Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________ to __________

Commission File Number: 000-51390

Innovative MedTech, Inc.

(Exact name of registrant as specified in its charter)

Delaware		33-1130446
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

2310 York St., Suite 200 Blue Island, IL		60406
(Address of principal executive offices)		(Zip Code)

(708) 925-9424

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol(s)

Name of each exchange

on which registered

Not applicable.

Note applicable.

Not applicable.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		Emerging growth company	☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒

As of February 16, 2024, there were 21,157,327 shares of Common Stock, $0.000001 par value per share, issued and outstanding.

NOTE REGARDING FORWARD-LOOKING STATEMENTS

Unless stated otherwise or the context otherwise requires, the words “we,” “us,” “our,” the “Company,” “Innovative MedTech” or “Innovative” in this Quarterly Report on Form 10-Q collectively refers to Innovative MedTech, Inc., a Delaware corporation (the “Company”), and its subsidiaries. The information in this Quarterly Report on Form 10-Q contains “forward-looking statements” relating to the Company, within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). In some cases, you can identify forward-looking statements by terminology such as “may”, “should”, “expects”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of these terms or other comparable terminology. These statements are only predictions and involve known and unknown risks, uncertainties and other factors that may cause our or our industry’s actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements.

While these forward-looking statements, and any assumptions upon which they are based, are made in good faith and reflect our current judgment regarding the direction of our business, actual results will almost always vary, sometimes materially, from any estimates, predictions, projections, assumptions or other future performance suggested herein. Except as required by applicable law, including the securities laws of the United States, we do not intend to update any of the forward-looking statements to conform these statements to actual results.

This report contains information that may be deemed forward-looking, that is based largely on the Company’s current expectations, and is subject to certain risks, trends and uncertainties that could cause actual results to differ materially from those anticipated.

Among such risks, trends and other uncertainties, which in some instances are beyond its control, may be the Company’s ability to generate cash flows and maintain liquidity sufficient to service its debt, and comply with or obtain amendments or waivers of the financial covenants contained in its credit facilities, if necessary. Other risks and uncertainties include the impact of continuing adverse economic conditions, potential changes in the adult day care industry, energy costs, interest rates and the availability of credit, labor costs, legislative and regulatory rulings and other results of operations or financial conditions, increased capital and other costs, competition and other risks detailed from time to time in the Company’s publicly filed documents.

The words “may”, “will”, “would”, “could”, “believes”, “expects”, “anticipates”, “intends”, “plans”, “projects”, “considers” and similar expressions generally identify forward-looking statements. Readers are cautioned not to place undue reliance on such forward-looking statements, which are made as of the date of this report. The Company does not undertake to publicly update or revise its forward-looking statements.

PART I – FINANCIAL INFORMATION

Item 1. FINANCIAL STATEMENTS

INNOVATIVE MEDTECH, INC.

AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

UNAUDITED

	December 31, 2023			June 30, 2023
	Unaudited
Assets
Current assets
Cash and cash equivalents	$	92,509		$	157,589
Accounts receivable, net		195,871			224,641
Notes receivable, related party		9,294			9,294
Prepaid expenses		750			2,250
Total current assets		298,424			393,774

Deposits		7,961			6,716
Right-of-use asset		317,720			403,889
Finance lease asset, net		13,770			16,065
Property, plant and equipment, net of accumulated depreciation		381,262			307,997
Intangible assets, net of accumulated amortization		3,132,732			3,143,369
Goodwill		177,777			177,777
Total Assets	$	4,329,646		$	4,449,587

Liabilities & Stockholders' Deficit
Current liabilities
Accounts payable and accrued expenses	$	1,186,375		$	1,164,708
Accrued interest		638,284			605,335
Accrued interest, related parties		133,922			107,206
Notes payable, related parties, current		802,063			802,063
Notes payable, current		291,732			146,992
Convertible notes payable, current		266,900			266,900
SBA Loan, current		5,359			20,952
Line of credit		60,394			43,077
Derivative liability		221,175			201,607
Finance lease liability		36,263			53,707
Operating lease liability		157,829			163,169
Total current liabilities		3,800,296			3,575,716

Royalty liability		1,500,000			1,499,849
Finance lease liability, non-current		59,979			73,623
Operating lease liability, non-current		161,189			242,065
Notes payable, non-current		113,662			38,572
SBA Loan, non-current		333,265			328,148
Total Liabilities		5,968,391			5,757,973

Commitments and contingencies (Note 15)

Stockholders' Deficit
Series A Preferred stock, $0.000001 par value; 500,000,000 authorized: 367,500 shares issued and outstanding		0			0
Common stock, $0.000001 par value; 130,000,000 shares authorized; 21,157,327 shares issued and outstanding		21			21
Additional paid in capital		35,336,755			35,313,906
Accumulated deficit		(36,975,521	)		(36,622,313	)
Total Stockholders' Deficit		(1,638,745	)		(1,308,386	)
Total Liabilities and Stockholders' Deficit	$	4,329,646		$	4,449,587

See accompanying notes to unaudited consolidated financial statements.

INNOVATIVE MEDTECH, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

UNAUDITED

	For the three months ended						For the six months ended
	December 31,						December 31,
	2023			2022			2023			2022

Revenue:
Participant fees	$	274,714		$	277,426		$	596,204		$	524,447
Franchise fees		157,978			142,926			317,196			280,055
		432,692			420,352			913,400			804,502

Operating expenses:
General and administrative		210,325			253,604			436,385			513,542
Salaries and wages		271,226			268,479			564,738			530,235
Licensing fees		-			750,000			-			1,500,000
Consulting fees		42,970			28,500			96,074			75,000
Legal and professional fees		64,925			52,171			119,764			81,135
Total operating expenses		589,446			1,352,754			1,216,961			2,699,912

Loss from operations		(156,754	)		(932,402	)		(303,561	)		(1,895,410	)

Other income (expense):
Interest expense, related parties		(16,100	)		8,972			(33,040	)		-
Interest expense		(23,014	)		(63,803	)		(44,877	)		(111,472	)
Change in fair value of derivatives		5,165			10,159			(19,568	)		28,139
Amortization of debt discount		(14,796	)		-			(22,849	)		-
Other income		17,354			-			70,687			1,179
Total other income (expense)		(31,391	)		(44,672	)		(49,647	)		(82,154	)

Net loss	$	(188,145	)	$	(977,074	)	$	(353,208	)	$	(1,977,564	)

Basic and diluted earnings per share on net loss	$	(0.01	)	$	(0.05	)	$	(0.02	)	$	(0.09	)

Weighted average shares outstanding - basic and diluted		21,157,327			21,157,327			21,157,327			21,157,327

See accompanying notes to unaudited consolidated financial statements

INNOVATIVE MEDTECH, INC.

AND SUBSIDIARIES

STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

For the three and six months ended December 31, 2023

Unaudited

	Series A Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Stockholders'
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficit
Balance, June 30, 2023		417,500	$	-		21,157,327	$	21	$	35,313,906	$	(36,622,313	)	$	(1,308,386	)

Warrants issued with notes payable		-		-		-		-		22,849		-			22,849

Net loss		-		-		-		-		-		(165,063	)		(165,063	)

Balance, September 30, 2023		417,500	$	-		21,157,327	$	21	$	35,336,755	$	(36,787,376	)	$	(1,450,600	)

Net loss		-		-		-		-		-		(188,145	)		(188,145	)

Balance, December 31, 2023		417,500	$	-		21,157,327	$	21	$	35,336,755	$	(36,975,521	)	$	(1,638,745	)

See accompanying notes to unaudited consolidated financial statements

INNOVATIVE MEDTECH, INC.

AND SUBSIDIARIES

STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT

For the three and six months ended December 31, 2022

Unaudited

	Series A Preferred Stock				Common Stock				Additional Paid-in		Accumulated			Stockholders'
	Shares		Amount		Shares		Amount		Capital		Deficit			Deficit
Balance, June 30, 2022		367,500	$	-		21,157,327	$	21	$	31,563,906	$	(32,974,366	)	$	(1,410,439	)

Net loss		-		-		-		-		-		(1,000,490	)		(1,000,490	)

Balance, September 30, 2022		367,500	$	-		21,157,327	$	21	$	31,563,906	$	(33,974,856	)	$	(2,410,929	)

Net loss		-		-		-		-		-		(977,074	)		(977,074	)

Balance, December 31, 2022		367,500	$	-		21,157,327	$	21	$	31,563,906	$	(34,951,930	)	$	(3,388,083	)

See accompanying notes to unaudited consolidated financial statements

INNOVATIVE MEDTECH, INC.

AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

UNAUDITED

	For the six months ended
	December 31,
	2023			2022
Cash Flows from Operating Activities
Net Loss	$	(353,208	)	$	(1,977,564	)

Adjustments to reconcile net loss to net
cash used by operating activities:
Depreciation and amortization		34,903			17,869
Amortization of royalty fee liability discount		151			27,693
Amortization of debt discount		22,849			-
Change in fair value of derivatives		19,568			(28,139	)
Amortization of right-of-use		(47	)		(26,215	)
Changes in operating assets & liabilities
Accounts receivable		28,770			(12,744	)
Prepaid expenses		1,500			(23,218	)
Deposits		(1,245	)		1,734,268
Accounts payable and accrued liabilities		21,665			-
Accrued interest, related party		26,716			24,798
Accrued interest		28,700			32,184
Net cash provided by operating activities		(169,678	)		(231,068	)

Cash Flows from Investing Activities
Collections from notes receivable		-			11,996
Acquisition of fixed assets		(95,235	)		-
Net cash used by investing activities		(95,235	)		11,996

Cash Flows from Financing Activities
Proceeds from notes payable		235,979			-
Proceeds from notes payable, related party		-			24,500
Payments on SBA loan		(10,476	)		(1,746	)
Payments on notes payable		(11,900	)		(16,531	)
Proceeds from line of credit		20,000			-
Payments on line of credit		(2,682	)		-
Payments on finance lease		(31,088	)		-
Net cash provided by financing activities		199,833			6,223

Increase in Cash and cash equivalents		(65,080	)		(212,849	)

Cash and cash equivalents at beginning of period		157,589			301,337

Cash and equivalents at end of period	$	92,509		$	88,488

Supplemental Cash Flow Information
Cash paid for interest	$	-		$	4,028
Cash paid for income taxes	$	-		$	-

See accompanying notes to unaudited consolidated financial statements.

INNOVATIVE MEDTECH, INC.

AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

FOR THE PERIOD ENDING DECEMBER 31, 2023

NOTE 1. GENERAL ORGANIZATION AND BUSINESS

Innovative MedTech, Inc. (the “Company”), a Delaware corporation, is a provider of health and wellness services, primarily through its wholly owned subsidiaries Sarah Adult Day Services, Inc., and Sarah Day Care Centers, Inc. SarahCare (“SarahCare”), an adult day care franchisor with 25 centers (2 corporate and 23 franchise locations) located in 13 states. SarahCare offers seniors daytime care and activities focusing on meeting their physical and medical needs on a daily basis, and ranging from nursing care to salon services and providing meals, to offering engaging and enriching activities to allow them to continue to lead active and engaged lives.

On April 1, 2022, the Company partnered with TruCash Group of Companies Inc. (“TruCash”), a leading global payments provider, to launch an all-in-one Super Healthcare App, called RX Vitality Wallet, that was being designed to cater to consumers, patients, hospitals, Seniors, and governments, with a solid platform of benefits and online banking. On June 30, 2023 this agreement was canceled.

On April 5, 2022, the Company engaged mPulse Mobile, a leader in conversational AI and digital engagement solutions for the healthcare industry, to drive engagement with the Company’s digital app and wallet.

On April 28, 2022, the Company entered into a share exchange agreement to acquire RX Vitality, Inc. (“RX Vitality”), a media and finance advisory company.

On May 13, 2022, the Company entered into a partnership with VSUSA Corp. (“VSUSA”), a non-for-profit organization that empowers Veterans and Seniors by offering services designed to build successful life transitions with access to workforce and independent housing; health services; and social service programs in communities across the United States. The Company’s Chairman is a principal and co-Founder of VSUSA. On June 30, 2023 this agreement was canceled.

NOTE 2. LIQUIDITY, CAPITAL RESOURCES AND GOING CONCERN

The accompanying consolidated financial statements have been prepared on a going-concern basis, which contemplates the continuation of operations, realization of assets and liquidation of liabilities in the ordinary course of business.

For the six months ended December 31, 2023 and 2022, the Company reported a net loss of $353,208 and $1,977,564, respectively.

As of December 31, 2023, the Company maintained total assets of $4,329,646, total liabilities including long-term debt of $5,968,391 along with an accumulated deficit of $36,975,521.

The Company continues to have limited capital resources and has experienced net losses and negative cash flows from operations and expects these conditions to continue for the foreseeable future. As of December 31, 2023, the Company had $92,509 cash available for operations and had an accumulated deficit of $36,975,521. Management believes that cash on hand as of December 31, 2023 is not sufficient to fund operations through December 31, 2024. The Company will be required to raise additional funds to meet its short and long-term planned goals. There can be no assurance that such funds, if available at all, can be obtained on terms reasonable to the Company.

The Company believes that additional capital will be required to fund operations through December 31, 2024 and beyond, as it attempts to generate increasing revenue, and develop new products. The Company intends to attempt to raise capital through additional equity offerings and debt obligations. There can be no assurance that the Company will be successful in obtaining financing at the level needed or on terms acceptable to the Company. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. The accompanying consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) and pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”) and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company as of and for the three and six months ended December 31, 2023 and 2022.

Principles of Consolidation

The Company has two wholly-owned operating subsidiaries; Sarah Adult Day Services, Inc., and Sarah Day Care Centers, Inc., along with non-operating subsidiaries consisting of RX Vitality, Inc. and the 10 formed limited liability companies formed for the additional SarahCare location leases. The consolidated financial statements, which include the accounts of the Company and its two wholly-owned subsidiaries, are prepared in conformity with GAAP pursuant to the rules and regulations of the SEC. All significant intercompany balances and transactions have been eliminated. The consolidated financial statements have been prepared using the accrual basis of accounting in accordance with GAAP and presented in US dollars. The fiscal year end is June 30.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported revenues and expenses during the reporting periods. Because of the use of estimates inherent in the financial reporting process, actual results may differ significantly from those estimates.

Cash and Cash Equivalents

The Company maintains cash balances in a non-interest-bearing account that does not exceeds $250,000 at December 31, 2023. For the purpose of the consolidated financial statements, all highly liquid investments with a maturity of three months or less are considered to be cash equivalents. There were no cash equivalents as of December 31, 2023 and 2022.

Earnings Per Share Calculation

Basic earnings per common share (“EPS”) is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted earnings per share is computed by dividing net income by the weighted average shares outstanding, assuming all dilutive potential common shares were issued.

Intangible Assets

Certain intangible assets arose from the acquisition of Sarah Adult Day Services, Inc., and Sarah Day Care Centers, Inc. on March 25, 2021 and consist of the following, which have been or are being amortized on a straight-line basis over the following estimated useful lives unless they have an indefinite life:

Asset	Estimated Useful Life
Customer Relationships		3
Trademarks	Indefinite
Non-Compete Agreement		3
CARF Accreditation		3
Franchise Agreements	Indefinite

An intangible asset with an indefinite useful life is not amortized but assessed for impairment annually, or more frequently, when events or changes in circumstances occur indicating that it is more likely than not that the indefinite-lived asset is impaired. Impairment exists when the carrying amount exceeds its fair value. In testing for impairment, the Company has the option to first perform a qualitative assessment to determine whether it is more likely than not that an impairment exists. If it is determined that it is not more likely than not that an impairment exists, a quantitative impairment test is not necessary. If the Company concludes otherwise, it is required to perform a quantitative impairment test. To the extent an impairment loss is recognized, the loss establishes the new cost basis of the asset. Subsequent reversal of impairment losses is not permitted. For the three and six months ended December 31, 2023 and 2022, there were no impairment losses.

