Loans Disclosure

9 Months Ended

Mar. 31, 2023

Note 5. Loans

Loans in the Company’s balance sheet are made up of:

Unsecured loans

The Company has an unsecured loan from a third party with balance outstanding at March 31, 2023 of $42,472 (June 30, 2022 $36,601). Interest is calculated at a rate of 20% per annum with interest of $2,055 and $1,685 taken up in the three months ended March 31, 2023 and 2022 respectively and $5,871 and $4,815 in the nine months ended March 31, 2023 and 2022 respectively. The Company makes principal and interest payments for the loan when funds are available.

The Company has an outstanding unsecured loan from a shareholder totalling $12,367 at March 31, 2023 and $10,000 at June 30, 2022. The terms of the loan provides that if it is not repaid by the loan anniversary (December 31 each year), the Company will issue 33,334 shares of common stock in lieu of interest. Interest of $2,367 and $3,375 was taken up in the nine months ended March 31, 2023 and 2022 based on the share price on balance dates.

Convertible notes

The Company has convertible notes totalling $1,743,141 and $1,537,585 as of March 31, 2023, and June 30, 2022 respectively. The holders of the convertible notes have the right of conversion from the date of issuance:

Details	Maturity Date	Balance at March 31, 2023	Balance at June 30, 2022
20% Convertible Notes totalling $337,500 plus accrued interest	Dec. 31,2023	$765,066	$659,293
20% Convertible Notes totalling $22,500 plus accrued interest	At call	33,000	31,126
20% Convertible Notes totalling $200,000 plus accrued interest	Dec. 31,2023	301,325	259,666
20% Related Party Convertible Notes totalling $375,000 plus accrued interest	Dec. 31,2023	543,750	487,500
0% Convertible Notes totalling $100,000	Dec. 31,2023	100,000	100,000
Total convertible notes		1,743,141	1,537,585

In 2018, the Company issued Convertible Notes which totalled $607,500, to fund the development of its fflya systems. Two issues were made as follows:

The first convertible note for $337,500. Terms of the issue are:

-Interest rate: 20% per annum.

-Conversion price: $0.03 per share.

-Maturity date: December 1, 2020, which has now been extended to December 31, 2023, conditional on the holders advancing an additional $200,000 on terms set out under 4 below, and outstanding interest to be compounded.

In July 2021, related party contractors agreed to accept convertible notes totalling $375,000 to reduce the debts they are owed, as follows:

-Interest rate: 20% per annum, payable monthly in arrears in shares

-Conversion price: $0.015 per share

-Maturity date: December 31, 2023

Two convertible notes for $200,000. Terms of the issue are:

-Interest rate: 20% per annum.

-Conversion price: $0.015 per share.

-Maturity date: December 1, 2023, and outstanding interest to be compounded.

In June 2022, $100,000 of related party debt was switched to two Convertible Notes, as follows:

-Interest rate: 0% per annum

-Conversion price: $0.015 per share

-Maturity date: December 31, 2023

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

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+ Details

AS-IP TECH INC 10-Q