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<td colspan="2" style="font-weight: bold; text-align: center">Outstanding at</td><td style="font-weight: bold"> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Outstanding</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Exercise Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Exercised in<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Expired</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">0.15</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">500,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">500,000</td><td style="width: 1%; text-align: left"> </td></tr>
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<td style="text-align: left">$</td><td style="text-align: right">0.20</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">105,000</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">-</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">-</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">105,000</td><td style="text-align: left"> </td></tr>
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<td style="text-align: left">$</td><td style="text-align: right">0.30</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td></tr>
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<td style="text-align: left">$</td><td style="text-align: right">0.40</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">150,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">150,000</td><td style="text-align: left"> </td></tr>
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<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">300,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">300,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,155,000</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,155,000</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
The Company hitting certain revenue milestones of $1,000,000 in a quarter and $3,000,000 in a quarter. Achieving those milestones would earn Folkson warrants with a $.50 and $1 strike price which would need to be exercised within 90 days of the respective quarterly or annual filing.
A consulting agreement which will reward him with 1,000,000 warrants at a strike price of $.50 when the Company records its first quarter with revenues over $1,000,000, and an additional 3,000,000 warrants with a $.50 strike price when the Company records its first quarter with revenues over $3,000,000.
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>10.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Capital Stock Activity</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><p style="margin: 0pt 0">The Company has 55,416,371 and 53,773,856 shares of its $0.001 par value common stock issued and outstanding
as of September 30, 2019 and June 30, 2019 respectively.</p></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">During the three
months ended September 30, 2019 the Company issued 122,762 shares of common stock for services valued at $49,397, issued 1,409,349
shares in regards to debt being converted into stock valued at $337,000, and issued 110,404 shares of common stock valued
at $26,598 as part of a loan agreement and payment of interest as part of the debt conversion.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>13.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Fair Value of Financial
Instruments</b></font></td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Cash
and Equivalents, Receivables, Other Current Assets, Short-Term Debt, Accounts Payable, Accrued and Other Current Liabilities.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td> </td>
<td style="vertical-align: bottom"><font style="font: 10pt Times New Roman, Times, Serif">The carrying
amounts of these items approximated fair value.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Fair value is defined
as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants at the measurement date. To increase the comparability of fair value measures, Financial Accounting Standards
Board ("FASB") ASC Topic 820-10-35 establishes a fair value hierarchy that prioritizes the inputs to valuation
techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets
for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements).</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="padding-left: 20pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level 1</b>—Valuations
based on quoted prices for identical assets and liabilities in active markets.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="padding-left: 20pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level 2</b>—Valuations
based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities
in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other
inputs that are observable or can be corroborated by observable market data.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="padding-left: 20pt; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>Level 3</b>—Valuations
based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other
market participants. These valuations require significant judgment.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The application
of the three levels of the fair value hierarchy under Topic 820-10-35 to our assets and liabilities are described below:</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30, 2019 Fair Value Measurements</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total Fair<br /> Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Assets</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Other assets</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 20pt">Total</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Short and long-term debt</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">2,461,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">2,461,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 20pt">Total</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">       </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,461,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,461,000</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Fiscal 2019 Fair Value Measurements</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total Fair<br /> Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Other assets</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 20pt">Total</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Short and long-term debt</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">        </td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">1,748,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">1,748,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 20pt">Total</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">            </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,748,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,748,000</td><td style="text-align: left"> </td></tr></table>
-463635
190062
NightFood Holdings, Inc.
0001593001
false
--06-30
10-Q
2019-09-30
Q1
2020
Non-accelerated Filer
true
false
false
000-55406
Yes
Yes
false
198270
103440
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td><font style="font: 10pt Times New Roman, Times, Serif"><b>1.</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Description of Business</b></font></td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Nightfood Holdings,
Inc. (the "Company") is a Nevada Corporation organized October 16, 2013 to acquire all of the issued and outstanding
shares of Nightfood, Inc., a New York Corporation from its sole shareholder, Sean Folkson.  All of its operations
are conducted by its two subsidiaries: Nightfood, Inc. ("Nightfood") and MJ Munchies, Inc.( "Munchies").
Nightfood's business model is to manufacture and distribute snack products specifically formulated for nighttime snacking
to help consumers satisfy nighttime cravings in a better, healthier, more sleep friendly way.  Munchies has acquired
a portfolio of intellectual property around the brand name Half-Baked, and intends to license said IP to operators in the
cannabis edibles space and other related spaces.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company's fiscal year end is June 30.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company currently
maintains its corporate address in Tarrytown, New York. </font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td><font style="font: 10pt Times New Roman, Times, Serif"><b>Use of Estimates</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The preparation
of financial statements in conformity with generally accepted accounting principles requires 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 from those estimates. Estimates are used in the determination of depreciation and amortization, the valuation
for non-cash issuances of common stock, and the website, income taxes and contingencies, valuing convertible notes for BCF
and derivative liability, among others.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td><font style="font: 10pt Times New Roman, Times, Serif"><b>Cash and Cash Equivalents</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company classifies
as cash and cash equivalents amounts on deposit in the banks and cash temporarily in various instruments with original maturities
of three months or less at the time of purchase.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td><font style="font: 10pt Times New Roman, Times, Serif"><b>Fair Value of Financial Instruments</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Statement of financial
accounting standard FASB Topic 820, Disclosures about Fair Value of Financial Instruments, requires that the Company disclose
estimated fair values of financial instruments. The carrying amounts reported in the statements of financial position for
assets and liabilities qualifying as financial instruments are a reasonable estimate of fair value.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Inventories</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><p style="margin: 0pt 0">Inventories consisting of packaged food items and supplies are stated at the lower of cost (FIFO) or net
realizable value, including provisions for spoilage commensurate with known or estimated exposures which are recorded as a charge
to cost of sales during the period spoilage is incurred. The Company has no minimum purchase commitments with its vendors.</p></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Advertising Costs</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Advertising
costs are expensed when incurred and are included in advertising and promotional expense in the accompanying statements of
operations. Although not traditionally thought of by many as "advertising costs", the Company includes expenses
related to graphic design work, package design, website design, domain names, and product samples in the category of "advertising
costs". The Company incurred advertising costs of $198,270 and $103,440 for the three months ended September 30,
2019 and 2018, respectively.  Of the $198,270 classified as "advertising costs", $7,123 was for samples
expenses, $24,261 was related to graphic design, and $132,595 was related to marketing and distribution partnerships.  Only
33,448, or 16.9% of this total was for what would be considered by many to be advertising in the form of paid advertisements.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td><font style="font: 10pt Times New Roman, Times, Serif"><b>Income Taxes</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company has
not generated any taxable income, and, therefore, no provision for income taxes has been provided.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Deferred income
taxes are reported for timing differences between items of income or expense reported in the financial statements and those
reported for income tax purposes in accordance with FASB Topic 740, "Accounting for Income Taxes", which requires
the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized
for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases, and for tax loss and credit carry-forwards. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable
to temporary differences and carry-forwards when realization is more likely than not.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A valuation allowance
has been recorded to fully offset the deferred tax asset even though the Company believes it is more likely than not that
the assets will be utilized.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company's
effective tax rate differs from the statutory rates associated with taxing jurisdictions because of permanent and temporary
timing differences as well as a valuation allowance.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Concentration of</b><br />
<b>Credit Risk</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits at
financial institutions. At various times during the year, the Company may exceed the federally insured limits. To mitigate
this risk, the Company places its cash deposits only with high credit quality institutions. Management believes the risk of
loss is minimal. At September 30, 2019 and June 30, 2019, the Company did not have any uninsured cash deposits.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr><td style="vertical-align: top; width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Beneficial
Conversion Feature</b></font></td>
<td style="vertical-align: top; width: 2%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>●</b></font></td>
<td style="width: 73%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For conventional convertible debt
where the rate of conversion is below market value, the Company records any "beneficial conversion feature"
("BCF") intrinsic value as additional paid in capital and related debt discount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When the Company records a BCF,
the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument.