Revenue Recognition

Revenue is recognized when a customer obtains services. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods. The Company applies the following five-step model in order to determine this amount: (i) identification of the promised goods in the contract; (ii) determination of whether the promised goods are performance obligations, including whether they are distinct in the context of the contract; (iii) measurement of the transaction price, including the constraint on variable consideration; (iv) allocation of the transaction price to the performance obligations; and (v) recognition of revenue when (or as) the Company satisfies each performance obligation.

The Company only applies the five-step model to contracts when it is probable that the entity will collect the consideration it is entitled to in exchange for the services it provides to the customer. Once a contract is determined to be within the scope of Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 606 at contract inception, the Company reviews the contract to determine which performance obligations the Company must deliver and which of these performance obligations are distinct.

Patient Fees

Participant fee revenue is reported at the amount that reflects the consideration the Company expects to receive in exchange for the services provided. These amounts are due from participants or third-party payors and include variable consideration for retroactive adjustments from estimated reimbursements, if any, under reimbursement programs. Performance obligations are determined based on the nature of the services provided. Resident fee revenue is recognized as performance obligations are satisfied.

Under the Company’s day care agreements, which are generally for a contractual term of 30 days to one year, the Company provides services to participants for a stated daily or monthly fee. The Company has elected the lessor practical expedient within ASC 842, Leases (“ASC 842”) and recognizes, measures, presents, and discloses the revenue for services under the Company’s senior living residency agreements based upon the predominant component, either the lease or nonlease component, of the contracts. The Company has determined that the services included under the Company’s independent living, assisted living, and memory care residency agreements have the same timing and pattern of transfer and are performance obligations that are satisfied over time. The Company recognizes revenue under ASC 606, Revenue Recognition from Contracts with Customers (“ASC 606”) for its participants agreements for which it has estimated that the nonlease components of such agreements are the predominant component of the contract.

The Company enters into contracts to provide home assisted health, and certain outpatient services. Each service provided under the contract is capable of being distinct, and thus, the services are considered individual and separate performance obligations. The performance obligations are satisfied as services are provided and revenue is recognized as services are provided.

The Company receives payment for services under various third-party payor programs which include Medicaid, Veterans Affairs and other third-party payors. Estimates for settlements with third-party payors for retroactive adjustments from estimated reimbursements due to audits, reviews, or investigations are included in the determination of the estimated transaction price for providing services. The Company estimates the transaction price based on the terms of the contract with the payor, correspondence with the payor, and historical payment trends. Changes to these estimates for retroactive adjustments are recognized in the period the change or adjustment becomes known or when final settlements are determined.

Billings for services under third-party payor programs are recorded net of estimated retroactive adjustments, if any. Retroactive adjustments are accrued on an estimated basis in the period the related services are rendered and adjusted in future periods or as final settlements are determined. Contractual or cost related adjustments from Medicaid or Veterans Affairs are accrued when assessed (without regard to when the assessment is paid or withheld). Subsequent adjustments to these accrued amounts are recorded in net revenues when known.

Franchise Fees

The Company franchises a number of its locations under franchise contracts which provide periodic franchise fee payments to the Company and reimbursement for costs and expense related to such franchises. The Company’s franchisees pay a variety of royalties and fees, including an agreed upon percentage of gross revenues (as defined in the franchise agreement). The Company estimates the amount of franchise fee revenue expected to be earned, if any, during the annual contract period and revenue is recognized as services are provided. The Company’s estimate of the transaction price for the franchise services also includes the amount of reimbursement due from the franchises for services provided and related costs incurred.

SarahCare, as the franchisor, supplies the franchisee’s with initial assistance and approval with the following: (1) Providing the site selection criteria for the SARAH Business and, upon a potential franchisee’s request, provide input regarding possible sites. The Company does not own and lease any site to franchisees. After the franchise selects and the Company approves a site, the Company will designate the geographic area within which they may establish the SARAH Business; (2) Approve the signage; (3) Identify the standards and specifications for products, services, and materials that comply with the System, and, if the Company requires, the approved suppliers of these items. The Company will furnish a potential Franchisee with the listing of the package of initial franchise items as detailed in the Operations Manual. Neither the Company or its affiliate provide, deliver, or install any of these items; (4) Provide an Initial Training Program; and (5) Provide an Operations Training Program.

Once the Franchisee’s SarahCare business is operational, the Company will: (1) Issue and modify System standards for SARAH Businesses; (2) Provide access to a copy of the Company’s Operations Manual as they make available through our intranet. The Operations Manual contains mandatory and suggested specifications, standards and operating procedure; (3) Provide additional or special guidance and assistance and training as the Company deem appropriate and for which a potential Franchisee are financially responsible; (4) Inspect and observe the operation of the SARAH Business to help a potential Franchisee comply with the Franchise Agreement and all System standards; (5) Let the Franchisee use the confidential information; and, (6) Let the Franchisee use the Marks (trademarks, trade names, service marks, and logos).

Income Taxes

The provision for income taxes is the total of the current taxes payable and the net of the change in the deferred income taxes. Provision is made for the deferred income taxes where differences exist between the period in which transactions affect current taxable income and the period in which they enter into the determination of net income in the financial statements.

Leases

The Company accounts for leases in accordance with Accounting Standards Update (ASU) 2016-02, “Leases” (Topic 842). Based on this standard, the Company determines if an agreement is a lease at inception. Leases are included – right to use, current portion of lease liability, and operating lease liability, less current portion in the Company’s consolidated balance sheets. Finance leases are included in property, plant and equipment, net current portion of long-term debt, net and long-term debt, less current portion and debt issuance costs in the Company’s consolidated balance sheets.

Fair value of financial instruments

The Company’s financial instruments include cash and cash equivalents, accounts payable, accrued expenses, and debt. The carrying value of these financial instruments is considered to be representative of their fair value due to the short maturity of these instruments. The carrying amount of the debt approximates fair value, because the interest rates on these instruments approximate the interest rate on debt with similar terms available to the Company. The Company’s derivative liabilities were adjusted to fair market value at the end of each reporting period, using Level 3 inputs.

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. The fair value hierarchy is based on three levels of inputs, of which the first two are considered observable and the last unobservable, as follows:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities.

The carrying amounts of the Company’s financial assets and liabilities, such as cash, accounts payable, accrued expenses and interest, certain notes payable and notes payable – due to related parties, approximate their fair values because of the short maturity of these instruments. The Company accounts for its derivative liabilities, at fair value, on a recurring basis under Level 3 (See Note 11).

Embedded Conversion Features

The Company evaluates embedded conversion features within convertible debt under ASC 815 “Derivatives and Hedging” to determine whether the embedded conversion feature(s) should be bifurcated from the host instrument and accounted for as a derivative at fair value with changes recorded in earnings. If the conversion feature does not require derivative treatment under ASC 815, the instrument is evaluated under ASC 470-20 “Debt with Conversion and Other Options” for consideration of any beneficial feature.

Derivative financial instruments

When the Company issues debt that contains a conversion feature, it first evaluates whether the conversion feature meets the requirements to be treated as a derivative: a) one or more underlying, typically the price of the Company’s stock; b) one or more notional amounts or payment provisions or both, generally the number of shares upon conversion; c) no initial net investment, which typically excludes the amount borrowed; and d) net settlement provisions, which in the case of convertible debt generally means the stock received upon conversion can be readily sold for cash. There are certain scope exceptions from derivative treatment, but these typically exclude conversion features that provide for a variable number of shares.

If the conversion features within convertible debt meet the requirements to be treated as a derivative, the Company estimates the fair value of the derivative liability using the Monte Carlo Simulation Model upon the date of issuance. If the fair value of the derivative liability is higher than the face value of the convertible debt, the excess is immediately recognized as interest expense. Otherwise, the fair value of the derivative liability is recorded as a liability with an offsetting amount recorded as a debt discount, which offsets the carrying amount of the debt. The derivative liability is revalued at the end of each reporting period and any change in fair value is recorded as a change in fair value in the consolidated statements of operations. The debt discount is amortized through interest expense over the life of the debt. Derivative instrument liabilities and the host debt agreement are classified on the consolidated balance sheets as current or non-current based on whether settlement of the derivative instrument could be required within twelve months of the balance sheet date.

The accounting treatment of derivative financial instruments requires that the Company record the embedded conversion option at their fair values as of the inception date of the agreement and at fair value as of each subsequent balance sheet date. Any change in fair value is recorded as non-operating, non-cash income or expense for each reporting period at each balance sheet date. The Company reassesses the classification of its derivative instruments at each balance sheet date. If the classification changes as a result of events during the period, the contract is reclassified as of the date of the event that caused the reclassification. As a result of entering into warrant agreements, for which such instruments contained a variable conversion feature with no floor, the Company has adopted a sequencing policy in accordance with ASC 815-40-35-12 “Derivatives and Hedging” (provides comprehensive guidance on derivative and hedging transactions) whereby all future instruments may be classified as a derivative liability with the exception of instruments related to share-based compensation issued to employees or directors.

Debt Issue Costs and Debt Discount

The Company may record debt issue costs and/or debt discounts in connection with raising funds through the issuance of debt. These costs may be paid in the form of cash, or equity (such as warrants). These costs are amortized to interest expense over the life of the debt. If a conversion of the underlying debt occurs, a proportionate share of the unamortized amounts is immediately expensed.

Reclassification of Presentation

Certain prior year amounts have been reclassified to conform with current year presentation. These reclassifications had no effect on the reported results of operations.

Recently Issued Accounting Pronouncements

The Company does not expect any of the recently issued accounting pronouncements to have a material impact on its financial condition or results of operations for the quarter ended as of December 31, 2023 or on a going forward basis.

Subsequent Events

In accordance with ASC 855, Subsequent Events, the Company evaluated subsequent events through the date of this report; the date the consolidated financial statements were available for issue.

NOTE 4. NOTES RECEIVABLE, RELATED PARTIES

The Company has several notes receivables from a related party. They are as follows:

	December 31, 2023		June 30, 2023

Notes receivable from related party (see Note 17), due in six months, with no installments, no interest, and in default as of March 2022		9,294		9,294
Total notes receivable		9,294		9,294
Less long-term		-		-
Total short term notes receivable	$	9,294	$	9,294

NOTE 5. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31, 2023 and June 30 2023:

	December 31,			June 30,
	2023			2023

Leasehold improvements	$	294,864		$	294,864
Vehicles		162,351			67,116
Computer equipment		14,354			14,354
Furniture and fixtures		5,455			5,455
		477,024			381,789
Less: Accumulated depreciation		(95,702	)		(73,792	)
Property, plant and equipment – net	$	381,262		$	307,997

Depreciation expense was $3,104 and $6,138 for the three months ended December 31, 2023 and 2022. Depreciation expense was $20,015 and $12,549 for the six months ended December 31, 2023 and 2022.

NOTE 6. INTANGIBLE ASSETS

	December 31,			June 30,
	2023			2023
Customer relationships	$	40,000		$	40,000
Trademarks		410,000			410,000
Non-Compete Agreement		1,000			1,000
CARF Accreditation		23,000			23,000
Franchise Agreements		2,710,000			2,710,000
Website development		12,592			12,592
Less: accumulated amortization		(63,860	)		(53,223	)
Intangible assets - net	$	3,132,732		$	3,143,369

The Company is amortizing these intangible over their respective remaining useful lives. The Company recorded amortization expense in the amount of $5,940 and $5,318 for the three months ended December 31, 2023, and 2022, respectively. The Company recorded amortization expense in the amount of $10,637 and $5,318 for the six months ended December 31, 2023, and 2022, respectively.

NOTE 7. NOTES PAYABLE

As of December 31, 2023 and June 30, 2023, the Company had $405,394 and $185,564, respectively, in outstanding notes payable, as following:

			Original					Principal Balance as of
		Date of Note	Principal			Interest		December 31,		June 30,
Ref No.		Issuance	Balance		Maturity Date	Rate (%)		2023		2023
	1	9/16/06	$	100,000	*		12	$	38,000	$	38,000
	2	12/25/20		146,021	8/15/25		10		55,103		71,633
	3	2/24/14		5,000	*		9		8,547		8,547
	4	2/24/14		39,000	*		9		33,687		33,687
	5	2/24/14		179,124	*		9		33,697		33,697
	6	7/1/23		90,985	5/5/28		9		86,360		-
	7	8/21/23		150,000	*		12		150,000		-
		Total						$	405,394	$	185,564
		Total Current						$	291,732	$	146,992
		Total Long Term						$	113,662	$	38,572

________

* As of December 31, 2023, these notes are in default.

	Amount Owed

Year Ended June 30, 2024		291,732
Year Ended June 30, 2025		49,418
Year Ended June 30, 2026		23,688
Year Ended June 30, 2027		20,156
Year Ended June 30, 2028		20,420
Total future payments		405,394

NOTE 8. NOTES PAYABLE, RELATED PARTIES

As of December 31, 2023 and June 30, 2023, the Company had $802,063 respectively, in outstanding notes payable, related parties. As of December 31, 2023 and June 30, 2023, the Company had $133,922 and $107,206, respectively, in accrued interest related to these notes. Some of these notes were assumed in connection with the acquisition on March 25, 2021.

Ref No.			Date of	Original Principal			Interest			Principal Balance		Principal Balance
Note Issuance			Balance	Rate %		Maturity Date	Rate %			9/30/23		6/30/23
	1	*	3/25/21		308,500	6/3/21		10	%	$	308,500	$	308,500
	2	*	3/25/21		47,436	6/3/21		10	%		47,436		47,436
	3	*	3/25/21		158,503	6/3/21		10	%		158,502		158,502
	4	*	3/24/22		39,000	9/24/22		6	%		39,000		39,000
	5	*	5/5/22		179,124	11/5/22		6	%		179,124		179,124
	6	*	10/5/22		20,000	4/5/23		6	%		20,000		20,000
	7	*	11/9/22		500	5/9/23		6	%		500		500
	8	*	11/18/22		4,000	5/18/23		6	%		4,000		4,000
	9	*	1/17/23		18,000	7/17/23		6	%		18,000		18,000
	10	*	2/8/23		27,000	8/8/23		6	%		27,000		27,000
			Total							$	802,063	$	802,062

* As of December 31, 2023, these notes are in default.

NOTE 9. CONVERTIBLE NOTES PAYABLE

As of December 31, 2023 and June 30, 2023, the convertible notes payable were as follows:

Date of Note Issuance	Original Principal Balance		Maturity Date	Interest Rate %			Conversion Rate		Principal Balance 9/30/23		Principal Balance 6/30/23
8/26/14		50,000	*		10	%	$	0.0001	$	50,000	$	50,000
6/15/12		8,000	*		10	%	$	0.000350		8,000		8,000
10/18/11		1,900	*		8	%	25% discount to market			6,900		6,900
10/3/10		20,000	*		10	%	lesser $0.01 or 20% discount to market			20,000		20,000
10/31/09		4,000	*		8	%	25% discount of previous 5 days closing price			4,000		4,000
2/26/07		30,000	*		12	%	lesser $0.50 or 35% discount to market			30,000		30,000
4/17/07		20,000	*		10	%	lesser $0.45 or 35% discount to market			20,000		20,000
6/14/07		15,000	*		10	%	lesser $0.50 or 25% discount to market			15,000		15,000
1/29/07		15,000	*		10	%	$	0.95		15,000		15,000
4/17/07		15,000	*		10	%	lesser $0.45 or 35% discount to market			15,000		15,000
12/23/06		18,000	*		10	%	$	0.95		18,000		18,000
11/30/06		50,000	*		10	%	$	0.85		50,000		50,000
10/1/05		15,000	*		10	%	$	0.50		15,000		15,000
Total Current									$	266,900	$	266,900

* As of December 31, 2023, these notes are in default.

