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ACCRUED LIABILITIES (Tables)
 3 Months Ended
Sep. 30, 2025
Payables and Accruals [Abstract]  
Schedule of accrued liabilities
        
   September 30, 2025   June 30, 2025 
Accrued payroll deductions owed to government entities  $50,182   $50,988 
Accrued bonuses to an officer – related party (1)   2,750,000    2,625,000 
Accrued salaries        132,377 
Accrued vacation   187,452    174,108 
Accrued expenses for service providers   8,000    69,318 
Accrued marketing development funds (2)   797,215    673,205 
Other accrued liabilities   72,048    72,048 
Total  $3,864,897   $3,797,044 

 

(1)The balance of Accrued Bonus to an officer consists of two components: the Quarterly Bonus and the Joint Venture Incentive. As of September 30, 2025, no cash payment has been made by the Company for either accrued amount.


On November 10, 2022, the Company and OC Kim, its President, entered into an amendment of the employment agreement dated September 7, 2021. The amendment provides for the payment of an incentive to Mr. Kim, of $125,000 for each calendar quarter during the remaining four-year term of the employment agreement, for an aggregate total of $2 million, with the first such bonus accrued on December 31, 2022. Incentive bonuses of $125,000 have been accrued for three months ended September 30, 2025, resulting in accrued bonus balances of $1,500,000 and $1,375,000 as of September 30, 2025, and June 30, 2025, respectively.

 

On September 23, 2024, the Board acknowledged that Mr. Kim had earned an incentive bonus of $1,250,000 for negotiating and securing a joint venture agreement which resulted in the organization of Sigbeat. The Company and Mr. Kim entered into a Forbearance Agreement, dated September 23, 2024, under which Mr. Kim agreed to defer the bonus, in exchange for the Company’s agreement to allow Mr. Kim to defer payment of the $1,000,000 settlement amount owed by Mr. Kim to the Company under a Settlement Agreement, dated June 12, 2024. On January 16, 2025, there was a completed contribution for Common Stock of Sigbeat, and the Company accrued the deferred incentive bonus of $1,250,000 to Mr. Kim.

 

(2)During the three months ended September 30, 2025, the Company accrued $124,010 in marketing development funds payable to a customer to support the customer’s marketing and promotion programs for the Company’s products, resulting in a total accrued marketing development fund balance of $797,215 as of September 30, 2025.