Seven Arts Entertainment Inc (SAPX)

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Disclosure Statement Pursuant to the Pink Basic Disclosure Guidelines Seven Arts Entertainment Inc.
3440 Oakcliff Road
Suite 104
Atlanta, GA 30340 _______________________________ 770-866-6250 sevenartsentertainment.com [e-mail]
7812
Annual Report
For the period ending June 30, 2023 (the “Reporting Period”)
Outstanding Shares
The number of shares outstanding of our Common Stock was: 2,038,444,252 as of 06/30/2023
1,503,444,252 as of 06/30/2022
Shell Status
Indicate by check mark whether the company is a shell company (as defined in Rule 405 of the Securities Act of 1933, Rule 12b-2 of the Exchange Act of 1934 and Rule 15c2-11 of the Exchange Act of 1934):
Yes: ? No: ?
Indicate by check mark whether the company’s shell status has changed since the previous reporting period: Yes: ? No: ?
Change in Control
Indicate by check mark whether a Change in Control5 of the company has occurred over this reporting period: Yes: ? No: ?
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023) Page 1 of 11

1) Name and address(es) of the issuer and its predecessors (if any)
In answering this item, provide the current name of the issuer any names used by predecessor entities, along with the dates of the name changes.
Seven Arts Entertainment Inc. as of 02/15/2018
Wireless Connect Inc. from 10/15/2014 to 02/15/2018
Seven Arts Entertainment Inc. from 06/11/2010 to 10/15/2014
The state of incorporation or registration of the issuer and of each of its predecessors (if any) during the past five years; Please also include the issuer’s current standing in its state of incorporation (e.g. active, default, inactive):
The issuer’s state of incorporation is Wyoming as of 10/15/2014 The issuer’s standing is Active in the state of Wyoming
Describe any trading suspension orders issued by the SEC concerning the issuer or its predecessors since inception: None
List any stock split, stock dividend, recapitalization, merger, acquisition, spin-off, or reorganization either currently anticipated or that occurred within the past 12 months:
None
The address(es) of the issuer’s principal executive office:
3440 Oakcliff Road, Suite 104, Atlanta, GA 30340
The address(es) of the issuer’s principal place of business:
?x Check if principal executive office and principal place of business are the same address:
Has the issuer or any of its predecessors been in bankruptcy, receivership, or any similar proceeding in the past five years?
No: ? Yes: ? If Yes, provide additional details below:
2) Security Information
Transfer Agent
Name: Transfer Online, Inc.
Phone: [phone]
Email: [e-mail]
Address: 512 SE Salmon St, Portland, OR 97214
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023)
Page 2 of 11

Publicly Quoted or Traded Securities:
The goal of this section is to provide a clear understanding of the share information for its publicly quoted or traded equity securities. Use the fields below to provide the information, as applicable, for all outstanding classes of securities that are publicly traded/quoted.
Trading symbol:
Exact title and class of securities outstanding: CUSIP:
Par or stated value:
Total shares authorized:
Total shares outstanding:
Total number of shareholders of record:
SAPX Common 81783N508 .0001 3,000,000,000 2,038,444,252 442
as of date: 02/01/2023 as of date: 06/30/2023 as of date: 06/30/2023
All additional class(es) of publicly quoted or traded securities (if any): None
Other classes of authorized or outstanding equity securities:
The goal of this section is to provide a clear understanding of the share information for its other classes of authorized or outstanding equity securities (e.g. preferred shares). Use the fields below to provide the information, as applicable, for all other authorized or outstanding equity securities.
Trading symbol:
Exact title and class of securities outstanding: CUSIP:
Par or stated value:
Total shares authorized:
Total shares outstanding:
Total number of shareholders of record:
Trading symbol:
Exact title and class of securities outstanding: CUSIP:
Par or stated value:
Total shares authorized:
Total shares outstanding:
Total number of shareholders of record:
SAPX
Series D Preferred
None
100.00
30,000 as of date:
30,000 as of date: 06/30/2023
1 as of date:
SAPX
Series A Preferred None
.01
10,000,000 6,000,000 1
as of date: 07/15/2021 as of date: 06/30/2023 as of date: 06/30/2023
08/27/2014 06/30/2023
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023)
Page 3 of 11

