0001520138-20-000068.txt : 20200219 0001520138-20-000068.hdr.sgml : 20200219 20200219172531 ACCESSION NUMBER: 0001520138-20-000068 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 54 CONFORMED PERIOD OF REPORT: 20191231 FILED AS OF DATE: 20200219 DATE AS OF CHANGE: 20200219 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Sugarmade, Inc. CENTRAL INDEX KEY: 0000919175 STANDARD INDUSTRIAL CLASSIFICATION: WHOLESALE-PAPER AND PAPER PRODUCTS [5110] IRS NUMBER: 943008888 STATE OF INCORPORATION: DE FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-23446 FILM NUMBER: 20631291 BUSINESS ADDRESS: STREET 1: 750 ROYAL OAKS DR. STE. 108 CITY: MONROVIA STATE: CA ZIP: 91016 BUSINESS PHONE: (888) 982-1628 MAIL ADDRESS: STREET 1: 750 ROYAL OAKS DR. STE. 108 CITY: MONROVIA STATE: CA ZIP: 91016 FORMER COMPANY: FORMER CONFORMED NAME: Diversified Opportunities, Inc. DATE OF NAME CHANGE: 20080313 FORMER COMPANY: FORMER CONFORMED NAME: ENLIGHTEN SOFTWARE SOLUTIONS INC DATE OF NAME CHANGE: 19960703 FORMER COMPANY: FORMER CONFORMED NAME: SOFTWARE PROFESSIONALS INC DATE OF NAME CHANGE: 19940217 10-Q 1 sgmd-20191231_10q.htm FORM 10-Q FOR PERIOD ENDING DECEMBER 31, 2019
 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

(Mark One)

 

  ☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended: December 31, 2019

 

  ☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from N/A to N/A

 

Commission file number: 000-23446

 

SUGARMADE, INC.
(Exact name of registrant as specified in its charter)

 

Delaware   94-3008888
(State or other jurisdiction of   (I.R.S. Employer
incorporation or organization)   Identification No.)
     
750 Royal Oaks Dr., Suite 108, Monrovia, CA   91016
(Address of principal executive offices)   (Zip Code)

 

(888) 982-1628
(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the issuer (1) filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act of 1934 during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer  ☐ Accelerated filer  ☐
Non-accelerated filer ☐ Smaller reporting company ☒
    Emerging growth company ☐
       

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

At February 17, 2020, there were 713,207,811 shares of common stock and 2,415,000 shares of preferred stock issued and outstanding.  

 

Transitional Small Business Disclosure Format (Check one): Yes ☐ No ☒

 

 
 
 

SUGARMADE, INC.

 

FORM 10-Q

FOR THE PERIOD ENDED DECEMBER 31, 2019

 

TABLE OF CONTENTS

 

PART I:   Financial Information    
         
Item 1   Financial Statements   1
    Condensed Consolidated Balance Sheets as of December 31, 2019 (unaudited) and June 30, 2019   1
    Condensed Consolidated Statements of Operations for three and six months ended December 31, 2019 and 2018 (unaudited)   2
    Condensed Consolidated Statements of Equity for the three and six months ended December 31, 2019 and 2018 (unaudited)   3
    Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2019 and 2018 (unaudited)   4
    Notes to Condensed Consolidated Financial Statements (unaudited)   5
Item 2   Management’s Discussion and Analysis of Financial Condition and Results of Operations   25
Item 3   Quantitative and Qualitative Disclosures about Market Risk   28
Item 4   Controls and Procedures   28
         
PART II:   Other Information    
         
Item 1   Risk Factors   29
Item 2   Unregistered Sales of Equity Securities and Use of Proceeds   29
Item 3   Defaults upon Senior Securities   29
Item 4   Mine Safety Disclosures   29
Item 5   Other Information   29
Item 6   Exhibits   30
         
Signatures   31

 

 
 

SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS

 

In addition to historical information, this Quarterly Report on Form 10-Q includes forward-looking statements. Forward-looking statements are those that predict or describe future events or trends and that do not relate solely to historical matters. You can generally identify forward-looking statements as statements containing the words “believe,” “expect,” “will,” “anticipate,” “intend,” “estimate,” “project,” “plan,” “assume” or other similar expressions, or negatives of those expressions, although not all forward-looking statements contain these identifying words. All statements contained or incorporated by reference in this quarterly report regarding our future strategy, future operations, projected financial position, estimated future revenues, projected costs, future prospects, the future of our industry and results that might be obtained by pursuing management’s current plans and objectives are forward-looking statements.

 

You should not place undue reliance on our forward-looking statements because the matters they describe are subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond our control. Our forward-looking statements are based on the information currently available to us and speak only as of the date on the cover of this quarterly report, or, in the case of forward-looking statements in documents incorporated by reference, as of the date of the date of the filing of the document that includes the statement. New risks and uncertainties arise from time to time, and it is impossible for us to predict these matters or how they may affect us. Over time, our actual results, performance or achievements will likely differ from the anticipated results, performance or achievements that are expressed or implied by our forward-looking statements, and such difference might be significant and materially adverse to our security holders. We do not undertake and specifically decline any obligation to update any forward- looking statements or to publicly announce the results of any revisions to any statements to reflect new information or future events or developments.

 

We have identified some of the important factors that could cause future events to differ from our current expectations and they are described in this quarterly report under the caption “Risk Factors,” below, and elsewhere in this quarterly report, which you should review carefully. Please consider our forward-looking statements in light of those risks as you read this quarterly report.

 

 
 

PART 1: Financial Information

Item 1 Financial Statements

Sugarmade, Inc. and Subsidiary
Condensed Consolidated Balance Sheets 

 

   December 31, 2019  June 30, 2019
Assets  (Unaudited)   
Current assets:      
Cash  $103,002   $34,371 
Accounts receivable, net   158,000    218,145 
Inventory, net   495,086    356,285 
Loan receivables   10,500    85,533 
Other current assets   2,458,692    2,719,875 
           
Total current assets   3,225,281    3,414,209 
           
Equipment, net   430,396    476,585 
Intangible assets, net   10,500    11,200 
Other assets   58,970    23,970 
Right of Use Assets – Non-Current   416,421    —   
Advanced to Investments        18,000,000 
           
Total assets  $4,141,568   $21,925,965 
           
Liabilities and Stockholders’ Equity (Deficiency)          
Current liabilities:          
Note payable due to bank  $25,982   $25,982 
Bank overdraft   5,907    —   
Accounts payable and accrued liabilities   1,427,098    1,431,379 
Customer deposits   222,284    287,789 
Customer Overpayment   —      42,307 
Unearned revenue   87,420    61,672 
Other payable   458,412    420,450 
Accrued interest   637,389    507,218 
Accrued compensation and personnel related payables   24,528    24,528 
Note Payable   20,000    20,000 
Notes payable – related parties   18,000    18,000 
Loans payable   192,030    214,585 
Loans payable – related parties   135,000    30,000 
Convertible notes payable, net   1,378,221    1,046,909 
Derivative liabilities   3,259,345    2,991,953 
Warrants liabilities   15,663    24,658 
Shares to be issued   262,000    100,000 
Lease Liability - Current   110,824    —   
Total Current Liabilities   8,280,102    7,247,431 
           
Lease Liability – Non-Current   318,083    —   
Total liabilities   8,598,185    7,247,431 
           
Stockholders’ equity (deficiency):          
Preferred stock ($0.001 par value, 10,000,000 shares authorized, 3,165,001 and 2,000,000 issued and outstanding at December 31, 2019 and June 30, 2019, respectively)   3,165    2,000 
Common stock ($0.001 par value, 1,990,000,000 shares authorized, 1,129,926,122 and 697,608,570 shares issued and outstanding at December 31, 2019 and June 30, 2019, respectively)   1,129,927    697,610 
Additional paid-in capital   83,472,375    61,038,875 
Shares to be cancelled, common shares   (21,566,046)   —   
Shares to be cancelled, preferred shares   (10,725,014)   —   
Shares to be issued, common shares   100,000    29,000 
Accumulated deficiency   (56,871,025)   (47,088,950)
           
Total stockholders’ equity (deficiency)   (4,456,617)   14,678,534 
           
Total liabilities and stockholders’ equity (deficiency)  $4,141,568   $21,925,965 

 

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements

 

 -1-

Sugarmade, Inc. and Subsidiary

Condensed Consolidated Statements of Operations

 

   For the Three Months Ended December  31  For the Six Months Ended December  31
   2019  2018  2019  2018
             
Revenues, net  $720,810   $1,445,269   $1,474,784   $2,886,885 
                     
Cost of goods sold   435,690    1,071,033    927,858    2,130,452 
                     
Gross profit   285,120    374,236    546,925    756,433 
                     
Selling, general and administrative expenses   7,215,933    3,823,085    8,419,563    4,736,957 
                     
Loss from operations   (6,930,814)   (3,448,849)   (7,872,637)   (3,980,524)
                     
Non-operating income (expense):                    
Other income   1,867    1,451    3,098    5,101 
Interest expense   (735,196)   (460,102)   (1,319,800)   (741,480)
Change in fair value of derivative liabilities   1,291,168    (2,019,927)   2,314,046    (3,661,383)
Warrant Expense   —      3,195    (55,278)   25,920 
Loss on notes conversion   (184,626)   —      (184,626)   8,763 
Loss on settlement   (232,776)   (94,207)   (382,635)   (255,882)
Gain on asset disposal   —      —      7,000    —   
Amortization of debt discount   (963,407)   (31,591)   (2,118,407)   (59,597)
Debt forgiveness        16,649    (172,096)   16,649 
Miscellaneous   (740)   —      (740)   —   
                     
Total non-operating expenses, net   (823,710)   (2,584,531)   (1,909,438)   (4,661,909)
                     
Net loss  $(7,754,524)  $(6,033,380)  $(9,782,075)  $(8,642,433)
                     
Basic net income (loss) per share  $(0.04)  $(0.02)  $(0.01)  $(0.03)
Diluted net income (loss) per share  $(0.04)  $(0.02)  $(0.01)  $(0.03)
                     
Basic and diluted weighted average common shares outstanding *   191,886,785    393,670,334    880,355,944    330,029,294 

 

* Shares issuable upon conversion of convertible debts and exercising of warrants were excluded in calculating diluted loss per share

 

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements. 

 

 -2-

Sugarmade, Inc. and Subsidiary

Condensed Consolidated Statements of Equity

(Unaudited)

 

Three and Six Month 12/31/2019 Equity Statements
   Preferred Stock  Common Stock  Additional paid-in  Shares to be cancelled, preferred  Shares to be cancelled, common  Shares to be issued, common  Accumulated   
   Shares  Amount  Shares  Amount  capital  shares  shares  shares  deficit  Total
                                                   
Balance at June 30, 2019   2,000,000    2,000    697,608,570    697,610    61,038,875    —      —      29,000    (47,088,950)   14,678,534 
Shares issued for debts settlement   —      —      1,000,000    1,000    28,000    —      —      (29,000)   —      —   
Reclass Derivative liability from conversion   —      —                659,526    —      —      —      —      659,526 
Shares issued for conversions   —      —      71,915,557    71,906    475,926    —      —      —      —      547,833 
Share issued for Cash   —      —      11,348,591    11,349    88,651    —      —      —      —      100,000 
Shares issued for Warrant Exercise   —      —      28,381,818    28,382    (14,249)   —      —      —      —      14,132 
Net Loss   —      —      —      —      —      —      —      —      (2,027,551)   (2,027,551)
Balance at September 30, 2019   2,000,000    2,000    810,254,536    810,257    62,276,720    —      —      —      (49,116,501)   13,972,474 
Share issued for Cash   —      —      26,621,610    26,622    213,378    —      —      100,000    —      340,000 
Option for services   —      —      —      —      73,500    —      —      —      —      73,500 
Share issued for services compensation   415,000    415    500,000    500    5,941,135    —      —      —      —      5,942,050
Reclass Derivative liability from conversion   —      —      —      —      297,962    —      —      —      —      297,962 
Shares issued for conversions   —      —      24,994,341    24,994    117,170    —      —      —      —      142,164 
Shares issued for debt settlement   —      —      18,181,818    18,182    272,273    —      —      —      —      290,455 
Shares issued for Award - Bizright   750,001    750    249,373,817    249,374    14,040,936    (10,725,014)   (21,566,046)   —      —      (18,000,000)
Initial valuation of BCF   —      —      —      —      239,301    —      —      —      —      239,301 
Net loss   —      —      —      —      —      —      —      —      (7,754,524)   (7,754,524)
Balance at December 31, 2019   3,165,001    3,165    1,129,926,122    1,129,927    83,472,375    (10,725,014)   (21,566,046)   100,000    (56,871,025)   (4,456,617)
                                                   
Three and Six Month 12/31/2018 Equity Statements 
    Preferred Stock   Common Stock    Additional paid-in         Shares to be issued, preferred    Shares to be issued, common    Accumulated      
    Shares    Amount    Shares    Amount    capital    Investment    shares    shares    deficit    Total 
                                                   
Balance at June 30, 2018   —      —      246,135,203    246,136    21,952,560    —      2,000,000    467,996    

(34,859,799

)   (10,193,106)
Shares issued for debts settlement   —      —      —      —      —           —      174,450    —      174,450 
Reclass Derivative liability from conversion   —      —      —      —      2,715,433         —      —      —      2,714,433 
Shares issued for conversions   —      —      27,301,360    27,301    845,558         —      —      —      872,859 
Share issued for Cash   —      —      3,700,000    3,700    181,300         —      —      —      185,000 
Shares issued for service compensation   —      —      2,971,154    2,971    194,529         —      —      —      197,500 
Shares to be issued for service compensation   —      —      —      —      —           —      137,000    —      137,000 
Shares to be issued for cash   —      —      —      —      —           —      95,000    —      95,000 
Net Loss   —      —      —      —      —           —      —      (2,609,055)   (2,607,053)
Balance at September 30, 2018   —      —      280,107,717    280,109    25,888,378         2,000,000    874,446    (37,468,851)   (8,425,919)
Shares issued for debts settlement   —      —      6,632,605    6,633    603,965    —      —      (263,616)   —      346,982 
Reclass Derivative liability to equity from conversion   —      —      —      —      3,574,808    —      —      —      —      3,574,808 
Shares issued for conversions   —      —      47,865,888    47,866    967,525    —      —      —      —      1,015,391 
Initial valuation of BCF   —      —      —      —      149,143    —      —      —      —      149,143 
Share issued for Cash   —      —      4,142,857    4,143    215,857    —      —      (220,000)   —      —   
Shares issued for service compensation   —      —      89,111,251    89,111    6,384,569    —      —      (390,830)   —      6,082,851 
Shares issued for LOI   —      —      10,000,000    10,000    1,165,000    —      —      —      —      1,175,000 
Shares issued for Award - Bizright   —      —      200,000,000    200,000    17,800,000    (18,000,000)   —      —      —      —   
Shares issued for EB-5   2,000,000    2,000    —      —      1,998,000    —      (2,000,000)   —      —      —   
Net Loss   —      —      —      —      —      —      —      —      (6,033,380)   (6,033,380)
Balance at December 31, 2018   2,000,000    2,000    637,860,318    637,861    58,747,248    (18,000,000)   —      —      (43,502,231)   (2,115,125)

 

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements. 

 

 -3-

Sugarmade, Inc. and Subsidiary

Condensed Consolidated Statements of Cash Flows

(Unaudited)

 

  

For the six months ended

December 31,

   2019  2018
Cash flows from operating activities:          
Net loss  $(9,782,075)  $(8,642,432)
Adjustments to reconcile net loss to cash flows from operating activities:          
Initial valuation of debt discount   239,300    149,143 
Loss on settlement   382,635    255,882 
Gain on debt forgiveness   —      (16,649)
Amortization of debt discount   330,192    565,978 
Stock based compensation   6,041,550    5,097,206 
Change in fair value of derivative liability   273,299    3,661,418 
Amortization of Intangible Assets   700    700 
Change in exercise of warrant   67,387    (25,920)
Depreciation and amortization   46,189    26,578 
           
Changes in assets and liabilities:          
Accounts receivable   60,145    113,179 
Inventory   (138,801)   (49,226)
Prepayment, deposits and other receivables   261,183    (54,876)
Lease liability   (36,919)   —   
Accounts payable and accrued liabilities   5,955    (40,876)
Customer deposits   (62,174)   (118,974)
Other assets   (35,000)   —   
Unearned revenue   (19,890)   (89,344)
Interest Payable   166,753    172,221 
Right of use assets   39,169    —   
Accrued interest and other payables   37,962    56,972 
           
Net cash provided by (used in) operating activities   (2,122,441)   1,060,980 
           
Cash flows from investing activities:          
Payment for property and equipment   —      (87,154)
           
Net cash used in investing activities   —      (87,154)
           
Cash flows from financing activities:          
Proceeds from shares issuance   340,000    235,000 
Proceeds from convertible debt   1,451,687    1,022,500 
Proceeds (Repayment) from(to) loans   (22,555)   (5,261)
Payment to loan payable-related parties   105,000    25,634 
Proceeds from advance share issuance   236,000    (2,121,000)
Bank overdraft   5,907    —   
Loan receivable   75,033    (13,151)
Net cash provided by (used in) financing activities   2,191,072    (856,278)
           
Net increase (decrease) in cash   68,631    117,550 
           
Cash paid during the period for:          
Cash, beginning of period   34,371    42,121 
Cash, end of period  $103,002   $159,671 
           
Supplemental disclosure of non-cash financing activities —          
Shares issued for conversion of convertible debt   689,997    516,391 
Reclassification from derivative liabilities to APIC   957,488    6,289,241 
Debt discount related to convertible debt   951,581    1,888,248 
Debts settled through shares issuance   229,000    1,292,544 
Shares issued for award to Bizright and to be cancelled in future   (32,291,060)   —   
Shares issued for warrant exercise   28,381    —   

 

The accompanying notes are an integral part of these condensed unaudited consolidated financial statements

  

 -4-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

1. Nature of Business

 

Sugarmade, Inc. (hereinafter referred to as’‘we’’, ’‘us” or “the/our Company’’) is a publicly traded company incorporated in the state of Delaware. Our previous legal name was Diversified Opportunities, Inc. Our Company, Sugarmade, Inc. operates much of its business activities through our subsidiary, SWC Group, Inc., a California corporation (“SWC’’).

 

Sugarmade, Inc. was founded in 2010. In 2014, CarryOutSupplies.com was acquired by Sugarmade, Inc., creating the Company as it is today. As of the end of the reporting period, September 30, 2019, we were involved in two businesses including the supply of products to the quick service restaurant sub-sector of the restaurant industry and as an importer, distributor and marketer of hydroponic supplies to various agricultural sectors. We had previously been a marketer of culinary seasoning products Seasoning Stix and Sriracha Seasoning Stix and a marketer of tree-free paper products. These products were discontinued during 2018 in order to focus the majority of our corporate resources on the marketing of hydroponic supplies.

 

The marketplace in which we plan to be mainly engaged is generally referred to as hydroponic agricultural supplies. While some of our customers are engaged in the legal cultivation, processing and/or distribution of cannabis or cannabis containing products, our Company neither sells any products containing cannabis nor do we handle, process, or distribute any products containing cannabis.

 

Our legacy business operation, CarryOutSupplies.com, is a producer and wholesaler of custom printed and generic supplies servicing more than 2,000 quick service restaurants. Our products include double poly paper cups for cold beverage; disposable, clear, plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, food containers, soup containers, plastic spoons and many other similar products for this market sector. CarryOutSupplies.com was founded in 2009 when the founders gained first-hand experience within the restaurant industry of the difficulty for restaurant owners to acquire custom printed supplies at a reasonable cost. Many quick service restaurants wish to acquire custom printed products, such as those embossed with logos, but the minimum order size for such customization had been cost prohibitive. With that in mind, carry out supplies was founded to provide products to this underserved section of the market. Since that time, the company has become a key supplier to many popular U.S. franchises, particularly in the frozen dessert segments.

 

During December 2017, the Company entered into a master marketing agreement with BizRight, LLC, a leading marketer and manufacturer of hydroponic growth supplies, which offers a range of hydroponics-related products including: HPS grow lights, electronic ballasts, HPS Bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other grow and storage products. BizRight operates the ZenHydro.com website and other e-commerce properties, and sells various products to distributors and retailers. On April 11, 2018, the same rights under the master marketing agreement were assigned to BZRTH Inc. On February 5, 2019, the Company exercised its option to acquire BZRTH and the transaction had been closed on October 30, 2019. On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (“Agreement”) with each of the parties agreeing to rescind the transaction and return all consideration exchanged pursuant to the Stock Exchange Agreement.

 

In October 2018 and January 2019, the Company had intents to acquire two suppliers or retailers of hydroponic equipment. As of the date of this report, the Company is no longer pursuing these acquisitions.

 

 -5-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

2. Summary of Significant Accounting

 

Policies Basis of presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.

 

These interim condensed consolidated financial statements should be read in conjunction with our Company’s Annual Report on Form 10-K for the year ended June 30, 2019, which contains our audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the year ended June 30, 2019. The interim results for the period ended December 31, 2019 are not necessarily indicative of the results for the full fiscal year.

 

Principles of consolidation

 

The condensed consolidated unaudited financial statements include the accounts of our Company and its wholly-owned subsidiaries, SWC Group Inc. All significant intercompany transactions and balances have been eliminated in consolidation.

 

Going concern

 

The Company sustained continued losses from operations during the six months ended December 31, 2019 and for the fiscal year ended June 30, 2019. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required.

 

Our condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

Management is endeavoring to increase revenue-generating operations. While priority is on generating cash from operations through the sale of the Company’s products, management is also seeking to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock.

 

 -6-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

2. Summary of Significant Accounting (continued)

 

Use of estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates.

 

Revenue recognition

  

We recognize revenue in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC’’) No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied.

 

Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer.

  

Cash

 

Cash and cash equivalents consist of amounts held as bank deposits and highly liquid debt instruments purchased with an original maturity of three months or less.

 

From time to time, we may maintain bank balances in interest bearing accounts in excess of the $250,000 currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). We have not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash.

 

Accounts receivable

 

Accounts receivable are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customer’s deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. The Company had accounts receivable net of allowances of $158,000 as of December 31, 2019 and of $218,145 as of June 30, 2019.

 

Inventory

 

Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company’s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence.

 

 -7-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

2. Summary of Significant Accounting (continued)

 

If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of December 31, 2019 and June 30, 2019, the balance for the inventory totaled $495,086 and $356,285, respectively. Obsolescence reserve at December 31, 2019 and June 30, 2019 were $10,580 and $120,486, respectively.

 

Property and equipment

 

Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows:

 

Machinery equipment   5 years
Furniture and equipment   7 years
Vehicles   7 years

 

Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset.

 

Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income.

 

The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the six months ended December 31, 2019 and 2018.

 

Impairment of Long-Lived Assets

 

Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.

 

Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset's expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company, as of June 30, 2019, performed an impairment test of all of its intangible assets. Based on the company’s analysis, the company had an amortization of intangible assets of $700 for the six months ended December 31, 2019 and 2018, respectively.

 

 -8-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

2. Summary of Significant Accounting (continued)

 

Leases

 

In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations.

 

The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements.

 

The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities.

 

The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. After the adoption, $455,590 of operating lease right-of-use asset and $465,826 of operating lease liabilities were not retroactively reflected to June 30, 2019 financial statements, and $416,421 of operating lease right-of-use asset and $428,907 of operating lease liabilities were reflected to December 31, 2019 financial statements.

 

Income taxes

 

We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of October 2, 2008, and have analyzed filing positions in each of the federal and state

 

 -9-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

2. Summary of Significant Accounting (continued)

 

jurisdictions where we are required to file income tax returns, as well as open tax years in these jurisdictions. We have identified the U.S. federal and California as our “major” tax jurisdictions and generally, we remain subject to Internal Revenue Service examination of our 2013 U.S. federal income tax returns. However, we have certain tax attribute carryforwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.

 

We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. We have no interest or penalties as of December 31, 2019.

 

Stock based compensation

 

Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable.

 

Loss per share

 

We calculate basic earnings per share (“EPS”) by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income or net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive.

 

Fair value of financial instruments

 

ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

 

Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - include other inputs that are directly or indirectly observable in the marketplace.

Level 3 - unobservable inputs which are supported by little or no market activity.

 

The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the six months ended December 31, 2019.

  

 -10-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

2. Summary of Significant Accounting (continued)

 

Derivative instruments

 

The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense).

 

Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

 

Segment Reporting

 

FASB ASC Topic 280, “Segment Reporting”, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

 

FASB ASC Topic 280 has no effect on the Company’s financial statements as substantially all of its operations are conducted in one industry segment – paper and paper-based products such as paper cups, cup lids, food containers, etc.

 

New accounting pronouncements   

 

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company adopted this ASU on the consolidated financial statements in the quarter ended December 31, 2019. 

 

3. Concentration

 

Customers

 

For the six months ended December 31, 2019 and 2018, our Company earned net revenues of $1,474,784 and $2,886,885 respectively. The vast majority of these revenues for the period ending December 31, 2019 were derived from a large number of customers, whereas the vast majority of these revenues for the period ending December 31, 2018 were derived from a limited number of customers. No customers accounted for over 10% of the Company’s total revenues for the period ended December 31, 2019.

 

 -11-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

3. Concentration (continued)

 

Suppliers

 

For the six months ended December 31, 2019 and 2018, we purchased products for sale from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company's inventory is purchased from two (2) suppliers. The two (2) suppliers accounted as follows: Two suppliers accounted for 38.63% and 38.38% of the Company's total inventory purchase for the six months ended December 31, 2019 and 2018, respectively.

  

  4. Equity Transaction - Exclusive License Rights and Acquisition

 

On December 13, 2017, we entered into a Master Marketing Agreement with BizRight, LLC (“BizRight”), a leading marketer and manufacturer of hydroponic growth supplies, which offers a range of hydroponics-related products including: HPS grow lights, electronic ballasts, HPS Bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other grow and storage products. BizRight operates the ZenHydro.com website and other e-commerce properties, and sells various products to distributors and retailers.

 

Under the terms of the Master Marketing Agreement, all products procured, developed and imported by BizRight will be sold by the Company. The expected term of the exclusive license rights is 20 years. BizRight and its owners will be compensated via a combination of cash and common shares in Sugarmade. Effective the contract date, Bizright will be compensated Two hundred million (200,000,000) common shares. Sugarmade will compensate BizRight and its owners six million dollars ($6,000,000) in cash. The amount due will be divided over 3 payments equally and are contingent upon the filing of the S-1 and significant funding.

 

We began recognizing revenues under this marketing agreement during April 2018 and stopped recognizing the revenue early 2019 upon exercise of the purchase option under the agreement. As of June 30, 2019, BizRight had assigned the marketing agreement to its operating entity, BZRTH and the Company had exercised the option to purchase 100% equity ownership of BZRTH.

 

As of June 30, 2019, cash of $870,000 and 200 million shares of the Company’s common stock had been paid and issued in connection with the acquisition.

 

On October 30, 2019, SGMD closed the previously announced acquisition of BZRTH, Inc., a Nevada corporation (“BZRTH”) pursuant to a Stock Exchange Agreement. The total consideration to be paid by the Company to acquire BZRTH was 650,000,000 shares of SGMD’s common stock, 3,500,000 shares of Series B convertible preferred stock, $870,000 in cash, and 5% promissory notes in the sum of $7,130,000.00 due on or before October 31, 2021 to the BZRTH shareholders. $870,000 of cash had been paid along with 449,373,817 common shares and 750,000 Series B Convertible Preferred shares.