NOTE 10. SBA LOAN

On June 25, 2020 and January 6, 2022, the Company’s wholly-owned subsidiary, Sarah Day Care Centers, Inc. received proceeds of $150,000 and $200,000, respectively, in the form of an SBA loan. Installment payments, including principal and interest of $1,746 are due monthly beginning on December 22, 2021. The balance of principal and interest is payable thirty years from the promissory note date. The interest accrues at a rate of 3.75% per annum. During the three months ended December 31, 2023 and 2022, the Company recorded $3,241 and $0 in accrued interest related to the SBA loan. During the six months ended December 31, 2023 and 2022, the Company recorded $6,467 and $0 in accrued interest related to the SBA loan.

	Amount Owed

Year Ended June 30, 2024		6,578
Year Ended June 30, 2025		6,829
Year Ended June 30, 2026		7,089
Year Ended June 30, 2027		7,360
Year Ended June 30, 2028		7,641

Payments 2028 & Beyond		309,987
Total Payments		343,862.00

NOTE 11. DERIVATIVE FINANCIAL INSTRUMENTS

The following tables summarize the components of the Company’s derivative liabilities and linked common shares.

	December 31, 2023
	Indexed		Fair
The financings giving rise to derivative financial instruments	Shares		Values
Compound embedded derivative		610,168	$	221,175

	June 30, 2023
	Indexed		Fair
The financings giving rise to derivative financial instruments	Shares		Values
Compound embedded derivative		780,619	$	201,607

The following tables summarizes the effects on the Company’s gain (loss) associated with changes in the fair values of the derivative financial instruments by type of financing for the three and six months ended December 31, 2023 and 2022:

The financings giving rise to derivative financial instruments and the income effects:

	Three Months Ended
	December 31,		December 31,
	2023		2022
Compound embedded derivative	$	5,165	$	101,159
Day one derivative loss		-		-
Total derivative gain (loss)	$	5,165	$	101,159

	Six Months Ended
	December 31,			December 31,
	2023			2022
Compound embedded derivative	$	(19,568	)	$	28,139
Day one derivative loss		-			-
Total derivative gain (loss)	$	(19,568	)	$	28,139

The Company’s convertible notes gave rise to derivative financial instruments. The notes embodied certain terms and conditions that were not clearly and closely related to the host debt agreement in terms of economic risks and characteristics. These terms and features consist of the embedded conversion option.

Current accounting principles that are provided in ASC 815 – Derivatives and Hedging require derivative financial instruments to be classified in liabilities and carried at fair value with changes recorded in income. In addition, the standards do not permit an issuer to account separately for individual derivative terms and features embedded in hybrid financial instruments that require bifurcation and liability classification as derivative financial instruments. Rather, such terms and features must be bundled together and fair valued as a single, compound embedded derivative. The Company has selected the Monte Carlo Simulations valuation technique to fair value the compound embedded derivative because it believes that this technique is reflective of all significant assumption types, and ranges of assumption inputs, that market participants would likely consider in transactions involving compound embedded derivatives. Such assumptions include, among other inputs, interest risk assumptions, credit risk assumptions and redemption behaviors in addition to traditional inputs for option models such as market trading volatility and risk-free rates. The Monte Carlo Simulations technique is a level three valuation technique because it requires the development of significant internal assumptions in addition to observable market indicators.

Significant inputs and results arising from the Monte Carlo Simulations process are as follows for the compound embedded derivative that has been bifurcated from the Convertible Notes and classified in liabilities:

	Inception			December 31, 2023			June 30, 2023
Quoted market price on valuation date	$	0.01		$	0.55		$	0.75
Contractual conversion rate	$	0.0054 - $0.0081		$	0.3575 - 0.44		$	0.448 - 0.60
Range of effective contractual conversion rates		-			-			-
Contractual term to maturity	1.00 Year			0.25 Years			0.25 Years
Market volatility:
Volatility	138.28% - 238.13		%	138.28% - 238.13		%	138.28% - 238.13		%
Contractual interest rate	5% - 12		%	5% - 12		%	5% - 12		%

The following table reflects the issuances of compound embedded derivatives and changes in fair value inputs and assumptions related to the compound embedded derivatives during the three months ended December 31, 2023 and June 30, 2023.

	December 31, 2023		June 30, 2023
Beginning balance	$	201,607	$	226,585
Issuances:
Convertible Note Financing		-		-
Removals		-		-
Changes in fair value inputs and assumptions reflected		19,568		(24,978	)
Conversions		-		-
Ending balance	$	221,175	$	201,607

The fair value of the compound embedded derivative is significantly influenced by the Company’s trading market price, the price volatility in trading and the interest components of the Monte Carlo Simulation technique.

NOTE 12. STOCKHOLDERS’ DEFICIT

On or about April 26, 2022, the Company entered into an Agreement for Share Exchange (the “Share Exchange Agreement”) to obtain 10,500,000 shares of common stock of Vitality RX, Inc., a Delaware corporation (“Vitality”), representing 100% ownership of Vitality, from Vitality’s five shareholders identified in the Share Exchange Agreement (the “Vitality Shareholders”), in consideration of the issuance by the Company to the Vitality Shareholders of 5,500,000 shares of Innovative common stock, and 50,000 shares of Series A Convertible Preferred Stock (which preferred stock is convertible into 5,000,000 shares of common stock) (such shares of common stock and preferred stock collectively the “Shares”). On or about April 28, 2022, the transaction closed, Innovative received the stock of Vitality from the Vitality Shareholders, and issued the Shares to the Vitality Shareholders. The Company determined that Vitality did not meet the definition of a business under Accounting Standards Codification (“ASC”) 805 Business Combinations, as such, the issuance of shares was treated as stock-based compensation expense.

Common Stock

On August 21, 2023 the Company issued a Note (Note 7, Ref #7) which included 100,000 warrants to purchase common stock at a strike price of $0.10 per share, par value, $0.000001 per share. The warrants have an expiration date of August 21, 2028.

Series A Preferred Stock & Series B Preferred Stock

On April 26, 2022, the Company issued the Shareholders of Vitality 50,000 shares of Series A Convertible Preferred Stock, par value, $0.000001 per share, to Vitality’s five shareholder’s for consulting services and their expertise in technology, financial services and media related to the Company’s digital healthcare wallet.

As of December 31, 2023, the Company had 500,000,000 authorized shares of Series A Convertible Preferred Stock, par value, $0.000001 per share. Each share of Series A Convertible Preferred Stock is convertible into 100 shares of the Company’s common stock. The Company no longer authorized any Series B Convertible Preferred Stock.

Series A Preferred Stock & Series B Preferred Stock – Certificate of Designations

The Preferred Shares each have Certificate of Designations, which designate as follows:

Number

500,000,000 shares of the Parent Company’s Preferred Stock are designated as shares of Series A Convertible Preferred Stock, par value $0.000001 per share.

Dividends

Any dividends (other than dividends on common stock payable solely in common stock or dividends on the Series A Convertible Preferred Stock payable solely in Series A Convertible Preferred Stock or dividends on the Series B Preferred Convertible Stock payable solely in Series B Convertible Preferred Stock) declared or paid in any fiscal year will be declared or paid among the holders of the Series A Convertible Preferred Stock, Series B Convertible Preferred Stock and common stock then outstanding in proportion to the greatest whole number of shares of common stock which would be held by each such holder if all shares of Series A Preferred Stock and Series B Convertible Preferred Stock were converted into shares of common stock pursuant to the terms of the Certificate of Designations. The Parent Company’s Board of Directors is under no obligation to declare dividends on the Series A Convertible Preferred Stock or Series B Convertible Preferred Stock.

Conversion

Each share of Preferred Stock is convertible into 100 shares of the Parent Company’s common stock (the “Conversion Rate”).

Liquidation

In the event of any liquidation, dissolution or winding up of the Parent Company, the assets of the Parent Company legally available for distribution by the Parent Company would be distributed with equal priority and pro rata among the holders of the Preferred Stock and common stock in proportion to the number of shares of common stock held by them, with the shares of Preferred Stock being treated for this purpose as if they had been converted to shares of common stock at the then applicable Conversion Rate.

Voting

On any matter presented to the stockholders of the Parent Company for their action or consideration at any meeting of stockholders of the Parent Company (or by written consent of stockholders in lieu of meeting), each holder of outstanding shares of Preferred Stock would be entitled to cast the number of votes equal to the number of whole shares of common stock into which the shares of Preferred Stock held by such holder are convertible as of the record date for determining stockholders entitled to vote on such matter. Except as provided by law or by the other provisions of the Parent Company’s Certificate of Incorporation, holders of Preferred Stock vote together with the holders of common stock as a single class.

NOTE 13. PROVISION FOR CORPORATE INCOME TAXES

The Company provides for income taxes by the use of an asset and liability approach in accounting for income taxes. Deferred tax assets and liabilities are recorded based on the differences between the financial statement and tax bases of assets and liabilities and the tax rates in effect when these differences are expected to reverse. This also requires the reduction of deferred tax assets by a valuation allowance if, based on the weight of available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.

The valuation allowance at December 31, 2023 was $7,425,567 and as of June 30, 2023 was $7,350,393. The net change in allowance during the quarters ended December 31, 2023 and 2022 was $630,140 and $590,629, respectively.

As of December 31, 2023, the Company has federal net operating loss carry forwards of approximately $35,355,000 available to offset future taxable income through 2040. The Company may be able to utilize its NOLs to reduce future federal and state income tax liabilities. However, these NOLs are subject to various limitations under Internal Revenue Code (“IRC”) Section 382. IRC Section 382 limits the use of NOLs to the extent there has been an ownership change of more than 50 percentage points. In addition, the NOL carry-forwards are subject to examination by the taxing authority and could be adjusted or disallowed due to such exams. Although the Company has not undergone an IRC Section 382 analysis, it is possible that the utilization of the NOLs could be substantially limited. The Company has no tax provision For the six months ended December 31, 2023 and 2022 due to losses and full valuation allowances against net deferred tax assets.

As of December 31, 2023 and 2022, the difference between the tax provision at the statutory federal income tax rate and the tax provision attributable to loss before income taxes is as follows (in percentages):

Statutory federal income tax rate	(21	)%
State taxes – net of federal benefits	(5	)%
Valuation allowance	26	%
Income tax rate – net	0	%

FASB Interpretation No. 48 (Fin 48) - Accounting for Uncertain Tax Positions

The Company files income tax returns in the U.S. federal jurisdiction and various state, and local jurisdictions. The Company is no longer subject to U.S. federal income tax examination by tax authorities, with limited exception, for the quarters prior to December 31, 2014. With respect to state and local jurisdictions, with limited exception, the Company is no longer subject to income tax audits prior to December 31, 2014. In the normal course of business, the Company is subject to examination by various taxing authorities. Although the outcome of tax audits is always uncertain, the Company believes that adequate amounts of tax, interest and penalties have been provided for any adjustments that may result from these open tax years.

Based on management’s review of the Company’s tax position, the Company had no significant unrecognized corporate tax liabilities as of December 31, 2023 and June 30, 2023 payable to the Internal Revenue Service due to the net operating loss carry-forward, however, the Company had yet to file its 2005 through 2009 and 2012 through 2021 Federal, New Jersey nor New York Corporate Income Tax Returns.

NOTE 14. UNPAID PAYROLL TAXES

As of December 31, 2023 and June 30, 2023, the Company owed the Internal Revenue Service and New York State payroll related taxes in the amounts of $60,402 and $17,401, respectively, subject to further interest and penalties. The total amount due to both taxing authorities including penalties and interest as of December 31, 2023 and June 30, 2023 was approximately $77,803 subject to further penalties and interest. This is included in accounts payable and accrued expenses on the Company’s consolidated balance sheets.

IRS Tax Lien

The Internal Revenue Service has placed a federal tax lien on all of the assets of the Company.

NOTE 15. COMMITMENTS AND CONTINGENCIES

Licensing Agreement

On March 31, 2022, the Company entered into a management agreement with TruCash Group of Companies, Inc. (“TruCash’) where the Company is licensing from TruCash certain VISA ICAs and BINs to be used by the Company to offer certain pre-paid cards, mobile apps, loyalty programs, and other merchant related services to its potential clients. The Agreement has a term of five (5) years and monthly payments due to TruCash of $250,000 (the “Licensing Fee”). On June 30, 2023, the Company and TruCash cancelled the management agreement.

Rent

As of December 31, 2023, the Company maintains its corporate address in at 2310 York Street, Suite 200, Blue Island, IL, 60406. This space is provided by the Company’s Chairman, Charles Everhardt, a related party, on a rent free basis at the present time. The Company does not currently have a lease for this space but expects to enter into a month-to-month office lease for this space.

SarahCare leases two properties for its corporate office and its two corporate owned centers. SarahCare’s lease for its first corporate-owned SarahCare location is for approximately 5,300 square feet located at 6199 Frank Ave. NW, North Canton, Ohio, 44720. The lease began in 2018 and ends in 2026.

SarahCare’s lease for its second corporate-owned SarahCare location is for approximately 6,000 square feet located at SarahCare of Stow, 4472 Darrow Road, Stow, Ohio, 44224. The lease began in 2018 and ends in 2026.

On April 21, 2021, the Company, through ten wholly-owned limited liability companies, entered into lease agreements with entities controlled by our Chairman, Charles Everhardt, for ten additional SarahCare locations to be operated by the Company. All of the leases are for a ten-year period beginning on July 1, 2021, and ending on June 30, 2031, with a 5-year renewal option. The rent for each location is $7,500 per month. On April 29, 2022, the Company amended the leases to delay commencement until November 1, 2022. On August 19, 2022, the Company and landlord mutually agreed to terminate four of the leases formed on April 21, 2021.

SarahCare

The Company is currently in default under its payment obligations in connection with the acquisition of SarahCare. Such default has made the entire balance of the Notes due and payable and has increase the interest rate to 10%. These notes are guaranteed by the Company’s Chairman, Charles Everhardt.

NOTE 16. LEASES

Operating Leases

Stow Professional Lease

In connection with the acquisition of Sarah Adult Day Centers, Inc. on March 25, 2021, the Company acquired a facilities lease with 6,000 square feet at 4472 Darrow Road, Stow, Ohio 44224. The lease expires on December 31, 2025 and the lease payments are as follows:

	Monthly Rent Payments
	Base Rent		Covid-19 Recoup*		Total Rent
April 1, 2021	$	6,369	$	983	$	7,352
May 1, 2021 to December 31, 2021	$	6,369	$	621	$	6,990
January 1, 2022 to December 31, 2022	$	6,433	$	621	$	7,054
January 1, 2023 to December 31, 2023	$	6,497	$	621	$	7,118
January 1, 2024 to December 31, 2024	$	6,562	$	621	$	7,183
January 1, 2025 to December 31, 2025	$	6,628	$	621	$	7,249

________

*The Company has to repay the lessor monthly payments as a result of COVID relief.

Harbor Lease

In connection with the acquisition of Sarah Adult Day Centers, Inc. on March 25, 2021, the Company acquired a facilities lease with 3,469 square feet at 4580 Stephen Circle NW. Canton, OH 44718. The monthly lease payments are $4,500 and the lease expires on December 31, 2023.

In connection with the acquisition of Sarah Day Care Centers, Inc. on March 25, 2021, the Company acquired a facilities lease with 5,300 square feet in Jackson, Ohio. The monthly lease payments are $7,910, which includes monthly payments of $603 as repayments for COVID relief. The lease expires on July 1, 2026.

S. Frank Professional Lease

Operating lease right-of-use asset and liability are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value is the incremental borrowing rate, estimated to be 10%, as the interest rate implicit in most of the Company’s leases is not readily determinable. Operating lease expense is recognized on a straight-line basis over the lease term. Since the common area maintenance expenses are expenses that do not depend on an index or rate, they are excluded from the measurement of the lease liability and recognized in general and administrative expenses on the consolidated statements of operations.

