, 2023, the Company executed a 10% convertible promissory note with AES Capital Management, LLC (“AES”). The note is convertible at the lessor of 1) $0.02, or a price per share equal to the 65% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which lender elects to convert all or part of the Note. 

 

On June 8, 2023, the Company executed a 9% convertible promissory note with 1800 Diagonal Lending, LLC (“1800 Diagonal”). The note is convertible at a price per share equal to the 65% of the lowest trading price of the Company’s common stock during the 20 consecutive trading days prior to the date on which lender elects to convert all or part of the Note.

 

The following table summarizes the convertible notes outstanding as of June 30, 2023: 

                                               
Note Holder   Date   Maturity Date   Interest     Balance
June 30,
2022
    Additions     Payments / Conversions/Assignment     Balance
June 30, 2023
 
Private investor   3/28/2022   7/31/2022     14%     $ 400,000     $     $ (90,000 )   $ 310,000  
Fast Capital LLC   6/8/2022   6/8/2023     10%       115,000             (115,000 )      
Quick Capital LLC   2/7/2023   11/8/2023     12%             60,556             60,556  
AES Capital Management, LLC   2/8/2023   2/7/2024     10%             38,000             38,000  
Rock Bay Partners             10%             75,000       (39,300)       35,700  
1800 Diagonal Lending, LLC   6/8/2023   3/8/2024     9%             57,750             57,750  
Total                   $ 515,000     $ 231,306     $ (244,300 )   $ 502,006  
Less debt discount                   $ (191,248 )                   $ (105,354 )
Convertible notes payable, net                   $ 323,752                     $ 396,652  

  

A summary of the activity of the derivative liability for the notes above is as follows:

     
Balance at June 30, 2021  $ 
Increase to derivative due to new issuances   552,517 
Derivative loss due to mark to market adjustment   136,714 
Balance at June 30, 2022   689,231 
Increase to derivative due to new issuances   270,062 
Decrease to derivative due to conversion   (302,571)
Derivative loss due to mark to market adjustment   353,369 
Balance at June 30, 2023  $1,010,145 

 

A summary of quantitative information about significant unobservable inputs (Level 3 inputs) used in measuring the Company’s derivative liability that are categorized within Level 3 of the fair value hierarchy as of June 30, 2023, is as follows: 

               
Inputs   June 30,
2023
    Initial
Valuation
 
Stock price   $ 0.012     $ 0.015 - 0.42  
Conversion price   $ 0.0045 - 0.0052     $ 0.015 - 0.2995  
Volatility (annual)     146.07% - 260.45%       265.91% - 381.28%  
Risk-free rate     5.4% – 5.47%       0.59% - 5.12%  
Dividend rate            
Years to maturity     0 - 0.83       0.34 - 1