Security Description:
The goal of this section is to provide a clear understanding of the material rights and privileges of the securities issued by the company. Please provide the below information for each class of the company’s equity securities, as applicable:
3)
1. For common equity, describe any dividend, voting and preemption rights. 1 vote for every common share issued.
2. For preferred stock, describe the dividend, voting, conversion, and liquidation rights as well as redemption or sinking fund provisions.
Series D Preferred allow 1 vote for every share issued. Series D Preferred are convertible into common stock at 100 times the average trading price for the previous 10 days at the time of conversion.
Series A Preferred allow 1000 common share votes for every Series A share issued. Series A Preferred carry no additional rights or provisions.
3. Describe any other material rights of common or preferred stockholders. None
4. Describe any material modifications to rights of holders of the company’s securities that have occurred over the reporting period covered by this report.
None
Issuance History
The goal of this section is to provide disclosure with respect to each event that resulted in any changes to the total shares outstanding of any class of the issuer’s securities in the past two completed fiscal years and any subsequent interim period.
A. Changes to the Number of Outstanding Shares
Indicate by check mark whether there were any changes to the number of outstanding shares within the past two completed fiscal years:
No: ? Yes: ?x (If yes, you must complete the table below)
Shares Outstanding as of Second Most Recent Fiscal Year End:
Opening Balance
Date 07/01/2020 Common: 4,003,444,252 Preferred D: 30,000
*Right-click the rows below and select “Insert” to add rows as needed.
Date of Transaction
Transaction type (e.g., new issuance, cancellation, shares returned to treasury)
Number of Shares Issued (or cancelled)
Class of Securities
Value of shares issued ($/per share) at Issuance
Were the shares issued at a discount to market price at the time of issuance? (Yes/No)
Individual/ Entity Shares were issued to.
*You must disclose the control person(s) for any entities listed.
Reason for share issuance (e.g. for cash or debt conversion) -OR-
Nature of Services Provided
Restricted or Unrestricted as of this filing.
Exemptio n or Registrati on Type.
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023) Page 4 of 11

07/21/2021 New 6,000,000 Issuance
1/11/2022 Cancellation 2,500,000,000
Preferred A Common
.01 No .0001 No
Jason Black
Richard Bjorklund
Acquisition Salary
Restricted None Restricted None
08/17/2022
New Issuance
55,000,000
Common
.001
Yes
Capitol Capital Corp Howard Salamon
Cash
Unrestricted
144
12/28/2022
New Issuance
150,000,000
Common
.0001
Yes
Via Capital Jesus Cipriano
Cash
Unrestricted
144
02/21/2023
New Issuance
150,000,000
Common
.0001
Yes
Via Capital Jesus Cipriano
Cash
Unrestricted
144
03/06/2023
New Issuance
180,000,000
Common
.0001
Yes
Via Capital Jesus Cipriano
Cash
Unrestricted
144
Shares Outstanding on Date of This Report: Ending Balance:
Date 06/30/2023 Common: 2,038,444,252
Preferred D: 30,000 Preferred A: 6,000,000
A. Debt Securities, Including Promissory and Convertible Notes
Indicate by check mark whether there are any outstanding promissory, convertible notes, convertible debentures, or any other debt instruments that may be converted into a class of the issuer’s equity securities:
No: ? Yes: ?x (If yes, you must complete the table below)
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023) Page 5 of 11
Date of Note Issuance
Outstanding Balance ($)
Principal Amount at Issuance ($)
Interest Accrued ($)
Maturity Date
Conversion Terms (e.g. pricing mechanism for determining
Name of Noteholder.
*You must disclose the control person(s) for any entities listed.
Reason for Issuance (e.g. Loan, Services, etc.)