Right-of-use asset is summarized below:

	December 31, 2023
	Stow Professional Center Lease			S. Frank Professional Lease			Total
Office lease	$	282,371		$	412,770		$	695,141
Less: accumulated amortization		(181,764	)		(195,657	)		(377,421	)
Right-of-use asset, net	$	100,607		$	217,113		$	317,720

Operating lease liability is summarized below:

	December 31, 2023
	Stow Professional Center Lease			S. Frank Professional Lease			Total
Office lease	$	101,901		$	217,114		$	319,015
Less: current portion		(80,335	)		(77,491	)		(157,826	)
Long term portion	$	21,566		$	139,623		$	161,189

Maturity of the lease liability is as follows:

Finance leases

	December 31, 2023
	Stow Professional Center Lease			S. Frank Professional Lease			Total
Year ending June 30, 2024		43,096			47,462			90,558
Year ending June 30, 2025		64,840			94,923			159,763
Year ending June 30, 2026		-			94,923			94,923
Year ending June 30, 2027		-			7,910			7,910
Present value discount		(6,035	)		(28,104	)		(34,139	)
Lease liability	$	101,901		$	217,114		$	319,015

Commencing during the quarter ended December 31, 2023, the Company leases office equipment under two finance leases with combined monthly payments of $5,897. The leases mature on March 1, 2024 and December 1, 2026.

Finance right of use assets are summarized below:

	As of			As of
	December 31,			June 30,
	2023			2023
Equipment lease	$	24,097		$	24,097
Less accumulated amortization		(10,327	)		(8,032	)
Finance right of use asset	$	13,770		$	16,065

On October 1, 2021, the Company discontinued use of one of its copiers. As a result, the Company recorded an impairment of assets in the amount of $84,364. Amortization expense was $5,738 and $3,442 For the six months ended December 31, 2023 and 2022, respectively.

Finance lease liabilities are summarized below:

	As of			As of
	December 31,			June 30,
	2023			2023
Equipment lease	$	96,242		$	127,329
Less: current portion		(36,263	)		(53,707	)
Long term portion	$	59,979		$	73,622

	Equipment
	Lease
Year Ended June 30, 2024		25,787
Year Ended June 30, 2025		32,388
Year Ended June 30, 2026		32,388
Year Ended June 30, 2027		16,194
Total future minimum lease payments		106,757
Less imputed interest		(10,515	)
PV of payments	$	96,242

NOTE 17. RELATED PARTY TRANSACTIONS

During the quarters ended December 31, 2023 and 2022, related party transactions were as follows:

As of June 30, 2023, a company founded and partially owned by the Company’s Chairman, Charles Everhardt, has been assigned the $3,750,000 in payables to a Company owned by Charles Everhardt for the Vitality Card, this amount included $750,000 which was included in accounts payable and accrued expenses as of June 30, 2022.

On January 17, 2023, the Company signed a note receivable of $18,000 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On February 8, 2023, the Company signed a note receivable of $27,000 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On May 5, 2022, the Company signed a note receivable of $179,124 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On March 25, 2022, the Company signed a note receivable of $39,000 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On September 28, 2021, the Company signed a note receivable of $50,000 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On September 8, 2021 the Company signed a note receivable of $29,294 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

NOTE 18. SUBSEQUENT EVENTS

The Company has evaluated subsequent events for recognition and disclosure through February 16, 2024, the date the financial statements were available to be issued, and determined that there were no such events requiring adjustment to, or disclosure in, the accompanying consolidated financial statements except as described below.

On February 16, 2024, the Company’s Distribution License Agreement (the “Agreement”)with Radical Clean Solutions Ltd. (“RCS”) was terminated by RCS for a material breach of non-payment, as the Company did not pay its initial deposit, which was due 40 days from the execution of the Agreement. The Company requested an extension and/or an amendment to a non-exclusive Agreement, but RCS did not agree to such a request.

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND RESULTS OF OPERATIONS

Forward Looking Statements

Some of the information in this section contains forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by forward-looking words such as “may,” “will,” “expect,” “anticipate,” “believe,” “estimate” and “continue,” or similar words.

We believe it is important to communicate our expectations. However, there may be events in the future that we are not able to accurately predict or over which we have no control. Our actual results and the timing of certain events could differ materially from those anticipated in these forward-looking statements as a result of certain factors, including those set forth elsewhere in this Quarterly Report on Form 10-Q.

Unless stated otherwise, the words “we,” “us,” “our,” “the Company” or “Innovative MedTech” in this Quarterly Report on Form 10-Q collectively refers to Innovative MedTech, Inc., a Delaware corporation (the “Parent Company”), and subsidiaries.

Overview

Innovative MedTech, Inc. (the “Company”), a Delaware corporation, is a provider of health and wellness services. On March 25, 2021, the Company acquired SarahCare for a total of $3,718,833; $2,000,110 was paid in cash and the Company assumed approximately $393,885 in debt due to sellers, and the remaining is payable through a royalty fee liability due in the amount of $1,500,000. With 25 centers (2 corporate and 23 franchise locations) located in 13 states, SarahCare offers seniors daytime care and activities focusing on meeting their physical and medical needs on a daily basis, and ranging from nursing care to salon services and providing meals, to offering engaging and enriching activities to allow them to continue to lead active and engaged lives.

The Company has also been working on launching an RX Vitality wallet digital offering and mobile app. Once implemented and live, the Company’s digital healthcare wallet will be accessible by customers via mobile wallet on both the Apple iOS and Android App Stores. The Company intends to have a physical healthcare card as well.

On April 1, 2022, the Company partnered with TruCash Group of Companies Inc. (“TruCash”), a leading global payments provider, to launch an all-in-one Super Healthcare App, called RX Vitality Wallet, that will be designed to cater to consumers, patients, hospitals, Seniors, and governments, with a solid platform of benefits and online banking. On June 30, 2023 this agreement was canceled.

On April 28, 2022, the Company entered into a share exchange agreement to acquire RX Vitality, Inc. (“RX Vitality”), a media and finance advisory company.

On June 1, 2022, the Company announced that Dr. Merle Griff, SarahCare’s Founder and CEO, would also be CEO of the Company.

As of December 31, 2023, the Company had current assets of $298,424. The Company has a limited amount of liquid cash and no other liquid assets on hand a of December 31, 2023, and this is not sufficient to fund operations for the next 12 months. Accordingly, we will be required to raise additional funds to meet our short and long-term planned goals. There can be no assurance that such funds, if available at all, can be obtained on terms reasonable to us. In this regard, we have obtained and will continue to attempt to obtain (short and long term) loans for inventory purchases, new product development, expansion, advertising and marketing. We cannot assure you that we will be successful in obtaining the aforementioned financings (either debt or equity) on terms acceptable to us, or otherwise.

Our unaudited consolidated financial statements contained in this Quarterly Report on Form 10-Q have been prepared on a going concern basis, which assumes that we will be able to realize our assets and discharge our obligations in the normal course of business.

Results of Operations for the Three Months Ended December 31, 2023, and December 31, 2022

For the quarter ended December 31, 2023, we recorded gross revenues of $432,692 versus $420,352 for the quarter ended December 31, 2022, as a result of the Company’s ability to keep centers open for longer periods of time, and more participants coming to the center more often.

For the quarter ended December 31, 2023, operating expenses decreased to $589,446 from $1,352,754, a $763,308 decrease, or (56.43%), over the quarter ended December 31, 2022. The decrease is due to a decrease in expenses related to the Company’s licensing and general and administrative expenses.

For the quarter ended December 31, 2023, interest expense decreased to $39,114 from $72,775 a decrease of 46.25% over the quarter ended December 31, 2022. This decrease is primarily due to a decrease in interest expense.

For the quarter ended December 31, 2023, we realized a net loss of $188,145 as compared to a net loss of $977,074 for the quarter ended December 31, 2022. The decrease in our net loss of $788,920 was primarily due to a decrease in licensing and general and administrative expenses.

Results of Operations for the Six Months Ended December 31, 2023, and December 31, 2022

For the six months ended December 31, 2023, we recorded gross revenues of $913,400 versus $804,502 for the six months ended December 31, 2022, as a result of the Company’s ability to keep centers open for longer periods of time, and more participants coming to the center more often.

For the six months ended December 31, 2023, operating expenses decreased to. $1,216,961 from $2,699,912, a $1,482,951 decrease, or 54.93%, over the six months ended December 31, 2022. The decrease is due to a decrease in expenses related to the Company’s licensing and general and administrative expenses.

For the six months ended December 31, 2023, interest expense decreased to $77,917 from $111,472, a decrease of 30.10% over the six months ended December 31, 2022. This decrease is primarily due to a decrease in interest expense.

For the six months ended December 31, 2023, we realized a net loss of $353,208 as compared to a net loss of $1,977,564 for the six months ended December 31, 2022. The increase in our net loss of $1,624,356 was primarily due to a decrease in licensing and general and administrative expenses.

Liquidity and Capital Resources

Based upon our current financial condition, we do not have sufficient cash to operate our business at the current level for the next twelve months. We intend to fund operations through debt and/or equity financing arrangements, which may be insufficient to fund expenditures or other cash requirements. We plan to seek additional financing in a private equity offering to secure funding for operations. There can be no assurance that we will be successful in raising additional funding. If we are not able to secure additional funding, the implementation of our business plan will be impaired. There can be no assurance that such additional financing will be available to us on acceptable terms or at all.

Off Balance Sheet Arrangements

We currently have no off-balance sheet arrangements that have or are reasonably likely to have a current or future material effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Critical Accounting Policies

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires us to make a number of 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. Such estimates and assumptions affect the reported amounts of revenues and expenses during the reporting period. We base our estimates on historical experiences and on various other assumptions that we believe to be reasonable under the circumstances. Actual results may differ materially from these estimates under different assumptions and conditions. We continue to monitor significant estimates made during the preparation of our financial statements. On an ongoing basis, we evaluate estimates and assumptions based upon historical experience and various other factors and circumstances. We believe our estimates and assumptions are reasonable in the circumstances; however, actual results may differ from these estimates under different future conditions.

Inflation

We do not believe that inflation had a significant impact on our results of operations for the periods presented.

Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

We are a smaller reporting company, as defined in Rule 12b-2 of the Securities Exchange Act of 1934 and are not required to provide the information under this item.

Item 4. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

In connection with the preparation of this Quarterly Report on Form 10-Q, an evaluation was carried out by the Company’s management, with the participation of the principal executive officer and the principal financial officer, of the effectiveness of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934 (“Exchange Act”)) As of December 31, 2023. Disclosure controls and procedures are designed to ensure that information required to be disclosed in reports filed or submitted under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the Commission’s rules and forms, and that such information is accumulated and communicated to management, including the chief executive officer and the chief financial officer, to allow timely decisions regarding required disclosures.

Based on that evaluation, the Company’s principal executive officer and principal financial officer concluded, as of the end of the period covered by this report, that the Company’s disclosure controls and procedures were not effective in recording, processing, summarizing, and reporting information required to be disclosed, within the time periods specified in the Commission’s rules and forms, and that such information was not accumulated and communicated to management, including the principal executive officer and the principal financial officer, to allow timely decisions regarding required disclosures.

Management’s Report on Internal Control over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial reporting. The Company’s internal control over financial reporting is a process, under the supervision of the principal executive officer and the principal financial officer, designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of the Company’s financial statements for external purposes in accordance with United States generally accepted accounting principles (GAAP). Internal control over financial reporting includes those policies and procedures that:

	●	Pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the Company’s assets;
	●	Provide reasonable assurance that transactions are recorded as necessary to permit preparation of the financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures are being made only in accordance with authorizations of management and the board of directors; and
	●	Provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management conducted an assessment of the effectiveness of our internal control over financial reporting As of December 31, 2023, based on criteria established in Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission, which assessment identified material weaknesses in internal control over financial reporting. A material weakness is a control deficiency, or a combination of deficiencies in internal control over financial reporting that creates a reasonable possibility that a material misstatement in annual or interim financial statements will not be prevented or detected on a timely basis. Since the assessment of the effectiveness of our internal control over financial reporting did identify a material weakness, management considers its internal control over financial reporting to be ineffective.

Management has concluded that our internal control over financial reporting had the following deficiency:

●

We were unable to maintain any segregation of duties within our business operations due to our reliance on a single individual fulfilling the role of sole officer. This control deficiency did result in adjustments to our 2012 and 2013 interim and annual financial statements. Accordingly, we have determined that this control deficiency constitutes a material weakness.

To the extent reasonably possible, given our limited resources, our goal is, upon sufficient operating cash flow and/or capital, to separate the responsibilities of principal executive officer and principal financial officer, intending to rely on two or more individuals. We will also seek to expand our current board of directors to include additional individuals willing to perform directorial functions. Since the recited remedial actions will require that we hire or engage additional personnel, this material weakness may not be overcome in the near term due to our limited financial resources. Until such remedial actions can be realized, we will continue to rely on the advice of outside professionals and consultants.

This Quarterly Report on Form 10-Q does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting. We were not required to have, nor have we, engaged our independent registered public accounting firm to perform an audit of internal control over financial reporting pursuant to the rules of the Commission that permit us to provide only management’s report in this Quarterly Report on Form 10-Q.

Changes in Internal Controls over Financial Reporting

During the quarter ended December 31, 2023, there has been no change in internal control over financial reporting that has materially affected, or is reasonably likely to materially affect our internal control over financial reporting.

PART II - OTHER INFORMATION

Item 1. Legal Proceedings.

From time to time, we may be involved in litigation relating to claims arising out of our operations in the normal course of business. Other than disclosed herein, there were no pending or threatened lawsuits that could reasonably be expected to have a material effect on the results of our operations.

As of December 31, 2023, we were not a party to any material legal proceedings. We currently have thirteen (13) convertible promissory notes that are in default, and we may be subject to legal proceedings or lawsuits from any number of those convertible noteholders, including the below.

On April 7, 2013, three note holders (Brook Hazelton, Benjamin M. Manalaysay, Jr., and Diego McDonald, the “Plaintiffs”), whom together invested a total principal amount of $45,000 in the form of Convertible Promissory Notes (the ”Notes”) to the Company, together filed a “Notice of Commencement of Action Subject to Mandatory Electronic Filing” in the Supreme Count of the State of New York, County of New York. The Plaintiffs alleged that the Company breached their contracts with the Plaintiffs and included causes of action for unjust enrichment and related claims, seeking repayment of each of their respective convertible promissory notes plus interest. On or about February 24, 2014, the three Plaintiffs received judgment against the Company from the court in the amounts of $33,686.82, $8,546.87 and $33,696.69, respectively.

Our wholly owned subsidiary, SarahCare, is not involved in any legal proceedings at this time.

As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.

Item 1A. Risk Factors.

As a smaller reporting company, we are not required to provide the information required by this item.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter ended December 31, 2023, the Company did not have any unregistered sales of any equity securities.

Item 3. Defaults Upon Senior Securities.

During the quarter ended December 31, 2023, the Company was in default under the majority of its outstanding legacy convertible notes.

Item 4. Mine Safety Disclosure

Not applicable.

Item 5. Other Information.

None.

Item 6. Exhibits.