The discount is amortized over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share
of the unamortized amounts is immediately expensed.</p></td></tr>
<tr>
<td style="vertical-align: top"></td>
</tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Impairment of Long-lived Assets</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company accounts
for long-lived assets in accordance with the provisions of FASB Topic 360, Accounting for the Impairment of Long-Lived Assets.
This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets
to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be
generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount
by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at
the lower of the carrying amount or fair value less costs to sell. Fair values are determined based on quoted market value,
discounted cash flows or internal and external appraisals, as applicable.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Stock-Based Compensation</b></font></td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for share-based awards issued to employees in accordance with FASB ASC 718. Accordingly, employee share-based
payment compensation is measured at the grant date, based on the fair value of the award, and is recognized as an expense
over the requisite service period.  Additionally, share-based awards to non-employees are expensed over the period
in which the related services are rendered at their fair value. The Company applies ASC 505-50, "Equity Based Payments
to Non-Employees", with respect to options and warrants issued to non-employees.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr><td style="vertical-align: top"></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative Financial
Instruments</b></font></td>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company does not use derivative
instruments to hedge exposures to cash flow, market or foreign currency risks. The 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 then is revalued at each reporting date, with changes in fair value reported in the consolidated
statement of operations. For stock based derivative financial instruments, Fair value accounting requires bifurcation
of embedded derivative instruments such as conversion features in convertible debt or equity instruments, and measurement
of their fair value for accounting purposes. In determining the appropriate fair value, the Company uses the Black-Scholes
option-pricing model. In assessing the convertible debt instruments, management determines if the convertible debt host
instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement.
If the instrument is not considered conventional convertible debt, the Company will continue its evaluation process of
these instruments as derivative financial instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Once determined, derivative liabilities
are adjusted to reflect fair value at the end of each reporting period. Any increase or decrease in the fair value from
inception is made quarterly and appears in results of operations as a change in fair market value of derivative liabilities.</p></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr><td style="vertical-align: top"></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"><b>Original Issue
<br />
Discount</b></font></td>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">If debt is issued
with an original issue discount, the original issue discount is recorded to debt discount, reducing the face amount of the
note and is amortized over the life of the debt to the statement of operations as amortization of debt discount. If a conversion
of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr><td style="vertical-align: top"></td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"><b>Debt Issue Costs</b></font></td>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company may
pay debt issue costs in connection with raising funds through the issuance of debt whether convertible or not or with other
consideration. These costs are recorded as debt discounts and are amortized over the life of the debt to the statement of
operations as amortization of debt discount.</font></td></tr></table>
7123
24261
132595
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>7.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Other Current Liabilities</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other
current liabilities consist of the following at September 30, 2019 and June 30, 2019,</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Accrued consulting fees – related party</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">21,974</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">33,974</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt; padding-left: 9pt">TOTAL</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">21,974</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">33,974</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom"><td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Accrued consulting fees – related party</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">21,974</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">33,974</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt; padding-left: 9pt">TOTAL</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">21,974</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">33,974</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
-1000
-133083
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>12.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Warrants</b></font></td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font-size: 10pt">The following is a summary of the Company's
outstanding common stock purchase warrants.  Of the 500,000 warrants shown below at an exercise price of $.15, only
300,000 have vested as of the date of this filing.  These warrants were issued as compensation for a four-year advisory
agreement.  150,000 warrants vested on July 24, 2018, another 150,000 on July 24, 2019, another would vest 150,000
on July 24, 2020, and the remaining 50,000 on July 24, 2021, should advisor complete the term of his engagement.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The aggregate intrinsic
value of the warrants as of September 30, 2019 is $128,294.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td colspan="2"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Outstanding at</td><td style="font-weight: bold"> </td><td> </td>
<td colspan="2"> </td><td> </td><td> </td>
<td colspan="2"> </td><td> </td><td style="font-weight: bold"> </td>
<td colspan="2" style="font-weight: bold; text-align: center">Outstanding</td><td style="font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Exercise Price</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Exercised in<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Expired</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">0.15</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">500,000</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">-</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left"> </td><td style="width: 17%; text-align: right">500,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">$</td><td style="text-align: right">0.20</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">105,000</td><td style="text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">-</td><td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold"> </td>
<td style="font-weight: bold; text-align: left"> </td><td style="font-weight: bold; text-align: right">-</td><td style="font-weight: bold; text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">105,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">$</td><td style="text-align: right">0.30</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">100,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">$</td><td style="text-align: right">0.40</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">150,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">150,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">0.75</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">300,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">300,000</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right"> </td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,155,000</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">-</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left"> </td><td style="border-bottom: Black 4pt double; text-align: right">1,155,000</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
128294
300000
150000
150000
150000
50000
2018-07-24
2019-07-24
2020-07-24
2021-07-24
500000
These warrants were issued as compensation for a four-year advisory agreement.
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom"><td></td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30, 2019 Fair Value Measurements</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total Fair<br /> Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td>Assets</td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td><td> </td>
<td colspan="2" style="text-align: right"> </td><td> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Other assets</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 20pt">Total</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="width: 40%; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Short and long-term debt</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right"> </td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">2,461,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">2,461,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 20pt">Total</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">       </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,461,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">2,461,000</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="14" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Fiscal 2019 Fair Value Measurements</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 1</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 2</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Level 3</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">Total Fair<br /> Value</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td>Assets</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Other assets</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 20pt">Total</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Liabilities</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-bottom: 1.5pt; padding-left: 10pt">Short and long-term debt</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">        </td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">-</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">1,748,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 12%; border-bottom: Black 1.5pt solid; text-align: right">1,748,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 20pt">Total</td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">            </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">-</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,748,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">1,748,000</td><td style="text-align: left"> </td></tr></table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom; background-color: rgb(204,238,255)"><td style="width: 88%">Convertible notes payable issued as of June 30, 2019</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,117,741</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Convertible notes payable issued as of September 30, 2019</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,050,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Unamortized amortization of debt and beneficial conversion feature</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(463,635</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Notes converted into shares of common stock</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(337,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Balance at September 30, 2019</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,367,106</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>14.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Commitments and Contingencies:  </b></font></td>
<td style="width: 2%"> </td>
<td style="width: 73%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company has entered into certain
consulting agreements which carry commitments to pay advisors and consultants should certain events occur. An agreement
is in place with one Company Advisor that calls for total compensation over the four year Advisor Agreement of 500,000
warrants with an exercise price of $.15 of which 300,000 have vested, should the advisor complete the entire term of the
engagement, 150,000 warrants will vest on July 24, 2020, and the remaining 50,000 on July 24, 2021.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Additional Consulting agreements
call for two Individual Consultants to receive cash and stock bonuses for directly assisting the Company in hitting certain
operational milestones, such as national television publicity, achieving revenues of $500,000 monthly, $1,000,000 monthly,
and $3,000,000 quarterly.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">CEO Sean Folkson has a consulting
agreement which will reward him with 1,000,000 warrants at a strike price of $.50 when the Company records its first quarter
with revenues over $1,000,000, and an additional 3,000,000 warrants with a $.50 strike price when the Company records
its first quarter with revenues over $3,000,000.</p></td></tr></table>
2
45086
181053
482667
858216
482667
858216
496809
149323
1117741
1367106
1306748
1748849
53774
55416
1
1
-13219059
-13802223
482667
858216
80000
P3Y
6000
12000
Mr. Folkson purchased 400,000 shares of stock at a strike price of $0.30 per share, valued at $120,000 which was charged to his accrual.