10/25/2021 12/17/2021 06/30/2022 12/28/2022
$48,393 $28,465 $49,215 $27,269
$37,667
$42,075 $6,318 $24,995 $3,470 $45,151 $4,064 $26,000 $3,050
$36,100 $1,567
$10,000 $0 06/01/2024 $21,500 $0 06/26/2024
10/25/2022 12/17/2022 06/30/2023 12/28/2023
9% per annum convertible at .0001
9% per annum convertible at .0001
9% per annum convertible at .0001
9% per annum convertible at .0001
9% per annum convertible at .0001
9% per annum convertible at .0001
9% per annum convertible at .0001
Capitol Capital Corp Loan Howard Salamon
Capitol Capital Corp Loan Howard Salamon
Capitol Capital Corp Loan Howard Salamon
Via Capital Loan Jesus Cipriano
Via Capital Loan Jesus Cipriano
Chestnut Hill Capital Loan Chris O'Donell
01/10/2023 06/01/2023
01/10/2024
$10,000 06/26/2023 $21,500
Chestnut Hill Capital Chris O'Donnell
Loan
Use the space below to provide any additional details, including footnotes to the table above:
1. On December 27, 2022, Via Capital acquired all of the loans held by Capitol Capital Corp. in the Company, whereby debt conversions subsequent to December 27, 2022 would result in shares issuable to Via Capital.
2. On December 28, 2022 and January 10, 2023 Via Capital made direct loans to the Company of $26,000 and $36,100 respectively.
3. On February 21, 2023 and March 06, 2023 the Company issued 150,000,000 and 180,000,000 common shares respectively to Via Capital, completing the note issued on September 24,2021.
4. Loan provisions waive interest for the first 30 days, therefore the Company has not recorded accrued interest on loans made on June 01, 2023 and June 26, 2023, during the period ending June 30, 2023.
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023) Page 6 of 11

4)
Issuer’s Business, Products and Services
A. B. C.
5)
Summarize the issuer’s business operations (If the issuer does not have current operations, state “no operations”) Film and music production
List any subsidiaries, parent company, or affiliated companies.
The issuer has two subsidiaries, Seven Arts Music Inc, and Muse Media LLC.
Describe the issuers’ principal products or services.
The issuer produces film and music for domestic and international release.
Issuer’s Facilities
The goal of this section is to provide a potential investor with a clear understanding of all assets, properties or facilities owned, used or leased by the issuer and the extent in which the facilities are utilized.
In responding to this item, please clearly describe the assets, properties or facilities of the issuer, give the location of the principal plants and other property of the issuer and describe the condition of the properties. If the issuer does not have complete ownership or control of the property (for example, if others also own the property or if there is a mortgage on the property), describe the limitations on the ownership.
If the issuer leases any assets, properties or facilities, clearly describe them as above and the terms of their leases.
The issuer leases approximately 3000 sq. ft. of mixed-use space, consisting of offices and production facilities, located at 3440 Oakcliff Road, Suite 104, Atlanta, GA 30340, at $3500 a month plus utilities.
6) Officers, Directors, and Control Persons
Using the table below, please provide information, as of the period end date of this report, regarding any officers, or directors of the company, individuals or entities controlling more that 5% of any class of the issuers securities, or any person that performs a similar function, regardless of the number of shares they own. If any insiders listed are corporate shareholders or entities, provide the name and address of the person(s) beneficially owning or controlling such corporate shareholders, or the name and contact information (City, State) of an individual representing the corporation or entity in the note section.
Include Company Insiders who own any outstanding units or shares of any class of any equity security of the issuer.
The goal of this section is to provide an investor with a clear understanding of the identity of all the persons or entities that are involved in managing, controlling or advising the operations, business development and disclosure of the issuer, as well as the identity of any significant or beneficial shareholders.
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023) Page 7 of 11

Name of Officer/Director or Control Person
Affiliation with Company (e.g. Officer Title /Director/Owner of more than 5%)
Residential Address (City / State Only)
Number of shares owned
Share type/class
Ownership Percentage of Class Outstanding
Note
Jason Black Thom Hazaert
CEO/Director Owner of more than 5%
Director
Marietta Georgia
Green Bay Wisconsin
6,000,000 N/A
Preferred A 60% N/A N/A
CEO as of 06/04/2021
Director as of 08/22/2022
7)
A.
Legal/Disciplinary History
Please identify whether any of the persons or entities listed above have, in the past 10 years, been the subject of:
1. A conviction in a criminal proceeding or named as a defendant in a pending criminal proceeding (excluding traffic violations and other minor offenses);
None
2. The entry of an order, judgment, or decree, not subsequently reversed, suspended or vacated, by a court of competent jurisdiction that permanently or temporarily enjoined, barred, suspended or otherwise limited such person’s involvement in any type of business, securities, commodities, or banking activities;
None
3. A finding or judgment by a court of competent jurisdiction (in a civil action), the Securities and Exchange Commission, the Commodity Futures Trading Commission, or a state securities regulator of a violation of federal or state securities or commodities law, which finding or judgment has not been reversed, suspended, or vacated; or
None
4. The entry of an order by a self-regulatory organization that permanently or temporarily barred, suspended, or otherwise limited such person’s involvement in any type of business or securities activities.
None
B. Describe briefly any material pending legal proceedings, other than ordinary routine litigation incidental to the business, to which the issuer or any of its subsidiaries is a party or of which any of their property is the subject. Include the name of the court or agency in which the proceedings are pending, the date instituted, the principal parties thereto, a description of the factual basis alleged to underlie the proceeding and the relief sought. Include similar information as to any such proceedings known to be contemplated by governmental authorities.
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023) Page 8 of 11

