Loans Payable

9 Months Ended

Mar. 31, 2021

Debt Disclosure [Abstract]

Loans Payable

21. Loans payable

On October 1, 2017, SGMD entered a straight promissory note with Greater Asia Technology Limited (Greater Asia) for borrowing $100,000 with maturity date on June 30, 2018; the note bears an interest rate of 33.33%. As of March 31, 2021 and June 30, 2020, the note was in default and the outstanding balance under this note was $61,919 and $96,401, respectively.

During the year ended June 30, 2019, the Company entered a series of short-term loan agreements with Greater Asia Technology Limited (Greater Asia) for borrowing $375,000, with interest rate at 40% - 50% of the principal balance. As of March 31, 2021 and June 30, 2020, the outstanding balance with Greater Asia loans were $100,000 and $100,000, respectively.

On January 6, 2015, the Company entered into repayment agreement with its former employee for a loan of $9,500 at no interest. As of March 31, 2021 and June 30, 2020, the Company has an outstanding balance of $0 and $3,584, respectively.

On July 1, 2012, CarryOutSupplies entered an equipment loan agreement with a bank with maturity on June 21, 2024. The monthly payment is $648. As of March 31, 2021 and June 30, 2020, the outstanding balance under this loan were $18,735 and $24,524, respectively.

On March 18, 2020, the Company entered into a loan agreement for $150,000 with Celtic Bank with maturity date on March 18, 2020. As of March 31, 2021 and June 30, 2020, the outstanding balance under this loan were $0 and $117,635, respectively.

On June 26, 2020, the Company entered into a government loan agreement for $8,000 with maturity date on December 26, 2020. As of March 31, 2021 and June 30, 2020, the outstanding balance under this loan were $0 and $8,000, respectively.

On April 27, 2020, we entered into a loan borrowed $110,000 from Bank of America (“Lender”), pursuant to a Promissory Note issued by Company to Lender (the “April 2020 PPP Note”). The loan was made pursuant to the Paycheck Protection Program established as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The April 2020 PPP Note bears interest at 1.00% per annum and may be repaid at any time without penalty. The April 2020 PPP Note contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, or provisions of the promissory note. The occurrence of an event of default may result in a claim for the immediate repayment of all amounts outstanding under the April 2020 PPP Note.

On July 28, 2020, we entered into a loan borrowed $159,900 from the Lender, pursuant to a Promissory Note issued by Company to Lender (the “July 2020 PPP Note”). The loan was made pursuant to the Paycheck Protection Program. The July 2020 PPP Note bears interest at 1.00% per annum and may be repaid at any time without penalty. The July 2020 PPP Note contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, or provisions of the promissory note. The occurrence of an event of default may result in a claim for the immediate repayment of all amounts outstanding under the July 2020 PPP Note.

On January 25, 2021, we entered into a loan borrowed $96,595 from the Lender, pursuant to a Promissory Note issued by Company to Lender (the “January 2021 PPP Note”). The loan was made pursuant to the Paycheck Protection Program. The January 2021 PPP Note bears interest at 1.00% per annum and may be repaid at any time without penalty. The January 2021 PPP Note contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, or provisions of the promissory note. The occurrence of an event of default may result in a claim for the immediate repayment of all amounts outstanding under the January 2021 PPP Note.

The Company accounted for the PPP loans under Topic 470: (a). Initially record the cash inflow from the PPP loan as a financial liability and would accrue interest in accordance with the interest method under ASC Subtopic 835-30; (b). Not impute additional interest at a market rate; (c). Continue to record the proceeds from the loan as a liability until either (1) the loan is partly or wholly forgiven and the debtor has been legally released or (2) the debtor pays off the loan; (d). Would reduce the liability by the amount forgiven and record a gain on extinguishment once the loan is partly or wholly forgiven and legal release is received.

As of March 31, 2021 and June 30, 2020, the Company had an outstanding loan balance of $716,716 and $517,260, respectively.