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>15.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Related Party Transactions</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the third quarter of Fiscal
Year 2015, Mr. Folkson began accruing a consulting fee of $6,000 per month which the aggregate of $24,000 is reflected
in professional fees for the three month period ended September 30, 2019 and reflected in the accrued expenses –
related party with a balance of $21,974 and $33,974 at September 30, 2019 and June 30, 2019, respectively.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">On December 8, 2017, Mr. Folkson
purchased Warrants to acquire up to 80,000 additional shares of NGTF stock at a strike price of $.20, and with a term
of three (3) years from the date of this agreement. Mr. Folkson acquired these Warrants at a cost of $.15 per warrant,
which resulted in a reduction in the accrued consulting fees due him by $12,000. During the second quarter Mr. Folkson
purchased 400,000 shares of stock at a strike price of $0.30 per share, valued at $120,000 which was charged to his accrual.
In addition, during the three months ended September 30, 2019, Folkson had been paid $30,000 against his total accrued
balance to date.</p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In addition,
the Company made bonuses available to Folkson upon the Company hitting certain revenue milestones of $1,000,000 in a quarter
and $3,000,000 in a quarter.   Achieving those milestones would earn Folkson warrants with a $.50 and $1 strike
price which would need to be exercised within 90 days of the respective quarterly or annual filing</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>16.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Subsequent Events</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Between the dates of October 1, 2019 and November 14, 2019, noteholder Eagle Equities converted a total of $100,573 of principal and interest from outstanding notes to Company stock. The average conversion price in these transactions was $.139. 723,582 shares were issued to the noteholder in these transactions.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">● </font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On November 7, 2019 the Company entered into a convertible promissory note and security purchase agreement dated and funded November 7, 2019, in the amount of $150,000. The lender was Eagle Equities, LLC.</font></td></tr></table>
42608329
53773856
1000
55416371
1000
44013396
26597
6302
110
26487
44
6258
110404
44487
337000
130000
1409
335591
915
129085
1409349
914982
213739
213739
49397
134711
26598
6302
382267
636068
0
0
27915
74450
33994
98330
167165
182611
217188
213532
116070
-190062
-564864
135967
16548
30583
-43977
132083
2126
-347486
-18129
-12001
-12000
-973084
-310208
1050000
392005
600
102076
1050000
289328
76916
-20880
845902
392005
337000
130000
30000
30142
107058
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>3.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Going Concern</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company's financial statements are prepared using generally accepted accounting principles, which contemplate the realization
of assets and liquidation of liabilities in the normal course of business. Because the business is new and has limited operating
history and relatively few sales, no certainty of continuation can be stated.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: -13.5pt"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Management
is taking steps to raise additional funds to address its operating and financial cash requirements to continue operations
in the next twelve months. Management has devoted a significant amount of time in the raising of capital from additional debt
and equity financing. However, the Company's ability to continue as a going concern is dependent upon raising additional
funds through debt and equity financing and generating revenue. There are no assurances the Company will receive the necessary
funding or generate revenue necessary to fund operations.</font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>4.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Accounts receivable</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company's
accounts receivable arise primarily from the sale of the Company's ice cream. On a periodic basis, the Company evaluates
each customer account and based on the days outstanding of the receivable, history of past write-offs, collections, and current
credit conditions, writes off accounts it considers uncollectible. With most of our retail and distribution partners, invoices
will typically be due in 30 days. The Company does not accrue interest on past due accounts and the Company does not require collateral.
Accounts become past due on an account-by-account basis. Determination that an account is uncollectible is made after all reasonable
collection efforts have been exhausted. The Company has not provided any sales allowances for September 30, 2019 and June 30,
2019, respectively.</p></td></tr>
</table>
NV
56098403
139
723582
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td></td>
<td></td>
<td></td>
<td style="text-align: justify"></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Interim Financial Statements</b></font></td>
<td> </td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These unaudited condensed consolidated
financial statements as of and for the three (3) months ended September 30, 2019 and 2018, respectively, reflect all adjustments
including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial
position, results of operations and cash flows for the periods presented in accordance with the accounting principles
generally accepted in the United States of America.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These interim unaudited condensed
consolidated financial statements should be read in conjunction with the Company's consolidated financial statements
and notes thereto for the years ended June 30, 2019 and 2018, respectively, which are included in the Company's
June 30, 2019 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on October 15,
2019. The Company assumes that the users of the interim financial information herein have read, or have access to, the
audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed
for a fair presentation may be determined in that context. The results of operations for the three (3) months ended September
30, 2019 are not necessarily indicative of results for the entire year ending June 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We made certain reclassifications
to prior period amounts to conform with the current year's presentation. These reclassifications did not have a
material effect on our condensed consolidated statement of financial position, results of operations or cash flows.</p></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Revenue Recognition</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify; width: 73%"><font style="font: 10pt Times New Roman, Times, Serif">The Company generates
its revenue by selling its nighttime snack products wholesale and direct to consumer.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All sources of revenue
are recorded pursuant to FASB Topic 606 Revenue Recognition, to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
This includes a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, (ii) identify
the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to
the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a performance obligation.
In addition, this revenue generation requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash
flows arising from contracts with customers.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company offers
sales incentives through various programs, consisting primarily of advertising related credits. The Company records advertising
related credits with customers as a reduction to revenue as no identifiable benefit is received in exchange for credits claimed
by the customer. </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company revenue from contracts
with customers provides that an entity should recognize revenue to depict the transfer of promised goods or services to
customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those
goods or services.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company incurs costs associated
with product distribution, such as freight and handling costs. The Company has elected to treat these costs as fulfillment
activities and recognizes these costs at the same time that it recognizes the underlying product revenue. As this policy
election is in line with the Company's previous accounting practices, the treatment of shipping and handling activities
under FASB Topic 606 did not have any impact on the Company's results of operations, financial condition and/or
financial statement disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The adoption of ASC 606 did not
result in a change to the accounting for any of the Company's revenue streams that are within the scope of the amendments.
The Company's services that fall within the scope of ASC 606 are recognized as revenue as the Company satisfies
its obligation to the customer.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In May
2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which updates revenue recognition guidance relating
to contracts with customers. This standard states that an entity should recognize revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in
exchange for those goods or services. This standard is effective for annual reporting periods, and interim periods therein,
beginning after July 1, 2018. The Company adopted ASU 2014-09 and its related amendments (collectively known as "ASC
606") during the first quarter of fiscal 2019 using the full retrospective method.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>E-commerce revenues</b>.