 

As of December 31, 2019, cash of $870,000 and 249 million shares of the Company’s common stock had been paid and issued in connection with the acquisition.

 

On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (“Agreement”) with each of the parties agreeing to return all consideration exchanged pursuant to the Stock Exchange Agreement.

 

The shareholders of BZRTH have agreed to surrender for cancellation, 449,373,817 common shares and 750,000 Series B Convertible Preferred shares. On an as converted to common basis the returns to Sugarmade’s treasury equal 449,373,817 relating to the common shares to be surrendered and 750,000,000 million common shares equivalents due to each Series B Convertible Preferred share converting to common shares on a 1 for 1,000 basis. Thus, on a common share equivalent basis, the surrender equals 1,199,373,817 common shares, if all Preferred Series B were converted. As part of the Agreement, the Company will retain or will receive 102,248 shares in BZRTH.

 

 -12-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

5. Legal Proceedings  

 

From time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of date of this filing, there were no legal claims currently pending or, to our knowledge, threatened against our Company that, in the opinion of our management, would be likely to have a material adverse effect on our financial position, results of operations or cash flows, except as follows:

  • On December 11, 2013, the Company was served with a complaint from two Convertible Note Holders and investors in the Company, Lovitt & Hannan, Inc. Salary Deferral Plan FBO J. Thomas Hannan, Attorney at Law 401K Plan and Trust, and Kevin M. Kearney. The Company's former CEO, Scott Lantz, was also named in the suit. On February 21, 2017, the Company signed a settlement agreement with the plaintiffs. Under the terms of the settlement agreement, the Company agreed to pay the plaintiffs $307,000 to settle all claims against the Company, which included the payoff of the two notes outstanding within one (1) week. Upon receipt of all payments, plaintiffs will surrender for cancellation 230,000 of the Company's shares within ten (10) days. The parties agreed that all claims against the Company would be satisfied through such payments and that the matter would be fully resolved. As of June 30, 2018, third-parties had purchased two (2) notes of approximately $80,000, reducing the Company's exposure by $80,000. As of the date of this filing the balance for accrued legal settlement for Hannan vs Sugarmade has been reduced to $227,000, plus interest until the date of complete payoff.

 

  • On August 13, 2019, a lawsuit was filed against the Company for unpaid legal fees of $50,000.00, which originates from the Company’s former chairman and CEO.  The Company was served in or around September 2019.  The Company has filed a response to the underlying complaint to preserve its rights to defend the lawsuit should it become necessary. However, the Company plans to amicably resolve this matter and anticipates that it will be settled and dismissed.

 

There can be no assurances the ultimate liability relative to these lawsuits will not exceed what is outlined above.

  

6. Other Current Assets  

 

As of December 31, 2019 and June 30, 2019, other current assets consisted of the following:

 

   For the periods ended
   December 31, 2019  June 30, 2019
Prepaid Deposit  $2,314,498   $2,145,000 
Prepaid Inventory   44,308    172,045 
Employees Advance   —      16,052 
Prepaid Expenses   97,768    358,702 
Other   2,118    28,075 
Total:  $2,458,692   $2,719,875 

 

Our 2,314,498 in prepaid deposit as of December 31, 2019 was mainly related to the following investments to other companies:

a.$1,175,000 related to investment in Sky Unlimited;
b.$196,000 related to investment in Hempistry Inc.;
c.$870,000 paid for BZRTH acquisition.

 

7. Intangible Asset

 

On August 21, 2017, the Company entered into an intellectual property assignment agreement with Sound Decisions to revamp the company’s shoplifty website to generate and attract more traffic from potential customers. The Company made a payment of $14,000 for the website (intellectual property). The Company amortized this use right as intangible asset over ten years, and recorded amortization expense of $700 for the periods ended December 31, 2019 and June 30, 2019, respectively.

 

 -13-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

8. Property and Equipment, net

 

As of December 31, 2019 and June 30, 2019, the property, plant and equipment, net of accumulated depreciation expenses were $430,396 and $476,585, respectively.

 

For the six months ended December 31, 2019 and 2018, depreciation expenses amounted to $46,189 and $26,578, respectively.

 

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the six months ended December 31, 2019 and 2018.

 

9. Convertible Notes

 

As of December 31, 2019 and June 30, 2019, the balance owing on convertible notes, net of debt discount, with terms as described below was $1,378,221 and $1,046,909, respectively.

 

Convertible notes issued as of September 30, 2019 were as follows:

 

Convertible note 1: On August 24, 2012, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of December 31, 2019, the note is in default.

 

Convertible note 2: On September 18, 2012, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of December 31, 2019, the note is in default.

 

Convertible note 3: On December 21, 2012, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of December 31, 2019, the note is in default.

  

Convertible note 4: On March 1, 2017, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has been purchased by other investor in total amount of $156,067 with a term of nine (9) months with an interest rate of 10% and is convertible to common shares at a 45% discount to the then current market price of our shares. As of December 31, 2019, the remaining balance of note was $60,751.

  

Convertible note 5: On May 17, 2017, the Company entered a convertible promissory note with an investor for a total amount of $1,375,000 (after $10,000 legal and due diligence fee) with an OID of $125,000, the note will be fulfilled through a series of funding. The note is due 12 months after each funding date and bears an interest rate of 10%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. In connection with the note, the investor will also receive warrants and is calculated based on 15% of the maturity amount. The warrants have a life of four years with exercise price of $0.15 per share and have cashless exercise option. During the three months ended September 30, 2019, the holder exercised 1,766,544 cashless warrant shares into 28,381,818 shares of the Company’s common stock. On September 23, 2019, the remaining warrant shares were settled by exchange $200,000 convertible note with interest of 10% per annum, due on September 23, 2020, with conversion price of 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the original principal balance has been fully converted, the remaining default charge balance of the note was $250,000, and the new convertible note balance was $200,000.

  

 -14-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

9. Convertible Notes (continued)

 

Convertible note 6: On September 20, 2018, the Company entered a convertible promissory note with an accredited investor for a total amount of $267,500 (includes $5,000 legal fee and an OID of $12,500). The note is due 360 days and bears an interest rate of 8%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the principal balance of 245,000 has been fully converted into the Company’s common stock.

 

Convertible note 7: On November 1, 2018, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.

 

Convertible note 8: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $80,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.

 

Convertible note 9: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $40,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.

 

Convertible note 10: On December 3, 2018, the Company entered into a convertible promissory note with an accredited investor for $35,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.

 

Convertible note 11: On December 26, 2018, the Company entered a convertible promissory note with an accredited investor for a total amount of $250,000 (includes $5,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 45% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.

 

Convertible note 12: On January 8, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $105,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 35% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.

 

Convertible note 13: On January 22, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 42% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, the note has been fully converted.

 

Convertible note 14: On January 24, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $53,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 35% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, the note has been fully converted.

 

Convertible note 15: On February 26, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 42% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, the note has been fully converted.

 

 -15-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

9. Convertible Notes (continued)

  

Convertible note 16: On March 4, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $250,000 (includes $7,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.

 

Convertible note 17: On April 2, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 18: On April 4, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.

 

Convertible note 19: On May 2, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 20: On May 7, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,500 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 21: On May 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 22: On June 12, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,500 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 23: On July 3, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% discount of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date.

 

 Convertible note 24: On July 30, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $162,000 (includes $7,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% discount of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 25: On August 14, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $153,000 (includes $3,000 OID). The note is due 360 days and bear an interest rate of 10%. The conversion price for the note is 65% of the average of lowest two closing bid for the 20 consecutive trading days prior to the conversion date.

 

 -16-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

9. Convertible Notes (continued)

 

Convertible note 26: On August 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $275,000 (includes $37,500 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 27: On August 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $275,000 (includes $25,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 28: On September 23, 2019, the Company entered a warrant settlement agreement to exchange convertible promissory note for a total amount of $200,000. The note is due 360 days and bear an interest rate of 10%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully settled by $127,321 of cash and 18,181,818 shares of common stock.

 

Convertible note 29: On September 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $165,000 (includes $16,250 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 30: On September 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $165,000 (includes $16,250 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 31: On October 28, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $225,500 (includes $23,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 32: On October 28, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $225,500 (includes $23,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 33: On November 14, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $3,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the average three lowest closing bid for the 10 consecutive trading days prior to the conversion date.

 

Convertible note 34: On November 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,150 (includes $11,150 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 35: On November 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,150 (includes $11,150 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 36: On December 10, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,700 (includes $11,700 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

 -17-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

9. Convertible Notes (continued)

 

Convertible note 37: On December 10, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,700 (includes $11,700 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 38: On December 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $112,200 (includes $12,200 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 39: On October 31, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $139,301. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is $0.008 per share.

 

Convertible note 40: On November 1, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is $0.008 per share.

 

In connection with the convertible debt, debt discount balance as of December 31, 2019 and June 30, 2019 were $2,015,634 and $1,189,341, respectively, and were being amortized and recorded as interest expenses over the term of the convertible debt.

 

10. Derivative liabilities

 

The derivative liability is derived from the conversion features in note 9 and stock warrant in note 11. All were valued using the Binomial option pricing model using the assumptions detailed below. As of December 31, 2019 and June 30, 2019, the derivative liability was $3,259,345 and $2,991,953, respectively. The Company recorded $2,314,046 gain and $3,661,383 loss from changes in derivative liability during the six months ended December 31, 2019 and 2018, respectively. The Binomial Option Price Model with the following assumption inputs:

 

    December 31, 2019
Annual dividend yield     —    
Expected life (years)     0.5-1.00  
Risk-free interest rate     1.51-2.09 %
Expected volatility     121-153 %

 

    December 31, 2018
Annual dividend yield     —    
Expected life (years)     0.5-1.00  
Risk-free interest rate     2.49-2.72 %
Expected volatility     87-123 %

  

Fair value of the derivative is summarized as below:

 

Beginning Balance, June 30, 2019 $2,991,953
Additions 3,538,927
Mark to Market 2,314,089
Reclassification to APIC due to conversions (957,488)
Balance, December 31, 2019 $3,259,345

 

 -18-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

11. Stock warrants

 

On May 17, 2017, the Company entered a promissory note with an accredited investor for a total amount of $1,375,000 (after $10,000 legal and due diligence fee) with an OID of $125,000, the note will be fulfilled through a series of funding. In connection with the note, the investor will also receive warrants and is calculated based on 15% of the maturity amount. The warrants have a life of four years with an exercise price of $0.15 per share and have cashless exercise option. The fair value of the warrants at the grant date was $40,400. During the three months ended September 30, 2019, the holder exercised 1,766,544 cashless warrant shares into 28,381,818 shares of the Company’s common stock. On September 23, 2019, the remaining warrant shares were settled by exchange $200,000 convertible note with interest of 10% per annum, due on September 23, 2020, with conversion price of 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

On September 7, 2018, the Company entered a settlement agreement with several investors to settle all disputes by issues additional unrestricted shares. In connection with the note each individual investor will also receive warrants equal to the number of the shares the investors own as of the effective date of the settlement agreement. The warrants have a life of five years with an exercise price as of the date of exchange. The fair value of the warrants at the grant date was $56,730. As of December 31, 2019 and June 30, 2019, the fair value of the warrant liability was $15,663 and $19,103, respectively.

 

As of December 31, 2019 and June 30, 2019, the total fair value of the warrant liability was $15,663 and $24,658, respectively.

  

12. Note payable due to bank

 

During October 2011, we entered into a revolving demand note (line of credit) arrangement with HSBC Bank USA, with a revolving borrowing limit of $150,000. The line of credit bears a variable interest rate of one quarter percent (0.25%) above the prime rate (5.5% as of December 20, 2018). In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate. As of December 31, 2019 and June 30, 2019, the loan principal balance was $25,982. As of December 31, 2019, the note is in default.

 

13. Related party transactions

 

On January 23, 2013, the Company entered into a promissory note with its former employee who owns less than 5% of the Company’s stock. The original principal amount was $40,000 and the note bore no interest. The note was payable upon demand. As of December 31, 2019 and June 30, 2019, this note had a balance of $18,000.

 

On January 14, 2015, the Company entered into a promissory note with Richard Ko (an employee of the Company, who owns less than 5% of the Company’s stock). The principle amount was $30,000 and the note bore no interest. The note had a term of one (1) year and was due on January 14, 2016, and became payable upon demand after January 14, 2016. As of December 31, 2019 and June 30, 2019, this note had a balance of $0 and $20,000, respectively.

 

As of December 31, 2019 and June 30, 2019, the Company had an outstanding balance of notes payable due to related parties of $18,000 and $38,000, respectively.

 

On July 7, 2016, SWC received a loan in total amount of $30,000 from an employee. During the three months ended December 31, 2019, SWC received additional loan in total amount of 105,000 from a related party. The amount of the loan bear no interest and due on demand. As of December 31, 2019 and June 30, 2019, the balance of the loan due to related party were $135,000 and $30,000, respectively.

  

From time to time, SWC would receive short-term loans from company former director for its working capital needs.

 

 -19-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

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 December 31, 2019 and June 30, 2019, the note was in default and the outstanding balance under this note was $63,924 and $63,924, 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 December 31, 2019 and June 30, 2019, 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 December 31, 2019 and June 30, 2019, the Company has an outstanding balance of $0 and $3,584. 

  

On December 17, 2018, the Company entered into a repayment agreement with an individual for $100,000 at no interest. As of December 31, 2019 and June 30, 2019, the Company has an outstanding balance of $2,740 and $17,834, 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 December 31, 2019 and June 30, 2019, the outstanding balance under this loan were $0 and $29,243, respectively.

 

As of December 31, 2019 and June 30, 2019, the Company had an outstanding loan balance of $192,030 and $214,585, respectively.

 

15. Stockholder’s Equity

 

The Company is authorized to issue 1,990,000,000 shares of $.001 par value common stock and 10,000,000 shares of $.001 par value preferred stock.

 

Share issuance during the three months ended September 30, 2019 -

 

During the three months ended September 30, 2019, the Company issued 1,000,000 shares of common stock to settle the old liability to be issued in total amount of $29,000.

 

During the three months ended September 30, 2019, the Company issued 71,915,557 shares of common stock for debt conversions in total amount of $547,833.

 

During the three months ended September 30, 2019, the Company issued 11,348,591 shares of common stock for cash in total amount of $100,000.

 

During the three months ended September 30, 2019, the Company issued 28,381,818 shares of common stock for warrant exercise in total amount of $14,132. 

 

As of September 30, 2019 and June 30, 2019, the Company had 2,000,000 share of its preferred stock, 810,254,536 and 697,608,570 shares of its common stock, respectively, issued and outstanding.

 

Share issuance during the three months ended December 31, 2019 -

 

During the three months ended December 31, 2019, the Company issued 18,181,818 shares of common stock to settle the old liability to be issued in total amount of $290,455.

 

 -20-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

15. Stockholder’s Equity (continued)

 

During the three months ended December 31, 2019, the Company issued 24,994,341 shares of common stock for convertible debt principal with interest conversions in total amount of $142,165.

 

During the three months ended December 31, 2019, the Company issued 26,621,610 shares of common stock for cash in total amount of $240,000.

 

During the three months ended December 31, 2019, the Company issued 500,000 shares of common stock for employee bonus in total fair value of $7,550. 

 

During the three months ended December 31, 2019, the Company issued 249,373,817 shares of common stock for acquisition of BZRTH in total fair value of $3,566,046. The shares are to be cancelled in subsequent period pursuant to the rescission on January 15, 2020.

 

During the three months ended December 31, 2019, the Company issued 750,001 shares of preferred stock for acquisition of BZRTH in total fair value of $10,725,014. The shares of preferred stock are to be cancelled in subsequent period pursuant to the rescission on January 15, 2020.

 

During the three months ended December 31, 2019, the Company issued 415,000 shares of series B preferred stock for award to employee bonus in total fair value of $5,934,500.

 

As of December 31, 2019 and June 30, 2019, the Company had 3,165,001 share of its preferred stock, 1,129,926,122 and 697,608,570 shares of its common stock, respectively, issued and outstanding.

  

16. Shares to be issued – liability

 

During the year ended June 30, 2019, the Company had entered into multiple private placement agreements and had shares to be issued under liability in total amount of $100,000.

 

During the three months ended September 30, 2019, the Company had entered into a private placement agreement and had increased shares to be issued for total amount of $96,000.

 

During the three months ended September 30, 2019, the Company had entered into an employee compensation plan and had increased shares to be issued for total amount of $12,000.

 

During the three months ended December 31, 2019, the Company had entered into a private placement agreement and had increased shares to be issued for total amount of $40,000.

 

During the three months ended December 31, 2019, the Company had entered into an employee compensation plan and had increased shares to be issued for total amount of $14,000.

 

As of December 31, 2019 and June 30, 2019, the Company had balance of $262,000 and $100,000 share to be issued.

 

 -21-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

17. Shares to be issued –equity

 

As of the year ended June 30, 2019, the Company had potential shares to be issued under common stock in total amount of $29,000.

 

During the three months ended September 30, 2019, the Company issued the $29,000 share to be issued – equity by 1,000,000 shares of the Company’s common stock.

 

During the three months ended December 31, 2019, the Company recorded in total amount of $100,000 potential share to be issued – equity.

  

As of December 31, 2019 and June 30, 2019, the Company had total potential shares to be issued under common stock and preferred stock in total amount of $100,000 and $29,000, respectively.

 

18. Shares to be cancelled – equity

 

On October 30, 2019, SGMD closed the previously announced acquisition of BZRTH, Inc., a Nevada corporation (“BZRTH”) pursuant to a Stock Exchange Agreement. BZRTH is headquartered in Irwindale, California and is a marketer and manufacturer of hydroponic growth supplies and related products to distributors and retailers. The total consideration to be paid by the Company to acquire BZRTH was 650,000,000 shares of SGMD’s common stock, 3,500,000 shares of Series B convertible preferred stock, $870,000 in cash, and 5% promissory notes in the sum of $7,130,000.00 due on or before October 31, 2021 to the BZRTH shareholders. $870,000 of cash had been paid along with 449,373,817 common shares and 750,000 Series B Convertible Preferred shares.

 

On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (“Agreement”) with each of the parties agreeing to return all consideration exchanged pursuant to the Stock Exchange Agreement. The Agreement provided for mutual releases and indemnities.

 

The shareholders of BZRTH have agreed to surrender for cancellation, 449,373,817 common shares and 750,000 Series B Convertible Preferred shares. On an as converted to common basis the returns to Sugarmade’s treasury equal 449,373,817 relating to the common shares to be surrendered and 750,000,000 million common shares equivalents due to each Series B Convertible Preferred share converting to common shares on a 1 for 1,000 basis. Thus, on a common share equivalent basis, the surrender equals 1,199,373,817 common shares, if all Preferred Series B were converted. As of December 31, 2019, the Company recorded share to be cancelled – common stock and preferred stock in total amount of $38,225,560.

 

 -22-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

19. Commitments and contingencies

 

On February 23, 2018 the Company entered into lease agreement for a new office space as part of the plan to expand operation, the lease is set to commence Commencing March 1, 2018. The term of the lease is for a (5) Five Years with 1 month free on the 1st year of the term. The monthly rent on the 1st year will be $11,770 with a 3% increase for each subsequent year. Total commitment for the full term of the lease will be $737,367. As of the date of this filing, this property became the headquarter of the company.

 

Six Months Ended    
December 31, 2019  
Lease Cost      
Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations)   $ 74,988
       
Other Information      
Cash paid for amounts included in the measurement of lease liabilities for the six months ended December 31, 2019   $ 72,738
Remaining lease term – operating leases (in years)                                      3.17
Average discount rate – operating leases     10%
The supplemental balance sheet information related to leases for the periods are as follows:      
Operating leases      
Right-of-use assets   $ 416,421
Total operating lease assets   $ 416,421
       
Short-term operating lease liabilities   $ 110,824
Long-term operating lease liabilities   $ 318,083
Total operating lease liabilities   $ 428,907
       
Maturities of the Company’s lease liabilities are as follows:      
       
Period ending June 30,   Operating 
Lease
2020      $                        146,932
2021     151,344
2022     155,888
2023     105,984
Total lease payments     560,148
       
Less: Imputed interest/present value discount     104,558
Present value of lease liabilities      $                        455,590

 

 -23-

Sugarmade, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

December 31, 2019

 

20. Subsequent events

  

On December 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $112,200 (includes $12,200 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. The principal amount was received in January 2020.

  

On January 30, 2020, the Company issued 6,684,843 shares of the Company’s common stock for debt conversions in total amount of $33,291.

 

On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (“Agreement”) with each of the parties agreeing to return all consideration exchanged pursuant to the Stock Exchange Agreement. The Agreement provided for mutual releases and indemnities.

 

The shareholders of BZRTH have agreed to surrender for cancellation, 449,373,817 common shares and 750,000 Series B Convertible Preferred shares. On an as converted to common basis the returns to Sugarmade’s treasury equal 449,373,817 relating to the common shares to be surrendered and 750,000,000 million common shares equivalents due to each Series B Convertible Preferred share converting to common shares on a 1 for 1,000 basis. Thus, on a common share equivalent basis, the surrender equals 1,199,373,817 common shares, if all Preferred Series B were converted. As part of the Agreement, the Company will retain or will receive 102,248 shares in BZRTH.

 

On January 21, 2020, the Company directed the creation of SugarRush, Inc., a California Corporation, as a wholly owned subsidiary. The new company will be utilized for the holding of acquired assets and as a primary commercial business unit.

 

On February 7, 2020, the Company signed a definitive agreement (the “Agreement”) with Indigo Dye Group Corp. (“Indigo”) with a mailing address of 5600 Warehouse Way, Sacramento, CA 95826, the operator of BudCars Cannabis Delivery Service (“Budcars”), which provides services in the Sacramento metropolitan area. Under the terms of the Agreement, the Company will purchase a 40% stake in the Budcars operation for a cash amount of $700,000, and will receive an option to acquire an additional 30%, which upon exercise will provide a controlling stake in the operation for the Company.

 

 -24-

Item 8. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

 

N/A

 

ITEM 2 – MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

This discussion and analysis may include statements regarding our expectations with respect to our future performance, liquidity, and capital resources. Such statements, along with any other non-historical statements in the discussion, are forward-looking. These forward-looking statements are subject to numerous risks and uncertainties, including, but not limited to, factors listed in other documents we file with the Securities and Exchange Commission (SEC). We do not assume an obligation to update any forward- looking statement. Our actual results may differ materially from those contained in or implied by any of the forward-looking statements in this Form 10-Q. See “SPECIAL NOTE REGARDING FORWARD LOOKING STATEMENTS” above.

 

Overview and Financial Condition

 

Discussions with respect to our Company’s operations included herein refer to our operating subsidiary, SWC. As of the date of this filing, we had no other operations other than those of SWC.

 

Results of Operations

 

The following table sets forth the results of our operations for the three months ended December 31, 2019 and 2018.

 

    For the three months ended
    December 31,
    2019   2018
         
Net Sales     720,810       1,445,269  
Cost of Goods Sold:     435,690       1,071,033  
Gross profit     285,120       374,236  
Operating Expenses     7,215,933       3,823,085  
Loss From Operations     (6,930,814 )     (3,448,849 )
Other non-operating Income (Expense):     (823,710 )     (2,584,531 )
Net Income (Loss)     (7,754,524 )     (6,033,380 )

  

Revenues

 

For the three months ended December 31, 2019 and 2018, revenues were $720,810 and $1,445,269, respectively. The decrease was primarily due to business loss within the stick supply industry.

 

Cost of goods sold

 

For the three month ended December 31, 2019 and 2018, costs of goods sold were $435,690 and $1,071,033 respectively. The decrease was primarily due to the business loss within the stick supply industry.

 

Gross profit

 

For the three month ended December 31, 2019 and 2018, gross profit was $285,120 and $374,236, respectively. The decrease was primarily due to the business loss within the stick supply industry.

 

Operating expenses

 

For the three month ended December 31, 2019 and 2018, operating expenses were $7,215,933 and $3,823,085, respectively. The increase was due to the increase of employee stock compensation. 

 

 -25-

Other non-operating income (expense)

 

The Company had total other non-operating expense of $823,710 and $2,584,531 for the three months ended December 31, 2019 and 2018, respectively. The decrease in non-operating income is related to the accounting for derivative liabilities.

 

Net income (loss)

 

Net loss totaled $7,754,524 for the three month ended December 31, 2019, compared to a net loss totaling $6,033,380 for the three-month ended December 31, 2018. The increase was mainly due to the increase of employee stock compensation.

 

The following table sets forth the results of our operations for the six months ended December 31, 2019 and 2018.

 

    For the six months ended
    December 31,
    2019   2018
         
Net Sales     1,474,784       2,886,885  
Cost of Goods Sold:     927,858       2,130,452  
Gross profit     546,925       756,433  
Operating Expenses     8,419,563       4,736,957  
Loss From Operations     (7,872,637 )     (3,980,524 )
Other non-operating Income (Expense):     (1,909,438 )     (4,661,909 )
Net Income (Loss)     (9,782,075 )     (8,642,433 )

  

Revenues

 

For the six months ended December 31, 2019 and 2018, revenues were $1,474,784 and $2,886,885, respectively. The decrease was primarily due to business loss within the stick supply industry.

 

Cost of goods sold

 

For the six month ended December 31, 2019 and 2018, costs of goods sold were $927,858 and $2,130,452 respectively. The decrease was primarily due to the business loss within the stick supply industry.

 

Gross profit

 

For the six month ended December 31, 2019 and 2018, gross profit was $546,925 and $756,433, respectively. The decrease was primarily due to the business loss within the stick supply industry.

 

Operating expenses

 

For the six month ended December 31, 2019 and 2018, operating expenses were $8,419,563 and $4,736,957, respectively. The increase was due to the increase of employee stock compensation. 

 

Other non-operating income (expense)

 

The Company had total other non-operating expense of $1,909,438 and $4,661,909 for the six months ended December 31, 2019 and 2018, respectively. The decrease in non-operating income is related to the accounting for derivative liabilities.

 

Net income (loss)

 

Net loss totaled $9,782,075 for the six month ended December 31, 2019, compared to a net loss totaling $8,642,433 for the six-month ended December 31, 2018. The increase was mainly due to the increase of employee stock compensation.

 

 -26-

Liquidity and Capital Resources

 

We have primarily financed our operations through the sale of unregistered equity and convertible notes payable. As of December 31, 2019, our Company had cash balance of $103,002, current assets totaling $3,225,281 and total assets of $4,141,568. We had current and total liabilities totaling $8,280,102 and $8,598,185, respectively. Stockholders’ equity reflected a deficiency of $4,456,617.

 

The following is a summary of cash provided by or used in each of the indicated types of activities during the six months ended December 31, 2019 and 2018:

 

    2019   2018
Cash (used in) provided by:                
Operating activities   $ (2,122,441 )   $ 1,060,980  
Investing activities     —         (87,154 ) 
Financing activities     2,191,072       (856,278 ) 

 

Net cash (used in) provided by operating activities was $(2,122,441) for the six months ended December 31, 2019, and $1,060,980 for the six months ended December 31, 2018.

 

There were $nil and $87,154 fixed assets and intangible assets purchased during the six months ended December 31, 2019 and 2018 relating to investing activities, respectively.

 

Net cash (used in) provided by financing activities was $2,191,072 for the six months ended December 31, 2019 and $(856,278) for the six months ended December 31, 2018.