Exhibit		Description
3.1		Certificate of Incorporation (New Jersey) (Incorporated by reference to the Company’s Form 10SB filed with the SEC on June 29, 2005)
3.2		Bylaws (Incorporated by reference to the Company’s Form 10SB filed with the SEC on June 29, 2005)
3.3		Certificate of Amendment of Certificate of Incorporation (Incorporated by reference to the Company’s Current Report on Form 8 K filed with the SEC on January 27, 2006)
3.4		Certificate of Incorporation (Delaware)
3.5		Certificate of Merger (redomiciling from New Jersey to Delaware)
3.6		Certificate of Amendment to Certificate of Incorporation
3.7		Certificate of Designation of Series A Convertible Preferred Stock
10.1+		Standard Office Lease by and between DeVille Developments, LLC, and Sarah Adult Day Services, Inc., dated June 2, 2017
10.2+		Lease by and between Stow Professional Center, LLC, and Sarah Day Care Centers, Inc., dated September 4, 2014
10.3+		Lease Agreement by and between S. Frank Prof. Bldg., LLC, and Sarah Day Care Centers, Inc., dated March 20, 2018
10.4+		Stock Purchase Agreement by and among Innovative MedTech, Inc., Sarah Adult Day Services, Inc., Sarah Day Care Centers, Inc., The Sellers Named Herein, Dr. Merle Griff, as the Seller Representative, and Veteran Services LLC, dated as of March 25, 2021
10.5		Share Exchange Agreement, by and between Innovative MedTech, Inc., VC Bin, LLC, Webb Media, LLC, Melides Capital, LLC, Ronald Schreiber, and Dovner Holdings, LLC, dated April 26, 2022
10.6		Executive Employment Agreement between Innovative MedTech, Inc. and Dr. Merle Griff, dated May 2, 2022
10.7		Consulting Agreement between Innovative MedTech, Inc. and Red Halo, LLC, dated May 2, 2022
14.1		Code of Ethics (Incorporated by reference to the Company’s Form SB-2 filed with the SEC on May 12, 2006)
31.1 *		Certification by the Principal Executive Officer
31.2 *		Certification by the Principal Accounting Officer
32.1 *		Certification by the Principal Executive Officer
32.2 *		Certification by the Principal Accounting Officer
101.INS*		Inline XBRL Instance Document (the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document)
101.SCH*		Inline XBRL Taxonomy Extension Schema Document
101.CAL*		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*		Inline XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*		Inline XBRL Taxonomy Extension Labels Linkbase Document
101.PRE*		Inline XBRL Taxonomy Extension Presentation Linkbase Document
104*		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

* Filed herewith

+ Certain schedules and exhibits have been omitted pursuant to Item 601(b)(2) and/or Item 601(a)(5) of Regulation S-K. A copy of any omitted schedule or exhibit will be furnished supplementally to the Commission upon request; provided, however, that the Company may request confidential treatment pursuant to Rule 24b-2 of the Securities Exchange Act of 1934, as amended, for any schedule or exhibit so furnished.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	Innovative MedTech, Inc. (Registrant)

	/s/ Merle Griff
	Merle Griff Chief Executive Officer

	Date: February 16, 2024

nullnullnullnull

Cover - shares	6 Months Ended
Cover - shares	Dec. 31, 2023	Feb. 16, 2024
Cover [Abstract]
Entity Registrant Name	Innovative MedTech, Inc.
Entity Central Index Key	0001331612
Document Type	10-Q
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Small Business	true
Entity Shell Company	false
Entity Emerging Growth Company	false
Entity Current Reporting Status	Yes
Document Period End Date	Dec. 31, 2023
Entity Filer Category	Non-accelerated Filer
Document Fiscal Period Focus	Q2
Document Fiscal Year Focus	2024
Entity Common Stock Shares Outstanding		21,157,327
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	000-51390
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	33-1130446
Entity Address Address Line 1	2310 York St
Entity Address Address Line 2	Suite 200
Entity Address City Or Town	Blue Island
Entity Address State Or Province	IL
Entity Address Postal Zip Code	60406
City Area Code	708
Local Phone Number	925-9424
Entity Interactive Data Current	Yes

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Current assets
Cash and cash equivalents	$ 92,509	$ 157,589
Accounts receivable, net	195,871	224,641
Notes receivable, related party	9,294	9,294
Prepaid expenses	750	2,250
Total current assets	298,424	393,774
Deposits	7,961	6,716
Right-of-use asset	317,720	403,889
Finance lease asset, net	13,770	16,065
Property, plant and equipment, net of accumulated depreciation	381,262	307,997
Intangible assets, net of accumulated amortization	3,132,732	3,143,369
Goodwill	177,777	177,777
Total Assets	4,329,646	4,449,587
Current liabilities
Accounts payable and accrued expenses	1,186,375	1,164,708
Accrued interest	638,284	605,335
Accrued interest, related parties	133,922	107,206
Notes payable, related parties, current	802,063	802,063
Notes payable, current	291,732	146,992
Convertible notes payable, current	266,900	266,900
SBA Loan, current	5,359	20,952
Line of credit	60,394	43,077
Derivative liability	221,175	201,607
Finance lease liability	36,263	53,707
Operating lease liability	157,829	163,169
Total current liabilities	3,800,296	3,575,716
Royalty liability	1,500,000	1,499,849
Finance lease liability, non-current	59,979	73,623
Operating lease liability, non-current	161,189	242,065
Notes payable, non-current	113,662	38,572
SBA Loan, non-current	333,265	328,148
Total Liabilities	5,968,391	5,757,973
Stockholders' Deficit
Series A Preferred stock, $0.000001 par value; 500,000,000 authorized: 367,500 shares issued and outstanding	0	0
Common stock, $0.000001 par value; 130,000,000 shares authorized; 21,157,327 shares issued and outstanding	21	21
Additional paid in capital	35,336,755	35,313,906
Accumulated deficit	(36,975,521)	(36,622,313)
Total Stockholders' Deficit	(1,638,745)	(1,308,386)
Total Liabilities and Stockholders' Deficit	$ 4,329,646	$ 4,449,587

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2023	Jun. 30, 2023
CONSOLIDATED BALANCE SHEETS
Preferred stock, shares authorized	500,000,000	500,000,000
Preferred stock, shares par value	$ 0.000001	$ 0.000001
Preferred stock, shares issued	367,500	367,500
Preferred stock, shares outstanding	367,500	367,500
Common stock, shares authorized	130,000,000	130,000,000
Common stock, shares par value	$ 0.000001	$ 0.000001
Common stock, shares issued	21,157,327	21,157,327
Common stock, shares outstanding	21,157,327	21,157,327

CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Revenue:
Participant fees	$ 274,714	$ 277,426	$ 596,204	$ 524,447
Franchise fees	157,978	142,926	317,196	280,055
Revenues	432,692	420,352	913,400	804,502
Operating expenses:
General and administrative	210,325	253,604	436,385	513,542
Salaries and wages	271,226	268,479	564,738	530,235
Licensing fees	0	750,000	0	1,500,000
Consulting fees	42,970	28,500	96,074	75,000
Legal and professional fees	64,925	52,171	119,764	81,135
Total operating expenses	589,446	1,352,754	1,216,961	2,699,912
Loss from operations	(156,754)	(932,402)	(303,561)	(1,895,410)
Other income (expense):
Interest expense, related parties	(16,100)	8,972	(33,040)	0
Interest expense	(23,014)	(63,803)	(44,877)	(111,472)
Change in fair value of derivatives	5,165	10,159	(19,568)	28,139
Amortization of debt discount	(14,796)	0	(22,849)	0
Other income	17,354		70,687	1,179
Total other income (expense)	(31,391)	(44,672)	(49,647)	(82,154)
Net loss	$ (188,145)	$ (977,074)	$ (353,208)	$ (1,977,564)
Basic and diluted earnings per share on net loss	$ (0.01)	$ (0.05)	$ (0.02)	$ (0.09)
Weighted average shares outstanding - basic and diluted	21,157,327	21,157,327	21,157,327	21,157,327

STATEMENTS OF CHANGES IN STOCKHOLDERS' DEFICIT (Unaudited) - USD ($)	Total	Series A, Preferred Stock	Common Stock	Additional Paid-In Capital	Retained Earnings (Accumulated Deficit)
Balance, shares at Jun. 30, 2022		367,500	21,157,327
Balance, amount at Jun. 30, 2022	$ (1,410,439)	$ 0	$ 21	$ 31,563,906	$ (32,974,366)
Net loss	(1,000,490)	$ 0	$ 0	0	(1,000,490)
Balance, shares at Sep. 30, 2022		367,500	21,157,327
Balance, amount at Sep. 30, 2022	(2,410,929)	$ 0	$ 21	31,563,906	(33,974,856)
Balance, shares at Jun. 30, 2022		367,500	21,157,327
Balance, amount at Jun. 30, 2022	(1,410,439)	$ 0	$ 21	31,563,906	(32,974,366)
Net loss	(1,977,564)
Balance, shares at Dec. 31, 2022		367,500	21,157,327
Balance, amount at Dec. 31, 2022	(3,388,083)	$ 0	$ 21	31,563,906	(34,951,930)
Balance, shares at Sep. 30, 2022		367,500	21,157,327
Balance, amount at Sep. 30, 2022	(2,410,929)	$ 0	$ 21	31,563,906	(33,974,856)
Net loss	(977,074)	$ 0	$ 0	0	(977,074)
Balance, shares at Dec. 31, 2022		367,500	21,157,327
Balance, amount at Dec. 31, 2022	(3,388,083)	$ 0	$ 21	31,563,906	(34,951,930)
Balance, shares at Jun. 30, 2023		417,500	21,157,327
Balance, amount at Jun. 30, 2023	(1,308,386)	$ 0	$ 21	35,313,906	(36,622,313)
Net loss	(165,063)	0	0	0	(165,063)
Warrants issued with notes payable	22,849	$ 0	$ 0	22,849	0
Balance, shares at Sep. 30, 2023		417,500	21,157,327
Balance, amount at Sep. 30, 2023	(1,450,600)	$ 0	$ 21	35,336,755	(36,787,376)
Balance, shares at Jun. 30, 2023		417,500	21,157,327
Balance, amount at Jun. 30, 2023	(1,308,386)	$ 0	$ 21	35,313,906	(36,622,313)
Net loss	(353,208)
Balance, shares at Dec. 31, 2023		417,500	21,157,327
Balance, amount at Dec. 31, 2023	(1,638,745)	$ 0	$ 21	35,336,755	(36,975,521)
Balance, shares at Sep. 30, 2023		417,500	21,157,327
Balance, amount at Sep. 30, 2023	(1,450,600)	$ 0	$ 21	35,336,755	(36,787,376)
Net loss	(188,145)	$ 0	$ 0	0	(188,145)
Balance, shares at Dec. 31, 2023		417,500	21,157,327
Balance, amount at Dec. 31, 2023	$ (1,638,745)	$ 0	$ 21	$ 35,336,755	$ (36,975,521)

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($)	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Cash Flows from Operating Activities
Net Loss	$ (353,208)	$ (1,977,564)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and amortization	34,903	17,869
Amortization of royalty fee liability discount	151	27,693
Amortization of debt discount	22,849	0
Change in fair value of derivatives	19,568	(28,139)
Amortization of right-of-use	(47)	(26,215)
Changes in operating assets & liabilities
Accounts receivable	28,770	(12,744)
Prepaid expenses	1,500	(23,218)
Deposits	(1,245)	1,734,268
Accounts payable and accrued liabilities	21,665	0
Accrued interest, related party	26,716	24,798
Accrued interest	28,700	32,184
Net cash provided by operating activities	(169,678)	(231,068)
Cash Flows from Investing Activities
Collections from notes receivable	0	11,996
Acquisition of fixed assets	(95,235)	0
Net cash used by investing activities	(95,235)	11,996
Cash Flows from Financing Activities
Proceeds from notes payable	235,979	0
Proceeds from notes payable, related party	0	24,500
Payments on SBA loan	(10,476)	(1,746)
Payments on notes payable	(11,900)	(16,531)
Proceeds from line of credit	20,000	0
Payments on line of credit	(2,682)	0
Payments on finance lease	(31,088)	0
Net cash provided by financing activities	199,833	6,223
Increase in Cash and cash equivalents	(65,080)	(212,849)
Cash and cash equivalents at beginning of period	157,589	301,337
Cash and equivalents at end of period	92,509	88,488
Supplemental Cash Flow Information
Cash paid for interest	0	4,028
Cash paid for income taxes	$ 0	$ 0

GENERAL ORGANIZATION AND BUSINESS

6 Months Ended

Dec. 31, 2023

GENERAL ORGANIZATION AND BUSINESS

GENERAL ORGANIZATION AND BUSINESS

NOTE 1. GENERAL ORGANIZATION AND BUSINESS

On April 28, 2022, the Company entered into a share exchange agreement to acquire RX Vitality, Inc. (“RX Vitality”), a media and finance advisory company.

LIQUIDITY CAPITAL RESOURCES AND GOING CONCERN

6 Months Ended

Dec. 31, 2023

LIQUIDITY CAPITAL RESOURCES AND GOING CONCERN

LIQUIDITY, CAPITAL RESOURCES AND GOING CONCERN

NOTE 2. LIQUIDITY, CAPITAL RESOURCES AND GOING CONCERN

For the six months ended December 31, 2023 and 2022, the Company reported a net loss of $353,208 and $1,977,564, respectively.

As of December 31, 2023, the Company maintained total assets of $4,329,646, total liabilities including long-term debt of $5,968,391 along with an accumulated deficit of $36,975,521.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

6 Months Ended

Dec. 31, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Principles of Consolidation

Use of Estimates

Cash and Cash Equivalents

Earnings Per Share Calculation

Intangible Assets

Asset	Estimated Useful Life
Customer Relationships		3
Trademarks	Indefinite
Non-Compete Agreement		3
CARF Accreditation		3
Franchise Agreements	Indefinite

Revenue Recognition

Patient Fees

Franchise Fees

Income Taxes

Leases

Fair value of financial instruments

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities.

Embedded Conversion Features

Derivative financial instruments

Debt Issue Costs and Debt Discount

Reclassification of Presentation

Certain prior year amounts have been reclassified to conform with current year presentation. These reclassifications had no effect on the reported results of operations.

Recently Issued Accounting Pronouncements

Subsequent Events

In accordance with ASC 855, Subsequent Events, the Company evaluated subsequent events through the date of this report; the date the consolidated financial statements were available for issue.

NOTES RECEIVABLE, RELATED PARTIES

6 Months Ended

Dec. 31, 2023

NOTES RECEIVABLE, RELATED PARTIES

NOTES RECEIVABLE, RELATED PARTIES

NOTE 4. NOTES RECEIVABLE, RELATED PARTIES

The Company has several notes receivables from a related party. They are as follows:

	December 31, 2023		June 30, 2023

Notes receivable from related party (see Note 17), due in six months, with no installments, no interest, and in default as of March 2022		9,294		9,294
Total notes receivable		9,294		9,294
Less long-term		-		-
Total short term notes receivable	$	9,294	$	9,294

PROPERTY AND EQUIPMENT

6 Months Ended

Dec. 31, 2023

PROPERTY AND EQUIPMENT

PROPERTY AND EQUIPMENT

NOTE 5. PROPERTY AND EQUIPMENT

Property and equipment consisted of the following at December 31, 2023 and June 30 2023:

	December 31,			June 30,
	2023			2023

Leasehold improvements	$	294,864		$	294,864
Vehicles		162,351			67,116
Computer equipment		14,354			14,354
Furniture and fixtures		5,455			5,455
		477,024			381,789
Less: Accumulated depreciation		(95,702	)		(73,792	)
Property, plant and equipment – net	$	381,262		$	307,997

Depreciation expense was $3,104 and $6,138 for the three months ended December 31, 2023 and 2022. Depreciation expense was $20,015 and $12,549 for the six months ended December 31, 2023 and 2022.