The Company recognizes revenue upon shipment based on meeting the transfer of control criteria. The Company has made a policy
election to treat shipping and handling as costs to fulfill the contract, and as a result, any fees received from customers
are included in the transaction price allocated to the performance obligation of providing goods with a corresponding amount
accrued within cost of sales for amounts paid to applicable carriers. The Company has not revised prior period balances for
e-commerce revenues because the changes are not material.</font></td></tr>
</table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td></td>
<td></td>
<td style="text-align: justify"></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Income Per Share</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Net income per share
data for both the three-month periods ending September 30, 2019 and 2018 are based on net income available to common shareholders
divided by the weighted average of the number of common shares outstanding. </font></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td></td>
<td></td>
<td style="text-align: justify"></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Recent Accounting Pronouncements</b></font></td>
<td> </td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews all of the
Financial Accounting Standard Board's updates periodically to ensure the Company's compliance of its accounting
policies and disclosure requirements to the Codification Topics.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In May 2014, the Financial Accounting
Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers, to establish ASC Topic 606, (ASC 606).
ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition and most industry-specific
guidance throughout the Industry Topics of the Codification. The core principle of the guidance is that an entity should
recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those goods or services. The guidance includes a five-step
framework that requires an entity to: (i) identify the contract(s) with a customer, (ii) identify the performance obligations
in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations
in the contract, and (v) recognize revenue when the entity satisfies a performance obligation. In addition, the standard
requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with
customers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2016, the FASB issued
ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurements of Financial Assets and Financial
Liabilities. The standard will be effective for us beginning January 1, 2019. We are currently evaluating the impact of
this standard on our financial statements, including accounting policies, processes, and systems.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued
ASU No. 2016-02, Leases (Topic 842) and subsequently amended the guidance relating largely to transition considerations
under the standard in January 2017, to increase transparency and comparability among organizations by requiring the recognition
of right-of-use ("ROU") assets and lease liabilities on the balance sheet. Most prominent among the changes
in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating
leases under current U.S. GAAP. Under the standard, disclosures are required to meet the objective of enabling users of
financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We will be required
to recognize and measure leases existing at, or entered into after, the beginning of the earliest comparative period presented
using a modified retrospective approach, with certain practical expedients available.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The standard became effective
for us beginning July 1, 2019. We have reviewed this and have determined that there is no material impact on our financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will continue to monitor
these emerging issues to assess any potential future impact on its financial statements.</p></td></tr></table>
26597
20487
2955272
3287252
1367106
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr><td style="vertical-align: top"></td>
<td style="vertical-align: top"></td>
<td style="vertical-align: top; text-align: justify"></td>
<td style="text-align: justify"></td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"><b>Valuation of
Derivative Instruments</b></font></td>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><p style="margin: 0pt 0">ASC 815 "Derivatives and Hedging" requires that embedded derivative instruments be bifurcated
and assessed, along with free-standing derivative instruments such as warrants, on their issuance date and measured at their fair
value for accounting purposes. In determining the appropriate fair value, the Company uses the Black-Scholes option pricing formula.
Upon conversion of a note where the embedded conversion option has been bifurcated and accounted for as a derivative liability,
the Company records the shares at fair value, relieves all related notes, derivatives and debt discounts and recognizes a net gain
or loss on derivative liability under the line item "change in derivative liability".</p></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Customer Concentration</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><p style="margin: 0pt 0">During the three months ended September 30, 2019, the Company had one customer account for 34.4% of the
revenue volume.  During the three months ended September 30, 2018, one customer accounted for approximately 16% of the
revenue volume. The reason for this change is that almost all revenue in 2018 was from sales of Nightfood bars direct to individual
consumers, whereas in 2019, the majority of revenue was from wholesale sales of ice cream direct to supermarkets and wholesalers.
As the Company continues to grow its distribution base, it is anticipated that revenue distribution will become less concentrated.</p></td></tr></table>
0.16
Only one customer had an outstanding balance. Their $16,548 in receivables represented 100% of our receivables, and was collected in a timely fashion.
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><b></b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>5.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Inventories</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%"><font style="font: 10pt Times New Roman, Times, Serif">Inventory consists of the
following at September 30, 2019 and June 30, 2019,</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Finished goods – bars</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">26,570</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">30,800</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Finished goods – ice cream</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">387,736</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">346,229</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Raw material – ingredients</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,918</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,477</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Packaging</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,798</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,933</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; padding-left: 9pt">TOTAL</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">437,022</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">406,439</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">   </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Inventories are stated at the lower of cost or net realizable value. The Company periodically reviews the value of items in inventory and provides write-downs or write-offs of inventory based on its assessment of market conditions and the products relative shelf life. Write-downs and write-offs are charged to loss on inventory write down.</font></td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left">Finished goods – bars</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">26,570</td><td style="width: 1%; text-align: left"> </td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">30,800</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left">Finished goods – ice cream</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">387,736</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">346,229</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Raw material – ingredients</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">17,918</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">25,477</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1.5pt">Packaging</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">4,798</td><td style="padding-bottom: 1.5pt; text-align: left"> </td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">3,933</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 4pt; padding-left: 9pt">TOTAL</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">437,022</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">406,439</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>6.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Other current assets</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Other current assets consist of the following vendor deposits at September 30, 2019 and June 30, 2019.  The majority of this amount relates to deposits towards distribution and marketing partnerships,</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">  </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Vendor deposits – Other</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">133,083</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">1,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt; padding-left: 9pt">TOTAL</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">133,083</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,000</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">September 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td><td style="font-weight: bold; padding-bottom: 1.5pt"> </td>
<td colspan="2" style="font-weight: bold; text-align: center; border-bottom: Black 1.5pt solid">June 30,<br /> 2019</td><td style="padding-bottom: 1.5pt; font-weight: bold"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 76%; text-align: left; padding-bottom: 1.5pt">Vendor deposits – Other</td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">133,083</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td><td style="width: 1%; padding-bottom: 1.5pt"> </td>
<td style="width: 1%; border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="width: 9%; border-bottom: Black 1.5pt solid; text-align: right">1,000</td><td style="width: 1%; padding-bottom: 1.5pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 4pt; padding-left: 9pt">TOTAL</td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">133,083</td><td style="padding-bottom: 4pt; text-align: left"> </td><td style="padding-bottom: 4pt"> </td>
<td style="border-bottom: Black 4pt double; text-align: left">$</td><td style="border-bottom: Black 4pt double; text-align: right">1,000</td><td style="padding-bottom: 4pt; text-align: left"> </td></tr></table>
139268
74472
P1Y
P1Y
P1Y
P1Y
P1Y
P1Y
P1Y
P1Y
P1Y
P1Y
P1Y
P1Y
P1Y
62174
55498