 

Our capital requirements going forward will consist of financing our operations until we are able to reach a level of revenues and gross margins adequate to equal or exceed our ongoing operating expenses. Other than the notes payable discussed above, borrowings from our bank and the production credit facility with our suppliers, we do not have any credit agreement or source of liquidity immediately available to us.

 

Given estimates of our Company’s future operating results and our credit arrangements with our suppliers, we are currently forecasting that we will need to secure additional financing to obtain adequate financial resources to reach profitability. As of the date of this report, we estimate that the cash necessary to implement our current business plan for the next twelve months is approximately $2,000,000.

 

Based on our need to raise additional funds to implement our business plans for the next twelve months, we have included a discussion concerning the presentation of our financial statements on a going concern basis in the notes to our financial statements and our independent public accountants have included a similar discussion in their opinion on our financial statements through June 30, 2019. We will be required in the near future to issue debt or sell our Company’s equity securities in order to raise additional cash, although there are no firm arrangements in place for any such financing at this time. We cannot provide any assurances as to whether we will be able to secure the necessary financing, or the terms of any such financing transaction if one were to occur. The failure to secure such financing could severely curtail our plans for future growth or in more severe scenarios, the continued operations of our Company.

 

Capital Expenditures

 

Our current plans do not call for our Company to expend significant amounts for capital expenditures for the foreseeable future beyond relatively insignificant expenditures for office furniture and information technology related equipment as we add employees to our Company. We are however continually evaluating the production processes of our third party contract manufacturers to determine if there are investments we could make in their processes to achieve manufacturing improvements and significant cost savings. Any such desired investments would require additional cash above our current forecast requirements.

 

Critical Accounting Policies Involving Management Estimates and Assumptions

 

Please see the notes to our financial statements.

 

 -27-

ITEM 3 – QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

 

Intentionally omitted pursuant to Item 305(e) of Regulation S-K.

 

ITEM 4 – CONTROLS AND PROCEDURES

 

Disclosure Controls and Procedures

 

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in our Exchange Act reports is recorded, processed, summarized, and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable, and not absolute, assurance of achieving the desired control objectives. In reaching a reasonable level of assurance, management necessarily was required to apply its judgment in evaluating the cost benefit relationship of possible controls and procedures. Our disclosure controls and procedures are designed to provide reasonable assurance of achieving their objectives.

 

As required by the Securities and Exchange Commission Rule 13a-15(e) and Rule 15d-15(e), we carried out an evaluation, under the supervision of and with the participation of our management, including our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based on the foregoing, our Chief Executive Officer and Chief Financial Officer concluded that as of September 30, 2019, our disclosure controls and procedures were ineffective due to the Company is relatively inexperienced with certain complexities within USGAAP and SEC reporting.

 

We have taken, and are continuing to take, certain actions to remediate the material weakness related to our lack of U.S. GAAP experience. We plan to hire additional credentialed professional staff and consulting professionals with greater knowledge and experience of U.S. GAAP and related regulatory requirements to oversee our financial reporting process in order to ensure our compliance with U.S. GAAP and other relevant securities laws. In addition, we plan to provide additional training to our accounting personnel on U.S. GAAP, and other regulatory requirements regarding the preparation of financial statements.

 

Notwithstanding the above identified material weakness, the Company’s management believes that its condensed consolidated financial statements included in this report fairly present in all material respects the Company’s financial condition, results of operations and cash flows for the periods presented and that this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.

 

Changes in Internal Controls over Financial Reporting

 

There have not been any changes in our internal controls over financial reporting during the quarter ended September 30, 2019 that have materially affected, or are reasonably likely to materially affect, our internal controls over financial reporting.

 

 -28-

PART II: Other Information

 

ITEM 1 – RISK FACTORS

 

Investment in our common stock involves a high degree of risk. You should carefully consider the risks described below together with all of the other information included in this herein before making an investment decision. If any of the following risks actually occur, our business, financial condition or results of operations could suffer. In that case, the market price of our common stock could decline, and you may lose all or part of your investment. You should also read the section entitled “Special Notes Regarding Forward-Looking Statements” below for a discussion of what types of statements are forward-looking statements as well as the significance of such statements in the context of this report.

 

Investment in our common stock involves a high degree of risk. You should carefully consider the risks described below together with all of the other information included in this herein before making an investment decision. If any of the following risks actually occur, our business, financial condition or results of operations could suffer. In that case, the market price of our common stock could decline, and you may lose all or part of your investment.

 

The Company, as of the end of the 2019 fiscal year (June) was at a stage where it requires external capital to continue with its business. It must obtain additional significant capital in the future to continue its operations. There can be no certainty that the Company can obtain these funds.

 

ITEM 2 –UNREGISTERED SALES OF SECURITIES AND USE OF PROCEEDS

 

During the three months ended December 31, 2019, the Company issued shares as followings:

  

  · 18,181,818 shares of common stock for settlement of debts in total fair value of $290,455

 

  · 24,994,341 shares of common stock upon conversion of convertible notes of $135,290

 

  · 500,000 shares of common stock as Employee bonus in total fair value of $7,550

 

  · 249,373,817 shares of common stock for acquisition of BZRTH  in total fair value of $3,566,046

 

  · 26,621,610 shares of common stock for cash of $240,000

 

Subsequent to December 31, 2019, the Company issued shares as followings:

 

  · 6,684,843 shares of common stock upon conversion of convertible notes of $33,291

 

All of the aforementioned securities were issued pursuant to Section 4(a)(2) of the Securities Act of 1933, as amended, and Rule 506 thereunder.

 

ITEM 3 – DEFAULTS UPON SENIOR SECURITIES

 

Not applicable.

 

ITEM 4 – MINE SAFETY DISCLOSURES

 

None.

 

ITEM 5 – OTHER INFORMATION

 

None.

 

 -29-

ITEM 6 – EXHIBITS

 

Exhibit No.   Description
31.1  (1) Certification of Chief Executive Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
31.2  (1) Certification of Chief Financial Officer pursuant to Exchange Act Rules 13a-14(a) and 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
     
32.1  (1) Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
     
101.INS*  (1) XBRL Instance Document
     
101.SCH*  (1) XBRL Taxonomy Extension Schema
     
101.CAL*  (1) XBRL Taxonomy Extension Calculation Linkbase
     
101.DEF*  (1) XBRL Taxonomy Extension Definition Linkbase
     
101.LAB*  (1) XBRL Taxonomy Extension Label Linkbase
     
101.PRE*  (1) XBRL Taxonomy Extension Presentation Linkbase
       

(1)       Filed as an exhibit to this Report.

 

 -30-

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

  Sugarmade, Inc., a Delaware corporation
       
February 19, 2020 By: /s/ Jimmy Chan  
    Jimmy Chan  
    CEO, CFO, and Director  

 

 -31-

 EX-31.1 2 sgmd-20191231_10qex31z1.htm EXHIBIT 31.1

Exhibit 31.1

 

Certification of Principal Executive Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Securities and Exchange Commission Release 34-46427

 

I, Jimmy Chan, certify that:

 

        (1)       I have reviewed this Form 10-Q of Sugarmade, Inc.;

 

        (2)       Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

 

        (3)       Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

        (4)       The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

        (a)       Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

        (b)       Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

        (c)       Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

        (d)       Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

        (5)       The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

        (a)       All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

        (b)       Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

Date:   February 19, 2020 /s/ Jimmy Chan
  Jimmy Chan
  Executive Officer (Principal Executive Officer)

 

 EX-31.2 3 sgmd-20191231_10qex31z2.htm EXHIBIT 31.2

Exhibit 31.2

 

Certification of Principal Financial Officer

Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

and Securities and Exchange Commission Release 34-46427

 

I, Jimmy Chan, certify that:

 

        (1)       I have reviewed this Form 10-Q of Sugarmade, Inc.;

 

        (2)       Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 

 

        (3)       Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

        (4)       The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

        (a)       Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

        (b)       Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

        (c)       Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

        (d)       Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

 

        (5)       The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

 

        (a)       All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

 

        (b)       Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

 

 

Date:   February 19, 2020 /s/ Jimmy Chan
  Jimmy Chan
  Chief Financial Officer (Principal Financial Officer)

  

 

 EX-32.1 4 sgmd-20191231_10qex32z1.htm EXHIBIT 32.1

Exhibit 32.1

 

CERTIFICATION

PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

 

In connection with this Form 10-Q report of Sugarmade, Inc. for the period ended December 31, 2019 as filed with the Securities and Exchange Commission on the date hereof and pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, I, Jimmy Chan, certify that: 

 

(1)       This report containing the financial statements fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 

(2)       The information contained in the this period report fairly presents, in all material respects, the financial condition and results of operations of Sugarmade, Inc.

 

Date: February 19, 2020 /s/ Jimmy Chan
  Jimmy Chan 
  Chief Executive Officer (Principal Executive Officer)

 

 

 