In 2016 Arrowhead Capital Finance Ltd sued the issuer in the US District Court of New York for loans due in 2009 from Seven Arts Pictures Ltd, the issuer's predecessor. On June 5, 2018 the court found the issuer liable and awarded Arrowhead $2,496,160, plus 9% per annum, until paid.
In July of 2021, following a series of online slanders made against the issuer, George Sharp, an OTC CEO, described in social media as a "failed stock promoter" and a "litigious penny stock gadfly", with an extensive history of filing civil claims against public companies, initiated a lawsuit against the issuer in San Diego Superior Court. The matter remains pending and the issuer will continue to vigorously defend against Mr. Sharp's actions.
8) Third Party Service Providers
Provide the name, address, telephone number and email address of each of the following outside providers. You may add additional space as needed.
Securities Counsel (must include Counsel preparing Attorney Letters).
Name: Firm: Address 1: Address 2: Phone: Email:
Accountant or Auditor None
Investor Relations None
Anthony Newton
The Law Offices of Anthony F. Newton PO Box 16877
Sugar Land TX, 77496
832-452-0269 [e-mail]
All other means of Investor Communication:
Twitter: Discord: LinkedIn Facebook: [Other ]
@SAPX_7arts N/A
N/A
N/A
Public Press Releases via Accesswire
Other Service Providers
Provide the name of any other service provider(s) that that assisted, advised, prepared, or provided information with respect to this disclosure statement. This includes counsel, broker-dealer(s), advisor(s), consultant(s) or any entity/individual that provided assistance or services to the issuer during the reporting period.
None
9) Financial Statements
A. The following financial statements were prepared in accordance with: ? IFRS
? U.S. GAAP
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023)
Page 9 of 11

B. The following financial statements were prepared by (name of individual)6:
Name:
Title:
Relationship to Issuer:
Describe the qualifications of the person or persons who prepared the financial statements: The financial statements are prepared in accordance with U.S. GAAP by Jason Black, who is the principal financial officer of the Issuer. Mr. Black has over 10 years of experience managing businesses and preparing financial statements. Since 2019 Mr. Black has prepared financial statements, as the principal financial officer, for several OTC Markets alternative reporting companies and is thus well-qualified from this experience to prepare the Issuer’s financial statements.
Provide the following financial statements for the most recent fiscal year or quarter. For the initial disclosure statement (qualifying for Pink Current Information for the first time) please provide reports for the two previous fiscal
Jason Black CEO President
years
and any subsequent interim periods.
a. Audit letter, if audited;
b. Balance Sheet;
c. Statement of Income;
d. Statement of Cash Flows;
e. Statement of Retained Earnings (Statement of Changes in Stockholders’ Equity)
f. Financial Notes
10) Issuer Certification
Principal Executive Officer:
The issuer shall include certifications by the chief executive officer and chief financial officer of the issuer (or any other persons with different titles but having the same responsibilities) in each Quarterly Report or Annual Report.
The certifications shall follow the format below: I, Jason Black certify that:
1. I have reviewed this Disclosure Statement for Seven Arts Entertainment Inc.;
2. Based on my knowledge, this disclosure statement does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this disclosure statement; and
3. Based on my knowledge, the financial statements, and other financial information included or incorporated by reference in this disclosure statement, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this disclosure statement.
08/24/2023
/s/ Jason Black
(Digital Signatures should appear as “/s/ [OFFICER NAME]”)
6 The financial statements requested pursuant to this item must be prepared in accordance with US GAAP or IFRS and by persons with sufficient financial skills.
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023) Page 10 of 11

