Common Stock Warrants

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Note 6 - Common Stock Warrants

During the year ended June 30, 2018, the Company extended 3,860,000 warrants. During the year ended June 30, 2017, the Company extended 5,333,334 warrants in connection with the financing addressed in Note 3. The warrants can be purchased at $0.10 per share. The Company reported a $258,183 loss on extinguishment of debt related to the extension of these warrant issuances. The expense of these warrants was calculated using the Black-Scholes option pricing model using the following assumptions:

Dividend yield			0
Expected volatility			1.20	%
Risk free interest			0.50	%
Expected life			3.5 years

A summary of the status of the Company’s stock warrants as of June 30, 2018 and 2017 is presented below:

										Weighted Ave.
		Stock				Exercise				Exercise
		Warrants				Price				Price

Outstanding and Exercisable, June 30, 2016			12,193,334			$	0.10-0.15			$	0.12

Granted			-				-				-
Expired/Canceled			-				-				-
Exercised			-				-				-

Outstanding and Exercisable, June 30, 2017			12,193,334			$	0.10–0.15			$	0.12

Granted			-				-				-
Expired/Canceled			-				-				-
Exercised			-				-				-

Outstanding and Exercisable, June 30, 2018			12,193,334			$	0.10–0.15			$	0.12

A summary of outstanding stock warrants at June 30, 2018 follows:

Number of						Remaining								Weighted
Common Stock						Contracted				Exercise				Ave Exer.
Equivalents				Expir. Date		Life (Years)				Price				Price

	3,860,000			June 2020			2.000			$	0.15			$	0.15
	8,333,334			February 2020			1.750			$	0.10			$	0.10

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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