 EX-101.CAL 5 sgmd-20191231_cal.xml XBRL CALCULATION FILE EX-101.DEF 6 sgmd-20191231_def.xml XBRL DEFINITION FILE EX-101.LAB 7 sgmd-20191231_lab.xml XBRL LABEL FILE Short-term Debt, Type [Axis] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Financial Instrument [Axis] Derivative [Member] Measurement Input Type [Axis] Annual Dividend Yield [Member] Expected Life [Member] Range [Axis] Minimum [Member] Maximum [Member] Risk Free Interest Rate [Member] Expected Volatility [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Indefinite-lived Intangible Assets [Axis] BizRight Hydroponic, Inc. [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Concentration Risk Type [Axis] Supplier Concentration One [Member] Supplier Concentration Two [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Equity Components [Axis] Preferred Stock Common Stock Additional Paid-In Capital Shares to be issued, Common Shares Accumulated Deficit Shares to be issued, Preferred Shares Property, Plant and Equipment, Type [Axis] Machinery and Equipment [Member] Furniture and equipment [Member] Vehicles [Member] Shares to be cancelled, Preferred Shares [Member] Shares to be cancelled, Common Shares [Member] Investment Convertible Notes [Member] Statement [Table] Statement [Line Items] Entity Registrant Name Entity Central Index Key Document Type Document Period End Date Amendment Flag Amendment Description Current Fiscal Year End Date Is Entity a Well-known Seasoned Issuer? Is Entity a Voluntary Filer? Is Entity's Reporting Status Current? Entity Filer Category Entity Public Float Entity Common Stock, Shares Outstanding Document Fiscal Period Focus Document Fiscal Year Focus Entity Shell Company Entity Emerging Growth Company Entity Small Business Entity Ex Transition Period Entity Well-known Seasoned Issuer Entity Voluntary Filers Entity Interactive Data Current Entity Incorporation, State or Country Code Entity File Number Condensed Consolidated Balance Sheets Assets Current assets: Cash Accounts receivable, net Inventory, net Loan receivables Other current assets Total current assets Equipment, net Intangible Asset Other assets Right of Use Assets - Non-Current Advanced to Investments Total Assets Liabilities and Stockholders' Current liabilities: Note payable due to bank Bank overdraft Accounts payable and accrued liabilities Customer deposits Customer Overpayment Unearned revenue Other payable Accrued interest Accrued compensation and personnel related payables Note Payable Notes payable - related parties Loans payable Loans payable - related party Convertible notes payable, net Derivative liabilities Warrants liabilities Shares to be issued Lease Liability - Current Total current liabilities Lease Liability - Non-Current Total liabilities Stockholders' equity: Preferred stock ($0.001 par value, 10,000,000 shares authorized, 3,165,001 and 2,000,000 issued and outstanding at December 31, 2019 and June 30, 2019, respectively) Common stock ($0.001 par value, 1,990,000,000 shares authorized, 1,129,926,122 and 697,608,570 shares issued and outstanding at December 31, 2019 and June 30, 2019, respectively) Additional paid-in capital Shares to be cancelled, common shares Shares to be cancelled, preferred shares Shares to Be Issued, Common Shares Accumulated deficiency Total stockholders' equity Total liabilities and stockholders' equity Condensed Consolidated Balance Sheets Unaudited Preferred stock, par value Preferred stock, shares authorized Preferred stock, shares issued Preferred stock, shares outstanding Common stock, par value Common stock, shares authorized Common stock, shares issued Common stock, shares outstanding Consolidated Statements Of Operations Revenues, net Cost of goods sold Gross profit Operating expenses: Selling, general and administrative expenses Loss from operations Non-operating income (expense): Other income Interest expense Change in fair value of derivative liabilities Warrant Expense Loss on notes conversion Loss on settlement Gain on asset disposal Amortization of debt discount Gain on debt forgiveness Other Income (Expense) Total non-operating income (expense) Net income (loss) Basic net income (loss) per share Diluted net income (loss) per share Weighted average shares basic and diluted Beginning Balance Beginning Balance, Shares Shares Issued for Debt Settlement Shares Issued for Debt Settlement, Shares Reclass Derivative liability from conversion Shares issued for conversions Shares issued for conversions (in shares) Shares Issued for Compensation Shares Issued for Compensation, Shares Shares issued for cash Shares issued for cash (in shares) Option for services Shares issued for Warrant Exercise Shares issued for Warrant Exercise (in Shares) Shares to be issued for service compensation Shares to be issued for cash Shares issued for LOI Shares issued for LOI (in shares) Shares issued for Award - Bizright Shares issued for Award - Bizright (in shares) Initial valuation of BCF Shares issued for EB-Five Shares issued for EB-Five (in shares) Net Loss Ending Balance Ending Balance, Shares Consolidated Statements Of Cash Flows Statement Cash flows from operating activities: Net loss Adjustments to reconcile net loss to cash flows from operating activities: Initial valuation of debt discount Loss on settlement Gain on debt forgiveness Amortization of debt discount Stock based compensation Change in fair value of derivative liability Amortization of Intangible Assets Change in exercise of warrant Depreciation and amortization Changes in operating assets and liabilities Accounts receivable Inventory Prepayment, deposits and other receivables Lease liabilities Accounts payable and accrued liabilities Customer deposits Other assets Unearned revenue Interest Payable Right of use, assets Accrued interest and other payables Net cash provided by (used in) operating activities Cash flows from investing activities: Payment for property and equipment Net cash provided by (used in) investing activities Cash flows from financing activities: Proceeds from Issuance of Common Stock Proceeds from convertible notes Proceeds (Repayment) from(to) loans Repayment to Related Parties Proceeds from Share to be Issued Bank overdraft Loan Receivable Net cash provided by (used in) financing activities Net increase (decrease) in cash Cash, beginning of period Cash, end of period Supplemental disclosure of non-cash financing activities: Shares issued for conversion of convertible debt Reclassification from derivative liabilities to APIC Debt discount related to convertible debt Debts settled through shares issuance Shares issued for award to Bizright and to be cancelled in future Shares issued for warrant exercise Organization, Consolidation and Presentation of Financial Statements [Abstract] Nature of Business Summary Of Significant Accounting Policies Summary of Significant Accounting Policies Risks and Uncertainties [Abstract] Concentration Goodwill and Intangible Assets Disclosure [Abstract] Equity Transaction - Exclusive License Rights Commitments and Contingencies Disclosure [Abstract] Legal Proceedings Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] Other Current Assets Intangible Asset Property, Plant and Equipment [Abstract] Property and Equipment, net Convertible Notes Convertible Notes Derivative Liabilities Derivative Liabilities [Text Block] Notes to Financial Statements Stock warrants Note Payable Related Party Transactions Related Party Transactions Loans payable Stockholders Equity Stockholder's Equity Shares to be issued - liability Shares to be issued - equity Shares to be cancelled - equity Commitments And Contingencies Commitments and Contingencies Subsequent Event Subsequent Event Summary Of Significant Accounting Policies Basis of presentation Principles of consolidation Going concern Use of estimates Revenue recognition Cash Accounts receivable Inventory Property and equipment Impairment of Long-Lived Assets Leases Income Taxes Stock based compensation Loss per share Fair Value of Financial Instruments Derivative Instruments Segment Reporting New Accounting Pronouncements Not Yet Adopted Schedule of Other Current Assets Derivative Liabilities Schedule of changes in derivative liability Accounts Receivable Inventory, Net Inventory Obsolescence Reserve Estimated useful lives of asset Net Revenue Concentration Percentage Shares Issued Cash Paid Litigation Settlement, Amount Prepaid Deposit Prepaid Inventory Employees Advance Prepaid Expenses Others Total Amortization Expense Statistical Measurement [Axis] Convertible Principal Amount Convertible Debt, Addition/(Repayment) Conversion of Principal Amount Conversion of Principal Amount, Shares Convertible Debt Convertible Debt, Interest Annual Dividend Yield Expected life (years) Risk-free interest rate Expected volatility Balance Beginning Additions Mark to Market Reclassification to APIC due to conversions Ending Balance Commitments And Contingencies Details Narrative Monthly Rent Lease Term 2020 2021 2022 2023 Total lease payments Less: Imputed interest/present value discount Present value of lease liabilities Assemble Machine [Member] Changes in Fair value of Derivative Liabilities Convertible Note 08/22/2017 [Member] Convertible Note 12/03/2018 [Member] Convertible Note 12/26/2018 [Member] Convertible Note 12/26/2018 [Member] Convertible Note 02/26/2019 [Member] Convertible Note 02/26/2019 [Member] Convertible Note 01/08/2019 [Member] Convertible Note 01/24/2019 [Member] Convertible Note 01/22/2019 [Member] Convertible Note 01/22/2019 [Member] Convertible Note 07/17/2017 [Member] Convertible Note 07/12/2017 [Member] Convertible Note 03/04/2019 [Member] Convertible Note 03/04/2019 [Member] Convertible Note 11/01/2018 [Member] Convertible Note 11/16/2018 [Member] Convertible Note 11/16/2018 [Member] Convertible Note 11/01/2018 [Member] Convertible Note 11/01/2018 [Member] Convertible Note Payables TextBlock Convertible Note 09/26/2017 [Member] Convertible Note 09/20/2018 [Member] Convertible Note 09/20/2018 [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes Payable [Member] Convertible Notes [Member] Convertible Notes Payable [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Derivative Liabilities [Text Block] Additions Reclassification to APIC due to conversions Employee Advance Going Concern [Policy Text Block] Loan Payable [Text Block] Monthly Rent PP Production Molds [Member] Shares to be Issued [Text Block] Stock Warrant [Member] Stock warrants [Text Block] Warehouse Equipment [Member] Customer Concentration Risk [Member] Customer Concentration Risk [Member] Supplier Concentration Risk [Member] Supplier Concentration Risk [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Convertible Notes Payable [Member] Notes payable Due to Shareholders. Warrants liabilities Stock to be Issued Shares to be Issued Change in Exercise of Warrant Derivative Expense and amortization of debt discount Initial Valuation of Debt Discount Increase Decrease in Unearned Revenues, Proceeds From Share To Be Issued Reduction in derivative liability due to conversion Debt discount related to convertible debt Debts settled through shares issuance Shares To Be Issued Preferred Shares [Member] Shares To Be Issued Common Shares [Member] Shares issued for Debt Settlement Shares issued for Debt Settlement, Shares Reclass Derivative Liability From Conversion Shares to be issued for service compensation Shares to be issued for cash Shares Issued for Warrant Exercise Shares Issued for Warrant Exercise, in Shares Loan Receiveble Increase Decrease in Lease Libilities Increase decrease in Right of Use of Assets Shares to be Issued Liability [Text Block] Shares to be Cancelled Common Shares Shares to be Cancelled Preferred Shares Shares to be Cancelled Preferred Shares [Member] Shares to be Cancelled Common Shares [Member] Investment [Member] Option for Services. Shares issued for Award Biz Right Shares issued for Award Biz Right (in shares) Initial Valuation Of Bcf Shares Issued For LOI Shares Issued For LOI (in shares) Shares Issued For Eb5 Shares Issued For Eb5 (in shares) Debts Settled Through Shares Issuances Shares Issued For Award To Biz Right And To Be Cancelled In Future Shares To Be Cancelled Equity TextBlock Convertible Notes Payable Forty Member Notes payable due to shareholder ConvertibleNotesPayableSixMember ConvertibleNotesPayableSevenMember 9/13/2012 ConvertibleNotesPayableNineMember ConvertibleNotesPayableTenMember 10/5/2012 Derivative Liabilities [Default Label] ConvertibleNotesPayableThirteenMember ConvertibleNotesPayableFourteenMember ConvertibleNotesPayableSixteenMember ConvertibleNotesPayableSeventeenMember ConvertibleNotesPayableEighteenMember 10/25/2012 10/25/2012 [Default Label] ConvertibleNotesPayableTwentyMember ConvertibleNotesPayableTwentyOneMember ConvertibleNotesPayableTwentyTwoMember ConvertibleNotesPayableOneMember Document And Entity Information ConvertibleNotesPayableThreeMember ConvertibleNotesPayableTwentyThreeMember ConvertibleNotesPayableTwentyFourMember ConvertibleNotesPayableTwentyFiveMember ConvertibleNotesPayableTwentySixMember ConvertibleNotesPayableTwentySevenMember ConvertibleNotesPayableTwentyEightMember ConvertibleNotesPayableTwentyNineMember ConvertibleNotesPayableThirtyMember ConvertibleNotesPayableThirtyOneMember ConvertibleNotesPayableThirtyTwoMember ConvertibleNotesPayableFiveteenMember ConvertibleNotesPayableThirtyThreeMember ConvertibleNotesPayableThirtyFourMember ConvertibleNotesPayableThirtySixMember ConvertibleNotesPayableThirtySevenMember ConvertibleNotesPayableThirtyEightMember ConvertibleNotesPayableThirtyFiveMember ConvertibleNotesPayableThirtyNineMember ConvertibleNotesPayableFortyMember Assets, Current Assets [Default Label] Liabilities, Current Liabilities Stockholders' Equity Attributable to Parent Liabilities and Equity Gross Profit Operating Income (Loss) Interest Expense Other Expenses Shares, Outstanding SharesIssuedForDebtsSettlementShares DerivativeExpenseAndAmortizationOfDebtDiscount Increase (Decrease) in Accounts Payable and Accrued Liabilities Increase (Decrease) in Customer Deposits Increase (Decrease) in Other Operating Assets 9/13/2012 [Default Label] Payments to Acquire Property, Plant, and Equipment Repayments of Debt Proceeds from (Repayments of) Bank Overdrafts Net Cash Provided by (Used in) Financing Activities Cash and Cash Equivalents, Period Increase (Decrease) Intangible Assets Disclosure [Text Block] Convertible Note Payables Debt Disclosure [Text Block] Related Party Transactions Disclosure [Text Block] 10/5/2012 [Default Label] Subsequent Events [Text Block] Cash and Cash Equivalents, Policy [Policy Text Block] Receivable [Policy Text Block] Inventory, Policy [Policy Text Block] Share-based Payment Arrangement [Policy Text Block] EX-101.PRE 8 sgmd-20191231_pre.xml XBRL PRESENTATION FILE EX-101.SCH 9 sgmd-20191231.xsd XBRL SCHEMA FILE 00000001 - Document - Document and Entity Information link:presentationLink link:calculationLink link:definitionLink 00000002 - Statement - Condensed Consolidated Balance Sheets (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000003 - Statement - Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) link:presentationLink link:calculationLink link:definitionLink 00000004 - Statement - Consolidated Statements of Operations (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000005 - Statement - Condensed Consolidated Statements of Equity (Unaudited) link:presentationLink link:calculationLink link:definitionLink 00000006 - Statement - Consolidated Statements of Cash Flows Statement link:presentationLink link:calculationLink link:definitionLink 00000007 - Disclosure - Nature of Business link:presentationLink link:calculationLink link:definitionLink 00000008 - Disclosure - Summary of Significant Accounting Policies link:presentationLink link:calculationLink link:definitionLink 00000009 - Disclosure - Concentration link:presentationLink link:calculationLink link:definitionLink 00000010 - Disclosure - Equity Transaction - Exclusive License Rights link:presentationLink link:calculationLink link:definitionLink 00000011 - Disclosure - Legal Proceedings link:presentationLink link:calculationLink link:definitionLink 00000012 - Disclosure - Other Current Assets link:presentationLink link:calculationLink link:definitionLink 00000013 - Disclosure - Intangible Asset link:presentationLink link:calculationLink link:definitionLink 00000014 - Disclosure - Property and Equipment, net link:presentationLink link:calculationLink link:definitionLink 00000015 - Disclosure - Convertible Notes link:presentationLink link:calculationLink link:definitionLink 00000016 - Disclosure - Derivative Liabilities link:presentationLink link:calculationLink link:definitionLink 00000017 - Disclosure - Stock warrants link:presentationLink link:calculationLink link:definitionLink 00000018 - Disclosure - Note Payable link:presentationLink link:calculationLink link:definitionLink 00000019 - Disclosure - Related Party Transactions link:presentationLink link:calculationLink link:definitionLink 00000020 - Disclosure - Loans payable link:presentationLink link:calculationLink link:definitionLink 00000021 - Disclosure - Stockholder's Equity link:presentationLink link:calculationLink link:definitionLink 00000022 - Disclosure - Shares to be issued - liability link:presentationLink link:calculationLink link:definitionLink 00000023 - Disclosure - Shares to be issued - equity link:presentationLink link:calculationLink link:definitionLink 00000024 - Disclosure - Shares to be cancelled - equity link:presentationLink link:calculationLink link:definitionLink 00000025 - Disclosure - Commitments and Contingencies link:presentationLink link:calculationLink link:definitionLink 00000026 - Disclosure - Subsequent Event link:presentationLink link:calculationLink link:definitionLink 00000027 - Disclosure - Summary of Significant Accounting Policies (Policies) link:presentationLink link:calculationLink link:definitionLink 00000028 - Disclosure - Other Current Assets (Tables) link:presentationLink link:calculationLink link:definitionLink 00000029 - Disclosure - Derivative liabilities (Tables) link:presentationLink link:calculationLink link:definitionLink 00000030 - Disclosure - Summary of Significant Accounting Policies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000031 - Disclosure - Concentration (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000032 - Disclosure - Equity Transaction (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000033 - Disclosure - Legal Proceedings (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000034 - Disclosure - Other Current Assets (Details) link:presentationLink link:calculationLink link:definitionLink 00000035 - Disclosure - Intangible Asset (Details Narrative) link:presentationLink link:calculationLink link:definitionLink 00000036 - Disclosure - Convertible Notes (Details) link:presentationLink link:calculationLink link:definitionLink 00000037 - Disclosure - Derivative liabilities (Details) link:presentationLink link:calculationLink link:definitionLink 00000038 - Disclosure - Derivative liabilities (Details 2) link:presentationLink link:calculationLink link:definitionLink 00000039 - Disclosure - Commitments and Contingencies (Details Narrative) link:presentationLink link:calculationLink link:definitionLink EX-101.INS 10 sgmd-20191231.xml XBRL INSTANCE FILE 0000919175 2019-07-01 2019-12-31 0000919175 2019-06-30 0000919175 2019-12-31 0000919175 2017-02-20 2017-02-21 0000919175 2018-07-01 2018-12-31 0000919175 SGMD:ConvertibleNotesPayableFourMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableFiveMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableSixMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableSevenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableEightMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableNineMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableElevenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwelveMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirteenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableFourteenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableSixteenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableSeventeenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableEighteenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableFifteenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableNinteenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyOneMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyTwoMember 2019-07-01 2019-12-31 0000919175 us-gaap:DerivativeMember 2019-06-30 0000919175 us-gaap:DerivativeMember 2019-12-31 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputExpectedDividendRateMember 2019-07-01 2019-12-31 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2019-07-01 2019-12-31 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2019-07-01 2019-12-31 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MinimumMember 2019-07-01 2019-12-31 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MaximumMember 2019-07-01 2019-12-31 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputPriceVolatilityMember srt:MinimumMember 2019-07-01 2019-12-31 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputPriceVolatilityMember srt:MaximumMember 2019-07-01 2019-12-31 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputExpectedDividendRateMember 2017-07-01 2018-06-30 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputExpectedTermMember srt:MinimumMember 2017-07-01 2018-06-30 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputExpectedTermMember srt:MaximumMember 2017-07-01 2018-06-30 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MinimumMember 2017-07-01 2018-06-30 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputRiskFreeInterestRateMember srt:MaximumMember 2017-07-01 2018-06-30 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputPriceVolatilityMember srt:MinimumMember 2017-07-01 2018-06-30 0000919175 us-gaap:DerivativeMember us-gaap:MeasurementInputPriceVolatilityMember srt:MaximumMember 2017-07-01 2018-06-30 0000919175 SGMD:ConvertibleNotesPayableOneMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwoMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThreeMember 2019-07-01 2019-12-31 0000919175 2018-03-01 2018-03-31 0000919175 2018-03-31 0000919175 SGMD:ConvertibleNotesPayableTwentyThreeMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyFourMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyFiveMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentySixMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentySevenMember 2019-07-01 2019-12-31 0000919175 us-gaap:LicensingAgreementsMember 2017-12-13 0000919175 us-gaap:LicensingAgreementsMember 2019-06-30 0000919175 SGMD:ConvertibleNotesPayableTwentyEightMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyNineMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyOneMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyTwoMember 2019-07-01 2019-12-31 0000919175 SGMD:SupplierConcentrationRiskOneMember 2019-07-01 2019-12-31 0000919175 SGMD:SupplierConcentrationRiskTwoMember 2019-07-01 2019-12-31 0000919175 us-gaap:DerivativeMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableOneMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwoMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThreeMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableFourMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableFiveMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableSixMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableSevenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableEightMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableNineMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableElevenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwelveMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirteenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableFourteenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableFiveteenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableSixteenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableSeventeenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableEighteenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableNinteenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyOneMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyTwoMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyThreeMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyFourMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyFiveMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentySixMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentySevenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyEightMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableTwentyNineMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyOneMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyTwoMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyThreeMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyThreeMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyFourMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyFourMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtySixMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtySixMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtySevenMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtySevenMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyEightMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyEightMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyFiveMember 2019-07-01 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyNineMember 2019-07-01 2019-12-31 0000919175 2018-12-31 0000919175 us-gaap:PreferredStockMember 2019-12-31 0000919175 us-gaap:PreferredStockMember 2019-06-30 0000919175 us-gaap:CommonStockMember 2019-12-31 0000919175 us-gaap:CommonStockMember 2019-06-30 0000919175 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000919175 us-gaap:AdditionalPaidInCapitalMember 2019-06-30 0000919175 SGMD:SharesToBeIssuedCommonSharesMember 2019-12-31 0000919175 SGMD:SharesToBeIssuedCommonSharesMember 2019-06-30 0000919175 us-gaap:RetainedEarningsMember 2019-12-31 0000919175 us-gaap:RetainedEarningsMember 2019-06-30 0000919175 2020-02-17 0000919175 us-gaap:PreferredStockMember 2020-02-17 0000919175 us-gaap:PreferredStockMember 2018-12-31 0000919175 us-gaap:CommonStockMember 2018-06-30 0000919175 us-gaap:CommonStockMember 2018-12-31 0000919175 us-gaap:AdditionalPaidInCapitalMember 2018-06-30 0000919175 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000919175 SGMD:SharesToBeIssuedPreferredSharesMember 2018-06-30 0000919175 SGMD:SharesToBeIssuedCommonSharesMember 2018-06-30 0000919175 us-gaap:RetainedEarningsMember 2018-06-30 0000919175 us-gaap:RetainedEarningsMember 2018-12-31 0000919175 2018-06-30 0000919175 2018-09-30 0000919175 us-gaap:MachineryAndEquipmentMember 2019-04-01 2019-12-31 0000919175 us-gaap:FurnitureAndFixturesMember 2019-04-01 2019-12-31 0000919175 us-gaap:AutomobilesMember 2019-04-01 2019-12-31 0000919175 us-gaap:LicensingAgreementsMember 2019-12-31 0000919175 2019-10-01 2019-12-31 0000919175 2018-10-01 2018-12-31 0000919175 us-gaap:PreferredStockMember 2019-07-01 2019-09-30 0000919175 us-gaap:PreferredStockMember 2019-10-01 2019-12-31 0000919175 us-gaap:PreferredStockMember 2019-09-30 0000919175 us-gaap:CommonStockMember 2019-07-01 2019-09-30 0000919175 us-gaap:CommonStockMember 2019-10-01 2019-12-31 0000919175 us-gaap:CommonStockMember 2018-07-01 2018-09-30 0000919175 us-gaap:CommonStockMember 2018-10-01 2018-12-31 0000919175 us-gaap:CommonStockMember 2019-09-30 0000919175 us-gaap:CommonStockMember 2018-09-30 0000919175 us-gaap:AdditionalPaidInCapitalMember 2019-07-01 2019-09-30 0000919175 us-gaap:AdditionalPaidInCapitalMember 2019-10-01 2019-12-31 0000919175 us-gaap:AdditionalPaidInCapitalMember 2018-07-01 2018-09-30 0000919175 us-gaap:AdditionalPaidInCapitalMember 2018-10-01 2018-12-31 0000919175 us-gaap:AdditionalPaidInCapitalMember 2019-09-30 0000919175 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0000919175 SGMD:SharesToBeCancelledPreferredSharesMember 2019-10-01 2019-12-31 0000919175 SGMD:SharesToBeCancelledPreferredSharesMember 2019-12-31 0000919175 SGMD:SharesToBeCancelledCommonSharesMember 2019-10-01 2019-12-31 0000919175 SGMD:SharesToBeCancelledCommonSharesMember 2019-12-31 0000919175 SGMD:InvestmentMember 2018-10-01 2018-12-31 0000919175 SGMD:InvestmentMember 2018-12-31 0000919175 SGMD:SharesToBeIssuedPreferredSharesMember 2018-10-01 2018-12-31 0000919175 SGMD:SharesToBeIssuedPreferredSharesMember 2018-09-30 0000919175 SGMD:SharesToBeIssuedCommonSharesMember 2019-07-01 2019-09-30 0000919175 SGMD:SharesToBeIssuedCommonSharesMember 2019-10-01 2019-12-31 0000919175 SGMD:SharesToBeIssuedCommonSharesMember 2018-07-01 2018-09-30 0000919175 SGMD:SharesToBeIssuedCommonSharesMember 2018-10-01 2018-12-31 0000919175 SGMD:SharesToBeIssuedCommonSharesMember 2018-09-30 0000919175 us-gaap:RetainedEarningsMember 2019-07-01 2019-09-30 0000919175 us-gaap:RetainedEarningsMember 2019-10-01 2019-12-31 0000919175 us-gaap:RetainedEarningsMember 2018-07-01 2018-09-30 0000919175 us-gaap:RetainedEarningsMember 2018-10-01 2018-12-31 0000919175 us-gaap:RetainedEarningsMember 2019-09-30 0000919175 us-gaap:RetainedEarningsMember 2018-09-30 0000919175 2019-07-01 2019-09-30 0000919175 2018-07-01 2018-09-30 0000919175 2019-09-30 0000919175 SGMD:ConvertibleNotesPayableThirtyFiveMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableThirtyNineMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableFortyMember 2019-12-31 0000919175 SGMD:ConvertibleNotesPayableFortyMember 2019-07-01 2019-12-31 iso4217:USD xbrli:shares iso4217:USD xbrli:shares xbrli:pure Sugarmade, Inc. 0000919175 10-Q 2019-12-31 false --06-30 Yes Non-accelerated Filer Q2 2020 218145 158000 356285 495086 2719875 2458692 2991953 3259345 2991953 3259345 1474784 2886885 720810 1445269 -273299 -3661418 2314089 713207811 2415000 120486 10580 307000 3538927 -957488 11770 1451687 1022500 false true 0.0151 0.0209 0.0249 0.0272 1.21 1.53 0.87 1.23 P6M P1Y P6M P1Y 358702 97768 172045 44308 16052 2145000 2314498 6000000 870000 870000 28075 2118 1625841 25000 25000 100000 100000 1375000 267500 100000 80000 40000 35000 250000 105000 100000 53000 100000 250000 100000 100000 125000 125000 125000 125000 125000 162000 153000 275000 275000 200000 165000 165000 225000 225000 125000 106150 106700 106700 112200 106150 139301 100000 700 700 P5Y <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>13.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Related party transactions</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 23, 2013, the Company entered into a promissory note with its former employee who owns less than 5% of the Company&#8217;s stock. The original principal amount was $40,000 and the note bore no interest. The note was payable upon demand. As of December 31, 2019 and June 30, 2019, this note had a balance of $18,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 14, 2015, the Company entered into a promissory note with Richard Ko (an employee of the Company, who owns less than 5% of the Company&#8217;s stock). The principle amount was $30,000 and the note bore no interest. The note had a term of one (1) year and was due on January 14, 2016, and became payable upon demand after January 14, 2016. As of December 31, 2019 and June 30, 2019, this note had a balance of $0 and $20,000, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and June 30, 2019, the Company had an outstanding balance of notes payable due to related parties of $18,000 and $38,000, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 7, 2016, SWC received a loan in total amount of $30,000 from an employee. During the three months ended December 31, 2019, SWC received additional loan in total amount of 105,000 from a related party. The amount of the loan bear no interest and due on demand. As of December 31, 2019 and June 30, 2019, the balance of the loan due to related party were $135,000 and $30,000, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;<font style="color: #222222">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; color: #222222">From time to time, SWC would receive short-term loans from company former director for its working capital needs.</p> 200000000 0.1000 0.1000 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.0800 0.1000 0.1000 0.1000 0.0800 0.0800 0.1000 0.0800 0.0800 0.1000 0.0800 0.0800 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 0.08 <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>1.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Nature of Business</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Sugarmade, Inc. (hereinafter referred to as&#8217;&#8216;we&#8217;&#8217;, &#8217;&#8216;us&#8221; or &#8220;the/our Company&#8217;&#8217;) is a publicly traded company incorporated in the state of Delaware. Our previous legal name was Diversified Opportunities, Inc. Our Company, Sugarmade, Inc. operates much of its business activities through our subsidiary, SWC Group, Inc., a California corporation (&#8220;SWC&#8217;&#8217;).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Sugarmade, Inc. was founded in 2010. In 2014, CarryOutSupplies.com was acquired by Sugarmade, Inc., creating the Company as it is today. As of the end of the reporting period, September 30, 2019, we were involved in two businesses including the supply of products to the quick service restaurant sub-sector of the restaurant industry and as an importer, distributor and marketer of hydroponic supplies to various agricultural sectors. We had previously been a marketer of culinary seasoning products Seasoning Stix and Sriracha Seasoning Stix and a marketer of tree-free paper products. These products were discontinued during 2018 in order to focus the majority of our corporate resources on the marketing of hydroponic supplies.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The marketplace in which we plan to be mainly engaged is generally referred to as hydroponic agricultural supplies. While some of our customers are engaged in the legal cultivation, processing and/or distribution of cannabis or cannabis containing products, our Company neither sells any products containing cannabis nor do we handle, process, or distribute any products containing cannabis.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our legacy business operation, CarryOutSupplies.com, is a producer and wholesaler of custom printed and generic supplies servicing more than 2,000 quick service restaurants. Our products include double poly paper cups for cold beverage; disposable, clear, plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, food containers, soup containers, plastic spoons and many other similar products for this market sector. CarryOutSupplies.com was founded in 2009 when the founders gained first-hand experience within the restaurant industry of the difficulty for restaurant owners to acquire custom printed supplies at a reasonable cost. Many quick service restaurants wish to acquire custom printed products, such as those embossed with logos, but the minimum order size for such customization had been cost prohibitive. With that in mind, carry out supplies was founded to provide products to this underserved section of the market. Since that time, the company has become a key supplier to many popular U.S. franchises, particularly in the frozen dessert segments.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During December 2017, the Company entered into a master marketing agreement with BizRight, LLC, a leading marketer and manufacturer of hydroponic growth supplies, which offers a range of&#160;hydroponics-related products including: HPS grow lights, electronic ballasts, HPS Bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other grow and storage products. BizRight operates the ZenHydro.com website and other e-commerce properties, and sells various products to distributors and retailers. On April 11, 2018, the same rights under the master marketing agreement were assigned to BZRTH Inc. On February 5, 2019, the Company exercised its option to acquire BZRTH and the transaction had been closed on October 30, 2019. On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (&#8220;Agreement&#8221;) with each of the parties agreeing to rescind the transaction and return all consideration exchanged pursuant to the Stock Exchange Agreement.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In October 2018 and January 2019, the Company had intents to acquire two suppliers or retailers of hydroponic equipment. As of the date of this report, the Company is no longer pursuing these acquisitions.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>2.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Summary of Significant Accounting</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Policies Basis of presentation</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management&#8217;s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These interim condensed consolidated financial statements should be read in conjunction with our Company&#8217;s Annual Report on Form 10-K for the year ended June 30, 2019, which contains our audited consolidated financial statements and notes thereto, together with the Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operation, for the year ended June 30, 2019. The interim results for the period ended December 31, 2019 are not necessarily indicative of the results for the full fiscal year.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Principles of consolidation</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The condensed consolidated unaudited financial statements include the accounts of our Company and its wholly-owned subsidiaries, SWC Group Inc. All significant intercompany transactions and balances have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Going concern</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company sustained continued losses from operations during the six months ended December 31, 2019 and for the fiscal year ended June 30, 2019. The Company&#8217;s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management is endeavoring to increase revenue-generating operations. While priority is on generating cash from operations through the sale of the Company&#8217;s products, management is also seeking to raise additional working capital through various financing sources, including the sale of the Company&#8217;s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Use of estimates</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Revenue recognition</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i><font style="color: #222222">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize revenue in accordance with Financial Accounting Standards Board Accounting Standards Codification (&#8220;FASB ASC&#8217;&#8217;) No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; color: #222222">Substantially all of the Company&#8217;s revenue is recognized at the time control of the products transfers to the customer.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white"><font style="color: #222222">&#160;</font>&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Cash</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents consist of amounts held as bank deposits and highly liquid debt instruments purchased with an original maturity of three months or less.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From time to time, we may maintain bank balances in interest bearing accounts in excess of the $250,000 currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). We have not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Accounts receivable</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customer&#8217;s deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. The Company had accounts receivable net of allowances of $158,000 as of December 31, 2019 and of $218,145 as of June 30, 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Inventory</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company&#8217;s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of December 31, 2019 and June 30, 2019, the balance for the inventory totaled $495,086 and $356,285, respectively. Obsolescence reserve at December 31, 2019 and June 30, 2019 were $10,580 and $120,486, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Property and equipment</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 53%">Machinery equipment</td> <td style="width: 1%">&#160;</td> <td style="width: 46%; text-align: right">5 years</td></tr> <tr style="vertical-align: bottom"> <td>Furniture and equipment</td> <td>&#160;</td> <td style="text-align: right">7 years</td></tr> <tr style="vertical-align: bottom"> <td>Vehicles</td> <td>&#160;</td> <td style="text-align: right">7 years</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the six months ended December 31, 2019 and 2018.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Impairment of Long-Lived Assets</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset's expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company, as of June 30, 2019, performed an impairment test of all of its intangible assets. Based on the company&#8217;s analysis, the company had an amortization of intangible assets of $700 for the six months ended December 31, 2019 and 2018, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Leases </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB established Topic 842,&#160;Leases, by issuing ASU No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11,&#160;Targeted Improvements, ASU No. 2018-10,&#160;Codification Improvements to Topic 842, and ASU No. 2018-01,&#160;Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the &#8220;package of practical expedients&#8221;, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The new standard also provides practical expedients for an entity&#8217;s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. After the adoption, $455,590 of operating lease right-of-use asset and $465,826 of operating lease liabilities were not retroactively reflected to June 30, 2019 financial statements, and $416,421 of operating lease right-of-use asset and $428,907 of operating lease liabilities were reflected to December 31, 2019 financial statements.</p> <p style="font: 8pt Calibri, Helvetica, Sans-Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Income taxes</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the implementation of certain provisions of ASC 740, Income Taxes (&#8220;ASC 740&#8221;), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of October 2, 2008, and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as open tax years in these jurisdictions. We have identified the U.S. federal and California as our &#8220;major&#8221; tax jurisdictions and generally, we remain subject to Internal Revenue Service examination of our 2013 U.S. federal income tax returns. However, we have certain tax attribute carryforwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. We have no interest or penalties as of December 31, 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Stock based compensation</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee&#8217;s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company&#8217;s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Loss per share&#9;</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We calculate basic earnings per share (&#8220;EPS&#8221;) by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income or net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Fair value of financial instruments</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 2 - include other inputs that are directly or indirectly observable in the marketplace.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 3 - unobservable inputs which are supported by little or no market activity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the six months ended December 31, 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Derivative instruments</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Segment Reporting</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">FASB ASC Topic 280, &#8220;Segment Reporting&#8221;, requires use of the &#8220;management approach&#8221; model for segment reporting. The management approach model is based on the way a company&#8217;s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">FASB ASC Topic 280 has no effect on the Company&#8217;s financial statements as substantially all of its operations are conducted in one industry segment &#8211; paper and paper-based products such as paper cups, cup lids, food containers, etc.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>New accounting pronouncements </i></b><font style="font-size: 8pt">&#160;&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>&#160;</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (&#8220;ROU&#8221;) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company adopted this ASU on the consolidated financial statements in the quarter ended December 31, 2019.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>3.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Concentration</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>&#160;</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Customers</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>&#160;</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the six months ended December 31, 2019 and 2018, our Company earned net revenues of $1,474,784 and $2,886,885 respectively. The vast majority of these revenues for the period ending December 31, 2019 were derived from a large number of customers, whereas the vast majority of these revenues for the period ending December 31, 2018 were derived from a limited number of customers. No customers accounted for over 10% of the Company&#8217;s total revenues for the period ended December 31, 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Suppliers</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the six months ended December 31, 2019 and 2018, we purchased products for sale from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company's inventory is purchased from two (2) suppliers. The two (2) suppliers accounted as follows: Two suppliers accounted for 38.63% and 38.38% of the Company's total inventory purchase for the six months ended December 31, 2019 and 2018, respectively.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 3px">&#160;</td> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>4.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Equity Transaction - Exclusive License Rights and Acquisition</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 13, 2017, we entered into a Master Marketing Agreement with BizRight, LLC (&#8220;BizRight&#8221;), a leading marketer and manufacturer of hydroponic growth supplies, which offers a range of&#160;hydroponics-related products including: HPS grow lights, electronic ballasts, HPS Bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other grow and storage products. BizRight operates the ZenHydro.com website and other e-commerce properties, and sells various products to distributors and retailers.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Under the terms of the Master Marketing Agreement, all products procured, developed and imported by BizRight will be sold by the Company. The expected term of the exclusive license rights is 20 years. BizRight and its owners will be compensated via a combination of cash and common shares in Sugarmade. Effective the contract date, Bizright will be compensated Two hundred million (200,000,000) common shares. Sugarmade will compensate BizRight and its owners six million dollars ($6,000,000) in cash. The amount due will be divided over 3 payments equally and are contingent upon the filing of the S-1 and significant funding.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We began recognizing revenues under this marketing agreement during April 2018 and stopped recognizing the revenue early 2019 upon exercise of the purchase option under the agreement. As of June 30, 2019, BizRight had assigned the marketing agreement to its operating entity, BZRTH and the Company had exercised the option to purchase 100% equity ownership of BZRTH.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of June 30, 2019, cash of $870,000 and 200 million shares of the Company&#8217;s common stock had been paid and issued in connection with the acquisition.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 30, 2019, SGMD closed the previously announced acquisition of BZRTH, Inc., a Nevada corporation (&#8220;BZRTH&#8221;) pursuant to a Stock Exchange Agreement. The total consideration to be paid by the Company to acquire BZRTH was 650,000,000 shares of SGMD&#8217;s common stock, 3,500,000 shares of Series B convertible preferred stock, $870,000 in cash, and 5% promissory notes in the sum of $7,130,000.00 due on or before October 31, 2021 to the BZRTH shareholders. $870,000 of cash had been paid along with 449,373,817 common shares and 750,000 Series B Convertible Preferred shares.</p> <p style="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019, cash of $870,000 and 249 million shares of the Company&#8217;s common stock had been paid and issued in connection with the acquisition.</p> <p style="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (&#8220;Agreement&#8221;) with each of the parties agreeing to return all consideration exchanged pursuant to the Stock Exchange Agreement.</p> <p style="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt/11.5pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The shareholders of BZRTH have agreed to surrender for cancellation, 449,373,817 common shares and 750,000 Series B Convertible Preferred shares. On an as converted to common basis the returns to Sugarmade&#8217;s treasury equal 449,373,817 relating to the common shares to be surrendered and 750,000,000 million common shares equivalents due to each Series B Convertible Preferred share converting to common shares on a 1 for 1,000 basis. Thus, on a common share equivalent basis, the surrender equals 1,199,373,817 common shares, if all Preferred Series B were converted. As part of the Agreement, the Company will retain or will receive 102,248 shares in BZRTH.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>5.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Legal Proceedings</i></b><font style="font-size: 8pt">&#160;&#160;</font></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>&#160;</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 10pt 10pt 0; text-align: justify">From time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of date of this filing, there were no legal claims currently pending or, to our knowledge, threatened against our Company that, in the opinion of our management, would be likely to have a material adverse effect on our financial position, results of operations or cash flows, except as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 10pt 10pt 20pt; text-align: justify">&#8226; On December 11, 2013, the Company was served with a complaint from two Convertible Note Holders and investors in the Company, Lovitt &#38; Hannan, Inc. Salary Deferral Plan FBO J. Thomas Hannan, Attorney at Law 401K Plan and Trust, and Kevin M. Kearney. The Company's former CEO, Scott Lantz, was also named in the suit. On February 21, 2017, the Company signed a settlement agreement with the plaintiffs. Under the terms of the settlement agreement, the Company agreed to pay the plaintiffs $307,000 to settle all claims against the Company, which included the payoff of the two notes outstanding within one (1) week. Upon receipt of all payments, plaintiffs will surrender for cancellation 230,000 of the Company's shares within ten (10) days. The parties agreed that all claims against the Company would be satisfied through such payments and that the matter would be fully resolved. As of June 30, 2018, third-parties had purchased two (2) notes of approximately $80,000, reducing the Company's exposure by $80,000. As of the date of this filing the balance for accrued legal settlement for Hannan vs Sugarmade has been reduced to $227,000, plus interest until the date of complete payoff.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 10pt 10pt 20pt; text-indent: 0pt; text-align: justify">&#8226; On August 13, 2019, a lawsuit was filed against the Company for unpaid legal fees of $50,000.00, which originates from the Company&#8217;s former chairman and CEO.&#160; The Company was served in or around September 2019.&#160; The Company has filed a response to the underlying complaint to preserve its rights to defend the lawsuit should it become necessary. However, the Company plans to amicably resolve this matter and anticipates that it will be settled and dismissed.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">There can be no assurances the ultimate liability relative to these lawsuits will not exceed what is outlined above.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>6.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Other Current Assets</i></b><font style="font-size: 8pt">&#160;&#160;</font></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and June 30, 2019, other current assets consisted of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="7" style="text-align: center">For the periods ended</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: justify">&#160;</td> <td style="padding-bottom: 1pt">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1pt">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">June 30, 2019</td></tr> <tr style="vertical-align: bottom"> <td style="width: 58%; padding-left: 5.4pt; text-align: justify">Prepaid Deposit</td> <td style="width: 8%">&#160;</td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">2,314,498</td> <td style="width: 1%">&#160;</td> <td style="width: 8%">&#160;</td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">2,145,000</td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Prepaid Inventory</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">44,308</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">172,045</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Employees Advance</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">&#8212;&#160;&#160;</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">16,052</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Prepaid Expenses</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">97,768</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">358,702</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Other</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">2,118</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">28,075</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Total:</td> <td>&#160;</td> <td>$</td> <td style="text-align: right">2,458,692</td> <td>&#160;</td> <td>&#160;</td> <td>$</td> <td style="text-align: right">2,719,875</td> <td>&#160;</td></tr> </table> <p style="margin-top: 0; margin-bottom: 0"></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our 2,314,498 in prepaid deposit as of December 31, 2019 was mainly related to the following investments to other companies:</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 120px">&#160;</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px">a.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">$1,175,000 related to investment in Sky Unlimited;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 120px">&#160;</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px">b.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">$196,000 related to investment in Hempistry Inc.;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="width: 120px">&#160;</td> <td style="font: 10pt Times New Roman, Times, Serif; width: 24px">c.</td> <td style="font: 10pt Times New Roman, Times, Serif; text-align: justify">$870,000 paid for BZRTH acquisition.</td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>7.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Intangible Asset</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On August 21, 2017, the Company entered into an intellectual property assignment agreement with Sound Decisions to revamp the company&#8217;s shoplifty website to generate and attract more traffic from potential customers. The Company made a payment of $14,000 for the website (intellectual property). The Company amortized this use right as intangible asset over ten years, and recorded amortization expense of $700 for the periods ended December 31, 2019 and June 30, 2019, respectively.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>9.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Convertible Notes</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>&#160;</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and June 30, 2019, the balance owing on convertible notes, net of debt discount, with terms as described below was $1,378,221 and $1,046,909, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Convertible notes issued as of September 30, 2019 were as follows:</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 1: On August 24, 2012, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of December 31, 2019, the note is in default.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 2: On September 18, 2012, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of December 31, 2019, the note is in default.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 3: On December 21, 2012, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of December 31, 2019, the note is in default.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 4: On March 1, 2017, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has been purchased by other investor in total amount of $156,067 with a term of nine (9) months with an interest rate of 10% and is convertible to common shares at a 45% discount to the then current market price of our shares. As of December 31, 2019, the remaining balance of note was $60,751.