Unrealized Gain on Securities	9 Months Ended
Mar. 31, 2022
Unrealized Gain On Securities
Unrealized Gain on Securities	15. Unrealized Gain on Securities In October 2019, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with iPower Inc., formerly known as BZRTH Inc. (“iPower”), a Nevada corporation, pursuant to which, among other things, the Company agreed to buy 100% of the issued and outstanding capital stock of iPower in exchange for $870,000 in cash, $7,130,000 under a promissory note, up to 650,000 shares of Sugarmade’s common stock, and up to 3,500,000 shares of Sugarmade’s Series B preferred stock. Due to certain disputes that arose between the parties with respect to certain terms and conditions contained in the Share Exchange Agreement, the parties entered into a Rescission and Mutual Release Agreement on January 15, 2020 (the “Rescission Agreement”). Pursuant to the terms of the Rescission Agreement, iPower and its stockholders returned the shares of Sugarmade common stock and preferred stock and issued to Sugarmade 204,496 shares of the Company’s common stock valued at a current market value of $1,451,922 as of June 30, 2021. The shares are free trading. During the nine months ended March 31, 2022, the Company sold all the 204,496 shares of iPower Inc.’s common stock for total cash of $582,688. For the periods ended March 31, 2022 and June 30, 2021, the Company recorded unrealized (loss) gain on securities amounted $(870,132) and $1,451,922, respectively. For the periods ended March 31, 2022 and June 30, 2021, the remaining value of securities amounted to current market value of $0 and $1,451,922, respectively. Sugarmade, Inc. and Subsidiaries Notes to Unaudited Condensed Consolidated Financial Statements March 31, 2022

Unrealized Gain on Securities

9 Months Ended

Mar. 31, 2022

15. Unrealized Gain on Securities

In October 2019, the Company entered into a share exchange agreement (the “Share Exchange Agreement”) with iPower Inc., formerly known as BZRTH Inc. (“iPower”), a Nevada corporation, pursuant to which, among other things, the Company agreed to buy 100% of the issued and outstanding capital stock of iPower in exchange for $870,000 in cash, $7,130,000 under a promissory note, up to 650,000 shares of Sugarmade’s common stock, and up to 3,500,000 shares of Sugarmade’s Series B preferred stock.

Due to certain disputes that arose between the parties with respect to certain terms and conditions contained in the Share Exchange Agreement, the parties entered into a Rescission and Mutual Release Agreement on January 15, 2020 (the “Rescission Agreement”). Pursuant to the terms of the Rescission Agreement, iPower and its stockholders returned the shares of Sugarmade common stock and preferred stock and issued to Sugarmade 204,496 shares of the Company’s common stock valued at a current market value of $1,451,922 as of June 30, 2021. The shares are free trading.

During the nine months ended March 31, 2022, the Company sold all the 204,496 shares of iPower Inc.’s common stock for total cash of $582,688.

For the periods ended March 31, 2022 and June 30, 2021, the Company recorded unrealized (loss) gain on securities amounted $(870,132) and $1,451,922, respectively. For the periods ended March 31, 2022 and June 30, 2021, the remaining value of securities amounted to current market value of $0 and $1,451,922, respectively.

Sugarmade, Inc. and Subsidiaries

Notes to Unaudited Condensed Consolidated Financial Statements

March 31, 2022