50842
1898
287174
265498
257842
131898
128976
226452
90567
170098
240217
239759
254082
234052
118009
5749
25398
2.02
2.00
1.83
1.50
1.44
1.35
1.36
1.18
0.16
1.18
1.13
1.13
1.13
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif"><tr style="vertical-align: bottom; background-color: rgb(204,238,255)"><td style="width: 27%; background-color: White"></td>
<td style="width: 61%">Derivative liabilityas of June 30, 2019</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,306,748</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="background-color: White"> </td>
<td style="text-align: left; padding-left: 9pt; text-indent: -9pt">Initial derivative liability accounted for convertible notes payable issued during the period ended September 30, 2019</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">845,902</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="background-color: White"> </td>
<td style="text-align: left">Reclassed to additional paid in capital for notes converted into shares of common stock</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(213,739</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="background-color: White"> </td>
<td style="text-align: left; padding-bottom: 1.5pt">Change in derivative liability during the period</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(190,062</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="background-color: White"> </td>
<td style="padding-bottom: 1.5pt">Balance at September 30, 2019</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,748,849</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
845902
-213739
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>9.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative Liability</b></font></td>
<td style="width: 2%"> </td>
<td style="width: 73%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Due to the variable conversion
price associated with some of these convertible promissory notes disclosed in Note 8 above, the Company has determined
that the conversion feature is considered a derivative liability for instruments which are convertible and have not yet
been settled. The accounting treatment of derivative financial instruments requires that the Company record the fair value
of the derivatives on the date they are deemed to be derivative liabilities.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">During the three month period
ended September 30, 2019, the Company recorded a gain in fair value of derivative $190,062. The Company will measure the
fair value of each derivative instrument in future reporting periods and record a gain or loss based on the change in
fair value.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Below is a reconciliation of the
derivative liability as presented on the Company's balance sheet as of September 30, 2019:</p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">  </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 27%; background-color: White"> </td>
<td style="width: 61%">Derivative liabilityas of June 30, 2019</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,306,748</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="background-color: White"> </td>
<td style="text-align: left; padding-left: 9pt; text-indent: -9pt">Initial derivative liability accounted for convertible notes payable issued during the period ended September 30, 2019</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">845,902</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="background-color: White"> </td>
<td style="text-align: left">Reclassed to additional paid in capital for notes converted into shares of common stock</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(213,739</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="background-color: White"> </td>
<td style="text-align: left; padding-bottom: 1.5pt">Change in derivative liability during the period</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(190,062</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="background-color: White"> </td>
<td style="padding-bottom: 1.5pt">Balance at September 30, 2019</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,748,849</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>8.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Notes Payable</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Notes
Payable consist of the following at September 30, 2019,</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On April 30, 2018, the Company entered into a convertible promissory note and a security purchase agreement dated April 30, 2018, in the amount of $225,000. The lender was Eagle Equities, LLC. The notes have a maturity of April 30, 2019.  The noteholder has signed a letter agreeing to forebear on charging default interest on this note although it has gone beyond the twelve month term.  The notes carry </font><font style="font-size: 10pt"> <font style="font-family: Times New Roman, Times, Serif">an interest rate of 8% per annum and are convertible at a price of 60% of the lowest closing bid price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $225,000 Notes was calculated using the Black-Scholes pricing model at $287,174, with the following assumptions: risk-free interest rate of 2.24%, expected life of 1 year, volatility of 202%, and expected dividend yield of zero. Because the fair value of the note exceeded the net proceeds from the $225k Notes, a charge was recorded to "interest expense - other" for the excess of the fair value of the note, for a net charge of $62,174. As of September 30, 2019, the debt discount was $0.</font></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>  </b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On June 5, 2018, the Company received cash in conjunction with a convertible promissory note and Securities Purchase Agreement dated June 5, 2018. The note was in the amount of in the amount of $210,000. The lender was Eagle Equities, LLC. The notes have a maturity of June 6, 2019. The noteholder has signed a letter agreeing to forebear on charging default interest on this note although it has gone beyond the twelve month term.  The notes carry </font><font style="font-size: 10pt">an<font style="font-family: Times New Roman, Times, Serif">interest rate of 8% per annum and are convertible at a price of 60% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $210,000 Notes was calculated using the Black-Scholes pricing model at $265,498, with the following assumptions: risk-free interest rate of 2.09%, expected life of 1 year, volatility of 200%, and expected dividend yield of zero. Because the fair value of the note exceeded the net proceeds from the $210k Notes, a charge was recorded to "interest expense - other" for the excess of the fair value of the note, for a net charge of $55,498.  As of September  30, 2019, the debt discount was $0.</font></font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>  </b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"> </td>
<td style="width: 73%">
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On July 2, 2018, the Company entered into a
convertible promissory note and a security purchase agreement dated July 12, 2018, in the amount of $207,000. The lender was Eagle
Equities, LLC. The notes have a maturity of July 12, 2019 and interest rate of 8% per annum and are convertible at a price of 60%
of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen
(15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance
amount, as there is an accretion component to satisfy the note with cash The convertible note qualifies for derivative accounting
and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $207,000 Notes was calculated using
the Black-Scholes pricing model at $257,842, with the following assumptions: risk-free interest rate of 2.59%, expected life of
1 year, volatility of 183%, and expected dividend yield of zero. Because the fair value of the note exceeded the net proceeds from
the $207k Notes, a charge was recorded to "interest expense - other" for the excess of the fair value of the note,
for a net charge of $50,842. </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This note has been successfully retired via
converted into shares during the three months ended September 30, 2019. The Company fair value the notes as of conversion date
and accounted gain on conversion of $5,749 included under line item "change in derivative liability" and also, reclassed
the related $139,268 derivative liability balance into additional paid in capital.</p></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On November 16, 2018, the Company entered into
a convertible promissory note and a security purchase agreement dated November 16, 2018, in the amount of $130,000. The lender
was Eagle Equities, LLC. The notes have a maturity of November 16, 2019 and interest rate of 8% per annum and are convertible at
a price of 65% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed
for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association
with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for
derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $130,000 Notes
was calculated using the Black-Scholes pricing model at $131,898, with the following assumptions: risk-free interest rate of 2.71%,
expected life of 1 year, volatility of 150%, and expected dividend yield of zero. Because the fair value of the note exceeded the
net proceeds from the $130k Notes, a charge was recorded to "interest expense - other" for the excess of the fair value
of the note, for a net charge of 1,898.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0; text-align: justify">This note has been successfully retired
via converted into shares during the three months ended September 30, 2019. The Company fair value the notes as of conversion
date and accounted gain on conversion of $25,398 included under line item "change in derivative liability" and also,
