Stockholders’ Equity

12 Months Ended

Jun. 30, 2023

Equity [Abstract]

Stockholders’ Equity

Note 6 - Stockholders’ Equity

Common stock

The Board of Directors authorized the issuance of a total of 2,500,000 shares of common stock of the Company to each of its Chief Executive Officer and Chief Financial Officer, with 250,000 of such shares to be issued to each of them every quarter beginning July 1, 2021 and continuing every three months through October 1, 2023; and has authorized the issuance of shares of common stock of the Company to its Chief Operating Officer with 250,000 shares to be issued to him every quarter beginning July 1, 2022 and continuing every three months through July 1, 2023, it being the intent of the Board that the issuance of these shares represents compensation for services rendered for the then completed calendar quarter. At June 30, 2023 and 2022, the Company has included as stock payable the $50,750 fair value of the aggregate 750,000 shares due to the officers at those dates.

During the year ended June 30, 2023, the Company issued shares of its common stock as follows:

● 3,000,000 shares (1,000,000 to each of the Company’s Chief Executive Officer, Chief Financial Officer and Chief Operating Officer) as consideration for their services to the Company. The shares were valued at an aggregate $203,000, based on the closing trading price of the Company’s common stock as of the date of Board authorization for the issuance.

● 500,000 to Quick Capital, LLC, a Wyoming limited liability company (“Quick Capital”) (see Note 7) as consideration for entering into an extension agreement on the Company’s convertible loan. The shares were valued at $0.04 per share, the closing price of the Company’s common stock as of the date of the agreement. The ascribed value of $20,000 is included as a component of interest expense on the accompanying June 30, 2023 financial statements.

During the year ended June 30, 2022, the Company issued shares of its common stock as follows:

● 2,250,000 shares, at a price of $0.001 per share, pursuant to the exercise of a warrant granted to an unrelated party. The fair value of the warrants granted of $110,264 was estimated on the date of grant using the Black-Scholes option pricing model. The Company received cash proceeds of $2,250.

● 500,000 restricted shares and a three-year warrant (the “Warrant”) to purchase up to an aggregate of 347,512 restricted shares of the Company’s common stock at an exercise price of $0.075 per share (the “Warrant Shares”) in connection with the issuance of a convertible note with Quick Capital. The shares issued were valued at $0.053 per share, the closing price of the Company’s common stock as of the date of issuance. The fair value of the warrants granted of $8,825 was estimated on the date of grant based on the relative fair value of the cash received.

● 2,000,000 shares (1,000,000 to each of the Company’s Chief Executive Officer and Chief Financial Officer) as consideration for their services to the Company. The shares were valued at $140,000, $0.07 per share, based on the closing trading price of the Company’s common stock as of the date of Board authorization for the issuance.

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended June 30, 2023 and 2022

Note 6 - Stockholders’ Equity (continued)

CRX Limited Liability Company Interest Purchase Agreement

During the year ended June 30, 2022, the Company charged to operations the $223,255 value of the remaining unamortized balance of shares issued in conjunction with a Limited Liability Company Interest Purchase Agreement previously entered into with the members of CRx Bio Holdings LLC, a Delaware limited liability company.

2018 Equity Incentive Plan

The Company has adopted the 2018 Equity Incentive Plan (“2018 Plan”) and has reserved 8,000,000 shares of Common Stock for issuance under the terms of the plan. The total number of shares reserved and available for grant and issuance under the 2018 Plan is 8,000,000 shares, plus any reserved shares not issued or subject to outstanding grants under the prior 2017 Stock Plan and shares that cease to be subject to awards under the 2017 Stock Plan because of forfeiture. In addition, the number of shares available for grant and issuance under the 2018 Plan will be increased on July 1 of each of the next ten calendar years by the lesser of (a) 15% of the number of shares issued during the most recently completed fiscal year or (b) such number of shares determined by the board of directors. The 2018 Plan permits the board to grant a variety of incentive awards: stock options, restricted stock awards, stock bonus awards, and stock appreciation rights. As of June 30, 2023, 6,682,730 shares are available for issuance under the 2018 Plan.

A summary of option activity during the years ended June 30, 2022 and 2023 is presented below:

	Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding and exercisable – June 30, 2021		7,995,000	$	0.26		4.5
Granted		-
Exercised		-
Expired/Canceled		-
Outstanding and exercisable – June 30, 2022		7,995,000	$	0.26		3.7
Granted		-
Exercised		-
Expired/Canceled		-
Outstanding and exercisable – June 30, 2023		7,995,000	$	0.26		2.7

Warrants

During the year ended June 30, 2022 the Company granted warrants to purchase shares of common stock as follows:

● 2,250,000 shares, at an exercise price of $0.001 per share, to an unrelated party. The fair value of the warrants granted of $110,264 was estimated on the date of grant using the Black-Scholes option pricing model. The Company received cash proceeds of $2,250 from the exercise of the warrant.

● 347,512 shares, at an exercise price of $0.075 per share, for a period of three years in conjunction with a financing agreement with an unrelated party (See Note 7). The fair value of the warrants granted of $8,825 was estimated on the date of grant based on the relative fair value of the cash received in the financing agreement.

NEXIEN BIOPHARMA, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Years Ended June 30, 2023 and 2022

Note 6 - Stockholders’ Equity (continued)

A summary of warrant activity during the years ended June 30, 2022 and 2023 is presented below:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)
Outstanding and exercisable – June 30, 2021		5,181,897		$	0.0429		4.4
Granted		2,597,512		$	0.011
Exercised		(2,250,000	)	$	0.001
Expired/Canceled		-
Outstanding and exercisable – June 30, 2022		5,529,409		$	0.0429		3.36
Granted		-
Exercised		-
Expired/Canceled		-
Outstanding and exercisable – June 30, 2023		5,529,409		$	0.0429		2.60