DISCOUNT DENTAL MATERIALS, INC.

CIK:0001453099|SEC Filings

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended		9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Operating expenses:
Selling, general and administrative expenses	$ 213,263	$ 313,716	$ 615,970	$ 790,175
Research and development costs		80,402	32,000	205,030
Patent royalty expense	25,000	25,000	75,000	75,000
Marketing expenses	55	2,440	889	8,642
Total operating expenses	238,318	421,558	723,859	1,078,847
Other (income) expense
Amortization of debt discount	45,816	25,418	219,316	28,754
Loss from extinguishment of debt	15,000		15,000	3,102,134
Interest expense	164,166	217,012	267,796	298,716
Financing fee	14,750		28,750
Change in fair value of derivative liabilities	(32,755)	(10,000)	37,579	(10,000)
Change in fair value of warrant liabilities	(924)	614	6,346	614
Default expense	(54,162)
Total other expense, net	151,891	233,044	574,787	3,420,218
Net loss	$ (390,209)	$ (654,602)	$ (1,298,646)	$ (4,499,065)
Loss per share:
Basic and diluted loss per share	$ (0.03)	$ (0.07)	$ (0.04)	$ (0.54)
Basic and diluted weighted average shares outstanding	51,280,025	8,755,125	34,161,037	8,365,059

UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net loss	$ (1,298,646)	$ (4,499,065)
Adjustments to reconcile net loss to net cash used in operating activities:
Amortization of debt discount	219,316	28,754
Initial fair value of derivative liabilities included as interest expense	86,474	173,039
Change in derivative liabilities	37,579	(10,000)
Change in warrant liabilities	6,346	614
Loss from extinguishment of debt	15,000	3,102,134
Stock based compensation	89,187	115,179
Amortization of stock-based prepaid consulting compensation	9,375	186,447
Stock compensation for legal services		15,000
Changes in operating assets and liabilities:
Prepaid expenses	22,603	(21,326)
Accounts payable and other accrued expenses	240,763	104,106
Related party payables	76,295	64,392
Accrued payroll and taxes	160,147	56,195
Net cash used in operating activities	(335,561)	(684,531)
Cash flows from financing activities:
Proceeds from issuance of common stock and warrants		290,000
Proceeds from short term convertible notes to stockholders	75,000
Proceeds from short term convertible notes payable	87,500	253,250
Proceeds from short term notes payable to stockholders	127,500	175,000
Repayment of convertible notes		(15,000)
Net cash flows provided by financing activities:	290,000	703,250
Net change in cash and cash equivalents	(45,561)	18,719
Cash and cash equivalents- beginning of period	64,583	11,345
Cash and cash equivalents- end of period	19,022	30,064
Supplemental disclosure of non-cash activities:
Cash paid during the period for: Interest
Cash paid during the period for: Income tax
Supplemental disclosure of non-cash investing and financing activities:
Debt discount associated with convertible notes to stockholders beneficial conversion feature	87,000
Stock issued for prepaid services		35,000
Stock payable for prepaid services	7,500
Reclassification of accrued interest to notes payable	302,001
Conversion of short-term convertible notes payable	83,787
Conversion of short-term convertible notes payable interest	16,881
Conversion of short-term convertible notes payable fees	28,750
Embedded derivative recorded as debt discount	18,526	156,961
Derivative warrant liability recorded as debt discount	56,474	96,289
Debt issuance cost recorded as debt discount		18,650
Initial fair value of derivative liabilities due to insufficient authorized shares	$ 87,384

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2019	Jun. 30, 2018
Current assets:
Cash and cash equivalents	$ 19,022	$ 64,583
Prepaid expenses	2,540	27,018
Total current assets	21,562	91,601
Total assets	21,562	91,601
Current liabilities:
Accounts payable and other accrued expenses	1,035,767	1,142,636
Related party payables	426,295	350,000
Accrued payroll	331,732	215,973
Payroll taxes payable	138,512	94,124
Convertible notes to stockholders, current portion and net of debt discount of approximately $42,000 and $0, respectively	3,270,743	360,000
Short term notes payable to stockholders	591,500	464,000
Short term convertible notes payable, net of debt discount of approximately $83,000 and $177,000, respectively	220,924	107,906
Derivative liabilities	514,963	285,000
Warrant liabilities	147,878	85,058
Stock payable	7,500
Total current liabilities	6,685,814	3,104,697
Long term liabilities:
Convertible notes to stockholders, net of current portion and net of debt discount of approximately $0 and $5,000, respectively		2,570,731
Total long-term liabilities		2,570,731
Total liabilities	6,685,814	5,675,428
Commitments and contingencies (Note 4)
Stockholders deficit
Preferred stock ($0.001 par value: 1,000,000 shares authorized; 51 and 0 issued and outstanding at March 31, 2019 and June 30, 2018, respectively)	1
Common stock ($0.001 par value: 249,000,000 shares authorized; 80,073,096 and 9,039,347 shares issued and outstanding at March 31, 2019 and June 30, 2018, respectively)	80,073	9,039
Additional paid in capital	27,003,833	26,856,647
Accumulated deficit	(33,748,159)	(32,449,513)
Total stockholders deficit	(6,664,252)	(5,583,827)
Total liabilities and stockholders deficit	$ 21,562	$ 91,601