Principal Financial Officer:
I, Jason Black certify that:
1. I have reviewed this Disclosure Statement for Seven Arts entertainment Inc.;
2. Based on my knowledge, this disclosure statement does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this disclosure statement; and
3. Based on my knowledge, the financial statements, and other financial information included or incorporated by reference in this disclosure statement, fairly present in all material respects the financial condition, results of operations and cash flows of the issuer as of, and for, the periods presented in this disclosure statement.
08/24/2023
/s/ Jason Black
(Digital Signatures should appear as “/s/ [OFFICER NAME]”)
OTC Markets Group Inc.
OTC Pink Basic Disclosure Guidelines (v4.0 January 1, 2023) Page 11 of 11

3440 Oakcliff Road, Suite 104 Atlanta
GA 30340
SEVEN ARTS ENTERTAINMENT, INC. (SAPX)
ANNUAL REPORT
FOR THE YEAR ENDING JUNE 30, 2023
August 24, 2023

SEVEN ARTS ENTERTAINMENT, INC. QUARTERLY REPORT
FOR THE YEAR ENDED JUNE 30, 2023 (Unaudited)
Condensed Consolidated Unaudited Financial Statements
Condensed Consolidated Unaudited Balance Sheet as at June 30, 2023 and June 3I0n,d2e0x22
Condensed Consolidated Unaudited Statement of Operations for the Year Ending June 30, 2023 and June 30, 2022
Condensed Consolidated Unaudited Statement of Cash Flow for the Year Ending June 30, 2023 and June 30, 2022 5 Condensed Unaudited Statement of Changes in Stockholders' Equity for the Year Ending June 30, 2023 and June 30, 2022 6 Notes to the Condensed Consolidated Unaudited Financial Statements
Page F-2
7

ASSETS
Current assets
Cash and cash equivalents
2 3,892
$ 20,583
Other current assets
5 3,000 8,000
Total current assets
10,392 28,583
Fixed assets
Accumulated depreciation
6 (420)
(140)
Goodwill
7 60,000
60,000
Accumulated amortization
7-
-
TOTAL ASSETS
___$______7_1_,3_7_2_______$_________8_9_,_8_4_3___
LIABILITIES & STOCKHOLDERS' DEFICIT
Current liabilities
Accrued expenses
$ 11,193
$ 2,250
Related party loans & notes payable, short-term or current 12 28,175 22,970
Other liabilities 13 3,241,507 3,241,507
Derivative liability 10 2,488,991 2,691,436
TOTAL LIABILITIES $ 5,934,481
$ 6,136,924
STOCKHOLDERS' DEFICIT
Preferred stock:
Preferred stock Series A: par value $0.01, 10,000,000 authorized and 6,000,000 issued and
outstanding at June 30, 2023 and June 30, 2022 9 60,000
60,000
Preferred stock Series D: par value $100.00, 30,000 authorized and 30,000 issued and outstanding at June 30, 2023 and June 30, 2022
9 3,000,000 3,000,000
Common stock: par value $0.0001, 3,000,000,000 and 1,800,000,000 authorized and 2,038,444,252 and 1,503,444,252 issued and outstanding at June 30, 2023 and June 30, 2022 respectively
Additional paid-in capital
Accumulated Deficit Accumulated deficit
9
775,018 721,518
36,621,015 36,571,515
TOTAL STOCKHOLDERS' DEFICIT
(46,319,142) (46,400,114)
(5,863,109)
(6,047,081)
89,843
71,372 $
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT $
Deposits
SEVEN ARTS ENTERTAINMENT, INC. Condensed Consolidated Unaudited Financial Statements Balance Sheet
Notes
As at June 30,
2023
3,500
1,400
164,615
As at June 30, 2022
-
1,400
178,761
Property, plant & equipment 6
Loans & notes payable, short-term or current, net of unamortized debt discount of $57,894 8
TOTAL LIABILITIES AND STOCKHOLDERS' DEFICIT
$ ___________________________________ 71,372
$
89,843
See accompanying notes to these condensed consolidated unaudited financial statements.
Page F-3