INTANGIBLE ASSETS

6 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS

INTANGIBLE ASSETS

NOTE 6. INTANGIBLE ASSETS

	December 31,			June 30,
	2023			2023
Customer relationships	$	40,000		$	40,000
Trademarks		410,000			410,000
Non-Compete Agreement		1,000			1,000
CARF Accreditation		23,000			23,000
Franchise Agreements		2,710,000			2,710,000
Website development		12,592			12,592
Less: accumulated amortization		(63,860	)		(53,223	)
Intangible assets - net	$	3,132,732		$	3,143,369

NOTES PAYABLE

6 Months Ended

Dec. 31, 2023

NOTES PAYABLE

NOTES PAYABLE

NOTE 7. NOTES PAYABLE

As of December 31, 2023 and June 30, 2023, the Company had $405,394 and $185,564, respectively, in outstanding notes payable, as following:

			Original					Principal Balance as of
		Date of Note	Principal			Interest		December 31,		June 30,
Ref No.		Issuance	Balance		Maturity Date	Rate (%)		2023		2023
	1	9/16/06	$	100,000	*		12	$	38,000	$	38,000
	2	12/25/20		146,021	8/15/25		10		55,103		71,633
	3	2/24/14		5,000	*		9		8,547		8,547
	4	2/24/14		39,000	*		9		33,687		33,687
	5	2/24/14		179,124	*		9		33,697		33,697
	6	7/1/23		90,985	5/5/28		9		86,360		-
	7	8/21/23		150,000	*		12		150,000		-
		Total						$	405,394	$	185,564
		Total Current						$	291,732	$	146,992
		Total Long Term						$	113,662	$	38,572

________

* As of December 31, 2023, these notes are in default.

	Amount Owed

Year Ended June 30, 2024		291,732
Year Ended June 30, 2025		49,418
Year Ended June 30, 2026		23,688
Year Ended June 30, 2027		20,156
Year Ended June 30, 2028		20,420
Total future payments		405,394

NOTES PAYABLE, RELATED PARTIES

6 Months Ended

Dec. 31, 2023

NOTES PAYABLE, RELATED PARTIES

NOTES PAYABLE - RELATED PARTIES

NOTE 8. NOTES PAYABLE, RELATED PARTIES

Ref No.			Date of	Original Principal			Interest			Principal Balance		Principal Balance
Note Issuance			Balance	Rate %		Maturity Date	Rate %			9/30/23		6/30/23
	1	*	3/25/21		308,500	6/3/21		10	%	$	308,500	$	308,500
	2	*	3/25/21		47,436	6/3/21		10	%		47,436		47,436
	3	*	3/25/21		158,503	6/3/21		10	%		158,502		158,502
	4	*	3/24/22		39,000	9/24/22		6	%		39,000		39,000
	5	*	5/5/22		179,124	11/5/22		6	%		179,124		179,124
	6	*	10/5/22		20,000	4/5/23		6	%		20,000		20,000
	7	*	11/9/22		500	5/9/23		6	%		500		500
	8	*	11/18/22		4,000	5/18/23		6	%		4,000		4,000
	9	*	1/17/23		18,000	7/17/23		6	%		18,000		18,000
	10	*	2/8/23		27,000	8/8/23		6	%		27,000		27,000
			Total							$	802,063	$	802,062

* As of December 31, 2023, these notes are in default.

CONVERTIBLE NOTES PAYABLE

6 Months Ended

Dec. 31, 2023

CONVERTIBLE NOTES PAYABLE

CONVERTIBLE NOTES PAYABLE

NOTE 9. CONVERTIBLE NOTES PAYABLE

As of December 31, 2023 and June 30, 2023, the convertible notes payable were as follows:

Date of Note Issuance	Original Principal Balance		Maturity Date	Interest Rate %			Conversion Rate		Principal Balance 9/30/23		Principal Balance 6/30/23
8/26/14		50,000	*		10	%	$	0.0001	$	50,000	$	50,000
6/15/12		8,000	*		10	%	$	0.000350		8,000		8,000
10/18/11		1,900	*		8	%	25% discount to market			6,900		6,900
10/3/10		20,000	*		10	%	lesser $0.01 or 20% discount to market			20,000		20,000
10/31/09		4,000	*		8	%	25% discount of previous 5 days closing price			4,000		4,000
2/26/07		30,000	*		12	%	lesser $0.50 or 35% discount to market			30,000		30,000
4/17/07		20,000	*		10	%	lesser $0.45 or 35% discount to market			20,000		20,000
6/14/07		15,000	*		10	%	lesser $0.50 or 25% discount to market			15,000		15,000
1/29/07		15,000	*		10	%	$	0.95		15,000		15,000
4/17/07		15,000	*		10	%	lesser $0.45 or 35% discount to market			15,000		15,000
12/23/06		18,000	*		10	%	$	0.95		18,000		18,000
11/30/06		50,000	*		10	%	$	0.85		50,000		50,000
10/1/05		15,000	*		10	%	$	0.50		15,000		15,000
Total Current									$	266,900	$	266,900

* As of December 31, 2023, these notes are in default.

SBA LOAN

6 Months Ended

Dec. 31, 2023

SBA LOAN

SBA LOAN

NOTE 10. SBA LOAN

	Amount Owed

Year Ended June 30, 2024		6,578
Year Ended June 30, 2025		6,829
Year Ended June 30, 2026		7,089
Year Ended June 30, 2027		7,360
Year Ended June 30, 2028		7,641

Payments 2028 & Beyond		309,987
Total Payments		343,862.00

DERIVATIVE FINANCIAL INSTRUMENTS

6 Months Ended

Dec. 31, 2023

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 11. DERIVATIVE FINANCIAL INSTRUMENTS

The following tables summarize the components of the Company’s derivative liabilities and linked common shares.

	December 31, 2023
	Indexed		Fair
The financings giving rise to derivative financial instruments	Shares		Values
Compound embedded derivative		610,168	$	221,175

	June 30, 2023
	Indexed		Fair
The financings giving rise to derivative financial instruments	Shares		Values
Compound embedded derivative		780,619	$	201,607

The financings giving rise to derivative financial instruments and the income effects:

	Three Months Ended
	December 31,		December 31,
	2023		2022
Compound embedded derivative	$	5,165	$	101,159
Day one derivative loss		-		-
Total derivative gain (loss)	$	5,165	$	101,159

	Six Months Ended
	December 31,			December 31,
	2023			2022
Compound embedded derivative	$	(19,568	)	$	28,139
Day one derivative loss		-			-
Total derivative gain (loss)	$	(19,568	)	$	28,139

	Inception			December 31, 2023			June 30, 2023
Quoted market price on valuation date	$	0.01		$	0.55		$	0.75
Contractual conversion rate	$	0.0054 - $0.0081		$	0.3575 - 0.44		$	0.448 - 0.60
Range of effective contractual conversion rates		-			-			-
Contractual term to maturity	1.00 Year			0.25 Years			0.25 Years
Market volatility:
Volatility	138.28% - 238.13		%	138.28% - 238.13		%	138.28% - 238.13		%
Contractual interest rate	5% - 12		%	5% - 12		%	5% - 12		%

	December 31, 2023		June 30, 2023
Beginning balance	$	201,607	$	226,585
Issuances:
Convertible Note Financing		-		-
Removals		-		-
Changes in fair value inputs and assumptions reflected		19,568		(24,978	)
Conversions		-		-
Ending balance	$	221,175	$	201,607

STOCKHOLDERS DEFICIT

6 Months Ended

Dec. 31, 2023

STOCKHOLDERS DEFICIT

STOCKHOLDERS DEFICIT

NOTE 12. STOCKHOLDERS’ DEFICIT

Common Stock

Series A Preferred Stock & Series B Preferred Stock

Series A Preferred Stock & Series B Preferred Stock – Certificate of Designations

The Preferred Shares each have Certificate of Designations, which designate as follows:

Number

500,000,000 shares of the Parent Company’s Preferred Stock are designated as shares of Series A Convertible Preferred Stock, par value $0.000001 per share.

Dividends

Conversion

Each share of Preferred Stock is convertible into 100 shares of the Parent Company’s common stock (the “Conversion Rate”).

Liquidation

Voting

PROVISION FOR CORPORATE INCOME TAXES

6 Months Ended

Dec. 31, 2023

PROVISION FOR CORPORATE INCOME TAXES

PROVISION FOR CORPORATE INCOME TAXES

NOTE 13. PROVISION FOR CORPORATE INCOME TAXES

Statutory federal income tax rate	(21	)%
State taxes – net of federal benefits	(5	)%
Valuation allowance	26	%
Income tax rate – net	0	%

FASB Interpretation No. 48 (Fin 48) - Accounting for Uncertain Tax Positions

UNPAID PAYROLL TAXES

6 Months Ended

Dec. 31, 2023

UNPAID PAYROLL TAXES

UNPAID PAYROLL TAXES

NOTE 14. UNPAID PAYROLL TAXES

IRS Tax Lien

The Internal Revenue Service has placed a federal tax lien on all of the assets of the Company.

COMMITMENTS AND CONTINGENCIES

6 Months Ended

Dec. 31, 2023

Commitments and contingencies (Note 15)

COMMITMENTS AND CONTINGENCIES

NOTE 15. COMMITMENTS AND CONTINGENCIES

Licensing Agreement

Rent

SarahCare

LEASES

6 Months Ended

Dec. 31, 2023

LEASES

LEASES

NOTE 16. LEASES

Operating Leases

Stow Professional Lease

	Monthly Rent Payments
	Base Rent		Covid-19 Recoup*		Total Rent
April 1, 2021	$	6,369	$	983	$	7,352
May 1, 2021 to December 31, 2021	$	6,369	$	621	$	6,990
January 1, 2022 to December 31, 2022	$	6,433	$	621	$	7,054
January 1, 2023 to December 31, 2023	$	6,497	$	621	$	7,118
January 1, 2024 to December 31, 2024	$	6,562	$	621	$	7,183
January 1, 2025 to December 31, 2025	$	6,628	$	621	$	7,249

________

*The Company has to repay the lessor monthly payments as a result of COVID relief.

Harbor Lease

S. Frank Professional Lease

Right-of-use asset is summarized below:

	December 31, 2023
	Stow Professional Center Lease			S. Frank Professional Lease			Total
Office lease	$	282,371		$	412,770		$	695,141
Less: accumulated amortization		(181,764	)		(195,657	)		(377,421	)
Right-of-use asset, net	$	100,607		$	217,113		$	317,720

Operating lease liability is summarized below:

	December 31, 2023
	Stow Professional Center Lease			S. Frank Professional Lease			Total
Office lease	$	101,901		$	217,114		$	319,015
Less: current portion		(80,335	)		(77,491	)		(157,826	)
Long term portion	$	21,566		$	139,623		$	161,189

Maturity of the lease liability is as follows:

Finance leases

	December 31, 2023
	Stow Professional Center Lease			S. Frank Professional Lease			Total
Year ending June 30, 2024		43,096			47,462			90,558
Year ending June 30, 2025		64,840			94,923			159,763
Year ending June 30, 2026		-			94,923			94,923
Year ending June 30, 2027		-			7,910			7,910
Present value discount		(6,035	)		(28,104	)		(34,139	)
Lease liability	$	101,901		$	217,114		$	319,015

Finance right of use assets are summarized below:

	As of			As of
	December 31,			June 30,
	2023			2023
Equipment lease	$	24,097		$	24,097
Less accumulated amortization		(10,327	)		(8,032	)
Finance right of use asset	$	13,770		$	16,065

Finance lease liabilities are summarized below:

	As of			As of
	December 31,			June 30,
	2023			2023
Equipment lease	$	96,242		$	127,329
Less: current portion		(36,263	)		(53,707	)
Long term portion	$	59,979		$	73,622

	Equipment
	Lease
Year Ended June 30, 2024		25,787
Year Ended June 30, 2025		32,388
Year Ended June 30, 2026		32,388
Year Ended June 30, 2027		16,194
Total future minimum lease payments		106,757
Less imputed interest		(10,515	)
PV of payments	$	96,242

RELATED PARTY TRANSACTIONS

6 Months Ended

Dec. 31, 2023

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 17. RELATED PARTY TRANSACTIONS

During the quarters ended December 31, 2023 and 2022, related party transactions were as follows:

On January 17, 2023, the Company signed a note receivable of $18,000 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On February 8, 2023, the Company signed a note receivable of $27,000 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On May 5, 2022, the Company signed a note receivable of $179,124 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On March 25, 2022, the Company signed a note receivable of $39,000 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On September 28, 2021, the Company signed a note receivable of $50,000 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

On September 8, 2021 the Company signed a note receivable of $29,294 from a company founded and partially owned by the Company’s Chairman, Charles Everhardt.

SUBSEQUENT EVENTS

6 Months Ended

Dec. 31, 2023

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

NOTE 18. SUBSEQUENT EVENTS

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

6 Months Ended

Dec. 31, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of Presentation

Principles of Consolidation

Use of Estimates

Cash And Cash Equivalents

Earnings Per Share Calculation

Intangible assets

Asset	Estimated Useful Life
Customer Relationships		3
Trademarks	Indefinite
Non-Compete Agreement		3
CARF Accreditation		3
Franchise Agreements	Indefinite

Fair Value of Financial Instruments

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the measurement of the fair value of the assets or liabilities.

Embedded Conversion Features

Derivative financial instruments

Debt Issue Costs and Debt Discount

Reclassification of presentation

Certain prior year amounts have been reclassified to conform with current year presentation. These reclassifications had no effect on the reported results of operations.

Recently Issued Accounting Pronouncements

Subsequent Events

In accordance with ASC 855, Subsequent Events, the Company evaluated subsequent events through the date of this report; the date the consolidated financial statements were available for issue.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Dec. 31, 2023

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Schedule of intangible assets estimated useful life

Asset	Estimated Useful Life
Customer Relationships		3
Trademarks	Indefinite
Non-Compete Agreement		3
CARF Accreditation		3
Franchise Agreements	Indefinite

NOTES RECEIVABLE, RELATED PARTIES (Tables)

6 Months Ended

Dec. 31, 2023

NOTES RECEIVABLE, RELATED PARTIES

Schedule of notes receivable

	December 31, 2023		June 30, 2023

Notes receivable from related party (see Note 17), due in six months, with no installments, no interest, and in default as of March 2022		9,294		9,294
Total notes receivable		9,294		9,294
Less long-term		-		-
Total short term notes receivable	$	9,294	$	9,294

PROPERTY AND EQUIPMENT (Table)

6 Months Ended

Dec. 31, 2023

PROPERTY AND EQUIPMENT

Schedule of Property Plant And Equipment

	December 31,			June 30,
	2023			2023

Leasehold improvements	$	294,864		$	294,864
Vehicles		162,351			67,116
Computer equipment		14,354			14,354
Furniture and fixtures		5,455			5,455
		477,024			381,789
Less: Accumulated depreciation		(95,702	)		(73,792	)
Property, plant and equipment – net	$	381,262		$	307,997

INTANGIBLE ASSETS (Tables)

6 Months Ended

Dec. 31, 2023

INTANGIBLE ASSETS

Schedule of intangible assets

	December 31,			June 30,
	2023			2023
Customer relationships	$	40,000		$	40,000
Trademarks		410,000			410,000
Non-Compete Agreement		1,000			1,000
CARF Accreditation		23,000			23,000
Franchise Agreements		2,710,000			2,710,000
Website development		12,592			12,592
Less: accumulated amortization		(63,860	)		(53,223	)
Intangible assets - net	$	3,132,732		$	3,143,369

NOTES PAYABLE (Tables)

6 Months Ended

Dec. 31, 2023

NOTES PAYABLE

Schedule of Notes Payable

			Original					Principal Balance as of
		Date of Note	Principal			Interest		December 31,		June 30,
Ref No.		Issuance	Balance		Maturity Date	Rate (%)		2023		2023
	1	9/16/06	$	100,000	*		12	$	38,000	$	38,000
	2	12/25/20		146,021	8/15/25		10		55,103		71,633
	3	2/24/14		5,000	*		9		8,547		8,547
	4	2/24/14		39,000	*		9		33,687		33,687
	5	2/24/14		179,124	*		9		33,697		33,697
	6	7/1/23		90,985	5/5/28		9		86,360		-
	7	8/21/23		150,000	*		12		150,000		-
		Total						$	405,394	$	185,564
		Total Current						$	291,732	$	146,992
		Total Long Term						$	113,662	$	38,572

Schedule of Notes in default

	Amount Owed

Year Ended June 30, 2024		291,732
Year Ended June 30, 2025		49,418
Year Ended June 30, 2026		23,688
Year Ended June 30, 2027		20,156
Year Ended June 30, 2028		20,420
Total future payments		405,394

