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FAIR VALUE MEASUREMENTS
 12 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 15. FAIR VALUE MEASUREMENTS

 

Convertible notes

 

The Company held back 500,000 Series C Preferred Stock (“Closing Holdback Shares”), from former owners of an acquired entity for one year after the closing of the acquisition to secure potential indemnification claims by the Company against the former owners of the acquired entity. Each share of Series C Preferred Stock was convertible into 0.0125 shares of common stock. Effective one year after the closing of the acquisition, all Closing Holdback Shares were issued and immediately converted into an aggregate of 6,248 shares of common stock.

 

The following table provides a reconciliation of the beginning and ending balance of the Closing Holdback Shares (in the form of Series C Preferred Stock):

 

 

   Preferred stock 
   carried at fair value 
   (Level 2) 
Balance at June 30, 2023  $208,500 
Fair value of holdback Series C Preferred Stock at acquisition (Note 5)   (175,738)
Fair value gain on revaluation of holdback Series C Preferred Stock   (32,762)
Balance at June 30, 2024  $-