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b>&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 5: On May 17, 2017, the Company entered a convertible promissory note with an investor for a total amount of $1,375,000 (after $10,000 legal and due diligence fee) with an OID of $125,000, the note will be fulfilled through a series of funding. The note is due 12 months after each funding date and bears an interest rate of 10%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. In connection with the note, the investor will also receive warrants and is calculated based on 15% of the maturity amount. The warrants have a life of four years with exercise price of $0.15 per share and have cashless exercise option. During the three months ended September 30, 2019, the holder exercised 1,766,544 cashless warrant shares into 28,381,818 shares of the Company&#8217;s common stock. On September 23, 2019, the remaining warrant shares were settled by exchange $200,000 convertible note with interest of 10% per annum, due on September 23, 2020, with conversion price of 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the original principal balance has been fully converted, the remaining default charge balance of the note was $250,000, and the new convertible note balance was $200,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 6: On September 20, 2018, the Company entered a convertible promissory note with an accredited investor for a total amount of $267,500 (includes $5,000 legal fee and an OID of $12,500). The note is due 360 days and bears an interest rate of 8%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the principal balance of 245,000 has been fully converted into the Company&#8217;s common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 7: On November 1, 2018, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 8: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $80,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 9: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $40,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 10: On December 3, 2018, the Company entered into a convertible promissory note with an accredited investor for $35,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 11: On December 26, 2018, the Company entered a convertible promissory note with an accredited investor for a total amount of $250,000 (includes $5,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 45% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 12: On January 8, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $105,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 35% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 13: On January 22, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 42% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, the note has been fully converted.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 14: On January 24, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $53,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 35% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, the note has been fully converted.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 15: On February 26, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 42% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, the note has been fully converted.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 16: On March 4, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $250,000 (includes $7,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 17: On April 2, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 18: On April 4, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 19: On May 2, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 20: On May 7, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,500 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 21: On May 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 22: On June 12, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,500 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 23: On July 3, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% discount of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;Convertible note 24: On July 30, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $162,000 (includes $7,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% discount of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 25: On August 14, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $153,000 (includes $3,000 OID). The note is due 360 days and bear an interest rate of 10%. The conversion price for the note is 65% of the average of lowest two closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 26: On August 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $275,000 (includes $37,500 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 27: On August 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $275,000 (includes $25,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 28: On September 23, 2019, the Company entered a warrant settlement agreement to exchange convertible promissory note for a total amount of $200,000. The note is due 360 days and bear an interest rate of 10%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully settled by $127,321 of cash and 18,181,818 shares of common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 29: On September 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $165,000 (includes $16,250 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 30: On September 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $165,000 (includes $16,250 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 31: On October 28, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $225,500 (includes $23,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 32: On October 28, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $225,500 (includes $23,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 33: On November 14, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $3,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the average three lowest closing bid for the 10 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 34: On November 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,150 (includes $11,150 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 35: On November 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,150 (includes $11,150 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 36: On December 10, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,700 (includes $11,700 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 37: On December 10, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,700 (includes $11,700 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 38: On December 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $112,200 (includes $12,200 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 39: On October 31, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $139,301. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is $0.008 per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Convertible note 40: On November 1, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is $0.008 per share.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In connection with the convertible debt, debt discount balance as of December 31, 2019 and June 30, 2019 were $2,015,634 and $1,189,341, respectively, and were being amortized and recorded as interest expenses over the term of the convertible debt.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>10.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Derivative liabilities</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The derivative liability is derived from the conversion features in note 9 and stock warrant in note 11. All were valued using the Binomial option pricing model using the assumptions detailed below. As of December 31, 2019 and June 30, 2019, the derivative liability was $3,259,345 and $2,991,953, respectively. The Company recorded $2,314,046 gain and $,3,661,383 loss from changes in derivative liability during the six months ended December 31, 2019 and 2018, respectively. The Binomial Option Price Model with the following assumption inputs:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 105%"><font style="line-height: 105%"><b>December 31, 2019</b></font></td></tr> <tr style="vertical-align: bottom"> <td style="width: 81%; line-height: 105%"><font style="line-height: 105%">Annual dividend yield</font></td> <td style="width: 5%; line-height: 105%">&#160;</td> <td style="width: 1%; line-height: 105%">&#160;</td> <td style="width: 12%; text-align: right; line-height: 105%"><font style="line-height: 105%">&#8212;&#160;&#160;</font></td> <td style="width: 1%; line-height: 105%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Expected life (years)</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">0.5-1.00</font></td> <td style="line-height: 105%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Risk-free interest rate</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">1.51-2.09</font></td> <td style="line-height: 105%"><font style="line-height: 105%">%</font></td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Expected volatility</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">121-153</font></td> <td style="line-height: 105%"><font style="line-height: 105%">%</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 105%"><font style="line-height: 105%"><b>December 31, 2018</b></font></td></tr> <tr style="vertical-align: bottom"> <td style="width: 81%; line-height: 105%"><font style="line-height: 105%">Annual dividend yield</font></td> <td style="width: 5%; line-height: 105%">&#160;</td> <td style="width: 1%; line-height: 105%">&#160;</td> <td style="width: 12%; text-align: right; line-height: 105%"><font style="line-height: 105%">&#8212;&#160;&#160;</font></td> <td style="width: 1%; line-height: 105%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Expected life (years)</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">0.5-1.00</font></td> <td style="line-height: 105%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Risk-free interest rate</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">2.49-2.72</font></td> <td style="line-height: 105%"><font style="line-height: 105%">%</font></td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Expected volatility</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">87-123</font></td> <td style="line-height: 105%"><font style="line-height: 105%">%</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 12pt"><b>&#160;</b></font><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Fair value of the derivative is summarized as below:</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="border-bottom: black 1pt solid; width: 75%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%"><b>Beginning Balance, June 30, 2019</b></font></td> <td style="border-bottom: black 1pt solid; width: 25%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%"><b>$2,991,953</b></font></td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%">Additions</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%">3,538,927</font></td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%">Mark to Market</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%">2,314,089</font></td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%">Reclassification to APIC due to conversions</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%">(957,488)</font></td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%"><b>Balance, December 31, 2019</b></font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%"><b>$3,259,345</b></font></td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>11.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Stock warrants</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On May 17, 2017, the Company entered a promissory note with an accredited investor for a total amount of $1,375,000 (after $10,000 legal and due diligence fee) with an OID of $125,000, the note will be fulfilled through a series of funding. In connection with the note, the investor will also receive warrants and is calculated based on 15% of the maturity amount. The warrants have a life of four years with an exercise price of $0.15 per share and have cashless exercise option. The fair value of the warrants at the grant date was $40,400. During the three months ended September 30, 2019, the holder exercised 1,766,544 cashless warrant shares into 28,381,818 shares of the Company&#8217;s common stock. On September 23, 2019, the remaining warrant shares were settled by exchange $200,000 convertible note with interest of 10% per annum, due on September 23, 2020, with conversion price of 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On September 7, 2018, the Company entered a settlement agreement with several investors to settle all disputes by issues additional unrestricted shares. In connection with the note each individual investor will also receive warrants equal to the number of the shares the investors own as of the effective date of the settlement agreement. The warrants have a life of five years with an exercise price as of the date of exchange. The fair value of the warrants at the grant date was $56,730. As of December 31, 2019 and June 30, 2019, the fair value of the warrant liability was $15,663 and $19,103, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and June 30, 2019, the total fair value of the warrant liability was $15,663 and $24,658, respectively.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>12.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Note payable due to bank</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During October 2011, we entered into a revolving demand note (line of credit) arrangement with HSBC Bank USA, with a revolving borrowing limit of $150,000. The line of credit bears a variable interest rate of one quarter percent (0.25%) above the prime rate (5.5% as of December 20, 2018). In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate. As of December 31, 2019 and June 30, 2019, the loan principal balance was $25,982. As of December 31, 2019, the note is in default.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>15.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Stockholder&#8217;s Equity</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">The Company is authorized to issue 1,990,000,000 shares of $.001 par value common stock and 10,000,000 shares of $.001 par value preferred stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Share issuance during the three months ended September 30, 2019 - </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended September 30, 2019, the Company issued 1,000,000 shares of common stock to settle the old liability to be issued in total amount of $29,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended September 30, 2019, the Company issued 71,915,557 shares of common stock for debt conversions in total amount of $547,833.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended September 30, 2019, the Company issued 11,348,591 shares of common stock for cash in total amount of $100,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended September 30, 2019, the Company issued 28,381,818 shares of common stock for warrant exercise in total amount of $14,132.&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of September 30, 2019 and June 30, 2019, the Company had 2,000,000 share of its preferred stock, 810,254,536 and 697,608,570 shares of its common stock, respectively, issued and outstanding.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Share issuance during the three months ended December 31, 2019 - </b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company issued 18,181,818 shares of common stock to settle the old liability to be issued in total amount of $290,455.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company issued 24,994,341 shares of common stock for convertible debt principal with interest conversions in total amount of $142,165.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company issued 26,621,610 shares of common stock for cash in total amount of $240,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company issued 500,000 shares of common stock for employee bonus in total fair value of $7,550.&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company issued 249,373,817 shares of common stock for acquisition of BZRTH in total fair value of $3,566,046. The shares are to be cancelled in subsequent period pursuant to the rescission on January 15, 2020.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company issued 750,001 shares of preferred stock for acquisition of BZRTH in total fair value of $10,725,014. The shares of preferred stock are to be cancelled in subsequent period pursuant to the rescission on January 15, 2020.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company issued 415,000 shares of series B preferred stock for award to employee bonus in total fair value of $5,934,500.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and June 30, 2019, the Company had 3,165,001 share of its preferred stock, 1,129,926,122 and 697,608,570 shares of its common stock, respectively, issued and outstanding.&#160;</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>14.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Loans payable</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;<font style="color: red">&#160;</font></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 December 31, 2019 and June 30, 2019, the note was in default and the outstanding balance under this note was $63,924 and $63,924, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="color: red"><b>&#160;</b></font>&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 December 31, 2019 and June 30, 2019, the outstanding balance with Greater Asia loans were $100,000 and $100,000, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 December 31, 2019 and June 30, 2019, the Company has an outstanding balance of $0 and $3,584.&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 17, 2018, the Company entered into a repayment agreement with an individual for $100,000 at no interest. As of December 31, 2019 and June 30, 2019, the Company has an outstanding balance of $2,740 and $17,834, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0 12.95pt 0 13.55pt; text-align: justify">&#160;&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">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 December 31, 2019 and June 30, 2019, the outstanding balance under this loan were $0 and $29,243, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">As of December 31, 2019 and June 30, 2019, the Company had an outstanding loan balance of $192,030 and $214,585, respectively.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>17.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Shares to be issued &#8211;equity</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of the year ended June 30, 2019, the Company had potential shares to be issued under common stock in total amount of $29,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended September 30, 2019, the Company issued the $29,000 share to be issued &#8211; equity by 1,000,000 shares of the Company&#8217;s common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company recorded in total amount of $100,000 potential share to be issued &#8211; equity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and June 30, 2019, the Company had total potential shares to be issued under common stock and preferred stock in total amount of $100,000 and $29,000, respectively.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>19.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Commitments and contingencies</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 23, 2018 the Company entered into lease agreement for a new office space as part of the plan to expand operation, the lease is set to commence Commencing March 1, 2018. The term of the lease is for a (5) Five Years with 1 month free on the 1<sup>st</sup>&#160;year of the term. The monthly rent on the 1<sup>st</sup>&#160;year will be $11,770 with a 3% increase for each subsequent year. Total commitment for the full term of the lease will be $737,367. As of the date of this filing, this property became the headquarter of the company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>Six Months Ended</b></td> <td rowspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>December 31, 2019</b></td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr> <td style="width: 70%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><u>Lease Cost</u></td> <td style="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 1%; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="width: 28%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt">Operating lease cost (included in general and administration in the Company&#8217;s unaudited condensed statement of operations)</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">$</td> <td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">74,988</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt"><u>Other Information</u></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt">Cash paid for amounts included in the measurement of lease liabilities for the six months ended December 31, 2019</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">$</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">72,738</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt">Remaining lease term &#8211; operating leases (in years)</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;3.17 </td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Average discount rate &#8211; operating leases</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">10%</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">The supplemental balance sheet information related to leases for the period are as follows:</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><u>Operating leases</u></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Right-of-use assets</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">$</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">416,421</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Total operating lease assets</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">$</td> <td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">416,421</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Short-term operating lease liabilities</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">$</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">110,824</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Long-term operating lease liabilities</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">$</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">318,083</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Total operating lease liabilities</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">$</td> <td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">428,907</td></tr> <tr> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Maturities of the Company&#8217;s lease liabilities are as follows:</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr> <td style="white-space: nowrap; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="white-space: nowrap; vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr> <td rowspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"><b>Period ending June 30,</b></td> <td rowspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td colspan="2" style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Operating&#160;</td></tr> <tr> <td colspan="2" style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Lease</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">2020</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;146,932 </td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">2021</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">151,344</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">2022</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">155,888</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">2023</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">105,984</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Total lease payments</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">560,148</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td></tr> <tr> <td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Less: Imputed interest/present value discount</td> <td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="background-color: white; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">104,558</td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">Present value of lease liabilities</td> <td style="padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt">&#160;</td> <td style="border-bottom: black 1.5pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">&#160;$&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;455,590 </td></tr> </table> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>20.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Subsequent events</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white">&#160;&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On December 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $112,200 (includes $12,200 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. The principal amount was received in January 2020.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 30, 2020, the Company issued 6,684,843 shares of the Company&#8217;s common stock for debt conversions in total amount of $33,291.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (&#8220;Agreement&#8221;) with each of the parties agreeing to return all consideration exchanged pursuant to the Stock Exchange Agreement. The Agreement provided for mutual releases and indemnities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The shareholders of BZRTH have agreed to surrender for cancellation, 449,373,817 common shares and 750,000 Series B Convertible Preferred shares. On an as converted to common basis the returns to Sugarmade&#8217;s treasury equal 449,373,817 relating to the common shares to be surrendered and 750,000,000 million common shares equivalents due to each Series B Convertible Preferred share converting to common shares on a 1 for 1,000 basis. Thus, on a common share equivalent basis, the surrender equals 1,199,373,817 common shares, if all Preferred Series B were converted. As part of the Agreement, the Company will retain or will receive 102,248 shares in BZRTH.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 21, 2020, the Company directed the creation of SugarRush, Inc., a California Corporation, as a wholly owned subsidiary. The new company will be utilized for the holding of acquired assets and as a primary commercial business unit.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On February 7, 2020, the Company signed a definitive agreement (the &#8220;Agreement&#8221;) with Indigo Dye Group Corp. (&#8220;Indigo&#8221;) with a mailing address of 5600 Warehouse Way, Sacramento, CA 95826, the operator of BudCars Cannabis Delivery Service (&#8220;Budcars&#8221;), which provides services in the Sacramento metropolitan area. Under the terms of the Agreement, the Company will purchase a 40% stake in the Budcars operation for a cash amount of $700,000, and will receive an option to acquire an additional 30%, which upon exercise will provide a controlling stake in the operation for the Company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Policies Basis of presentation</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management&#8217;s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">These interim condensed consolidated financial statements should be read in conjunction with our Company&#8217;s Annual Report on Form 10-K for the year ended June 30, 2019, which contains our audited consolidated financial statements and notes thereto, together with the Management&#8217;s Discussion and Analysis of Financial Condition and Results of Operation, for the year ended June 30, 2019. The interim results for the period ended December 31, 2019 are not necessarily indicative of the results for the full fiscal year.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Principles of consolidation</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The condensed consolidated unaudited financial statements include the accounts of our Company and its wholly-owned subsidiaries, SWC Group Inc. All significant intercompany transactions and balances have been eliminated in consolidation.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Going concern</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company sustained continued losses from operations during the six months ended December 31, 2019 and for the fiscal year ended June 30, 2019. The Company&#8217;s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management is endeavoring to increase revenue-generating operations. While priority is on generating cash from operations through the sale of the Company&#8217;s products, management is also seeking to raise additional working capital through various financing sources, including the sale of the Company&#8217;s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Use of estimates</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Revenue recognition</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i><font style="color: #222222">&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We recognize revenue in accordance with Financial Accounting Standards Board Accounting Standards Codification (&#8220;FASB ASC&#8217;&#8217;) No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; background-color: white; color: #222222">Substantially all of the Company&#8217;s revenue is recognized at the time control of the products transfers to the customer.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Cash</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Cash and cash equivalents consist of amounts held as bank deposits and highly liquid debt instruments purchased with an original maturity of three months or less.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">From time to time, we may maintain bank balances in interest bearing accounts in excess of the $250,000 currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). We have not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Accounts receivable</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Accounts receivable are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customer&#8217;s deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. The Company had accounts receivable net of allowances of $158,000 as of December 31, 2019 and of $218,145 as of June 30, 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Inventory</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company&#8217;s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of December 31, 2019 and June 30, 2019, the balance for the inventory totaled $495,086 and $356,285, respectively. Obsolescence reserve at December 31, 2019 and June 30, 2019 were $10,580 and $120,486, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and June 30, 2019, other current assets consisted of the following:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="text-align: justify">&#160;</td> <td>&#160;</td> <td colspan="7" style="text-align: center">For the periods ended</td></tr> <tr style="vertical-align: bottom"> <td style="padding-bottom: 1pt; text-align: justify">&#160;</td> <td style="padding-bottom: 1pt">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">December 31, 2019</td> <td style="padding-bottom: 1pt">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: center">June 30, 2019</td></tr> <tr style="vertical-align: bottom"> <td style="width: 58%; padding-left: 5.4pt; text-align: justify">Prepaid Deposit</td> <td style="width: 8%">&#160;</td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">2,314,498</td> <td style="width: 1%">&#160;</td> <td style="width: 8%">&#160;</td> <td style="width: 1%">$</td> <td style="width: 11%; text-align: right">2,145,000</td> <td style="width: 1%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Prepaid Inventory</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">44,308</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">172,045</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Employees Advance</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right"><font style="font-size: 8pt">&#8212;&#160;&#160;</font></td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">16,052</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Prepaid Expenses</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">97,768</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">358,702</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Other</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">2,118</td> <td>&#160;</td> <td>&#160;</td> <td>&#160;</td> <td style="text-align: right">28,075</td> <td>&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="padding-left: 5.4pt; text-align: justify">Total:</td> <td>&#160;</td> <td>$</td> <td style="text-align: right">2,458,692</td> <td>&#160;</td> <td>&#160;</td> <td>$</td> <td style="text-align: right">2,719,875</td> <td>&#160;</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Binomial Option Price Model with the following assumption inputs:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 105%"><font style="line-height: 105%"><b>December 31, 2019</b></font></td></tr> <tr style="vertical-align: bottom"> <td style="width: 81%; line-height: 105%"><font style="line-height: 105%">Annual dividend yield</font></td> <td style="width: 5%; line-height: 105%">&#160;</td> <td style="width: 1%; line-height: 105%">&#160;</td> <td style="width: 12%; text-align: right; line-height: 105%"><font style="line-height: 105%">&#8212;&#160;&#160;</font></td> <td style="width: 1%; line-height: 105%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Expected life (years)</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">0.5-1.00</font></td> <td style="line-height: 105%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Risk-free interest rate</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">1.51-2.09</font></td> <td style="line-height: 105%"><font style="line-height: 105%">%</font></td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Expected volatility</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">121-153</font></td> <td style="line-height: 105%"><font style="line-height: 105%">%</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td colspan="3" style="border-bottom: black 1pt solid; text-align: right; line-height: 105%"><font style="line-height: 105%"><b>December 31, 2018</b></font></td></tr> <tr style="vertical-align: bottom"> <td style="width: 81%; line-height: 105%"><font style="line-height: 105%">Annual dividend yield</font></td> <td style="width: 5%; line-height: 105%">&#160;</td> <td style="width: 1%; line-height: 105%">&#160;</td> <td style="width: 12%; text-align: right; line-height: 105%"><font style="line-height: 105%">&#8212;&#160;&#160;</font></td> <td style="width: 1%; line-height: 105%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Expected life (years)</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">0.5-1.00</font></td> <td style="line-height: 105%">&#160;</td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Risk-free interest rate</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">2.49-2.72</font></td> <td style="line-height: 105%"><font style="line-height: 105%">%</font></td></tr> <tr style="vertical-align: bottom"> <td style="line-height: 105%"><font style="line-height: 105%">Expected volatility</font></td> <td style="line-height: 105%">&#160;</td> <td style="line-height: 105%">&#160;</td> <td style="text-align: right; line-height: 105%"><font style="line-height: 105%">87-123</font></td> <td style="line-height: 105%"><font style="line-height: 105%">%</font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><font style="font-size: 12pt"><b>&#160;</b></font><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>Fair value of the derivative is summarized as below:</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr> <td style="border-bottom: black 1pt solid; width: 75%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%"><b>Beginning Balance, June 30, 2019</b></font></td> <td style="border-bottom: black 1pt solid; width: 25%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%"><b>$2,991,953</b></font></td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%">Additions</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%">3,538,927</font></td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%">Mark to Market</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%">2,314,089</font></td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%">Reclassification to APIC due to conversions</font></td> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%">(957,488)</font></td></tr> <tr> <td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: center; line-height: 105%"><font style="line-height: 105%"><b>Balance, December 31, 2019</b></font></td> <td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; line-height: 105%"><font style="line-height: 105%"><b>$3,259,345</b></font></td></tr> </table> 0.3863 0.3838 34371 103002 159671 42121 85533 10500 3414209 3225281 476585 430396 11200 10500 23970 58970 18000000 21925965 4141568 25982 25982 1431379 1427098 287789 222284 61672 87420 420450 458412 507218 637389 24528 24528 20000 20000 18000 18000 214585 192030 30000 135000 1046909 1378221 24658 15663 100000 262000 7247431 8280102 7247431 8598185 2000 3165 697610 1129927 61038875 83472375 29000 100000 -47088950 -56871025 14678534 -4456617 -2115125 3165 2000 1129927 697610 83472375 61038875 100000 29000 -56871025 -47088950 2000 246136 637861 21952560 58747248 2000000 467996 -34859799 -43502231 -10193106 -8425919 2000 810257 280109 62276720 25888378 -10725014 -21566046 -18000000 2000000 874446 -49116501 -37468851 13972474 21925965 4141568 0.001 0.001 10000000 10000000 2000000 3165001 2000000 3165001 0.001 0.001 1990000000 1990000000 697608570 1129926122 697608570 1129926122 927858 2130452 435690 1071033 546925 756433 285120 374236 8419563 4736957 7215933 3823085 -7872637 -3980524 -6930814 -3448849 1319800 741480 735196 460102 -2118407 -59597 -963407 -31591 16649 16649 740 740 -184626 8763 -184626 -382635 -255882 -232776 -94207 7000 -1909438 -4661909 -823710 -2584531 -9782075 -8642433 -7754524 -6033380 -2027551 -7754524 -2609055 -6033380 -2027551 -2607053 880355944 330029294 191886785 393670334 67387 -25920 330192 565978 239300 149143 6041550 5097206 46189 26578 60145 113179 -138801 -49226 261183 -54876 5955 -40876 -62174 -118974 -19890 -89344 37962 56972 -2122441 1060980 -87154 340000 235000 236000 -2121000 22555 5261 105000 25634 2191072 -856278 68631 117550 957488 6289241 951581 1888248 689997 516391 Yes DE 000-23446 290455 346982 1000 18182 6633 28000 272273 603965 -29000 174450 -263616 174450 -1000000 -18181818 -6632605 3165001 2000000 1129926122 697608570 2000000 246135203 637860318 2000000 810254536 280107717 297962 3574808 659526 297962 2715433 3574808 659526 2715433 5942050 6082851 415 500 2971 89111 5941135 194529 6384569 -390830 197500 415000 500000 2971154 89111251 340000 11349 26622 3700 4143 88651 213378 181300 215857 100000 -220000 100000 185000 11348591 26621610 3700000 4142857 142164 1015391 71906 24994 27301 47866 475926 117170 845558 967525 547833 872859 71915557 24994341 27301360 47865888 110824 318083 416421 2314046 -3661383 1291168 -2019927 -55278 25920 3195 137000 137000 95000 95000 28381 28382 -14249 14132 28381818 166753 172221 75033 -13151 -36919 39169 <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>8.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Property and Equipment, net</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and June 30, 2019, the property, plant and equipment, net of accumulated depreciation expenses were $430,396 and $476,585, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">For the six months ended December 31, 2019 and 2018, depreciation expenses amounted to $46,189 and $26,578, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the six months ended December 31, 2019 and 2018.</p> <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>16.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Shares to be issued &#8211; liability</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the year ended June 30, 2019, the Company had entered into multiple private placement agreements and had shares to be issued under liability in total amount of $100,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended September 30, 2019, the Company had entered into a private placement agreement and had increased shares to be issued for total amount of $96,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended September 30, 2019, the Company had entered into an employee compensation plan and had increased shares to be issued for total amount of $12,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company had entered into a private placement agreement and had increased shares to be issued for total amount of $40,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">During the three months ended December 31, 2019, the Company had entered into an employee compensation plan and had increased shares to be issued for total amount of $14,000.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of December 31, 2019 and June 30, 2019, the Company had balance of $262,000 and $100,000 share to be issued.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Income taxes</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As a result of the implementation of certain provisions of ASC 740, Income Taxes (&#8220;ASC 740&#8221;), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of October 2, 2008, and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as open tax years in these jurisdictions. We have identified the U.S. federal and California as our &#8220;major&#8221; tax jurisdictions and generally, we remain subject to Internal Revenue Service examination of our 2013 U.S. federal income tax returns. However, we have certain tax attribute carryforwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. We have no interest or penalties as of December 31, 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Stock based compensation</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee&#8217;s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company&#8217;s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Loss per share</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We calculate basic earnings per share (&#8220;EPS&#8221;) by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income or net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Fair value of financial instruments</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><i>&#160;</i></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 2 - include other inputs that are directly or indirectly observable in the marketplace.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">Level 3 - unobservable inputs which are supported by little or no market activity.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the six months ended December 31, 2019.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>Derivative instruments</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense).</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>Segment Reporting</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>&#160;</b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">FASB ASC Topic 280, &#8220;Segment Reporting&#8221;, requires use of the &#8220;management approach&#8221; model for segment reporting. The management approach model is based on the way a company&#8217;s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">FASB ASC Topic 280 has no effect on the Company&#8217;s financial statements as substantially all of its operations are conducted in one industry segment &#8211; paper and paper-based products such as paper cups, cup lids, food containers, etc.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>New accounting pronouncements </i></b><font style="font-size: 8pt">&#160;&#160;</font></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0"><b><i>&#160;</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (&#8220;ROU&#8221;) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company adopted this ASU on the consolidated financial statements in the quarter ended December 31, 2019.</p> P5Y P7Y P7Y 146932 151344 155888 105984 455590 104558 560148 5907 -21566046 -10725014 3098 5101 1867 1451 -0.01 -0.03 -0.04 -0.02 -0.01 -0.03 -0.04 -0.02 73500 73500 239301 149143 149143 239301 -18000000 750 249374 200000 14040936 17800000 -10725014 -21566046 -18000000 750001 249373817 200000000 1175000 10000 1165000 10000000 2000 1998000 -2000000 2000000 -35000 87154 5907 229000 1292544 -32291060 <table cellspacing="0" cellpadding="0" style="width: 100%; border-collapse: collapse"> <tr style="vertical-align: top"> <td style="font: 10pt/105% Times New Roman, Times, Serif; width: 29px"><font style="line-height: 105%"><b>18.</b></font></td> <td style="font: 10pt/105% Times New Roman, Times, Serif"><font style="line-height: 105%"><b><i>Shares to be cancelled &#8211; equity</i></b></font></td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On October 30, 2019, SGMD closed the previously announced acquisition of BZRTH, Inc., a Nevada corporation (&#8220;BZRTH&#8221;) pursuant to a Stock Exchange Agreement. BZRTH is headquartered in Irwindale, California and is a marketer and manufacturer of hydroponic growth supplies and related products to distributors and retailers. The total consideration to be paid by the Company to acquire BZRTH was 650,000,000 shares of SGMD&#8217;s common stock, 3,500,000 shares of Series B convertible preferred stock, $870,000 in cash, and 5% promissory notes in the sum of $7,130,000.00 due on or before October 31, 2021 to the BZRTH shareholders. $870,000 of cash had been paid along with 449,373,817 common shares and 750,000 Series B Convertible Preferred shares.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (&#8220;Agreement&#8221;) with each of the parties agreeing to return all consideration exchanged pursuant to the Stock Exchange Agreement. The Agreement provided for mutual releases and indemnities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The shareholders of BZRTH have agreed to surrender for cancellation, 449,373,817 common shares and 750,000 Series B Convertible Preferred shares. On an as converted to common basis the returns to Sugarmade&#8217;s treasury equal 449,373,817 relating to the common shares to be surrendered and 750,000,000 million common shares equivalents due to each Series B Convertible Preferred share converting to common shares on a 1 for 1,000 basis. Thus, on a common share equivalent basis, the surrender equals 1,199,373,817 common shares, if all Preferred Series B were converted. As of December 31, 2019, the Company recorded share to be cancelled &#8211; common stock and preferred stock in total amount of $38,225,560.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Property and equipment</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows:</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"> <tr style="vertical-align: bottom"> <td style="width: 53%">Machinery equipment</td> <td style="width: 1%">&#160;</td> <td style="width: 46%; text-align: right">5 years</td></tr> <tr style="vertical-align: bottom"> <td>Furniture and equipment</td> <td>&#160;</td> <td style="text-align: right">7 years</td></tr> <tr style="vertical-align: bottom"> <td>Vehicles</td> <td>&#160;</td> <td style="text-align: right">7 years</td></tr> </table> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.5in">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the six months ended December 31, 2019 and 2018.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Impairment of Long-Lived Assets</i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset's expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company, as of June 30, 2019, performed an impairment test of all of its intangible assets. Based on the company&#8217;s analysis, the company had an amortization of intangible assets of $700 for the six months ended December 31, 2019 and 2018, respectively.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i>Leases </i></b></p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In February 2016, the FASB established Topic 842,&#160;Leases, by issuing ASU No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11,&#160;Targeted Improvements, ASU No. 2018-10,&#160;Codification Improvements to Topic 842, and ASU No. 2018-01,&#160;Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the &#8220;package of practical expedients&#8221;, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities.</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">&#160;</p> <p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The new standard also provides practical expedients for an entity&#8217;s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. After the adoption, $455,590 of operating lease right-of-use asset and $465,826 of operating lease liabilities were not retroactively reflected to June 30, 2019 financial statements, and $416,421 of operating lease right-of-use asset and $428,907 of operating lease liabilities were reflected to December 31, 2019 financial statements.</p> false 42307 XML 11 FilingSummary.xml IDEA: XBRL DOCUMENT 3.19.3.a.u2 html 175 292 1 false 63 0 false 4 false false R1.htm 00000001 - Document - Document and Entity Information Sheet http://sugarmade.com/role/DocumentAndEntityInformation Document and Entity Information Cover 1 false false R2.htm 00000002 - Statement - Condensed Consolidated Balance Sheets (Unaudited) Sheet http://sugarmade.com/role/BalanceSheets Condensed Consolidated Balance Sheets (Unaudited) Statements 2 false false R3.htm 00000003 - Statement - Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) Sheet http://sugarmade.com/role/BalanceSheetsParenthetical Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) Statements 3 false false R4.htm 00000004 - Statement - Consolidated Statements of Operations (Unaudited) Sheet http://sugarmade.com/role/StatementsOfOperations Consolidated Statements of Operations (Unaudited) Statements 4 false false R5.htm 00000005 - Statement - Condensed Consolidated Statements of Equity (Unaudited) Sheet http://sugarmade.com/role/StatementsOfEquity Condensed Consolidated Statements of Equity (Unaudited) Statements 5 false false R6.htm 00000006 - Statement - Consolidated Statements of Cash Flows Statement Sheet http://sugarmade.com/role/StatementsOfCashFlowsStatement Consolidated Statements of Cash Flows Statement Statements 6 false false R7.htm 00000007 - Disclosure - Nature of Business Sheet http://sugarmade.com/role/NatureOfBusiness Nature of Business Notes 7 false false R8.htm 00000008 - Disclosure - Summary of Significant Accounting Policies Sheet http://sugarmade.com/role/SummaryOfSignificantAccountingPolicies Summary of Significant Accounting Policies Notes 8 false false R9.htm 00000009 - Disclosure - Concentration Sheet http://sugarmade.com/role/Concentration Concentration Notes 9 false false R10.htm 00000010 - Disclosure - Equity Transaction - Exclusive License Rights Sheet http://sugarmade.com/role/EquityTransaction-ExclusiveLicenseRights Equity Transaction - Exclusive License Rights Notes 10 false false R11.htm 00000011 - Disclosure - Legal Proceedings Sheet http://sugarmade.com/role/LegalProceedings Legal Proceedings Notes 11 false false R12.htm 00000012 - Disclosure - Other Current Assets Sheet http://sugarmade.com/role/OtherCurrentAssets Other Current Assets Notes 12 false false R13.htm 00000013 - Disclosure - Intangible Asset Sheet http://sugarmade.com/role/IntangibleAsset Intangible Asset Notes 13 false false R14.htm 00000014 - Disclosure - Property and Equipment, net Sheet http://sugarmade.com/role/PropertyAndEquipmentNet Property and Equipment, net Notes 14 false false R15.htm 00000015 - Disclosure - Convertible Notes Notes http://sugarmade.com/role/ConvertibleNotes Convertible Notes Notes 15 false false R16.htm 00000016 - Disclosure - Derivative Liabilities Sheet http://sugarmade.com/role/DerivativeLiabilities Derivative Liabilities Notes 16 false false R17.htm 00000017 - Disclosure - Stock warrants Sheet http://sugarmade.com/role/StockWarrants Stock warrants Notes 17 false false R18.htm 00000018 - Disclosure - Note Payable Sheet http://sugarmade.com/role/NotePayable Note Payable Notes 18 false false R19.htm 00000019 - Disclosure - Related Party Transactions Sheet http://sugarmade.com/role/RelatedPartyTransactions Related Party Transactions Notes 19 false false R20.htm 00000020 - Disclosure - Loans payable Sheet http://sugarmade.com/role/LoansPayable Loans payable Notes 20 false false R21.htm 00000021 - Disclosure - Stockholder's Equity Sheet http://sugarmade.com/role/StockholdersEquity Stockholder's Equity Notes 21 false false R22.htm 00000022 - Disclosure - Shares to be issued - liability Sheet http://sugarmade.com/role/SharesToBeIssued-Liability Shares to be issued - liability Notes 22 false false R23.htm 00000023 - Disclosure - Shares to be issued - equity Sheet http://sugarmade.com/role/SharesToBeIssued-Equity Shares to be issued - equity Notes 23 false false R24.htm 00000024 - Disclosure - Shares to be cancelled - equity Sheet http://sugarmade.com/role/SharesToBeCancelled-Equity Shares to be cancelled - equity Notes 24 false false R25.htm 00000025 - Disclosure - Commitments and Contingencies Sheet http://sugarmade.com/role/CommitmentsAndContingencies Commitments and Contingencies Notes 25 false false R26.htm 00000026 - Disclosure - Subsequent Event Sheet http://sugarmade.com/role/SubsequentEvent Subsequent Event Notes 26 false false R27.htm 00000027 - Disclosure - Summary of Significant Accounting Policies (Policies) Sheet http://sugarmade.com/role/SummaryOfSignificantAccountingPoliciesPolicies Summary of Significant Accounting Policies (Policies) Policies http://sugarmade.com/role/SummaryOfSignificantAccountingPolicies 27 false false R28.htm 00000028 - Disclosure - Other Current Assets (Tables) Sheet http://sugarmade.com/role/OtherCurrentAssetsTables Other Current Assets (Tables) Tables http://sugarmade.com/role/OtherCurrentAssets 28 false false R29.htm 00000029 - Disclosure - Derivative liabilities (Tables) Sheet http://sugarmade.com/role/DerivativeLiabilitiesTables Derivative liabilities (Tables) Tables 29 false false R30.htm 00000030 - Disclosure - Summary of Significant Accounting Policies (Details Narrative) Sheet http://sugarmade.com/role/SummaryOfSignificantAccountingPoliciesDetailsNarrative Summary of Significant Accounting Policies (Details Narrative) Details http://sugarmade.com/role/SummaryOfSignificantAccountingPoliciesPolicies 30 false false R31.htm 00000031 - Disclosure - Concentration (Details Narrative) Sheet http://sugarmade.com/role/ConcentrationDetailsNarrative Concentration (Details Narrative) Details http://sugarmade.com/role/Concentration 31 false false R32.htm 00000032 - Disclosure - Equity Transaction (Details Narrative) Sheet http://sugarmade.com/role/EquityTransactionDetailsNarrative Equity Transaction (Details Narrative) Details http://sugarmade.com/role/EquityTransaction-ExclusiveLicenseRights 32 false false R33.htm 00000033 - Disclosure - Legal Proceedings (Details Narrative) Sheet http://sugarmade.com/role/LegalProceedingsDetailsNarrative Legal Proceedings (Details Narrative) Details http://sugarmade.com/role/LegalProceedings 33 false false R34.htm 00000034 - Disclosure - Other Current Assets (Details) Sheet http://sugarmade.com/role/OtherCurrentAssetsDetails Other Current Assets (Details) Details http://sugarmade.com/role/OtherCurrentAssetsTables 34 false false R35.htm 00000035 - Disclosure - Intangible Asset (Details Narrative) Sheet http://sugarmade.com/role/IntangibleAssetDetailsNarrative Intangible Asset (Details Narrative) Details http://sugarmade.com/role/IntangibleAsset 35 false false R36.htm 00000036 - Disclosure - Convertible Notes (Details) Notes http://sugarmade.com/role/ConvertibleNotesDetails Convertible Notes (Details) Details http://sugarmade.com/role/ConvertibleNotes 36 false false R37.htm 00000037 - Disclosure - Derivative liabilities (Details) Sheet http://sugarmade.com/role/DerivativeLiabilitiesDetails Derivative liabilities (Details) Details http://sugarmade.com/role/DerivativeLiabilitiesTables 37 false false R38.htm 00000038 - Disclosure - Derivative liabilities (Details 2) Sheet http://sugarmade.com/role/DerivativeLiabilitiesDetails2 Derivative liabilities (Details 2) Details http://sugarmade.com/role/DerivativeLiabilitiesTables 38 false false R39.htm 00000039 - Disclosure - Commitments and Contingencies (Details Narrative) Sheet http://sugarmade.com/role/CommitmentsAndContingenciesDetailsNarrative Commitments and Contingencies (Details Narrative) Details http://sugarmade.com/role/CommitmentsAndContingencies 39 false false All Reports Book All Reports sgmd-20191231.xml sgmd-20191231.xsd sgmd-20191231_cal.xml sgmd-20191231_def.xml sgmd-20191231_lab.xml sgmd-20191231_pre.xml http://fasb.org/us-gaap/2019-01-31 http://xbrl.sec.gov/dei/2019-01-31 http://fasb.org/srt/2019-01-31 true true XML 12 R9.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Concentration
 6 Months Ended
Dec. 31, 2019
Risks and Uncertainties [Abstract]  
Concentration
3. Concentration