NOTES PAYABLE, RELATED PARTIES (Tables)

6 Months Ended

Dec. 31, 2023

NOTES PAYABLE, RELATED PARTIES

Schedule of Notes Payable Relatied parties current

Ref No.			Date of	Original Principal			Interest			Principal Balance		Principal Balance
Note Issuance			Balance	Rate %		Maturity Date	Rate %			9/30/23		6/30/23
	1	*	3/25/21		308,500	6/3/21		10	%	$	308,500	$	308,500
	2	*	3/25/21		47,436	6/3/21		10	%		47,436		47,436
	3	*	3/25/21		158,503	6/3/21		10	%		158,502		158,502
	4	*	3/24/22		39,000	9/24/22		6	%		39,000		39,000
	5	*	5/5/22		179,124	11/5/22		6	%		179,124		179,124
	6	*	10/5/22		20,000	4/5/23		6	%		20,000		20,000
	7	*	11/9/22		500	5/9/23		6	%		500		500
	8	*	11/18/22		4,000	5/18/23		6	%		4,000		4,000
	9	*	1/17/23		18,000	7/17/23		6	%		18,000		18,000
	10	*	2/8/23		27,000	8/8/23		6	%		27,000		27,000
			Total							$	802,063	$	802,062

CONVERTIBLE NOTES PAYABLE (Tables)

6 Months Ended

Dec. 31, 2023

CONVERTIBLE NOTES PAYABLE

Schedule of convertible notes payable, in defaults

Date of Note Issuance	Original Principal Balance		Maturity Date	Interest Rate %			Conversion Rate		Principal Balance 9/30/23		Principal Balance 6/30/23
8/26/14		50,000	*		10	%	$	0.0001	$	50,000	$	50,000
6/15/12		8,000	*		10	%	$	0.000350		8,000		8,000
10/18/11		1,900	*		8	%	25% discount to market			6,900		6,900
10/3/10		20,000	*		10	%	lesser $0.01 or 20% discount to market			20,000		20,000
10/31/09		4,000	*		8	%	25% discount of previous 5 days closing price			4,000		4,000
2/26/07		30,000	*		12	%	lesser $0.50 or 35% discount to market			30,000		30,000
4/17/07		20,000	*		10	%	lesser $0.45 or 35% discount to market			20,000		20,000
6/14/07		15,000	*		10	%	lesser $0.50 or 25% discount to market			15,000		15,000
1/29/07		15,000	*		10	%	$	0.95		15,000		15,000
4/17/07		15,000	*		10	%	lesser $0.45 or 35% discount to market			15,000		15,000
12/23/06		18,000	*		10	%	$	0.95		18,000		18,000
11/30/06		50,000	*		10	%	$	0.85		50,000		50,000
10/1/05		15,000	*		10	%	$	0.50		15,000		15,000
Total Current									$	266,900	$	266,900

SBA Loan (Tables)

6 Months Ended

Dec. 31, 2023

SBA LOAN

Schedule of SBA Loan

	Amount Owed

Year Ended June 30, 2024		6,578
Year Ended June 30, 2025		6,829
Year Ended June 30, 2026		7,089
Year Ended June 30, 2027		7,360
Year Ended June 30, 2028		7,641

Payments 2028 & Beyond		309,987
Total Payments		343,862.00

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

6 Months Ended

Dec. 31, 2023

DERIVATIVE FINANCIAL INSTRUMENTS

Schedule of derivative financial instruments

	December 31, 2023
	Indexed		Fair
The financings giving rise to derivative financial instruments	Shares		Values
Compound embedded derivative		610,168	$	221,175

	June 30, 2023
	Indexed		Fair
The financings giving rise to derivative financial instruments	Shares		Values
Compound embedded derivative		780,619	$	201,607

Schedule of Fair value derivative liabilities

	Three Months Ended
	December 31,		December 31,
	2023		2022
Compound embedded derivative	$	5,165	$	101,159
Day one derivative loss		-		-
Total derivative gain (loss)	$	5,165	$	101,159

	Six Months Ended
	December 31,			December 31,
	2023			2022
Compound embedded derivative	$	(19,568	)	$	28,139
Day one derivative loss		-			-
Total derivative gain (loss)	$	(19,568	)	$	28,139

Schedule of Convertible Notes

	Inception			December 31, 2023			June 30, 2023
Quoted market price on valuation date	$	0.01		$	0.55		$	0.75
Contractual conversion rate	$	0.0054 - $0.0081		$	0.3575 - 0.44		$	0.448 - 0.60
Range of effective contractual conversion rates		-			-			-
Contractual term to maturity	1.00 Year			0.25 Years			0.25 Years
Market volatility:
Volatility	138.28% - 238.13		%	138.28% - 238.13		%	138.28% - 238.13		%
Contractual interest rate	5% - 12		%	5% - 12		%	5% - 12		%

Schedule of compound embedded derivatives

	December 31, 2023		June 30, 2023
Beginning balance	$	201,607	$	226,585
Issuances:
Convertible Note Financing		-		-
Removals		-		-
Changes in fair value inputs and assumptions reflected		19,568		(24,978	)
Conversions		-		-
Ending balance	$	221,175	$	201,607

PROVISION FOR CORPORATE INCOME TAXES (Tables)

6 Months Ended

Dec. 31, 2023

PROVISION FOR CORPORATE INCOME TAXES

Schedule of statutory federal income tax rate

Statutory federal income tax rate	(21	)%
State taxes – net of federal benefits	(5	)%
Valuation allowance	26	%
Income tax rate – net	0	%

LEASES (Tables)

6 Months Ended

Dec. 31, 2023

LEASES

Schedule of Monthly Lease Payment

	Monthly Rent Payments
	Base Rent		Covid-19 Recoup*		Total Rent
April 1, 2021	$	6,369	$	983	$	7,352
May 1, 2021 to December 31, 2021	$	6,369	$	621	$	6,990
January 1, 2022 to December 31, 2022	$	6,433	$	621	$	7,054
January 1, 2023 to December 31, 2023	$	6,497	$	621	$	7,118
January 1, 2024 to December 31, 2024	$	6,562	$	621	$	7,183
January 1, 2025 to December 31, 2025	$	6,628	$	621	$	7,249

Schedule of Right of Use Asset

	December 31, 2023
	Stow Professional Center Lease			S. Frank Professional Lease			Total
Office lease	$	282,371		$	412,770		$	695,141
Less: accumulated amortization		(181,764	)		(195,657	)		(377,421	)
Right-of-use asset, net	$	100,607		$	217,113		$	317,720

Schedule of Operating Lease Liability

	December 31, 2023
	Stow Professional Center Lease			S. Frank Professional Lease			Total
Office lease	$	101,901		$	217,114		$	319,015
Less: current portion		(80,335	)		(77,491	)		(157,826	)
Long term portion	$	21,566		$	139,623		$	161,189

Schedule of Maturity of the Operating Lease Liability

	December 31, 2023
	Stow Professional Center Lease			S. Frank Professional Lease			Total
Year ending June 30, 2024		43,096			47,462			90,558
Year ending June 30, 2025		64,840			94,923			159,763
Year ending June 30, 2026		-			94,923			94,923
Year ending June 30, 2027		-			7,910			7,910
Present value discount		(6,035	)		(28,104	)		(34,139	)
Lease liability	$	101,901		$	217,114		$	319,015

Schedule of Finance Right Of Use Asset

	As of			As of
	December 31,			June 30,
	2023			2023
Equipment lease	$	24,097		$	24,097
Less accumulated amortization		(10,327	)		(8,032	)
Finance right of use asset	$	13,770		$	16,065

Summary of Financing Lease Liability

	As of			As of
	December 31,			June 30,
	2023			2023
Equipment lease	$	96,242		$	127,329
Less: current portion		(36,263	)		(53,707	)
Long term portion	$	59,979		$	73,622

Schedule of Maturity of Financing Lease Liability

	Equipment
	Lease
Year Ended June 30, 2024		25,787
Year Ended June 30, 2025		32,388
Year Ended June 30, 2026		32,388
Year Ended June 30, 2027		16,194
Total future minimum lease payments		106,757
Less imputed interest		(10,515	)
PV of payments	$	96,242

LIQUIDITY, CAPITAL RESOURCES AND GOING CONCERN (Details Narrative) - USD ($)	3 Months Ended				6 Months Ended
	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
LIQUIDITY CAPITAL RESOURCES AND GOING CONCERN
Total assets	$ 4,329,646				$ 4,329,646		$ 4,449,587
Total liabilities	5,968,391				5,968,391		5,757,973
Accumulated deficit	(36,975,521)				(36,975,521)		(36,622,313)
Cash and cash equivalents	92,509				92,509		$ 157,589
Net Loss	$ (188,145)	$ (165,063)	$ (977,074)	$ (1,000,490)	$ (353,208)	$ (1,977,564)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	6 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Dec. 31, 2023
Estimated Useful Lives	3 years
Trademarks
Estimated Useful Lives	Indefinite
Non-Compete Agreement
Estimated Useful Lives	3 years
CARF Accreditation
Estimated Useful Lives	3 years
Franchise Agreements
Estimated Useful Lives	Indefinite

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details Narrative)	Dec. 31, 2023 USD ($)
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Cash insured amount	$ 250,000

NOTES RECEIVABLE, RELATED PARTIES (Details) - March 2022 [Member] - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Note receivable from a franchise, due	$ 9,294	$ 9,294
Total notes receivable	9,294	9,294
Less long-term	0	0
Total short term notes receivable	$ 9,294	$ 9,294

PROPERTY AND EQUIPMENT (Details) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Property, plant and equipment gross	$ 477,024	$ 381,789
Less: Accumulated depreciation	(95,702)	(73,792)
Property, plant and equipment - net	381,262	307,997
Leasehold improvements [Member]
Property, plant and equipment gross	294,864	294,864
Vehicles [Member]
Property, plant and equipment gross	162,351	67,116
Computer equipment [Member]
Property, plant and equipment gross	14,354	14,354
Furniture and fixtures [Member]
Property, plant and equipment gross	$ 5,455	$ 5,455

PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
PROPERTY AND EQUIPMENT (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
PROPERTY AND EQUIPMENT
Depreciation	$ 3,104	$ 6,138	$ 20,015	$ 12,549

INTANGIBLE ASSETS (Details) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
INTANGIBLE ASSETS
Customer relationships	$ 40,000	$ 40,000
Trademarks	410,000	410,000
Non-Compete Agreement	1,000	1,000
CARF Accreditation	23,000	23,000
Franchise Agreements	2,710,000	2,710,000
Website development	12,592	12,592
Less: accumulated amortization	(63,860)	(53,223)
Intangible assets - net	$ 3,132,732	$ 3,143,369

INTANGIBLE ASSETS (Details Narrative) - USD ($)	3 Months Ended		6 Months Ended
INTANGIBLE ASSETS (Details Narrative) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
INTANGIBLE ASSETS
Amortization expense	$ 5,940	$ 5,318	$ 10,637	$ 5,318

NOTES PAYABLE (Details) - USD ($)	6 Months Ended
NOTES PAYABLE (Details) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Total	$ 405,394	$ 185,564
Total Current	291,732	146,992
Total Long Term	113,662	38,572
Debt instrument, principal balance	$ 802,063	802,062
Ref No. 1 [Member]
Interest rate	12.00%
Debt instrument, principal balance	$ 38,000	38,000
Debt instrument, original principal balance	$ 100,000
Date of issuance	9/16/06
Ref No. 2 [Member]
Interest rate	10.00%
Debt instrument, principal balance	$ 55,103	71,633
Debt instrument, original principal balance	$ 146,021
Maturity date	8/15/25
Date of issuance	12/25/20
Ref No. 3 [Member]
Interest rate	9.00%
Debt instrument, principal balance	$ 8,547	8,547
Debt instrument, original principal balance	$ 5,000
Date of issuance	2/24/14
Ref No. 4 [Member]
Interest rate	9.00%
Debt instrument, principal balance	$ 33,687	33,687
Debt instrument, original principal balance	$ 39,000
Date of issuance	2/24/14
Ref No. 5 [Member]
Interest rate	9.00%
Debt instrument, principal balance	$ 33,697	33,697
Debt instrument, original principal balance	$ 179,124
Date of issuance	2/24/14
Ref No.6 [Member]
Interest rate	9.00%
Debt instrument, principal balance	$ 86,360	0
Debt instrument, original principal balance	$ 90,985
Maturity date	5/5/28
Date of issuance	7/1/23
Ref No 7 [Member]
Interest rate	12.00%
Debt instrument, principal balance	$ 150,000	$ 0
Debt instrument, original principal balance	$ 150,000
Date of issuance	8/21/23

NOTES PAYABLE (Details 1)	Dec. 31, 2023 USD ($)
NOTES PAYABLE
Year ending June 30, 2024	$ 291,732
Year ending June 30, 2025	49,418
Year Ended June 30, 2026	23,688
Year Ended June 30, 2027	20,156
Year Ended June 30, 2028	20,420
Total future payments	$ 405,394

NOTES PAYABLE (Details Narrative) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
NOTES PAYABLE
Outstanding notes payable	$ 405,394	$ 185,564

NOTES PAYABLE, RELATED PARTIES (Details) - USD ($)	6 Months Ended
NOTES PAYABLE, RELATED PARTIES (Details) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Debt instrument, principal balance	$ 802,063	$ 802,062
Notes Payable One [Member] \| Related Party [Member]
Date of issuance	3/25/21
Debt instrument, original principal balance		308,500
Maturity date	6/3/21
Interest rate	10.00%
Debt instrument, principal balance	$ 308,500	308,500
Notes Payable Two [Member] \| Related Party [Member]
Date of issuance	3/25/21
Debt instrument, original principal balance		47,436
Maturity date	6/3/21
Interest rate	10.00%
Debt instrument, principal balance	$ 47,436	47,436
Notes Payable Three [Member] \| Related Party [Member]
Date of issuance	3/25/21
Debt instrument, original principal balance		158,503
Maturity date	6/3/21
Interest rate	10.00%
Debt instrument, principal balance	$ 158,502	158,502
Notes Payable Four [Member] \| Related Party [Member]
Date of issuance	3/24/22
Debt instrument, original principal balance		39,000
Maturity date	9/24/22
Interest rate	6.00%
Debt instrument, principal balance	$ 39,000	39,000
Notes Payable Five [Member] \| Related Party [Member]
Date of issuance	5/5/22
Debt instrument, original principal balance		179,124
Maturity date	11/5/22
Interest rate	6.00%
Debt instrument, principal balance	$ 179,124	179,124
Notes Payable Six [Member] \| Related Party [Member]
Date of issuance	10/5/22
Debt instrument, original principal balance		20,000
Maturity date	4/5/23
Interest rate	6.00%
Debt instrument, principal balance	$ 20,000	20,000
Notes Payable Seven [Member] \| Related Party [Member]
Date of issuance	11/9/22
Debt instrument, original principal balance		500
Maturity date	5/9/23
Interest rate	6.00%
Debt instrument, principal balance	$ 500	500
Notes Payable Eight [Member] \| Related Party [Member]
Date of issuance	11/18/22
Debt instrument, original principal balance		4,000
Maturity date	5/18/23
Interest rate	6.00%
Debt instrument, principal balance	$ 4,000	4,000
Notes Payable Nine [Member] \| Related Party [Member]
Date of issuance	1/17/23
Debt instrument, original principal balance		18,000
Maturity date	7/17/23
Interest rate	6.00%
Debt instrument, principal balance	$ 18,000	18,000
Notes Payable Ten [Member] \| Related Party [Member]
Date of issuance	2/8/23
Debt instrument, original principal balance		27,000
Maturity date	8/8/23
Interest rate	6.00%
Debt instrument, principal balance	$ 27,000	$ 27,000