SEVEN ARTS ENTERTAINMENT, INC. Condensed Consolidated Unaudited Financial Statements Statement of Operations
Year Ended June 30,
Revenues
Selling, general & administrative expenses
Net operating loss
Non-cash interest, convertible loan
$
2023
-
122,037
(122,317)
(806,548)
$
2022
20,000
171,811
(151,951)
(6,351,609)
Cost of goods sold
--
Gross profit
- 20,000
Operating expenses
Depreciation & amortization
280 140
Total operating expenses
122,317 171,951
Other income (expenses)
Bank charges
(113) (205)
Bank/loan interest accrued
(16,871) (67,939)
Amortization of debt discount
(44,292) (150,972)
Gain (loss) on revaluation of derivative liability
1,071,093 3,867,986
Other income (expenditure) net
-
3,950
Net income (loss) before income taxes
$ 80,952 (2,850,740)
Provision for income taxes
--
Net income (loss)
$ 80,952 $ (2,850,740)
Net income (loss) per share
0.00 _________________________________________________
See accompanying notes to these condensed consolidated unaudited financial statements.
Page F-4
1,873,444,252 2,128,444,252 ________________________________________________
0.00
Weighted average shares outstanding

SEVEN ARTS ENTERTAINMENT, INC. Condensed Consolidated Unaudited Financial Statements Statement of Cash Flow
Adjustments to reconcile net income (loss) to net cash (used in) operating activities:
Depreciation and amortization
Amortization of debt discount
(Gain) loss on revaluation of derivative liability
Non-cash interest, convertible loan
Other current assets
Sale (purchase) of intangible assets
Proceeds from (repayment of) debt instruments
NET CASH PROVIDED BY FINANCING ACTIVITIES NET INCREASE (DECREASE) IN CASH
Cash, end of period
Year Ended June 30,
2023
280
44,292
(1,071,093)
806,548
-
81,665
73,846
2022
140
82,021
(2,109,224)
5,595,585
(8,000)
(60,000)
219,588
234,415
CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) $ 80,952 $ (2,850,740)
Financing costs 13,024 63,748
Changes in operating assets and liabilities:
Accounts payable and other current liabilities 31,500 3,429
NET CASH (USED IN) OPERATING ACTIVITIES (94,497) (121,870)
CASH FLOWS FROM INVESTING ACTIVITIES
Sale (purchase) of tangible assets - (1,400)
NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES - (61,400)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issuance of equity - 60,000
Related party loans 5,205 22,971
Financing costs (13,024) (68,144)
Conversion of debt to common or preferred stock
See accompanying notes to these condensed consolidated unaudited financial statements.
103,000 $ -
Page F-5
$
(16.691)
20,583
____________________________
Cash, beginning of period 20,583 - ____________________________
3,892 20,583
___________________________
SUPPLEMENTAL DISCLOSURES
Supplemental schedules of non-cash investing and financing activities

SEVEN ARTS ENTERTAINMENT, INC. Condensed Consolidated Unaudited Financial Statements Statement of Changes in Stockholders' Equity
Additional Preferred Stock Common Stock Paid-in Number Value Number Value Capital
Accumulated Surplus (Deficit)
Total
Balance b/f as at July 1,
2021 30,000 $ 3,000,000 4,003,444,252 $ 721,518 $ 36,571,515 $ (43,533,361) $ (3,240,328)
Preferred stock issued
for acquisition 6,000,000 60,000 - - - - 60,000
Common stock
cancelled - - (2,500,000,000) - - - -
Net loss, year ending
June 30, 2022 - - - - - (2,866,753) (2,866,753)
Balance b/f July 1,
2022 6,030,000 $ 3,060,000 1,503,444,252 $ 721,518 $ 36,571,515 $ (46,400,114) $ (6,047,081)
Common stock issued
to repay debt - - 535,000,000 53,500 49,500 - 103,000
Net income, year ending June 30, 2023
- - - - - 80,952 80,952
Balance c/f as at June
30, 2023 6,030,000 $ 3,060,000 2,038,444,252 $ 775,018 $ 36,621,015 $ (46,319,142) $ (5,863,109)
See accompanying notes to these condensed consolidated unaudited financial statements.
Page F-6