 

Customers

 

For the six months ended December 31, 2019 and 2018, our Company earned net revenues of $1,474,784 and $2,886,885 respectively. The vast majority of these revenues for the period ending December 31, 2019 were derived from a large number of customers, whereas the vast majority of these revenues for the period ending December 31, 2018 were derived from a limited number of customers. No customers accounted for over 10% of the Company’s total revenues for the period ended December 31, 2019.

 

Suppliers

 

For the six months ended December 31, 2019 and 2018, we purchased products for sale from several contract manufacturers located in Asia and the U.S. A substantial portion of the Company's inventory is purchased from two (2) suppliers. The two (2) suppliers accounted as follows: Two suppliers accounted for 38.63% and 38.38% of the Company's total inventory purchase for the six months ended December 31, 2019 and 2018, respectively.
XML 13 R5.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Condensed Consolidated Statements of Equity (Unaudited) - USD ($)
Preferred Stock
Common Stock
Additional Paid-In Capital
Shares to be cancelled, Preferred Shares [Member]
Shares to be cancelled, Common Shares [Member]
Investment
Shares to be issued, Preferred Shares
Shares to be issued, Common Shares
Accumulated Deficit
Total
Beginning Balance at Jun. 30, 2018   $ 246,136 $ 21,952,560       $ 2,000,000 $ 467,996 $ (34,859,799) $ (10,193,106)
Beginning Balance, Shares at Jun. 30, 2018   246,135,203                
Shares Issued for Debt Settlement               174,450 174,450
Reclass Derivative liability from conversion     2,715,433             2,715,433
Shares issued for conversions   $ 27,301 845,558             872,859
Shares issued for conversions (in shares)   27,301,360                
Shares Issued for Compensation   $ 2,971 194,529             197,500
Shares Issued for Compensation, Shares   2,971,154                
Shares issued for cash   $ 3,700 181,300             185,000
Shares issued for cash (in shares)   3,700,000                
Shares to be issued for service compensation               137,000   137,000
Shares to be issued for cash               95,000 95,000
Net Loss                 (2,609,055) (2,607,053)
Ending Balance at Sep. 30, 2018   $ 280,109 25,888,378       2,000,000 874,446 (37,468,851) (8,425,919)
Ending Balance, Shares at Sep. 30, 2018   280,107,717                
Beginning Balance at Jun. 30, 2018   $ 246,136 21,952,560       2,000,000 467,996 (34,859,799) (10,193,106)
Beginning Balance, Shares at Jun. 30, 2018   246,135,203                
Shares issued for Warrant Exercise                  
Net Loss                   (8,642,433)
Ending Balance at Dec. 31, 2018 $ 2,000 $ 637,861 58,747,248     $ (18,000,000)     (43,502,231) (2,115,125)
Ending Balance, Shares at Dec. 31, 2018 2,000,000 637,860,318                
Beginning Balance at Sep. 30, 2018   $ 280,109 25,888,378       2,000,000 874,446 (37,468,851) (8,425,919)
Beginning Balance, Shares at Sep. 30, 2018   280,107,717                
Shares Issued for Debt Settlement   $ 6,633 603,965         (263,616) 346,982
Shares Issued for Debt Settlement, Shares   6,632,605                
Reclass Derivative liability from conversion     3,574,808             3,574,808
Shares issued for conversions   $ 47,866 967,525             1,015,391
Shares issued for conversions (in shares)   47,865,888                
Shares Issued for Compensation   $ 89,111 6,384,569         (390,830) 6,082,851
Shares Issued for Compensation, Shares   89,111,251                
Shares issued for cash   $ 4,143 215,857         (220,000)    
Shares issued for cash (in shares)   4,142,857                
Shares issued for LOI   $ 10,000 1,165,000             1,175,000
Shares issued for LOI (in shares)   10,000,000                
Shares issued for Award - Bizright   $ 200,000 17,800,000     (18,000,000)        
Shares issued for Award - Bizright (in shares)   200,000,000                
Initial valuation of BCF   $ 149,143               149,143
Shares issued for EB-Five   $ 2,000 1,998,000       $ (2,000,000)      
Shares issued for EB-Five (in shares)   2,000,000                
Net Loss                 (6,033,380) (6,033,380)
Ending Balance at Dec. 31, 2018 $ 2,000 $ 637,861 58,747,248     $ (18,000,000)     (43,502,231) (2,115,125)
Ending Balance, Shares at Dec. 31, 2018 2,000,000 637,860,318                
Beginning Balance at Jun. 30, 2019 $ 2,000 $ 697,610 61,038,875         29,000 (47,088,950) 14,678,534
Beginning Balance, Shares at Jun. 30, 2019 2,000,000 697,608,570                
Shares Issued for Debt Settlement $ 1,000 28,000         (29,000)
Shares Issued for Debt Settlement, Shares   1,000,000                
Reclass Derivative liability from conversion     659,526             659,526
Shares issued for conversions   $ 71,906 475,926             547,833
Shares issued for conversions (in shares)   71,915,557                
Shares issued for cash   $ 11,349 88,651             100,000
Shares issued for cash (in shares)   11,348,591                
Shares issued for Warrant Exercise   $ 28,382 (14,249)             14,132
Shares issued for Warrant Exercise (in Shares)   28,381,818                
Net Loss                 (2,027,551) (2,027,551)
Ending Balance at Sep. 30, 2019 $ 2,000 $ 810,257 62,276,720           (49,116,501) 13,972,474
Ending Balance, Shares at Sep. 30, 2019 2,000,000 810,254,536                
Beginning Balance at Jun. 30, 2019 $ 2,000 $ 697,610 61,038,875         29,000 (47,088,950) 14,678,534
Beginning Balance, Shares at Jun. 30, 2019 2,000,000 697,608,570                
Shares issued for Warrant Exercise                   28,381
Net Loss                   (9,782,075)
Ending Balance at Dec. 31, 2019 $ 3,165 $ 1,129,927 83,472,375 $ (10,725,014) $ (21,566,046)     100,000 (56,871,025) (4,456,617)
Ending Balance, Shares at Dec. 31, 2019 3,165,001 1,129,926,122                
Beginning Balance at Sep. 30, 2019 $ 2,000 $ 810,257 62,276,720           (49,116,501) 13,972,474
Beginning Balance, Shares at Sep. 30, 2019 2,000,000 810,254,536                
Shares Issued for Debt Settlement   $ 18,182 272,273             290,455
Shares Issued for Debt Settlement, Shares   18,181,818                
Reclass Derivative liability from conversion     297,962             297,962
Shares issued for conversions   $ 24,994 117,170             142,164
Shares issued for conversions (in shares)   24,994,341                
Shares Issued for Compensation $ 415 $ 500 5,941,135             5,942,050
Shares Issued for Compensation, Shares 415,000 500,000                
Shares issued for cash   $ 26,622 213,378         100,000   340,000
Shares issued for cash (in shares)   26,621,610                
Option for services     73,500             73,500
Shares issued for Award - Bizright $ 750 $ 249,374 14,040,936 (10,725,014) (21,566,046)         (18,000,000)
Shares issued for Award - Bizright (in shares) 750,001 249,373,817                
Initial valuation of BCF     239,301             239,301
Net Loss                 (7,754,524) (7,754,524)
Ending Balance at Dec. 31, 2019 $ 3,165 $ 1,129,927 $ 83,472,375 $ (10,725,014) $ (21,566,046)     $ 100,000 $ (56,871,025) $ (4,456,617)
Ending Balance, Shares at Dec. 31, 2019 3,165,001 1,129,926,122                
XML 14 Show.js IDEA: XBRL DOCUMENT // Edgar(tm) Renderer was created by staff of the U.S. Securities and Exchange Commission. Data and content created by government employees within the scope of their employment are not subject to domestic copyright protection. 17 U.S.C. 105. var Show={};Show.LastAR=null,Show.showAR=function(a,r,w){if(Show.LastAR)Show.hideAR();var e=a;while(e&&e.nodeName!='TABLE')e=e.nextSibling;if(!e||e.nodeName!='TABLE'){var ref=((window)?w.document:document).getElementById(r);if(ref){e=ref.cloneNode(!0); e.removeAttribute('id');a.parentNode.appendChild(e)}} if(e)e.style.display='block';Show.LastAR=e};Show.hideAR=function(){Show.LastAR.style.display='none'};Show.toggleNext=function(a){var e=a;while(e.nodeName!='DIV')e=e.nextSibling;if(!e.style){}else if(!e.style.display){}else{var d,p_;if(e.style.display=='none'){d='block';p='-'}else{d='none';p='+'} e.style.display=d;if(a.textContent){a.textContent=p+a.textContent.substring(1)}else{a.innerText=p+a.innerText.substring(1)}}} XML 15 R1.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Document and Entity Information - shares
 6 Months Ended
Dec. 31, 2019
Feb. 17, 2020
Entity Registrant Name Sugarmade, Inc.  
Entity Central Index Key 0000919175  
Document Type 10-Q  
Document Period End Date Dec. 31, 2019  
Amendment Flag false  
Current Fiscal Year End Date --06-30  
Is Entity's Reporting Status Current? Yes  
Entity Filer Category Non-accelerated Filer  
Entity Common Stock, Shares Outstanding   713,207,811
Document Fiscal Period Focus Q2  
Document Fiscal Year Focus 2020  
Entity Shell Company false  
Entity Emerging Growth Company false  
Entity Small Business true  
Entity Interactive Data Current Yes  
Entity Incorporation, State or Country Code DE  
Entity File Number 000-23446  
Preferred Stock    
Entity Common Stock, Shares Outstanding   2,415,000
XML 16 R23.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Shares to be issued - equity
 6 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Shares to be issued - equity
17. Shares to be issued –equity

 

As of the year ended June 30, 2019, the Company had potential shares to be issued under common stock in total amount of $29,000.

 

During the three months ended September 30, 2019, the Company issued the $29,000 share to be issued – equity by 1,000,000 shares of the Company’s common stock.

 

During the three months ended December 31, 2019, the Company recorded in total amount of $100,000 potential share to be issued – equity.

  

As of December 31, 2019 and June 30, 2019, the Company had total potential shares to be issued under common stock and preferred stock in total amount of $100,000 and $29,000, respectively.
XML 17 R27.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Summary of Significant Accounting Policies (Policies)
 6 Months Ended
Dec. 31, 2019
Disclosure Summary Of Significant Accounting Policies Policies Abstract  
Basis of presentation

Policies Basis of presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.

 

These interim condensed consolidated financial statements should be read in conjunction with our Company’s Annual Report on Form 10-K for the year ended June 30, 2019, which contains our audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the year ended June 30, 2019. The interim results for the period ended December 31, 2019 are not necessarily indicative of the results for the full fiscal year.
Principles of consolidation

Principles of consolidation

 

The condensed consolidated unaudited financial statements include the accounts of our Company and its wholly-owned subsidiaries, SWC Group Inc. All significant intercompany transactions and balances have been eliminated in consolidation.
Going concern

Going concern

 

The Company sustained continued losses from operations during the six months ended December 31, 2019 and for the fiscal year ended June 30, 2019. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required.

 

Our condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

Management is endeavoring to increase revenue-generating operations. While priority is on generating cash from operations through the sale of the Company’s products, management is also seeking to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock.
Use of estimates

Use of estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates.
Revenue recognition

Revenue recognition

  

We recognize revenue in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC’’) No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied.

 

Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer.
Cash

Cash

 

Cash and cash equivalents consist of amounts held as bank deposits and highly liquid debt instruments purchased with an original maturity of three months or less.

 

From time to time, we may maintain bank balances in interest bearing accounts in excess of the $250,000 currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). We have not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash.
Accounts receivable

Accounts receivable

 

Accounts receivable are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customer’s deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. The Company had accounts receivable net of allowances of $158,000 as of December 31, 2019 and of $218,145 as of June 30, 2019.
Inventory

Inventory

 

Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company’s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence.

 

If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of December 31, 2019 and June 30, 2019, the balance for the inventory totaled $495,086 and $356,285, respectively. Obsolescence reserve at December 31, 2019 and June 30, 2019 were $10,580 and $120,486, respectively.
Property and equipment

Property and equipment

 

Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows:

 

Machinery equipment   5 years
Furniture and equipment   7 years
Vehicles   7 years

 

Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset.

 

Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income.

 

The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the six months ended December 31, 2019 and 2018.
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

 

Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.

 

Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset's expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company, as of June 30, 2019, performed an impairment test of all of its intangible assets. Based on the company’s analysis, the company had an amortization of intangible assets of $700 for the six months ended December 31, 2019 and 2018, respectively.
Leases

Leases

 

In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations.

 

The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements.

 

The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities.

 

The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. After the adoption, $455,590 of operating lease right-of-use asset and $465,826 of operating lease liabilities were not retroactively reflected to June 30, 2019 financial statements, and $416,421 of operating lease right-of-use asset and $428,907 of operating lease liabilities were reflected to December 31, 2019 financial statements.
Income Taxes

Income taxes

 

We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of October 2, 2008, and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as open tax years in these jurisdictions. We have identified the U.S. federal and California as our “major” tax jurisdictions and generally, we remain subject to Internal Revenue Service examination of our 2013 U.S. federal income tax returns. However, we have certain tax attribute carryforwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.

 

We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. We have no interest or penalties as of December 31, 2019.
Stock based compensation

Stock based compensation

 

Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable.
Loss per share

Loss per share

 

We calculate basic earnings per share (“EPS”) by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income or net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive.
Fair Value of Financial Instruments

Fair value of financial instruments

 

ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

 

Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - include other inputs that are directly or indirectly observable in the marketplace.

Level 3 - unobservable inputs which are supported by little or no market activity.

 

The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the six months ended December 31, 2019.
Derivative Instruments

Derivative instruments

 

The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense).

 

Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.
Segment Reporting

Segment Reporting

 

FASB ASC Topic 280, “Segment Reporting”, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

 

FASB ASC Topic 280 has no effect on the Company’s financial statements as substantially all of its operations are conducted in one industry segment – paper and paper-based products such as paper cups, cup lids, food containers, etc.
New Accounting Pronouncements Not Yet Adopted

New accounting pronouncements   

 

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company adopted this ASU on the consolidated financial statements in the quarter ended December 31, 2019.
XML 18 R36.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Convertible Notes (Details) - USD ($)
 6 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Convertible Principal Amount $ 1,625,841  
Convertible Debt, Addition/(Repayment) 1,451,687 $ 1,022,500
Convertible Notes [Member]    
Convertible Principal Amount $ 25,000  
Convertible Debt, Interest 10.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 25,000  
Convertible Debt, Interest 10.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 100,000  
Convertible Debt, Interest 10.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 100,000  
Convertible Debt, Interest 10.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 1,375,000  
Convertible Debt, Interest 10.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 267,500  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 100,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 80,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 40,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 35,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 250,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 105,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 100,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 53,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 250,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 100,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 100,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 125,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 125,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 125,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 125,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 125,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 162,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 153,000  
Convertible Debt, Interest 10.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 275,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 275,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 200,000  
Convertible Debt, Interest 10.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 165,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 165,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 100,000  
Convertible Notes [Member]    
Convertible Principal Amount $ 225,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 225,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 125,000  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 106,150  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 106,150  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 106,700  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 106,700  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 112,200  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 139,301  
Convertible Debt, Interest 8.00%  
Convertible Notes [Member]    
Convertible Principal Amount $ 100,000  
Convertible Debt, Interest 8.00%  
XML 19 R32.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Equity Transaction (Details Narrative) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Dec. 13, 2017
Cash Paid $ 2,314,498 $ 2,145,000  
BizRight Hydroponic, Inc. [Member]      
Shares Issued     200,000,000
Cash Paid $ 870,000 $ 870,000 $ 6,000,000
XML 20 R19.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Related Party Transactions
 6 Months Ended
Dec. 31, 2019
Related Party Transactions  
Related Party Transactions
13. Related party transactions

 

On January 23, 2013, the Company entered into a promissory note with its former employee who owns less than 5% of the Company’s stock. The original principal amount was $40,000 and the note bore no interest. The note was payable upon demand. As of December 31, 2019 and June 30, 2019, this note had a balance of $18,000.

 

On January 14, 2015, the Company entered into a promissory note with Richard Ko (an employee of the Company, who owns less than 5% of the Company’s stock). The principle amount was $30,000 and the note bore no interest. The note had a term of one (1) year and was due on January 14, 2016, and became payable upon demand after January 14, 2016. As of December 31, 2019 and June 30, 2019, this note had a balance of $0 and $20,000, respectively.

 

As of December 31, 2019 and June 30, 2019, the Company had an outstanding balance of notes payable due to related parties of $18,000 and $38,000, respectively.

 

On July 7, 2016, SWC received a loan in total amount of $30,000 from an employee. During the three months ended December 31, 2019, SWC received additional loan in total amount of 105,000 from a related party. The amount of the loan bear no interest and due on demand. As of December 31, 2019 and June 30, 2019, the balance of the loan due to related party were $135,000 and $30,000, respectively.