NOTES PAYABLE, RELATED PARTIES (Details Narrative) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
NOTES PAYABLE, RELATED PARTIES
Outstanding notes payable, related parties	$ 802,063	$ 802,063
Accrued interest	$ 133,922	$ 107,206

CONVERTIBLE NOTES PAYABLE CURRENT (Details) - USD ($)	6 Months Ended
CONVERTIBLE NOTES PAYABLE CURRENT (Details) - USD ($)	Dec. 31, 2023	Sep. 30, 2023	Jun. 30, 2023
Total Notes payable Current		$ 266,900	$ 266,900
Debt instrument, principal balance	$ 802,063		802,062
Convertible Notes Payable One [Member]
Date of issuance	8/26/14
Interest rate	10.00%
Conversion rate	$ 0.0001
Debt instrument, principal balance		50,000	50,000
Debt instrument, original principal balance		50,000
Convertible Notes Payable Two [Member]
Date of issuance	6/15/12
Interest rate	10.00%
Conversion rate	$ 0.000350
Debt instrument, principal balance		8,000	8,000
Debt instrument, original principal balance		8,000
Convertible Notes Payable Three [Member]
Date of issuance	10/18/11
Interest rate	8.00%
Debt instrument, principal balance		6,900	6,900
Debt instrument, original principal balance		1,900
Conversion rate	25% discount to market
Convertible Notes Payable Four [Member]
Date of issuance	10/3/10
Interest rate	10.00%
Debt instrument, principal balance		20,000	20,000
Debt instrument, original principal balance		20,000
Conversion rate	lesser $0.01 or 20% discount to market
Convertible Notes Payable Five [Member]
Date of issuance	10/31/09
Interest rate	8.00%
Debt instrument, principal balance		4,000	4,000
Debt instrument, original principal balance		4,000
Conversion rate	25% discount of previous 5 days closing price
Convertible Notes Payable Six [Member]
Date of issuance	2/26/07
Interest rate	12.00%
Debt instrument, principal balance		30,000	30,000
Debt instrument, original principal balance		30,000
Conversion rate	lesser $0.50 or 35% discount to market
Convertible Notes Payable Seven [Member]
Date of issuance	4/17/07
Interest rate	10.00%
Debt instrument, principal balance		20,000	20,000
Debt instrument, original principal balance		20,000
Conversion rate	lesser $0.45 or 35% discount to market
Convertible Notes Payable Eight [Member]
Date of issuance	6/14/07
Interest rate	10.00%
Debt instrument, principal balance		15,000	15,000
Debt instrument, original principal balance		15,000
Conversion rate	lesser $0.50 or 25% discount to market
Convertible Notes Payable Nine [Member]
Date of issuance	1/29/07
Interest rate	10.00%
Conversion rate	$ 0.95
Debt instrument, principal balance		15,000	15,000
Debt instrument, original principal balance		15,000
Convertible Notes Payable Ten [Member]
Date of issuance	4/17/07
Interest rate	10.00%
Debt instrument, principal balance		15,000	15,000
Debt instrument, original principal balance		15,000
Conversion rate	lesser $0.45 or 35% discount to market
Convertible Notes Payable Eleven [Member]
Date of issuance	12/23/06
Interest rate	10.00%
Conversion rate	$ 0.95
Debt instrument, principal balance		18,000	18,000
Debt instrument, original principal balance		18,000
Convertible Notes Payable Twelve [Member]
Date of issuance	11/30/06
Interest rate	10.00%
Conversion rate	$ 0.85
Debt instrument, principal balance		50,000	50,000
Debt instrument, original principal balance		50,000
Convertible Notes Payable Thirteen [Member]
Date of issuance	10/1/05
Interest rate	10.00%
Conversion rate	$ 0.50
Debt instrument, principal balance		15,000	$ 15,000
Debt instrument, original principal balance		$ 15,000

SBA LOAN (Details)	Dec. 31, 2023 USD ($)
SBA LOAN
Year ending June 30, 2024	$ 6,578
Year ending June 30, 2025	6,829
Year ending June 30, 2026	7,089
Year ending June 30, 2027	7,360
Year ending June 30, 2028	7,641
Payments 2028 & Beyond	309,987
Total SBA Loan interest payable	$ 343,862

SBA LOAN (Details Narrative) - USD ($)		1 Months Ended	3 Months Ended		6 Months Ended
SBA LOAN (Details Narrative) - USD ($)	Jan. 06, 2022	Jun. 25, 2020	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
Proceeds from related party debt					$ 0	$ 24,500
SBA Loan [Member]
Interest rate		3.75%
Accrued interest			$ 3,241	$ 0	$ 6,467	$ 0
Debt installment payment		$ 1,746
Installment payment monthly due date		Dec. 22, 2021
Proceeds from related party debt	$ 200,000	$ 150,000

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - Compound embedded derivative [Member] - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Indexed Shares	610,168	780,619
Fair Value	$ 221,175	$ 201,607

DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - USD ($)	3 Months Ended		6 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Details 1) - USD ($)	Dec. 31, 2023	Dec. 31, 2022	Dec. 31, 2023	Dec. 31, 2022
DERIVATIVE FINANCIAL INSTRUMENTS
Compound embedded derivative	$ 5,165	$ 101,159	$ (19,568)	$ 28,139
Day one derivative loss	0	0	0	0
Total derivative gain (loss)	$ 5,165	$ 101,159	$ (19,568)	$ 28,139

DERIVATIVE FINANCIAL INSTRUMENTS (Details 2) - $ / shares	6 Months Ended	12 Months Ended
	Dec. 31, 2023	Jun. 30, 2023
Quoted market price on valuation date	$ 0.55	$ 0.75
Contractual term to maturity	3 months	3 months
Minimum [Member]
Volatility	138.28%	138.28%
Contractual conversion rate	$ 0.3575	$ 0.448
Interest rate	5.00%	5.00%
Maximum [Member]
Volatility	238.13%	238.13%
Contractual conversion rate	$ 0.44	$ 0.60
Interest rate	12.00%	12.00%
Inception [Member]
Quoted market price on valuation date	$ 0.01
Contractual term to maturity	1 year
Contractual conversion rate	$ 0.0081
Inception [Member] \| Minimum [Member]
Volatility	138.28%
Contractual conversion rate	$ 0.0054
Interest rate	5.00%
Inception [Member] \| Maximum [Member]
Volatility	238.13%
Interest rate	12.00%

DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) - USD ($)	6 Months Ended	12 Months Ended
DERIVATIVE FINANCIAL INSTRUMENTS (Details 3) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
DERIVATIVE FINANCIAL INSTRUMENTS
Beginning balance	$ 201,607	$ 226,585
Issuances Convertible Note Financing	0	0
Removals	0	0
Changes in fair value inputs and assumptions reflected	19,568	(24,978)
Conversions	0	0
Ending balance	$ 221,175	$ 201,607

STOCKHOLDERS DEFICIT (Details Narrative) - $ / shares	1 Months Ended		6 Months Ended
STOCKHOLDERS DEFICIT (Details Narrative) - $ / shares	Aug. 21, 2023	Apr. 26, 2022	Dec. 31, 2023	Jun. 30, 2023
Common stock share issued		5,500,000	21,157,327	21,157,327
Common stock shares of Vitality RX		10,500,000
Ownership of Vitality RX		100.00%
Description of Vitality RX shareholders		and 50,000 shares of Series A Convertible Preferred Stock (which preferred stock is convertible into 5,000,000 shares of common stock
Preferred stock, shares authorized			500,000,000	500,000,000
Preferred stock, shares par value			$ 0.000001	$ 0.000001
Common stock, shares par value			$ 0.000001	$ 0.000001
Common Stock Common Member
Common stock share issued	100,000
Common stock strike price	$ 0.10
Expiration date	Aug. 21, 2028
Common stock, shares par value		$ 0.000001
Series A and B Preferred Stock [Member]
Conversion of convertible promissory note converted into common share			100
Preferred stock, shares authorized			500,000,000	500,000,000
Preferred stock, shares par value		$ 0.000001	$ 0.000001	$ 0.000001
Convertible preferred stock issued		50,000
Series A and B Preferred Stock - Certificate of Designation[Member]
Conversion of convertible promissory note converted into common share			100
Preferred stock, shares authorized			500,000,000
Preferred stock, shares par value			$ 0.000001

PROVISION FOR CORPORATE INCOME TAXES (Details)	6 Months Ended
PROVISION FOR CORPORATE INCOME TAXES (Details)	Dec. 31, 2023
PROVISION FOR CORPORATE INCOME TAXES
Statutory federal income tax rate	21.00%
State taxes - net of federal benefits	(5.00%)
Valuation allowance	26.00%
Income tax rate - net	0.00%

PROVISION FOR CORPORATE INCOME TAXES (Details Narrative) - USD ($)	6 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
PROVISION FOR CORPORATE INCOME TAXES
Change in valuation allowance	$ 630,140	$ 590,629
Valuation allowance	7,425,567		$ 7,350,393
Net operating losses	$ 35,355,000
Expiry term description	available to offset future taxable income through 2040

UNPAID PAYROLL TAXES (Details Narrative) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
UNPAID PAYROLL TAXES
Payroll related taxes, Internal Revenue Service and New York State	$ 60,402	$ 17,401
Payroll related taxes including penalties and interest, Internal Revenue Service and New York State	$ 77,803	$ 77,803

COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($)	1 Months Ended	6 Months Ended
	Mar. 31, 2022	Dec. 31, 2023
April 21, 2021 [Member]
Renewal option, term		5 years
Description of lease		All of the leases are for a ten-year period beginning on July 1, 2021
Rent expense, monthly		$ 7,500
Sarah Cares Corporate 1 [Member]
Description of Lease Square Two Feet		SarahCare’s lease for its first corporate-owned SarahCare location is for approximately 5,300 square feet located at 6199 Frank Ave. NW, North Canton, Ohio, 44720. The lease began in 2018 and ends in 2026
Sarah Cares Corporate 2 [Member]
Description of Lease Square Two Feet		SarahCare location is for approximately 6,000 square feet located at SarahCare of Stow, 4472 Darrow Road, Stow, Ohio, 44224. The lease began in 2018 and ends in 2026
Sarah Cares Corporate [Member]
Description of Lease Square Two Feet		SarahCare location is for approximately 6,000 square feet located at SarahCare of Stow, 4472 Darrow Road, Stow, Ohio, 44224. The lease began in 2018 and ends in 2026
Tru Cash Groupof Companies Inc [Member]
Monthly payments due for licensing agreement	$ 250,000
Term for Licensing Agreement	5 years

LEASES (Details)	6 Months Ended
LEASES (Details)	Dec. 31, 2023 USD ($)
April 1, 2021 [Member]
Base Rent	$ 6,369
Covid-19 Recoup	983
Total Rent	7,352
May 1, 2021 to December 31, 2021 [Member]
Base Rent	6,369
Covid-19 Recoup	621
Total Rent	6,990
January 1, 2022 to December 31, 2022 [Member]
Base Rent	6,433
Covid-19 Recoup	621
Total Rent	7,054
January 1, 2023 to December 31, 2023 [Member]
Base Rent	6,497
Covid-19 Recoup	621
Total Rent	7,118
January 1, 2024 to December 31, 2024 [Member]
Base Rent	6,562
Covid-19 Recoup	621
Total Rent	7,183
January 1, 2025 to December 31, 2025 [Member]
Base Rent	6,628
Covid-19 Recoup	621
Total Rent	$ 7,249

LEASES (Details 1) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
Less: accumulated amortization	$ (377,421)
Right-of-use asset, net	317,720	$ 403,889
Office lease	695,141
Stow Professional Center Lease [Member]
Less: accumulated amortization	(181,764)
Right-of-use asset, net	100,607
Office lease	282,371
S. Frank Professional Leases [Member]
Less: accumulated amortization	(195,657)
Right-of-use asset, net	217,113
Office lease	$ 412,770

LEASES (Details 2)	Dec. 31, 2023 USD ($)
Operating Lease Liabilty [Member]
Office lease	$ 319,015
Less: current portion	(157,826)
Long term portion	161,189
Stow Professional Center Lease [Member]
Office lease	101,901
Less: current portion	(80,335)
Long term portion	21,566
S. Frank Professional Leases [Member]
Office lease	217,114
Less: current portion	(77,491)
Long term portion	$ 139,623

LEASES (Details 3)	Dec. 31, 2023 USD ($)
Year ending June 30, 2024	$ 90,558
Year ending June 30, 2025	159,763
Year ending June 30, 2026	94,923
Year ending June 30, 2027	7,910
Present value discount	(34,139)
Lease liability	319,015
Stow Professional Center Lease [Member]
Year ending June 30, 2024	43,096
Year ending June 30, 2025	64,840
Year ending June 30, 2026	0
Year ending June 30, 2027	0
Present value discount	(6,035)
Lease liability	101,901
S. Frank Professional Lease [Member]
Year ending June 30, 2024	47,462
Year ending June 30, 2025	94,923
Year ending June 30, 2026	94,923
Year ending June 30, 2027	7,910
Present value discount	(28,104)
Lease liability	$ 217,114

LEASES (Details 4) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
LEASES
Equipment lease	$ 24,097	$ 24,097
Less: accumulated amortization	(10,327)	(8,032)
Right-of-use asset, net	$ 13,770	$ 16,065

LEASES (Details 5) - USD ($)	Dec. 31, 2023	Jun. 30, 2023
LEASES
Equipment lease	$ 96,242	$ 127,329
Less: current portion	36,263	53,707
Long term portion	$ 59,979	$ 73,622

LEASES (Details 6)	Dec. 31, 2023 USD ($)
Year ending June 30, 2025	$ 90,558
Year ending June 30, 2026	159,763
Year ending June 30, 2027	94,923
Total future minimum lease payments	319,015
Finance lease liabilities [Member]
Year ending June 30, 2024	25,787
Year ending June 30, 2025	32,388
Year ending June 30, 2026	32,388
Year ending June 30, 2027	16,194
Total future minimum lease payments	106,757
Less imputed interest	(10,515)
PV of payments	$ 96,242

LEASES (Details Narrative)	3 Months Ended	6 Months Ended
LEASES (Details Narrative)	Sep. 30, 2022 USD ($)	Dec. 31, 2023 USD ($) ft²
Impairment of assets		$ 84,364
Interest rate		10.00%
Amortization expense	$ 3,442	$ 5,738
Office lease one [Member]
Lease expiration date		March 1, 2024
Monthly lease payments		$ 5,897
Office lease two [Member]
Lease expiration date		December 1, 2026
Darrow Road Stow Ohio [Member] \| Harbor Lease [Member] \| Sarah Adult Day Centers, Inc [Member]
Acquired area \| ft²		6,000
Lease expiration date		December 31, 2025
Stephen Circle NW Canton OH [Member] \| Harbor Lease [Member] \| Sarah Adult Day Centers, Inc [Member]
Acquired area \| ft²		3,469
Lease expiration date		December 31, 2023
Monthly lease payments		$ 4,500
Jackson Ohio [Member] \| Harbor Lease [Member] \| Sarah Adult Day Centers, Inc [Member]
Acquired area \| ft²		5,300
Lease expiration date		July 1, 2026
Monthly lease payments		$ 7,910
Repayments for COVID relief		$ 603

RELATED PARTY TRANSACTIONS (Details Narrative) - USD ($)				1 Months Ended			6 Months Ended
	Feb. 08, 2023	May 05, 2022	Sep. 08, 2021	Jan. 17, 2023	Mar. 25, 2022	Sep. 28, 2021	Dec. 31, 2023	Jun. 30, 2023
Amount included accounts payable and accrued expenses							$ 1,186,375	$ 1,164,708
Amount payables to related party for Vitality card							$ 3,750,000
Charles Everhardt [Member]
Amount included accounts payable and accrued expenses								$ 750,000
Signed note receivable amount value	$ 27,000	$ 179,124	$ 29,294	$ 18,000	$ 39,000	$ 50,000

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