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Loans payable - related parties

9 Months Ended

Mar. 31, 2018

14.

Loan payable – related parties

On June 26, 2017, SGMD entered a straight promissory note with a company (whose major shareholder is the former director of the Company) for borrowing $150,820 with maturity date on March 31, 2018; the note bears an interest rate of 12%, commencing on October 31, 2017, and on the last day of each moth thereafter until the notes is paid in full, the Company shall make an interest payment. As of June 30, 2017, the outstanding balance under this note was $150,820 with $6,033 interest discount to loan payable. As of March 31, 2018 and June 30, 2017, the outstanding balance under this note was $150,820, respectively.

On July 7, 2016, SWC received a loan from an employee. The amount of the loan bore no interest and amortized on a monthly basis over the life of the loan. As of March 31, 2018 and June 30, 2017, the balance of the loan were $0 and $34,015, respectively.

On November 21, 2016, SGMD received a loan from the Company’s director. The amount of the loan bore no interest and amortized on a monthly basis over the life of the loan. As of March 31, 2018 and June 30, 2017, the balance of the loan from Sugarmade were $16,336 and $9,252, respectively.

On December 1, 2016, SGMD received a loan from an employee for $12,500 with an interest charge of $12,500. This amount was recorded as interest owed to the loan payable amount and is to be amortized on a monthly basis over the life of the loan. The loan is due on December 1, 2017. As of March 31, 2018 and June 30, 2017, the balance is $52,293 and 40,265, respectively.

From time to time, SWC would receive short-term loans from LMK Capital, LLC (“LMK”) for its working capital needs. As of March 31, 2018 and June 30, 2017, the Company had outstanding balance of $13,952 and 34,107, respectively, borrowed from LMK Capital., LLC, a company affiliated with CEO Chan.