  

From time to time, SWC would receive short-term loans from company former director for its working capital needs.
XML 21 R11.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Legal Proceedings
 6 Months Ended
Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]  
Legal Proceedings
5. Legal Proceedings  

 

From time to time and in the course of business, we may become involved in various legal proceedings seeking monetary damages and other relief. The amount of the ultimate liability, if any, from such claims cannot be determined. As of date of this filing, there were no legal claims currently pending or, to our knowledge, threatened against our Company that, in the opinion of our management, would be likely to have a material adverse effect on our financial position, results of operations or cash flows, except as follows:

• On December 11, 2013, the Company was served with a complaint from two Convertible Note Holders and investors in the Company, Lovitt & Hannan, Inc. Salary Deferral Plan FBO J. Thomas Hannan, Attorney at Law 401K Plan and Trust, and Kevin M. Kearney. The Company's former CEO, Scott Lantz, was also named in the suit. On February 21, 2017, the Company signed a settlement agreement with the plaintiffs. Under the terms of the settlement agreement, the Company agreed to pay the plaintiffs $307,000 to settle all claims against the Company, which included the payoff of the two notes outstanding within one (1) week. Upon receipt of all payments, plaintiffs will surrender for cancellation 230,000 of the Company's shares within ten (10) days. The parties agreed that all claims against the Company would be satisfied through such payments and that the matter would be fully resolved. As of June 30, 2018, third-parties had purchased two (2) notes of approximately $80,000, reducing the Company's exposure by $80,000. As of the date of this filing the balance for accrued legal settlement for Hannan vs Sugarmade has been reduced to $227,000, plus interest until the date of complete payoff.

• On August 13, 2019, a lawsuit was filed against the Company for unpaid legal fees of $50,000.00, which originates from the Company’s former chairman and CEO.  The Company was served in or around September 2019.  The Company has filed a response to the underlying complaint to preserve its rights to defend the lawsuit should it become necessary. However, the Company plans to amicably resolve this matter and anticipates that it will be settled and dismissed.

There can be no assurances the ultimate liability relative to these lawsuits will not exceed what is outlined above.
XML 22 R15.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Convertible Notes
 6 Months Ended
Dec. 31, 2019
Convertible Notes  
Convertible Notes
9. Convertible Notes

 

As of December 31, 2019 and June 30, 2019, the balance owing on convertible notes, net of debt discount, with terms as described below was $1,378,221 and $1,046,909, respectively.

 

Convertible notes issued as of September 30, 2019 were as follows:

 

Convertible note 1: On August 24, 2012, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of December 31, 2019, the note is in default.

 

Convertible note 2: On September 18, 2012, the Company entered into a convertible promissory note with an accredited investor for $25,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of December 31, 2019, the note is in default.

 

Convertible note 3: On December 21, 2012, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of six (6) months with an interest rate of 10% and is convertible to common shares at a 25% discount of the average of 30 days prior to the conversion date. As of December 31, 2019, the note is in default.

  

Convertible note 4: On March 1, 2017, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has been purchased by other investor in total amount of $156,067 with a term of nine (9) months with an interest rate of 10% and is convertible to common shares at a 45% discount to the then current market price of our shares. As of December 31, 2019, the remaining balance of note was $60,751.

  

Convertible note 5: On May 17, 2017, the Company entered a convertible promissory note with an investor for a total amount of $1,375,000 (after $10,000 legal and due diligence fee) with an OID of $125,000, the note will be fulfilled through a series of funding. The note is due 12 months after each funding date and bears an interest rate of 10%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. In connection with the note, the investor will also receive warrants and is calculated based on 15% of the maturity amount. The warrants have a life of four years with exercise price of $0.15 per share and have cashless exercise option. During the three months ended September 30, 2019, the holder exercised 1,766,544 cashless warrant shares into 28,381,818 shares of the Company’s common stock. On September 23, 2019, the remaining warrant shares were settled by exchange $200,000 convertible note with interest of 10% per annum, due on September 23, 2020, with conversion price of 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the original principal balance has been fully converted, the remaining default charge balance of the note was $250,000, and the new convertible note balance was $200,000.

  

Convertible note 6: On September 20, 2018, the Company entered a convertible promissory note with an accredited investor for a total amount of $267,500 (includes $5,000 legal fee and an OID of $12,500). The note is due 360 days and bears an interest rate of 8%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the principal balance of 245,000 has been fully converted into the Company’s common stock.

 

Convertible note 7: On November 1, 2018, the Company entered into a convertible promissory note with an accredited investor for $100,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.

 

Convertible note 8: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $80,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.

 

Convertible note 9: On November 16, 2018, the Company entered into a convertible promissory note with an accredited investor for $40,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.

 

Convertible note 10: On December 3, 2018, the Company entered into a convertible promissory note with an accredited investor for $35,000. The note has a term of one year with an interest rate of 8% and is convertible to common shares at a fixed conversion price of $0.07.

 

Convertible note 11: On December 26, 2018, the Company entered a convertible promissory note with an accredited investor for a total amount of $250,000 (includes $5,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 45% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.

 

Convertible note 12: On January 8, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $105,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 35% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.

 

Convertible note 13: On January 22, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 42% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, the note has been fully converted.

 

Convertible note 14: On January 24, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $53,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 35% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, the note has been fully converted.

 

Convertible note 15: On February 26, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 42% of average three lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, the note has been fully converted.

 

Convertible note 16: On March 4, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $250,000 (includes $7,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.

 

Convertible note 17: On April 2, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 18: On April 4, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully converted.

 

Convertible note 19: On May 2, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 20: On May 7, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,500 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 21: On May 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 22: On June 12, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,500 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 58% of average two lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully repaid by cash.

 

Convertible note 23: On July 3, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $2,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% discount of average three lowest closing bid for the 10 consecutive trading days prior to the conversion date.

 

 Convertible note 24: On July 30, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $162,000 (includes $7,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 40% discount of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 25: On August 14, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $153,000 (includes $3,000 OID). The note is due 360 days and bear an interest rate of 10%. The conversion price for the note is 65% of the average of lowest two closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 26: On August 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $275,000 (includes $37,500 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 27: On August 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $275,000 (includes $25,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 28: On September 23, 2019, the Company entered a warrant settlement agreement to exchange convertible promissory note for a total amount of $200,000. The note is due 360 days and bear an interest rate of 10%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. As of December 31, 2019, the note has been fully settled by $127,321 of cash and 18,181,818 shares of common stock.

 

Convertible note 29: On September 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $165,000 (includes $16,250 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 30: On September 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $165,000 (includes $16,250 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 31: On October 28, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $225,500 (includes $23,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 32: On October 28, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $225,500 (includes $23,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 33: On November 14, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $125,000 (includes $3,000 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the average three lowest closing bid for the 10 consecutive trading days prior to the conversion date.

 

Convertible note 34: On November 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,150 (includes $11,150 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 35: On November 29, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,150 (includes $11,150 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 36: On December 10, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,700 (includes $11,700 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 37: On December 10, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $106,700 (includes $11,700 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 38: On December 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $112,200 (includes $12,200 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

Convertible note 39: On October 31, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $139,301. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is $0.008 per share.

 

Convertible note 40: On November 1, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $100,000. The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is $0.008 per share.

 

In connection with the convertible debt, debt discount balance as of December 31, 2019 and June 30, 2019 were $2,015,634 and $1,189,341, respectively, and were being amortized and recorded as interest expenses over the term of the convertible debt.
XML 23 R37.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Derivative liabilities (Details) - Derivative [Member]
 6 Months Ended 12 Months Ended
Dec. 31, 2019
Jun. 30, 2018
Annual Dividend Yield [Member]    
Annual Dividend Yield
Expected Life [Member] | Minimum [Member]    
Expected life (years) 6 months 6 months
Expected Life [Member] | Maximum [Member]    
Expected life (years) 1 year 1 year
Risk Free Interest Rate [Member] | Minimum [Member]    
Risk-free interest rate 1.51% 2.49%
Risk Free Interest Rate [Member] | Maximum [Member]    
Risk-free interest rate 2.09% 2.72%
Expected Volatility [Member] | Minimum [Member]    
Expected volatility 121.00% 87.00%
Expected Volatility [Member] | Maximum [Member]    
Expected volatility 153.00% 123.00%
XML 24 R33.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Legal Proceedings (Details Narrative)
Feb. 21, 2017
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Litigation Settlement, Amount $ 307,000
XML 25 R10.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Equity Transaction - Exclusive License Rights
 6 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Equity Transaction - Exclusive License Rights
  4. Equity Transaction - Exclusive License Rights and Acquisition

 

On December 13, 2017, we entered into a Master Marketing Agreement with BizRight, LLC (“BizRight”), a leading marketer and manufacturer of hydroponic growth supplies, which offers a range of hydroponics-related products including: HPS grow lights, electronic ballasts, HPS Bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other grow and storage products. BizRight operates the ZenHydro.com website and other e-commerce properties, and sells various products to distributors and retailers.

 

Under the terms of the Master Marketing Agreement, all products procured, developed and imported by BizRight will be sold by the Company. The expected term of the exclusive license rights is 20 years. BizRight and its owners will be compensated via a combination of cash and common shares in Sugarmade. Effective the contract date, Bizright will be compensated Two hundred million (200,000,000) common shares. Sugarmade will compensate BizRight and its owners six million dollars ($6,000,000) in cash. The amount due will be divided over 3 payments equally and are contingent upon the filing of the S-1 and significant funding.

 

We began recognizing revenues under this marketing agreement during April 2018 and stopped recognizing the revenue early 2019 upon exercise of the purchase option under the agreement. As of June 30, 2019, BizRight had assigned the marketing agreement to its operating entity, BZRTH and the Company had exercised the option to purchase 100% equity ownership of BZRTH.

 

As of June 30, 2019, cash of $870,000 and 200 million shares of the Company’s common stock had been paid and issued in connection with the acquisition.

 

On October 30, 2019, SGMD closed the previously announced acquisition of BZRTH, Inc., a Nevada corporation (“BZRTH”) pursuant to a Stock Exchange Agreement. The total consideration to be paid by the Company to acquire BZRTH was 650,000,000 shares of SGMD’s common stock, 3,500,000 shares of Series B convertible preferred stock, $870,000 in cash, and 5% promissory notes in the sum of $7,130,000.00 due on or before October 31, 2021 to the BZRTH shareholders. $870,000 of cash had been paid along with 449,373,817 common shares and 750,000 Series B Convertible Preferred shares.

 

As of December 31, 2019, cash of $870,000 and 249 million shares of the Company’s common stock had been paid and issued in connection with the acquisition.

 

On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (“Agreement”) with each of the parties agreeing to return all consideration exchanged pursuant to the Stock Exchange Agreement.

 

The shareholders of BZRTH have agreed to surrender for cancellation, 449,373,817 common shares and 750,000 Series B Convertible Preferred shares. On an as converted to common basis the returns to Sugarmade’s treasury equal 449,373,817 relating to the common shares to be surrendered and 750,000,000 million common shares equivalents due to each Series B Convertible Preferred share converting to common shares on a 1 for 1,000 basis. Thus, on a common share equivalent basis, the surrender equals 1,199,373,817 common shares, if all Preferred Series B were converted. As part of the Agreement, the Company will retain or will receive 102,248 shares in BZRTH.
XML 26 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Property and Equipment, net
 6 Months Ended
Dec. 31, 2019
Property, Plant and Equipment [Abstract]  
Property and Equipment, net
8. Property and Equipment, net

 

As of December 31, 2019 and June 30, 2019, the property, plant and equipment, net of accumulated depreciation expenses were $430,396 and $476,585, respectively.

 

For the six months ended December 31, 2019 and 2018, depreciation expenses amounted to $46,189 and $26,578, respectively.

 

The Company reviews the carrying value of property and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the six months ended December 31, 2019 and 2018.
XML 27 R18.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Note Payable
 6 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Note Payable
12. Note payable due to bank

 

During October 2011, we entered into a revolving demand note (line of credit) arrangement with HSBC Bank USA, with a revolving borrowing limit of $150,000. The line of credit bears a variable interest rate of one quarter percent (0.25%) above the prime rate (5.5% as of December 20, 2018). In the event the deposit account is not established or minimum balance maintained, HSBC can charge a higher rate of interest of up to 4.0% above prime rate. As of December 31, 2019 and June 30, 2019, the loan principal balance was $25,982. As of December 31, 2019, the note is in default.
EXCEL 28 Financial_Report.xlsx IDEA: XBRL DOCUMENT begin 644 Financial_Report.xlsx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htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Consolidated Statements of Operations (Unaudited) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Consolidated Statements Of Operations        
Revenues, net $ 720,810 $ 1,445,269 $ 1,474,784 $ 2,886,885
Cost of goods sold 435,690 1,071,033 927,858 2,130,452
Gross profit 285,120 374,236 546,925 756,433
Operating expenses:        
Selling, general and administrative expenses 7,215,933 3,823,085 8,419,563 4,736,957
Loss from operations (6,930,814) (3,448,849) (7,872,637) (3,980,524)
Non-operating income (expense):        
Other income 1,867 1,451 3,098 5,101
Interest expense (735,196) (460,102) (1,319,800) (741,480)
Change in fair value of derivative liabilities 1,291,168 (2,019,927) 2,314,046 (3,661,383)
Warrant Expense 3,195 (55,278) 25,920
Loss on notes conversion (184,626) (184,626) 8,763
Loss on settlement (232,776) (94,207) (382,635) (255,882)
Gain on asset disposal 7,000
Amortization of debt discount (963,407) (31,591) (2,118,407) (59,597)
Gain on debt forgiveness   16,649 16,649
Other Income (Expense) (740) (740)
Total non-operating income (expense) (823,710) (2,584,531) (1,909,438) (4,661,909)
Net income (loss) $ (7,754,524) $ (6,033,380) $ (9,782,075) $ (8,642,433)
Basic net income (loss) per share $ (0.04) $ (0.02) $ (0.01) $ (0.03)
Diluted net income (loss) per share $ (0.04) $ (0.02) $ (0.01) $ (0.03)
Weighted average shares basic and diluted 191,886,785 393,670,334 880,355,944 330,029,294

XML 30 R8.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Summary of Significant Accounting Policies
 6 Months Ended
Dec. 31, 2019
Summary Of Significant Accounting Policies  
Summary of Significant Accounting Policies
2. Summary of Significant Accounting

 

Policies Basis of presentation

 

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America and the rules and regulations of the United States Securities and Exchange Commission for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes necessary for a comprehensive presentation of financial position, results of operations, or cash flows. It is management’s opinion however, that all material adjustments (consisting of normal recurring adjustments) have been made which are necessary for a fair financial statement presentation.

 

These interim condensed consolidated financial statements should be read in conjunction with our Company’s Annual Report on Form 10-K for the year ended June 30, 2019, which contains our audited consolidated financial statements and notes thereto, together with the Management’s Discussion and Analysis of Financial Condition and Results of Operation, for the year ended June 30, 2019. The interim results for the period ended December 31, 2019 are not necessarily indicative of the results for the full fiscal year.

 

Principles of consolidation

 

The condensed consolidated unaudited financial statements include the accounts of our Company and its wholly-owned subsidiaries, SWC Group Inc. All significant intercompany transactions and balances have been eliminated in consolidation.

 

Going concern

 

The Company sustained continued losses from operations during the six months ended December 31, 2019 and for the fiscal year ended June 30, 2019. The Company’s continuation as a going concern is dependent on its ability to generate sufficient cash flows from operations to meet its obligations, in which it has not been successful, and/or obtaining additional financing from its shareholders or other sources, as may be required.

 

Our condensed consolidated financial statements have been prepared assuming that we will continue as a going concern. Such assumption contemplates the realization of assets and satisfaction of liabilities in the normal course of business. These condensed consolidated financial statements do not include any adjustments to reflect the possible future effects on the recoverability and classification of assets or the amounts and classifications of liabilities that may result should the Company be unable to continue as a going concern.

 

Management is endeavoring to increase revenue-generating operations. While priority is on generating cash from operations through the sale of the Company’s products, management is also seeking to raise additional working capital through various financing sources, including the sale of the Company’s equity and/or debt securities, which may not be available on commercially reasonable terms to our Company, or which may not be available at all. If such financing is not available on satisfactory terms, we may be unable to continue our business as desired and our operating results will be adversely affected. In addition, any financing arrangement may have potentially adverse effects on us and/or our stockholders. Debt financing (if available and undertaken) will increase expenses, must be repaid regardless of operating results and may involve restrictions limiting our operating flexibility. If we issue equity securities to raise additional funds, the percentage ownership of our existing stockholders will be reduced and the new equity securities may have rights, preferences or privileges senior to those of the current holders of our common stock.

 

Use of estimates

 

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires our management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ significantly from those estimates.

 

Revenue recognition

  

We recognize revenue in accordance with Financial Accounting Standards Board Accounting Standards Codification (“FASB ASC’’) No. 606, Revenue Recognition. Sugarmade applied a five-step approach in determining the amount and timing of revenue to be recognized: (1) identifying the contract with a customer, (2) identifying the performance obligations in the contract, (3) determining the transaction price, (4) allocating the transaction price to the performance obligations in the contract and (5) recognizing revenue when the performance obligation is satisfied.

 

Substantially all of the Company’s revenue is recognized at the time control of the products transfers to the customer.

  

Cash

 

Cash and cash equivalents consist of amounts held as bank deposits and highly liquid debt instruments purchased with an original maturity of three months or less.

 

From time to time, we may maintain bank balances in interest bearing accounts in excess of the $250,000 currently insured by the Federal Deposit Insurance Corporation for interest bearing accounts (there is currently no insurance limit for deposits in noninterest bearing accounts). We have not experienced any losses with respect to cash. Management believes our Company is not exposed to any significant credit risk with respect to its cash.

 

Accounts receivable

 

Accounts receivable are carried at their estimated collectible amounts, net of any estimated allowances for doubtful accounts. We grant unsecured credit to our customer’s deemed credit worthy. Ongoing credit evaluations are performed and potential credit losses estimated by management are charged to operations on a regular basis. At the time any particular account receivable is deemed uncollectible, the balance is charged to the allowance for doubtful accounts. The Company had accounts receivable net of allowances of $158,000 as of December 31, 2019 and of $218,145 as of June 30, 2019.

 

Inventory

 

Inventory consists of finished goods paper and paper-based products such as paper cups and food containers ready for sale and is stated at the lower of cost or market. We value our inventory using the weighted average costing method. Our Company’s policy is to include as a part of inventory any freight incurred to ship the product from our contract manufacturers to our warehouses. Outbound freights costs related to shipping costs to our customers are considered period costs and reflected in selling, general and administrative expenses. We regularly review inventory and consider forecasts of future demand, market conditions and product obsolescence.

 

If the estimated realizable value of our inventory is less than cost, we make provisions in order to reduce its carrying value to its estimated market value. On a consolidated basis, as of December 31, 2019 and June 30, 2019, the balance for the inventory totaled $495,086 and $356,285, respectively. Obsolescence reserve at December 31, 2019 and June 30, 2019 were $10,580 and $120,486, respectively.

 

Property and equipment

 

Property and equipment is stated at the historical cost, less accumulated depreciation. Depreciation on property and equipment is provided using the straight-line method over the estimated useful lives of the assets for both financial and income tax reporting purposes as follows:

 

Machinery equipment   5 years
Furniture and equipment   7 years
Vehicles   7 years

 

Expenditures for renewals and betterments are capitalized while repairs and maintenance costs are normally charged to the statement of operations in the year in which they are incurred. In situations where it can be clearly demonstrated that the expenditure has resulted in an increase in the future economic benefits expected to be obtained from the use of the asset, the expenditure is capitalized as an additional cost of the asset.

 

Upon sale or disposal of an asset, the historical cost and related accumulated depreciation or amortization of such asset were removed from their respective accounts and any gain or loss is recorded in the statements of income.

 

The Company reviews the carrying value of property, plant, and equipment for impairment whenever events and circumstances indicate that the carrying value of an asset may not be recoverable from the estimated future cash flows expected to result from its use and eventual disposition. In cases where undiscounted expected future cash flows are less than the carrying value, an impairment loss is recognized equal to an amount by which the carrying value exceeds the fair value of assets. The factors considered by management in performing this assessment include current operating results, trends and prospects, the manner in which the property is used, and the effects of obsolescence, demand, competition and other economic factors. Based on this assessment, no impairment expenses for property, plant, and equipment was recorded in operating expenses during the six months ended December 31, 2019 and 2018.

 

Impairment of Long-Lived Assets

 

Long-lived assets, which include property, plant and equipment and intangible assets, are reviewed for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable.

 

Recoverability of long-lived assets to be held and used is measured by comparing the carrying amount of an asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated undiscounted future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the assets. Fair value is generally determined using the asset's expected future discounted cash flows or market value, if readily determinable. Based on its review, the Company, as of June 30, 2019, performed an impairment test of all of its intangible assets. Based on the company’s analysis, the company had an amortization of intangible assets of $700 for the six months ended December 31, 2019 and 2018, respectively.

 

Leases

 

In February 2016, the FASB established Topic 842, Leases, by issuing ASU No. 2016-02, which requires lessees to recognize the rights and obligations created by leases on the balance sheet and disclose key information about leasing arrangements. Topic 842 was subsequently amended by ASU No. 2018-11, Targeted Improvements, ASU No. 2018-10, Codification Improvements to Topic 842, and ASU No. 2018-01, Land Easement Practical Expedient for Transition to Topic 842. The new standard establishes a right-of-use model (ROU) that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the statement of operations.

 

The new standard became effective April 1, 2019. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) its effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. If an entity chooses the second option, the transition requirements for existing leases also apply to leases entered into between the date of initial application and the effective date. The entity must also recast its comparative period financial statements and provide the disclosures required by the new standard for the comparative periods. The Company adopted the new standard on July 1, 2019 using the modified retrospective transition approach as of the effective date of the initial application. The new standard provides a number of optional practical expedients in transition. The Company elected the “package of practical expedients”, which permits entities not to reassess under the new lease standard prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements.

 

The most significant effects of the adoption of the new standard relate to the recognition of new ROU assets and lease labilities on our balance sheet for office operating leases and providing significant new disclosures about our leasing activities.

 

The new standard also provides practical expedients for an entity’s ongoing accounting. The Company has also elected the short-term leases recognition exemption for all leases that qualify. This means that the Company will not recognize ROU assets or lease liabilities, and this includes not recognizing ROU assets and lease liabilities, for existing short-term leases of those assets in transition. The Company also currently expects to elect the practical expedient to not separate lease and non-lease components for its leases. All existing leases are reported under this rule. After the adoption, $455,590 of operating lease right-of-use asset and $465,826 of operating lease liabilities were not retroactively reflected to June 30, 2019 financial statements, and $416,421 of operating lease right-of-use asset and $428,907 of operating lease liabilities were reflected to December 31, 2019 financial statements.

 

Income taxes

 

We account for income taxes under the asset and liability method. Deferred tax assets and liabilities are recognized for future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their perspective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which the temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. Valuation allowances are recorded, when necessary, to reduce deferred tax assets to the amount expected to be realized.

 

As a result of the implementation of certain provisions of ASC 740, Income Taxes (“ASC 740”), which clarifies the accounting and disclosure for uncertainty in tax position, as defined, ASC 740 seeks to reduce the diversity in practice associated with certain aspect of the recognition and measurement related to accounting for income taxes. We adopted the provisions of ASC 740 as of October 2, 2008, and have analyzed filing positions in each of the federal and state jurisdictions where we are required to file income tax returns, as well as open tax years in these jurisdictions. We have identified the U.S. federal and California as our “major” tax jurisdictions and generally, we remain subject to Internal Revenue Service examination of our 2013 U.S. federal income tax returns. However, we have certain tax attribute carryforwards, which will remain subject to review and adjustment by the relevant tax authorities until the statute of limitations closes with respect to the year in which such attributes are utilized.

 

We believe that our income tax filing positions and deductions will be sustained on audit and do not anticipate any adjustments that will result in a material change to our financial position. Therefore, no reserves for uncertain income tax positions have been recorded pursuant to ASC 740. In addition, we did not record a cumulative effect adjustment related to the adoption of ASC 740. Our policy for recording interest and penalties associated with income-based tax audits is to record such items as a component of income taxes. We have no interest or penalties as of December 31, 2019.

 

Stock based compensation

 

Stock based compensation cost to employees is measured at the date of grant, based on the calculated fair value of the stock-based award, and will be recognized as expense over the employee’s requisite service period (generally the vesting period of the award). We estimate the fair value of employee stock options granted using the Binomial Option Pricing Model. Key assumptions used to estimate the fair value of stock options will include the exercise price of the award, the fair value of our common stock on the date of grant, the expected option term, the risk free interest rate at the date of grant, the expected volatility and the expected annual dividend yield on our common stock. We use our company’s own data among other information to estimate the expected price volatility and the expected forfeiture rate. Share-based compensation awards issued to non-employees for services rendered are recorded at either the fair value of the services rendered or the fair value of the share-based payment, whichever is more readily determinable.

 

Loss per share

 

We calculate basic earnings per share (“EPS”) by dividing our net loss by the weighted average number of common shares outstanding for the period, without considering common stock equivalents. Diluted EPS is computed by dividing net income or net loss by the weighted average number of common shares outstanding for the period and the weighted average number of dilutive common stock equivalents, such as options and warrants. Options and warrants are only included in the calculation of diluted EPS when their effect is dilutive.

 

Fair value of financial instruments

 

ASC Topic 820 defines fair value, establishes a framework for measuring fair value, establishes a three-level valuation hierarchy for disclosure of fair value measurement and enhances disclosure requirements for fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

 

Level 1 - observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets.

Level 2 - include other inputs that are directly or indirectly observable in the marketplace.

Level 3 - unobservable inputs which are supported by little or no market activity.

 

The Company used Level 3 inputs for its valuation methodology for the derivative liabilities in determining the fair value using the Binomial option-pricing model for the six months ended December 31, 2019.

  

Derivative instruments

 

The fair value of derivative instruments is recorded and shown separately under current liabilities. Changes in the fair value of derivatives liability are recorded in the consolidated statement of operations under non-operating income (expense).

 

Our Company evaluates all of its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the consolidated statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Binomial option-pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.

 

Segment Reporting

 

FASB ASC Topic 280, “Segment Reporting”, requires use of the “management approach” model for segment reporting. The management approach model is based on the way a company’s management organizes segments within the Company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure, or any other manner in which management disaggregates a company.

 

FASB ASC Topic 280 has no effect on the Company’s financial statements as substantially all of its operations are conducted in one industry segment – paper and paper-based products such as paper cups, cup lids, food containers, etc.

 

New accounting pronouncements   

 

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The new standard establishes a right-of-use (“ROU”) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. The Company adopted this ASU on the consolidated financial statements in the quarter ended December 31, 2019.
XML 31 R22.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Shares to be issued - liability
 6 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Shares to be issued - liability
16. Shares to be issued – liability

 

During the year ended June 30, 2019, the Company had entered into multiple private placement agreements and had shares to be issued under liability in total amount of $100,000.

 

During the three months ended September 30, 2019, the Company had entered into a private placement agreement and had increased shares to be issued for total amount of $96,000.

 

During the three months ended September 30, 2019, the Company had entered into an employee compensation plan and had increased shares to be issued for total amount of $12,000.

 

During the three months ended December 31, 2019, the Company had entered into a private placement agreement and had increased shares to be issued for total amount of $40,000.

 

During the three months ended December 31, 2019, the Company had entered into an employee compensation plan and had increased shares to be issued for total amount of $14,000.

