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Subsequent Events
6 Months Ended
Dec. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events

30. Subsequent Events

 

On January 30, 2023, there was one note holder elected to convert $42,000 unpaid interest into 420,000,000 shares of the Company’s common stocks.

 

On January 31, 2023, the Board of Directors (the “Board”) of Sugarmade, Inc. (the “Company”) increased the size of the Board from two to three persons and appointed Jamie Steigerwald as a member of the Board to fill the vacancy created by the increase of the size of the Board. The Board also appointed Mr. Steigerwald as the Company’s Chief Operating Officer on January 31, 2023.

 

Mr. Steigerwald, age 51, is a seasoned entrepreneur with three decades of experience. He joined Nug Avenue as its Chief Marketing Officer in January 2021 and played a key role in Nug Avenue’s growth during the COVID pandemic. In February 2022, Jamie was appointed as the Company’s General Manager. Before entering the cannabis industry, Mr. Steigerwald worked in the real estate and mortgage sector, eventually starting his own mortgage brokerage in 2003. However, following the 2008 mortgage crisis, he shifted his focus to consulting and became a principal in various industries, specializing in marketing, sales, and operations. Since July 2012, Mr. Steigerwald has owned SwiftLead, Inc., a sales, business operations and marketing consulting firm. From July 2017 to March 2020, he owned 3JE, Inc., an AT&T Direct TV and cell phone reseller, and from February 2019 to December 2019, he owned ESSRW, Inc., an equestrian equipment manufacturer and repairer.

 

On January 31, 2023, the Company entered into an Executive Employment Agreement (the “Agreement”), by and between the Company and Mr. Steigerwald. The term of the Agreement will continue from year to year, with automatic renewal, unless terminated earlier pursuant to the terms of the Agreement.

 

In exchange for his services, the Company agreed to pay Mr. Steigerwald an annual base salary of $60,000 and a sign-up bonus of 250,000 shares of Series B preferred stock, with a market value of approximately $50,000 as of the date hereof. In lieu of payment of Mr. Steigerwald’s base salary, Mr. Steigerwald may convert any or all unpaid base salary due and owing into shares of the Company’s common stock at any time. Mr. Steigerwald is also eligible to receive an annual bonus in the sole and absolute discretion of the Board. Also, Mr. Steigerwald is eligible to receive a bonus for acquisitions of entities related to the Company’s business. The Board has established a target of 5% to 15% of the acquisition value.

 

On February 9, 2023, there was one note holder elected to convert $30,000 outstanding balance of the note into 600,000,000 shares of the Company’s common stock. As of the filing date, the shares have not been processed by transfer agent.