reclassed the related $74,472 derivative liability balance into additional paid in capital. </p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><b> </b></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On December 18, 2018, the Company entered into a convertible promissory note and a security purchase agreement dated December 18, 2018, in the amount of $130,000. The lender was Eagle Equities, LLC. The notes have a maturity of December 18, 2019 and interest rate of 8% per annum and are convertible at a price of 65% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $130,000 Notes was calculated using the Black-Scholes pricing model at $128,976, with the following assumptions: risk-free interest rate of 2.64%, expected life of 1 year, volatility of 144%, and expected dividend yield of zero. Because the fair value of the note did not exceed the net proceeds from the $130k Notes, no charge was recorded to "interest expense - other" for the excess of the fair value of the note.  As of September 30, 2019, the debt discount was $27,915.</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On January 28, 2019, the Company entered into a convertible promissory note and a security purchase agreement dated January 28, 2019, in the amount of $234,000. The lender was Eagle Equities, LLC. The notes have a maturity of January 28, 2020 and interest rate of 8% per annum and are convertible at a price of 65% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $234,000 Notes was calculated using the Black-Scholes pricing model at $226,452, with the following assumptions: risk-free interest rate of 2.60%, expected life of 1 year, volatility of 135%, and expected dividend yield of zero. Because the fair value of the note did not exceed the net proceeds from the $234k Notes, no charge was recorded to "interest expense - other" for the excess of the fair value of the note.  As of September 30, 2019, the debt discount was $74,450.</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On February 14, 2019, the Company entered into a convertible promissory note and a security purchase agreement dated February 14, 2019, in the amount of $104,000. The lender was Eagle Equities, LLC. The notes have a maturity of February 14, 2020 and interest rate of 8% per annum and are convertible at a price of 70% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $104,000 Notes was calculated using the Black-Scholes pricing model at $90,567, with the following assumptions: risk-free interest rate of 2.53%, expected life of 1 year, volatility of 136%, and expected dividend yield of zero. Because the fair value of the note did not exceed the net proceeds from the $104k Notes, no charge was recorded to "interest expense - other" for the excess of the fair value of the note.  As of September 30, 2019, the debt discount was $33,994.</font></td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On April 29, 2019, the Company entered into a convertible promissory note and a security purchase agreement dated April 29, 2019, in the amount of $208,000. The lender was Eagle Equities, LLC. The notes have a maturity of April 29, 2020 and interest rate of 8% per annum and are convertible at a price of 70% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $208,000 Notes was calculated using the Black-Scholes pricing model at $170,098, with the following assumptions: risk-free interest rate of 2.42%, expected life of 1 year, volatility of 118%, and expected dividend yield of zero. Because the fair value of the note did not exceed the net proceeds from the 208k Notes, no charge was recorded to "interest expense - other" for the excess of the fair value of the note.  As of September 30, 2019, the debt discount was $98,330.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On June 11, 2019, the Company entered into a convertible promissory note and a security purchase agreement dated June 11, 2019, in the amount of $300,000. The lender was Eagle Equities, LLC. The notes have a maturity of June 11, 2020 and interest rate of 8% per annum and are convertible at a price of 70% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $300,000 Notes was calculated using the Black-Scholes pricing model at $240,217, with the following assumptions: risk-free interest rate of 2.05%, expected life of 1 year, volatility of 16%, and expected dividend yield of zero. Because the fair value of the note did not exceed the net proceeds from the 300k Notes, no charge was recorded to "interest expense - other" for the excess of the fair value of the note.  As of September 30, 2019, the debt discount was $167,165.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On July 5, 2019, the Company entered into a convertible promissory note and a security purchase agreement dated July 5, 2019, in the amount of $300,000. The lender was Eagle Equities, LLC. The notes have a maturity of July 5, 2020 and interest rate of 8% per annum and are convertible at a price of 70% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $300,000 Notes was calculated using the Black-Scholes pricing model at $239,759, with the following assumptions: risk-free interest rate of 1.98%, expected life of 1 year, volatility of 118%, and expected dividend yield of zero. Because the fair value of the note did not exceed the net proceeds from the 300k Notes, no charge was recorded to "interest expense - other" for the excess of the fair value of the note.  As of September 30, 2019, the debt discount was $182,611.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On August 8, 2019, the Company entered into a convertible promissory note and a security purchase agreement dated August 8, 2019, in the amount of $300,000. The lender was Eagle Equities, LLC. The notes have a maturity of August 8, 2020 and interest rate of 8% per annum and are convertible at a price of 70% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $300,000 Notes was calculated using the Black-Scholes pricing model at $254,082, with the following assumptions: risk-free interest rate of 1.79%, expected life of 1 year, volatility of 113%, and expected dividend yield of zero. Because the fair value of the note did not exceed the net proceeds from the 300k Notes, no charge was recorded to "interest expense - other" for the excess of the fair value of the note.  As of September 30, 2019, the debt discount was $217,188.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On August 29, 2019, the Company entered into a convertible promissory note and a security purchase agreement dated August 29, 2019, in the amount of $300,000. The lender was Eagle Equities, LLC. The notes have a maturity of August 29, 2020 and interest rate of 8% per annum and are convertible at a price of 70% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $300,000 Notes was calculated using the Black-Scholes pricing model at $234,052, with the following assumptions: risk-free interest rate of 1.75%, expected life of 1 year, volatility of 113%, and expected dividend yield of zero. Because the fair value of the note did not exceed the net proceeds from the 300k Notes, no charge was recorded to "interest expense - other" for the excess of the fair value of the note.  As of September 30, 2019, the debt discount was $213,532.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">On September 24, 2019, the Company entered into a convertible promissory note and a security purchase agreement dated September 24, 2019, in the amount of $150,000. The lender was Eagle Equities, LLC. The notes have a maturity of September 24, 2020 and interest rate of 8% per annum and are convertible at a price of 70% of the lowest trading price on the primary trading market on which the Company's Common Stock is then listed for the fifteen (15) trading days immediately prior to conversion. The note may be prepaid, but carries a penalty in association with the remittance amount, as there is an accretion component to satisfy the note with cash. The convertible note qualifies for derivative accounting and bifurcation under ASC 815, "Derivatives and Hedging." The fair value of the $150,000 Notes was calculated using the Black-Scholes pricing model at $118,009, with the following assumptions: risk-free interest rate of 1.78%, expected life of 1 year, volatility of 113%, and expected dividend yield of zero. Because the fair value of the note did not exceed the net proceeds from the 150k Notes, no charge was recorded to "interest expense - other" for the excess of the fair value of the note.  As of September 30, 2019, the debt discount was $116,070.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 95%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Below
is a reconciliation of the convertible notes payable as presented on the Company's balance sheet as of September 30,
2019:</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 10pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 88%">Convertible notes payable issued as of June 30, 2019</td><td style="width: 1%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 9%; text-align: right">1,117,741</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td>Convertible notes payable issued as of September 30, 2019</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">1,050,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left">Unamortized amortization of debt and beneficial conversion feature</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(463,635</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1.5pt">Notes converted into shares of common stock</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left"> </td><td style="border-bottom: Black 1.5pt solid; text-align: right">(337,000</td><td style="padding-bottom: 1.5pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1.5pt">Balance at September 30, 2019</td><td style="padding-bottom: 1.5pt"> </td>
<td style="border-bottom: Black 1.5pt solid; text-align: left">$</td><td style="border-bottom: Black 1.5pt solid; text-align: right">1,367,106</td><td style="padding-bottom: 1.5pt; text-align: left"> </td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td style="width: 5%"><font style="font: 10pt Times New Roman, Times, Serif"><b>2.</b></font></td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Summary of Significant
Accounting Policies</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Management
is responsible for the fair presentation of the Company's financial statements, prepared in accordance with U.S. generally
accepted accounting principles (GAAP).</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Interim Financial Statements</b></font></td>
<td> </td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These unaudited condensed consolidated
financial statements as of and for the three (3) months ended September 30, 2019 and 2018, respectively, reflect all adjustments
including normal recurring adjustments, which, in the opinion of management, are necessary to present fairly the financial
position, results of operations and cash flows for the periods presented in accordance with the accounting principles
generally accepted in the United States of America.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">These interim unaudited condensed
consolidated financial statements should be read in conjunction with the Company's consolidated financial statements
and notes thereto for the years ended June 30, 2019 and 2018, respectively, which are included in the Company's
June 30, 2019 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission on October 15,
2019. The Company assumes that the users of the interim financial information herein have read, or have access to, the
audited consolidated financial statements for the preceding period, and that the adequacy of additional disclosure needed
for a fair presentation may be determined in that context. The results of operations for the three (3) months ended September
30, 2019 are not necessarily indicative of results for the entire year ending June 30, 2020.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">We made certain reclassifications
to prior period amounts to conform with the current year's presentation. These reclassifications did not have a
material effect on our condensed consolidated statement of financial position, results of operations or cash flows.</p></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Use of Estimates</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The preparation
of financial statements in conformity with generally accepted accounting principles requires 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 from those estimates. Estimates are used in the determination of depreciation and amortization, the valuation
