CONVERTIBLE NOTES PAYABLE

6 Months Ended

Dec. 31, 2023

NOTE 6 – CONVERTIBLE NOTES PAYABLE

During the period ended December 31, 2023, the Company issued, paid and or converted the following new convertible promissory notes.

Schedule of convertible promissory notes
Note Holder	Date	Maturity Date	Interest Rate			Balance June 30, 2023			Additions		Conversions			Balance December 31, 2023
ONE44 Capital LLC ⁽²⁾	1/13/2022	1/13/2023		10	%	$	122,400		$	—	$	—		$	122,400
Mast Hill Fund, L.P. ⁽³⁾	1/20/2022	1/20/2023		12	%	$	302,312		$	—	$	—		$	302,312
ONE44 Capital LLC ⁽²⁾	3/22/2022	3/22/2023		10	%	$	120,000		$	—	$	—		$	120,000
Coventry Enterprises, LLC ⁽¹⁾	6/3/2022	6/3/2023		10	%	$	576,000		$	—	$	—		$	576,000
1800 Diagonal Lending LLC ⁽⁴⁾	7/26/2022	7/26/2023		10	%	$	48,700		$	—	$	(4,795	)	$	43,905
Mast Hill Fund, L.P. ⁽⁵⁾	9/19/2022	9/19/2023		12	%	$	290,000		$	—	$	—		$	290,000
1800 Diagonal Lending LLC ⁽⁴⁾	11/11/2022	11/11/2023		10	%	$	44,250		$	—	$	—		$	44,250
Mast Hill Fund, L.P. ⁽⁶⁾	12/16/2022	12/16/2022		12	%	$	133,000		$	5,240	$	—		$	138,240
Mast Hill Fund, L.P. ⁽⁷⁾	1/13/2023	12/16/2022		12	%	$	347,060		$	—	$	—		$	347,060
Coventry Enterprises, LLC ⁽⁸⁾	5/12/2023	5/12/2024		10	%	$	60,000		$	—	$	—		$	60,000
1800 Diagonal Lending LLC ⁽⁹⁾	11/16/2023	11/1/2024		10	%	$	—		$	10,000	$	—		$	10,000
	Total					$	2,043,722		$	15,240	$	(4,795	)	$	2,054,167
	Less debt discount					$	(256,653	)						$	(26,452	)
	Convertible notes payable, net					$	1,787,069					—		$	2,027,715

Conversion Terms

(1)

Convertible only upon an event of default. 90% of the lowest trading price for 10 days prior to conversion date.

(2)

60% of the lowest trading price for 20 days, including conversion date.

(3)

Convertible only upon an event of default. Conversion would then be $0.10.

(4)

61% of the lowest trading price for 15 days prior to conversion date.

(5)

Convertible at $0.0015

(6)

Convertible at $0.0007

(7)

Convertible at $0.0003

	(8)	Monthly payments of $9,428.57. Convertible only upon an event of default. Conversion would then be 90% of the lowest trade during the 30 days prior to conversion.
	(9)	61% of the lowest trading price for 10 days prior to conversion date.

Total accrued interest on the above convertible notes as of December 31, 2023 and June 30, 2023, is $337,170 and $263,154, respectively.

A summary of the activity of the derivative liability for the notes above is as follows:

Schedule of derivative liability
Balance at June 30, 2022		662,982
Increase to derivative due to new issuances		806,026
Decrease to derivative due to conversions		(376,682	)
Derivative loss due to mark to market adjustment		1,383,120
Balance at June 30, 2023	$	2,475,446
Increase to derivative due to new issuances		16,137
Decrease to derivative due to conversions		(23,294	)
Derivative loss due to mark to market adjustment		(676,231	)
Balance at December 31, 2023	$	1,792,058

A summary of quantitative information about significant unobservable inputs (Level 3 inputs) used in measuring the Company’s derivative liability that are categorized within Level 3 of the fair value hierarchy as of December 31, 2023, is as follows:

Schedule of fair value hierarchy
Inputs	December 31, 2023		Initial Valuation
Stock price	$	0.0003		$0.0014 – 0.0086
Conversion price	$	0.0001 - 0.00018		$0.0006 - 0.0049
Volatility (annual)		451.57% – 200.10%		210.52% - 237.49%
Risk-free rate		4.79% - 5.54%		2.51% - 4.59 %
Dividend rate		—		—
Years to maturity		.25 – .88		1

Forza Innovations Inc 10-Q