Loans payable

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Loans payable

14. 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 September 30, 2018, the note was in default and the outstanding balance under this note was $79,524.

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 September 30, 2018 and June 30, 2018, the outstanding balance under this note was $150,820. As of September 30, 2018. the note was in default. As of October 2017, they are no long a related party.

During the year ended June 30, 2017, 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 September 30, 2018 and June 30, 2018, the outstanding balance with Greater Asia loans were $84,400 and $140,125, respectively. As of September 30, 2018. the note was in default.

On July 1, 2016, the Company entered into a repayment agreement with its employee for $20,280 at no interest. As of September 30, 2018 and June 30, 2018, the Company has an outstanding balance of $2,985 and $4,285. 

As of September 30, 2018 and June 30, 2018, the Company had an outstanding loan balance of $317,729 and $329,029, respectively from one (1) vendor of the Company.