for non-cash issuances of common stock, and the website, income taxes and contingencies, valuing convertible notes for BCF
and derivative liability, among others.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Cash and Cash Equivalents</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company classifies
as cash and cash equivalents amounts on deposit in the banks and cash temporarily in various instruments with original maturities
of three months or less at the time of purchase.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Fair Value of Financial Instruments</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Statement of financial
accounting standard FASB Topic 820, Disclosures about Fair Value of Financial Instruments, requires that the Company disclose
estimated fair values of financial instruments. The carrying amounts reported in the statements of financial position for
assets and liabilities qualifying as financial instruments are a reasonable estimate of fair value.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Inventories</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><p style="margin: 0pt 0">Inventories consisting of packaged food items and supplies are stated at the lower of cost (FIFO) or net
realizable value, including provisions for spoilage commensurate with known or estimated exposures which are recorded as a charge
to cost of sales during the period spoilage is incurred. The Company has no minimum purchase commitments with its vendors.</p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Advertising Costs</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Advertising
costs are expensed when incurred and are included in advertising and promotional expense in the accompanying statements of
operations. Although not traditionally thought of by many as "advertising costs", the Company includes expenses
related to graphic design work, package design, website design, domain names, and product samples in the category of "advertising
costs". The Company incurred advertising costs of $198,270 and $103,440 for the three months ended September 30,
2019 and 2018, respectively.  Of the $198,270 classified as "advertising costs", $7,123 was for samples
expenses, $24,261 was related to graphic design, and $132,595 was related to marketing and distribution partnerships.  Only
33,448, or 16.9% of this total was for what would be considered by many to be advertising in the form of paid advertisements.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td style="text-align: center"> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Income Taxes</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company has
not generated any taxable income, and, therefore, no provision for income taxes has been provided.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Deferred income
taxes are reported for timing differences between items of income or expense reported in the financial statements and those
reported for income tax purposes in accordance with FASB Topic 740, "Accounting for Income Taxes", which requires
the use of the asset/liability method of accounting for income taxes. Deferred income taxes and tax benefits are recognized
for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets
and liabilities and their respective tax bases, and for tax loss and credit carry-forwards. Deferred tax assets and liabilities
are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences
are expected to be recovered or settled. The Company provides for deferred taxes for the estimated future tax effects attributable
to temporary differences and carry-forwards when realization is more likely than not.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">A valuation allowance
has been recorded to fully offset the deferred tax asset even though the Company believes it is more likely than not that
the assets will be utilized.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company's
effective tax rate differs from the statutory rates associated with taxing jurisdictions because of permanent and temporary
timing differences as well as a valuation allowance.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Revenue Recognition</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company generates
its revenue by selling its nighttime snack products wholesale and direct to consumer.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">All sources of revenue
are recorded pursuant to FASB Topic 606 Revenue Recognition, to depict the transfer of promised goods or services to customers
in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.
This includes a five-step framework that requires an entity to: (i) identify the contract(s) with a customer, (ii) identify
the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to
the performance obligations in the contract, and (v) recognize revenue when the entity satisfies a performance obligation.
In addition, this revenue generation requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash
flows arising from contracts with customers.</font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company offers
sales incentives through various programs, consisting primarily of advertising related credits. The Company records advertising
related credits with customers as a reduction to revenue as no identifiable benefit is received in exchange for credits claimed
by the customer. </font></td></tr>
<tr>
<td> </td>
<td> </td>
<td> </td>
<td> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company revenue from contracts
with customers provides that an entity should recognize revenue to depict the transfer of promised goods or services to
customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those
goods or services.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company incurs costs associated
with product distribution, such as freight and handling costs. The Company has elected to treat these costs as fulfillment
activities and recognizes these costs at the same time that it recognizes the underlying product revenue. As this policy
election is in line with the Company's previous accounting practices, the treatment of shipping and handling activities
under FASB Topic 606 did not have any impact on the Company's results of operations, financial condition and/or
financial statement disclosures.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The adoption of ASC 606 did not
result in a change to the accounting for any of the Company's revenue streams that are within the scope of the amendments.
The Company's services that fall within the scope of ASC 606 are recognized as revenue as the Company satisfies
its obligation to the customer.</p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"> </td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">In May
2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers, which updates revenue recognition guidance relating
to contracts with customers. This standard states that an entity should recognize revenue to depict the transfer of promised
goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in
exchange for those goods or services. This standard is effective for annual reporting periods, and interim periods therein,
beginning after July 1, 2018. The Company adopted ASU 2014-09 and its related amendments (collectively known as "ASC
606") during the first quarter of fiscal 2019 using the full retrospective method.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>E-commerce revenues</b>.
The Company recognizes revenue upon shipment based on meeting the transfer of control criteria. The Company has made a policy
election to treat shipping and handling as costs to fulfill the contract, and as a result, any fees received from customers
are included in the transaction price allocated to the performance obligation of providing goods with a corresponding amount
accrued within cost of sales for amounts paid to applicable carriers. The Company has not revised prior period balances for
e-commerce revenues because the changes are not material.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Concentration of</b><br />
<b>Credit Risk</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Financial
instruments that potentially subject the Company to concentrations of credit risk consist principally of cash deposits at
financial institutions. At various times during the year, the Company may exceed the federally insured limits. To mitigate
this risk, the Company places its cash deposits only with high credit quality institutions. Management believes the risk of
loss is minimal. At September 30, 2019 and June 30, 2019, the Company did not have any uninsured cash deposits.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr>
<td style="vertical-align: top; width: 5%"> </td>
<td style="vertical-align: top; width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Beneficial
Conversion Feature</b></font></td>
<td style="vertical-align: top; width: 2%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif"><b>●</b></font></td>
<td style="width: 73%"><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">For conventional convertible debt
where the rate of conversion is below market value, the Company records any "beneficial conversion feature"
("BCF") intrinsic value as additional paid in capital and related debt discount.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">When the Company records a BCF,
the relative fair value of the BCF is recorded as a debt discount against the face amount of the respective debt instrument.
The discount is amortized over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share
of the unamortized amounts is immediately expensed.</p></td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: justify"> </td>
<td> </td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"><b>Debt Issue Costs</b></font></td>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company may
pay debt issue costs in connection with raising funds through the issuance of debt whether convertible or not or with other
consideration. These costs are recorded as debt discounts and are amortized over the life of the debt to the statement of
operations as amortization of debt discount.</font></td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"><b>Original Issue
<br />
Discount</b></font></td>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">If debt is issued
with an original issue discount, the original issue discount is recorded to debt discount, reducing the face amount of the
note and is amortized over the life of the debt to the statement of operations as amortization of debt discount. If a conversion
of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.</font></td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"><b>Valuation of
Derivative Instruments</b></font></td>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><p style="margin: 0pt 0">ASC 815 "Derivatives and Hedging" requires that embedded derivative instruments be bifurcated
and assessed, along with free-standing derivative instruments such as warrants, on their issuance date and measured at their fair
value for accounting purposes. In determining the appropriate fair value, the Company uses the Black-Scholes option pricing formula.