 

As of December 31, 2019 and June 30, 2019, the Company had balance of $262,000 and $100,000 share to be issued.
XML 32 R26.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Subsequent Event
 6 Months Ended
Dec. 31, 2019
Subsequent Event  
Subsequent Event
20. Subsequent events

  

On December 27, 2019, the Company entered a convertible promissory note with an accredited investor for a total amount of $112,200 (includes $12,200 OID). The note is due 360 days and bear an interest rate of 8%. The conversion price for the note is 60% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date. The principal amount was received in January 2020.

  

On January 30, 2020, the Company issued 6,684,843 shares of the Company’s common stock for debt conversions in total amount of $33,291.

 

On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (“Agreement”) with each of the parties agreeing to return all consideration exchanged pursuant to the Stock Exchange Agreement. The Agreement provided for mutual releases and indemnities.

 

The shareholders of BZRTH have agreed to surrender for cancellation, 449,373,817 common shares and 750,000 Series B Convertible Preferred shares. On an as converted to common basis the returns to Sugarmade’s treasury equal 449,373,817 relating to the common shares to be surrendered and 750,000,000 million common shares equivalents due to each Series B Convertible Preferred share converting to common shares on a 1 for 1,000 basis. Thus, on a common share equivalent basis, the surrender equals 1,199,373,817 common shares, if all Preferred Series B were converted. As part of the Agreement, the Company will retain or will receive 102,248 shares in BZRTH.

 

On January 21, 2020, the Company directed the creation of SugarRush, Inc., a California Corporation, as a wholly owned subsidiary. The new company will be utilized for the holding of acquired assets and as a primary commercial business unit.

 

On February 7, 2020, the Company signed a definitive agreement (the “Agreement”) with Indigo Dye Group Corp. (“Indigo”) with a mailing address of 5600 Warehouse Way, Sacramento, CA 95826, the operator of BudCars Cannabis Delivery Service (“Budcars”), which provides services in the Sacramento metropolitan area. Under the terms of the Agreement, the Company will purchase a 40% stake in the Budcars operation for a cash amount of $700,000, and will receive an option to acquire an additional 30%, which upon exercise will provide a controlling stake in the operation for the Company.
ZIP 33 0001520138-20-000068-xbrl.zip IDEA: XBRL DOCUMENT begin 644 0001520138-20-000068-xbrl.zip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¾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end XML 34 R12.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Other Current Assets
 6 Months Ended
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Other Current Assets
6. Other Current Assets  

 

As of December 31, 2019 and June 30, 2019, other current assets consisted of the following:

 

    For the periods ended
    December 31, 2019   June 30, 2019
Prepaid Deposit   $ 2,314,498     $ 2,145,000  
Prepaid Inventory     44,308       172,045  
Employees Advance     —         16,052  
Prepaid Expenses     97,768       358,702  
Other     2,118       28,075  
Total:   $ 2,458,692     $ 2,719,875  

 

Our 2,314,498 in prepaid deposit as of December 31, 2019 was mainly related to the following investments to other companies:

  a. $1,175,000 related to investment in Sky Unlimited;

 

  b. $196,000 related to investment in Hempistry Inc.;

 

  c. $870,000 paid for BZRTH acquisition.

XML 35 R16.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Derivative Liabilities
 6 Months Ended
Dec. 31, 2019
Derivative Liabilities  
Derivative Liabilities [Text Block]
10. Derivative liabilities

 

The derivative liability is derived from the conversion features in note 9 and stock warrant in note 11. All were valued using the Binomial option pricing model using the assumptions detailed below. As of December 31, 2019 and June 30, 2019, the derivative liability was $3,259,345 and $2,991,953, respectively. The Company recorded $2,314,046 gain and $,3,661,383 loss from changes in derivative liability during the six months ended December 31, 2019 and 2018, respectively. The Binomial Option Price Model with the following assumption inputs:

 

    December 31, 2019
Annual dividend yield     —    
Expected life (years)     0.5-1.00  
Risk-free interest rate     1.51-2.09 %
Expected volatility     121-153 %

 

    December 31, 2018
Annual dividend yield     —    
Expected life (years)     0.5-1.00  
Risk-free interest rate     2.49-2.72 %
Expected volatility     87-123 %

  

Fair value of the derivative is summarized as below:

 

Beginning Balance, June 30, 2019 $2,991,953
Additions 3,538,927
Mark to Market 2,314,089
Reclassification to APIC due to conversions (957,488)
Balance, December 31, 2019 $3,259,345
XML 36 R35.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Intangible Asset (Details Narrative) - USD ($)
 6 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]    
Amortization Expense $ 700 $ 700
XML 37 R31.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Concentration (Details Narrative) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Dec. 31, 2019
Dec. 31, 2018
Net Revenue $ 720,810 $ 1,445,269 $ 1,474,784 $ 2,886,885
Supplier Concentration One [Member]        
Concentration Percentage     38.63%  
Supplier Concentration Two [Member]        
Concentration Percentage     38.38%  
XML 38 R39.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Commitments and Contingencies (Details Narrative) - USD ($)
 1 Months Ended
Mar. 31, 2018
Dec. 31, 2019
Commitments And Contingencies Details Narrative    
Monthly Rent $ 11,770  
Lease Term 5 years  
2020   $ 146,932
2021   151,344
2022   155,888
2023   105,984
Total lease payments   560,148
Less: Imputed interest/present value discount   104,558
Present value of lease liabilities   $ 455,590
XML 39 R6.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Consolidated Statements of Cash Flows Statement - USD ($)
 6 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Cash flows from operating activities:    
Net loss $ (9,782,075) $ (8,642,433)
Adjustments to reconcile net loss to cash flows from operating activities:    
Initial valuation of debt discount 239,300 149,143
Loss on settlement 382,635 255,882
Gain on debt forgiveness (16,649)
Amortization of debt discount 330,192 565,978
Stock based compensation 6,041,550 5,097,206
Change in fair value of derivative liability 273,299 3,661,418
Amortization of Intangible Assets 700 700
Change in exercise of warrant 67,387 (25,920)
Depreciation and amortization 46,189 26,578
Changes in operating assets and liabilities    
Accounts receivable 60,145 113,179
Inventory (138,801) (49,226)
Prepayment, deposits and other receivables 261,183 (54,876)
Lease liabilities (36,919)
Accounts payable and accrued liabilities 5,955 (40,876)
Customer deposits (62,174) (118,974)
Other assets (35,000)
Unearned revenue (19,890) (89,344)
Interest Payable 166,753 172,221
Right of use, assets 39,169
Accrued interest and other payables 37,962 56,972
Net cash provided by (used in) operating activities (2,122,441) 1,060,980
Cash flows from investing activities:    
Payment for property and equipment (87,154)
Net cash provided by (used in) investing activities (87,154)
Cash flows from financing activities:    
Proceeds from Issuance of Common Stock 340,000 235,000
Proceeds from convertible notes 1,451,687 1,022,500
Proceeds (Repayment) from(to) loans (22,555) (5,261)
Repayment to Related Parties 105,000 25,634
Proceeds from Share to be Issued 236,000 (2,121,000)
Bank overdraft 5,907
Loan Receivable 75,033 (13,151)
Net cash provided by (used in) financing activities 2,191,072 (856,278)
Net increase (decrease) in cash 68,631 117,550
Cash, beginning of period 34,371 42,121
Cash, end of period 103,002 159,671
Supplemental disclosure of non-cash financing activities:    
Shares issued for conversion of convertible debt 689,997 516,391
Reclassification from derivative liabilities to APIC 957,488 6,289,241
Debt discount related to convertible debt 951,581 1,888,248
Debts settled through shares issuance 229,000 1,292,544
Shares issued for award to Bizright and to be cancelled in future (32,291,060)
Shares issued for warrant exercise $ 28,381
XML 40 R2.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Condensed Consolidated Balance Sheets (Unaudited) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Current assets:    
Cash $ 103,002 $ 34,371
Accounts receivable, net 158,000 218,145
Inventory, net 495,086 356,285
Loan receivables 10,500 85,533
Other current assets 2,458,692 2,719,875
Total current assets 3,225,281 3,414,209
Equipment, net 430,396 476,585
Intangible Asset 10,500 11,200
Other assets 58,970 23,970
Right of Use Assets - Non-Current 416,421
Advanced to Investments   18,000,000
Total Assets 4,141,568 21,925,965
Current liabilities:    
Note payable due to bank 25,982 25,982
Bank overdraft 5,907
Accounts payable and accrued liabilities 1,427,098 1,431,379
Customer deposits 222,284 287,789
Customer Overpayment   42,307
Unearned revenue 87,420 61,672
Other payable 458,412 420,450
Accrued interest 637,389 507,218
Accrued compensation and personnel related payables 24,528 24,528
Note Payable 20,000 20,000
Notes payable - related parties 18,000 18,000
Loans payable 192,030 214,585
Loans payable - related party 135,000 30,000
Convertible notes payable, net 1,378,221 1,046,909
Derivative liabilities 3,259,345 2,991,953
Warrants liabilities 15,663 24,658
Shares to be issued 262,000 100,000
Lease Liability - Current 110,824
Total current liabilities 8,280,102 7,247,431
Lease Liability - Non-Current 318,083
Total liabilities 8,598,185 7,247,431
Stockholders' equity:    
Preferred stock ($0.001 par value, 10,000,000 shares authorized, 3,165,001 and 2,000,000 issued and outstanding at December 31, 2019 and June 30, 2019, respectively) 3,165 2,000
Common stock ($0.001 par value, 1,990,000,000 shares authorized, 1,129,926,122 and 697,608,570 shares issued and outstanding at December 31, 2019 and June 30, 2019, respectively) 1,129,927 697,610
Additional paid-in capital 83,472,375 61,038,875
Shares to be cancelled, common shares (21,566,046)
Shares to be cancelled, preferred shares (10,725,014)
Shares to Be Issued, Common Shares 100,000 29,000
Accumulated deficiency (56,871,025) (47,088,950)
Total stockholders' equity (4,456,617) 14,678,534
Total liabilities and stockholders' equity $ 4,141,568 $ 21,925,965
XML 41 R28.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Other Current Assets (Tables)
 6 Months Ended
Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Other Current Assets

As of December 31, 2019 and June 30, 2019, other current assets consisted of the following:

 

    For the periods ended
    December 31, 2019   June 30, 2019
Prepaid Deposit   $ 2,314,498     $ 2,145,000  
Prepaid Inventory     44,308       172,045  
Employees Advance     —         16,052  
Prepaid Expenses     97,768       358,702  
Other     2,118       28,075  
Total:   $ 2,458,692     $ 2,719,875  
XML 42 R20.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Loans payable
 6 Months Ended
Dec. 31, 2019
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 December 31, 2019 and June 30, 2019, the note was in default and the outstanding balance under this note was $63,924 and $63,924, 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 December 31, 2019 and June 30, 2019, 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 December 31, 2019 and June 30, 2019, the Company has an outstanding balance of $0 and $3,584. 

  

On December 17, 2018, the Company entered into a repayment agreement with an individual for $100,000 at no interest. As of December 31, 2019 and June 30, 2019, the Company has an outstanding balance of $2,740 and $17,834, 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 December 31, 2019 and June 30, 2019, the outstanding balance under this loan were $0 and $29,243, respectively.

 

As of December 31, 2019 and June 30, 2019, the Company had an outstanding loan balance of $192,030 and $214,585, respectively.
XML 43 R24.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Shares to be cancelled - equity
 6 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Shares to be cancelled - equity
18. Shares to be cancelled – equity

 

On October 30, 2019, SGMD closed the previously announced acquisition of BZRTH, Inc., a Nevada corporation (“BZRTH”) pursuant to a Stock Exchange Agreement. BZRTH is headquartered in Irwindale, California and is a marketer and manufacturer of hydroponic growth supplies and related products to distributors and retailers. The total consideration to be paid by the Company to acquire BZRTH was 650,000,000 shares of SGMD’s common stock, 3,500,000 shares of Series B convertible preferred stock, $870,000 in cash, and 5% promissory notes in the sum of $7,130,000.00 due on or before October 31, 2021 to the BZRTH shareholders. $870,000 of cash had been paid along with 449,373,817 common shares and 750,000 Series B Convertible Preferred shares.

 

On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (“Agreement”) with each of the parties agreeing to return all consideration exchanged pursuant to the Stock Exchange Agreement. The Agreement provided for mutual releases and indemnities.

 

The shareholders of BZRTH have agreed to surrender for cancellation, 449,373,817 common shares and 750,000 Series B Convertible Preferred shares. On an as converted to common basis the returns to Sugarmade’s treasury equal 449,373,817 relating to the common shares to be surrendered and 750,000,000 million common shares equivalents due to each Series B Convertible Preferred share converting to common shares on a 1 for 1,000 basis. Thus, on a common share equivalent basis, the surrender equals 1,199,373,817 common shares, if all Preferred Series B were converted. As of December 31, 2019, the Company recorded share to be cancelled – common stock and preferred stock in total amount of $38,225,560.
XML 44 report.css IDEA: XBRL DOCUMENT /* Updated 2009-11-04 */ /* v2.2.0.24 */ /* DefRef Styles */ ..report table.authRefData{ background-color: #def; border: 2px solid #2F4497; font-size: 1em; position: absolute; } ..report table.authRefData a { display: block; font-weight: bold; } ..report table.authRefData p { margin-top: 0px; } ..report table.authRefData .hide { background-color: #2F4497; padding: 1px 3px 0px 0px; text-align: right; } ..report table.authRefData .hide a:hover { background-color: #2F4497; } ..report table.authRefData .body { height: 150px; overflow: auto; width: 400px; } ..report table.authRefData table{ font-size: 1em; } /* Report Styles */ ..pl a, .pl a:visited { color: black; text-decoration: none; } /* table */ ..report { background-color: white; border: 2px solid #acf; clear: both; color: black; font: normal 8pt Helvetica, Arial, san-serif; margin-bottom: 2em; } ..report hr { border: 1px solid #acf; } /* Top labels */ ..report th { background-color: #acf; color: black; font-weight: bold; text-align: center; } ..report th.void { background-color: transparent; color: #000000; font: bold 10pt Helvetica, Arial, san-serif; text-align: left; } ..report .pl { text-align: left; vertical-align: top; white-space: normal; width: 200px; white-space: normal; /* word-wrap: break-word; */ } ..report td.pl a.a { cursor: pointer; display: block; width: 200px; overflow: hidden; } ..report td.pl div.a { width: 200px; } ..report td.pl a:hover { background-color: #ffc; } /* Header rows... */ ..report tr.rh { background-color: #acf; color: black; font-weight: bold; } /* Calendars... */ ..report .rc { background-color: #f0f0f0; } /* Even rows... */ ..report .re, .report .reu { background-color: #def; } ..report .reu td { border-bottom: 1px solid black; } /* Odd rows... */ ..report .ro, .report .rou { background-color: white; } ..report .rou td { border-bottom: 1px solid black; } ..report .rou table td, .report .reu table td { border-bottom: 0px solid black; } /* styles for footnote marker */ ..report .fn { white-space: nowrap; } /* styles for numeric types */ ..report .num, .report .nump { text-align: right; white-space: nowrap; } ..report .nump { padding-left: 2em; } ..report .nump { padding: 0px 0.4em 0px 2em; } /* styles for text types */ ..report .text { text-align: left; white-space: normal; } ..report .text .big { margin-bottom: 1em; width: 17em; } ..report .text .more { display: none; } ..report .text .note { font-style: italic; font-weight: bold; } ..report .text .small { width: 10em; } ..report sup { font-style: italic; } ..report .outerFootnotes { font-size: 1em; } XML 45 R7.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Nature of Business
 6 Months Ended
Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Nature of Business
1. Nature of Business

 

Sugarmade, Inc. (hereinafter referred to as’‘we’’, ’‘us” or “the/our Company’’) is a publicly traded company incorporated in the state of Delaware. Our previous legal name was Diversified Opportunities, Inc. Our Company, Sugarmade, Inc. operates much of its business activities through our subsidiary, SWC Group, Inc., a California corporation (“SWC’’).

 

Sugarmade, Inc. was founded in 2010. In 2014, CarryOutSupplies.com was acquired by Sugarmade, Inc., creating the Company as it is today. As of the end of the reporting period, September 30, 2019, we were involved in two businesses including the supply of products to the quick service restaurant sub-sector of the restaurant industry and as an importer, distributor and marketer of hydroponic supplies to various agricultural sectors. We had previously been a marketer of culinary seasoning products Seasoning Stix and Sriracha Seasoning Stix and a marketer of tree-free paper products. These products were discontinued during 2018 in order to focus the majority of our corporate resources on the marketing of hydroponic supplies.

 

The marketplace in which we plan to be mainly engaged is generally referred to as hydroponic agricultural supplies. While some of our customers are engaged in the legal cultivation, processing and/or distribution of cannabis or cannabis containing products, our Company neither sells any products containing cannabis nor do we handle, process, or distribute any products containing cannabis.

 

Our legacy business operation, CarryOutSupplies.com, is a producer and wholesaler of custom printed and generic supplies servicing more than 2,000 quick service restaurants. Our products include double poly paper cups for cold beverage; disposable, clear, plastic cold cups, paper coffee cups, yogurt cups, ice cream cups, cup lids, cup sleeves, food containers, soup containers, plastic spoons and many other similar products for this market sector. CarryOutSupplies.com was founded in 2009 when the founders gained first-hand experience within the restaurant industry of the difficulty for restaurant owners to acquire custom printed supplies at a reasonable cost. Many quick service restaurants wish to acquire custom printed products, such as those embossed with logos, but the minimum order size for such customization had been cost prohibitive. With that in mind, carry out supplies was founded to provide products to this underserved section of the market. Since that time, the company has become a key supplier to many popular U.S. franchises, particularly in the frozen dessert segments.

 

During December 2017, the Company entered into a master marketing agreement with BizRight, LLC, a leading marketer and manufacturer of hydroponic growth supplies, which offers a range of hydroponics-related products including: HPS grow lights, electronic ballasts, HPS Bulbs, nutrient mixes, environmental control products, pH measurement and calibration solutions and other grow and storage products. BizRight operates the ZenHydro.com website and other e-commerce properties, and sells various products to distributors and retailers. On April 11, 2018, the same rights under the master marketing agreement were assigned to BZRTH Inc. On February 5, 2019, the Company exercised its option to acquire BZRTH and the transaction had been closed on October 30, 2019. On January 15, 2020, the Company entered into a Rescission and Mutual Release Agreement (“Agreement”) with each of the parties agreeing to rescind the transaction and return all consideration exchanged pursuant to the Stock Exchange Agreement.

 

In October 2018 and January 2019, the Company had intents to acquire two suppliers or retailers of hydroponic equipment. As of the date of this report, the Company is no longer pursuing these acquisitions.
XML 46 R3.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares
Dec. 31, 2019
Jun. 30, 2019
Condensed Consolidated Balance Sheets Unaudited    
Preferred stock, par value $ 0.001 $ 0.001
Preferred stock, shares authorized 10,000,000 10,000,000
Preferred stock, shares issued 3,165,001 2,000,000
Preferred stock, shares outstanding 3,165,001 2,000,000
Common stock, par value $ 0.001 $ 0.001
Common stock, shares authorized 1,990,000,000 1,990,000,000
Common stock, shares issued 1,129,926,122 697,608,570
Common stock, shares outstanding 1,129,926,122 697,608,570
XML 47 R21.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Stockholder's Equity
 6 Months Ended
Dec. 31, 2019
Stockholders Equity  
Stockholder's Equity
15. Stockholder’s Equity

 

The Company is authorized to issue 1,990,000,000 shares of $.001 par value common stock and 10,000,000 shares of $.001 par value preferred stock.

 

Share issuance during the three months ended September 30, 2019 -

 

During the three months ended September 30, 2019, the Company issued 1,000,000 shares of common stock to settle the old liability to be issued in total amount of $29,000.

 

During the three months ended September 30, 2019, the Company issued 71,915,557 shares of common stock for debt conversions in total amount of $547,833.

 

During the three months ended September 30, 2019, the Company issued 11,348,591 shares of common stock for cash in total amount of $100,000.

 

During the three months ended September 30, 2019, the Company issued 28,381,818 shares of common stock for warrant exercise in total amount of $14,132. 

 

As of September 30, 2019 and June 30, 2019, the Company had 2,000,000 share of its preferred stock, 810,254,536 and 697,608,570 shares of its common stock, respectively, issued and outstanding.

 

Share issuance during the three months ended December 31, 2019 -

 

During the three months ended December 31, 2019, the Company issued 18,181,818 shares of common stock to settle the old liability to be issued in total amount of $290,455.

 

During the three months ended December 31, 2019, the Company issued 24,994,341 shares of common stock for convertible debt principal with interest conversions in total amount of $142,165.

 

During the three months ended December 31, 2019, the Company issued 26,621,610 shares of common stock for cash in total amount of $240,000.

 

During the three months ended December 31, 2019, the Company issued 500,000 shares of common stock for employee bonus in total fair value of $7,550. 

 

During the three months ended December 31, 2019, the Company issued 249,373,817 shares of common stock for acquisition of BZRTH in total fair value of $3,566,046. The shares are to be cancelled in subsequent period pursuant to the rescission on January 15, 2020.

 

During the three months ended December 31, 2019, the Company issued 750,001 shares of preferred stock for acquisition of BZRTH in total fair value of $10,725,014. The shares of preferred stock are to be cancelled in subsequent period pursuant to the rescission on January 15, 2020.

 

During the three months ended December 31, 2019, the Company issued 415,000 shares of series B preferred stock for award to employee bonus in total fair value of $5,934,500.

 

As of December 31, 2019 and June 30, 2019, the Company had 3,165,001 share of its preferred stock, 1,129,926,122 and 697,608,570 shares of its common stock, respectively, issued and outstanding. 
XML 49 R25.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Commitments and Contingencies
 6 Months Ended
Dec. 31, 2019
Commitments And Contingencies  
Commitments and Contingencies
19. Commitments and contingencies

 

On February 23, 2018 the Company entered into lease agreement for a new office space as part of the plan to expand operation, the lease is set to commence Commencing March 1, 2018. The term of the lease is for a (5) Five Years with 1 month free on the 1st year of the term. The monthly rent on the 1st year will be $11,770 with a 3% increase for each subsequent year. Total commitment for the full term of the lease will be $737,367. As of the date of this filing, this property became the headquarter of the company.

 

Six Months Ended    
December 31, 2019  
Lease Cost      
Operating lease cost (included in general and administration in the Company’s unaudited condensed statement of operations)   $ 74,988
       
Other Information      
Cash paid for amounts included in the measurement of lease liabilities for the six months ended December 31, 2019   $ 72,738
Remaining lease term – operating leases (in years)                                      3.17
Average discount rate – operating leases     10%
The supplemental balance sheet information related to leases for the period are as follows:      
Operating leases      
Right-of-use assets   $ 416,421
Total operating lease assets   $ 416,421
       
Short-term operating lease liabilities   $ 110,824
Long-term operating lease liabilities   $ 318,083
Total operating lease liabilities   $ 428,907
       
Maturities of the Company’s lease liabilities are as follows:      
       
Period ending June 30,   Operating 
Lease
2020      $                        146,932
2021     151,344
2022     155,888
2023     105,984
Total lease payments     560,148
       
Less: Imputed interest/present value discount     104,558
Present value of lease liabilities      $                        455,590
XML 50 R29.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Derivative liabilities (Tables)
 6 Months Ended
Dec. 31, 2019
Disclosure Derivative Liabilities Tables Abstract  
Schedule of changes in derivative liability

The Binomial Option Price Model with the following assumption inputs:

 

    December 31, 2019
Annual dividend yield     —    
Expected life (years)     0.5-1.00  
Risk-free interest rate     1.51-2.09 %
Expected volatility     121-153 %

 

    December 31, 2018
Annual dividend yield     —    
Expected life (years)     0.5-1.00  
Risk-free interest rate     2.49-2.72 %
Expected volatility     87-123 %

  

Fair value of the derivative is summarized as below:

 

Beginning Balance, June 30, 2019 $2,991,953
Additions 3,538,927
Mark to Market 2,314,089
Reclassification to APIC due to conversions (957,488)
Balance, December 31, 2019 $3,259,345
XML 51 R13.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Intangible Asset
 6 Months Ended
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]  
Intangible Asset
7. Intangible Asset

 

On August 21, 2017, the Company entered into an intellectual property assignment agreement with Sound Decisions to revamp the company’s shoplifty website to generate and attract more traffic from potential customers. The Company made a payment of $14,000 for the website (intellectual property). The Company amortized this use right as intangible asset over ten years, and recorded amortization expense of $700 for the periods ended December 31, 2019 and June 30, 2019, respectively.
XML 52 R17.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Stock warrants
 6 Months Ended
Dec. 31, 2019
Notes to Financial Statements  
Stock warrants
11. Stock warrants

 

On May 17, 2017, the Company entered a promissory note with an accredited investor for a total amount of $1,375,000 (after $10,000 legal and due diligence fee) with an OID of $125,000, the note will be fulfilled through a series of funding. In connection with the note, the investor will also receive warrants and is calculated based on 15% of the maturity amount. The warrants have a life of four years with an exercise price of $0.15 per share and have cashless exercise option. The fair value of the warrants at the grant date was $40,400. During the three months ended September 30, 2019, the holder exercised 1,766,544 cashless warrant shares into 28,381,818 shares of the Company’s common stock. On September 23, 2019, the remaining warrant shares were settled by exchange $200,000 convertible note with interest of 10% per annum, due on September 23, 2020, with conversion price of 55% of the lowest closing bid for the 20 consecutive trading days prior to the conversion date.

 

On September 7, 2018, the Company entered a settlement agreement with several investors to settle all disputes by issues additional unrestricted shares. In connection with the note each individual investor will also receive warrants equal to the number of the shares the investors own as of the effective date of the settlement agreement. The warrants have a life of five years with an exercise price as of the date of exchange. The fair value of the warrants at the grant date was $56,730. As of December 31, 2019 and June 30, 2019, the fair value of the warrant liability was $15,663 and $19,103, respectively.

 

As of December 31, 2019 and June 30, 2019, the total fair value of the warrant liability was $15,663 and $24,658, respectively.
XML 53 R38.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Derivative liabilities (Details 2) - USD ($)
 6 Months Ended
Dec. 31, 2019
Dec. 31, 2018
Balance Beginning $ 2,991,953  
Mark to Market (273,299) $ (3,661,418)
Ending Balance 3,259,345  
Derivative [Member]    
Balance Beginning 2,991,953  
Additions 3,538,927  
Mark to Market 2,314,089  
Reclassification to APIC due to conversions (957,488)  
Ending Balance $ 3,259,345  
XML 54 R34.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Other Current Assets (Details) - USD ($)
Dec. 31, 2019
Jun. 30, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Prepaid Deposit $ 2,314,498 $ 2,145,000
Prepaid Inventory 44,308 172,045
Employees Advance 16,052
Prepaid Expenses 97,768 358,702
Others 2,118 28,075
Total $ 2,458,692 $ 2,719,875
XML 55 R30.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Summary of Significant Accounting Policies (Details Narrative) - USD ($)
 9 Months Ended
Dec. 31, 2019
Jun. 30, 2019
Accounts Receivable $ 158,000 $ 218,145
Inventory, Net 495,086 356,285
Inventory Obsolescence Reserve $ 10,580 $ 120,486
Machinery and Equipment [Member]    
Estimated useful lives of asset 5 years  
Furniture and equipment [Member]    
Estimated useful lives of asset 7 years  
Vehicles [Member]    
Estimated useful lives of asset 7 years