Upon conversion of a note where the embedded conversion option has been bifurcated and accounted for as a derivative liability,
the Company records the shares at fair value, relieves all related notes, derivatives and debt discounts and recognizes a net gain
or loss on derivative liability under the line item "change in derivative liability".</p></td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top; text-align: justify"> </td>
<td style="text-align: justify"> </td></tr>
<tr>
<td style="vertical-align: top"> </td>
<td style="vertical-align: top"><font style="font: 10pt Times New Roman, Times, Serif"><b>Derivative Financial
Instruments</b></font></td>
<td style="vertical-align: top; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company does not use derivative
instruments to hedge exposures to cash flow, market or foreign currency risks. The 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 then is revalued at each reporting date, with changes in fair value reported in the consolidated
statement of operations. For stock based derivative financial instruments, Fair value accounting requires bifurcation
of embedded derivative instruments such as conversion features in convertible debt or equity instruments, and measurement
of their fair value for accounting purposes. In determining the appropriate fair value, the Company uses the Black-Scholes
option-pricing model. In assessing the convertible debt instruments, management determines if the convertible debt host
instrument is conventional convertible debt and further if there is a beneficial conversion feature requiring measurement.
If the instrument is not considered conventional convertible debt, the Company will continue its evaluation process of
these instruments as derivative financial instruments.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Once determined, derivative liabilities
are adjusted to reflect fair value at the end of each reporting period. Any increase or decrease in the fair value from
inception is made quarterly and appears in results of operations as a change in fair market value of derivative liabilities.</p></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Stock-Based Compensation</b></font></td>
<td style="width: 2%"> </td>
<td style="width: 73%; text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The
Company accounts for share-based awards issued to employees in accordance with FASB ASC 718. Accordingly, employee share-based
payment compensation is measured at the grant date, based on the fair value of the award, and is recognized as an expense
over the requisite service period.  Additionally, share-based awards to non-employees are expensed over the period
in which the related services are rendered at their fair value. The Company applies ASC 505-50, "Equity Based Payments
to Non-Employees", with respect to options and warrants issued to non-employees.</font></td></tr>
</table>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"> </p>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 5%"> </td>
<td style="width: 20%"><font style="font: 10pt Times New Roman, Times, Serif"><b>Customer Concentration</b></font></td>
<td style="width: 2%"><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="width: 73%; text-align: justify"><p style="margin: 0pt 0">During the three months ended September 30, 2019, the Company had one customer account for 34.4% of the
revenue volume.  During the three months ended September 30, 2018, one customer accounted for approximately 16% of the
revenue volume. The reason for this change is that almost all revenue in 2018 was from sales of Nightfood bars direct to individual
consumers, whereas in 2019, the majority of revenue was from wholesale sales of ice cream direct to supermarkets and wholesalers.
As the Company continues to grow its distribution base, it is anticipated that revenue distribution will become less concentrated.</p></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Receivables Concentration</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><p style="margin: 0pt 0">As of September 30, 2019, the Company had one customer accounting approximately, 37.9% of the outstanding
balance. As of September 30, 2018, only one customer had an outstanding balance. Their $16,548 in receivables represented 100%
of our receivables, and was collected in a timely fashion.</p></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Income Per Share</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">Net income per share
data for both the three-month periods ending September 30, 2019 and 2018 are based on net income available to common shareholders
divided by the weighted average of the number of common shares outstanding. </font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Impairment of Long-lived Assets</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><font style="font: 10pt Times New Roman, Times, Serif">The Company accounts
for long-lived assets in accordance with the provisions of FASB Topic 360, Accounting for the Impairment of Long-Lived Assets.
This statement requires that long-lived assets and certain identifiable intangibles be reviewed for impairment whenever events
or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets
to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be
generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount
by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at
the lower of the carrying amount or fair value less costs to sell. Fair values are determined based on quoted market value,
discounted cash flows or internal and external appraisals, as applicable.</font></td></tr>
<tr style="vertical-align: top">
<td> </td>
<td> </td>
<td> </td>
<td style="text-align: justify"> </td></tr>
<tr style="vertical-align: top">
<td> </td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Recent Accounting Pronouncements</b></font></td>
<td> </td>
<td><p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company reviews all of the
Financial Accounting Standard Board's updates periodically to ensure the Company's compliance of its accounting
policies and disclosure requirements to the Codification Topics.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In May 2014, the Financial Accounting
Standards Board (FASB) issued ASU 2014-09, Revenue from Contracts with Customers, to establish ASC Topic 606, (ASC 606).
ASU 2014-09 supersedes the revenue recognition requirements in ASC Topic 605, Revenue Recognition and most industry-specific
guidance throughout the Industry Topics of the Codification. The core principle of the guidance is that an entity should
recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration
to which the entity expects to be entitled in exchange for those goods or services. The guidance includes a five-step
framework that requires an entity to: (i) identify the contract(s) with a customer, (ii) identify the performance obligations
in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations
in the contract, and (v) recognize revenue when the entity satisfies a performance obligation. In addition, the standard
requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with
customers.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In January 2016, the FASB issued
ASU No. 2016-01, Financial Instruments – Overall: Recognition and Measurements of Financial Assets and Financial
Liabilities. The standard will be effective for us beginning January 1, 2019. We are currently evaluating the impact of
this standard on our financial statements, including accounting policies, processes, and systems.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">In February 2016, the FASB issued
ASU No. 2016-02, Leases (Topic 842) and subsequently amended the guidance relating largely to transition considerations
under the standard in January 2017, to increase transparency and comparability among organizations by requiring the recognition
of right-of-use ("ROU") assets and lease liabilities on the balance sheet. Most prominent among the changes
in the standard is the recognition of ROU assets and lease liabilities by lessees for those leases classified as operating
leases under current U.S. GAAP. Under the standard, disclosures are required to meet the objective of enabling users of
financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. We will be required
to recognize and measure leases existing at, or entered into after, the beginning of the earliest comparative period presented
using a modified retrospective approach, with certain practical expedients available.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The standard became effective
for us beginning July 1, 2019. We have reviewed this and have determined that there is no material impact on our financial statements.</p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"> </p>
<p style="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">The Company will continue to monitor
these emerging issues to assess any potential future impact on its financial statements.</p></td></tr></table>
<table cellspacing="0" cellpadding="0" style="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse"><tr style="vertical-align: top"><td></td>
<td><font style="font: 10pt Times New Roman, Times, Serif"><b>Receivables Concentration</b></font></td>
<td><font style="font: 10pt Times New Roman, Times, Serif">●</font></td>
<td style="text-align: justify"><p style="margin: 0pt 0">As of September 30, 2019, the Company had one customer accounting approximately, 37.9% of the outstanding
balance. As of September 30, 2018, only one customer had an outstanding balance. Their $16,548 in receivables represented 100%
of our receivables, and was collected in a timely fashion.</p></td></tr></table>