SEVEN ARTS ENTERTAINMENT, INC. Condensed Consolidated Unaudited Financial Statements Notes For the Year Ended June 30, 2023
NOTE 1. NATURE AND BACKGROUND OF BUSINESS
The accompanying consolidated financial statements include Seven Arts Entertainment, Inc. (the 'Company', 'we' or 'us'), a Wyoming corporation, its wholly-owned subsidiaries and any majority controlled interests.
The Company is the continuation of certain business of Seven Arts Pictures PLC ('PLC'), which was founded in 2002 by Peter Hoffman as an independent motion picture production and distribution business, engaged in the development, acquisition, production, and licensing of theatrical motion pictures for exhibition in domestic (ie. the US and Canada) and foreign theatrical markets, and for subsequent worldwide release in other forms of media, including home video/dvd and pay and free television.
Following approval by shareholders at a meeting held on June 10, 2010, the Company was formed on June 11, 2010 and became a wholly-owned subsidiary of PLC. On this date, the Company entered into an Asset Transfer Agreement, as amended on January 27, 2011 and again on August 31, 2011, transferring all assets from 'PLC' to the Company in exchange for assumption by the Company of all liabilities, as well as one share of Common Stock in the Company for every Ordinary Share of PLC previously distributed to shareholders. This share exchange was approved by NASDAQ Capital Markets on August 31, 2011 for the Company's NASDAQ listingtobeeffectiveasofSeptember1,2011.OnNovember8,2011,PLCwasplacedintovoluntarycreditors'liquidationunderEnglishlaw.Certain indebtednessof PLC remained with PLC and will be subject to administration or payment in those administration proceedings.
On January 1, 2012, Seven Arts Film Entertainment Limited sold all of its film assets to the Company in return for assumption of indebtedness. Seven Arts Film Entertainment Ltd ceased operations on May 31, 2013, on the closing of its office in London, England, and placed into voluntary liquidation on October 9, 2013.
On June 30, 2012, Seven Arts Film Entertainment Louisiana LLC ('SAFELA') was transferred to the Company. SAFELA had a 30-year lease to operate a film production and post-production facility at 807 Esplanade, New Orleans, Louisiana. The post-production facility commenced operations on July 1, 2012.
Seven Arts Pictures Louisiana LLC ('SAPLA') had entered into a credit agreement with Advantage Capital Community Development Fund LLC, dated October 11, 2007, for the acquisition and improvement of the production and post-production facility located at 807 Esplanade, New Orleans, Louisiana for aggregate principal advances of up to $3,700,000. This agreement was guaranteed by the Company's predecessor. Approximately $3,700,000 plus interest had been drawn down under the terms of this credit agreement by June 30, 2012. The Company assumed the liability in return for $1,000,000, plus a contingent sum of $750,000 (contingent on receipt of at least $5,000,000 in cash proceeds from the tax credits to be earned by SAPLA) due to an agreement with the now mortgagor Palm Finance Corp. ('Palm'). A construction loan of $1,950,000 previously guaranteed by the Company has now also been assumed by the Company, SAFELA. On August 28, 2014, the Company satisfied the obligations to Palm as discussed below.
Seven Arts Music. Inc. ('SAM') became a wholly-owned subsidiary of the Company on February 23, 2012, although transaction costs had been incurred as early as September 2011. The first of the DMX albums acquired from David Michery was released on September 11, 2012. The first of the Bones Thugs-N-Harmony albums was fully delivered to the Company as of June 30, 2013 and scheduled for release in November 2013. The agreements under which SAM acquired its music assets were effective as of September 29, 2011 (Big Jake Music or 'BJM') and December 19, 2011 (Michery Assets, 'Michery'), publicly announced and commenced business activities on those dates, though definitive agreements were not executed, nor control gained, until February 23, 2012.
On February 13, 2014, May 2, 2013 and August 31, 2012, the Company affected one-for-one hundred, one-for-fifty and one-for-seventy reverse stock splits, respectively, collectively referred to as the Stock Splits. Unless otherwise noted, all impacted amounts included in the consolidated finan cial statements and notes thereto have been retroactively adjusted for the Stock Splits. Unless otherwise noted, impacted amounts include shares of common stock authorized and outstanding, share issuances and cancellations, shares underlying preferred stock, convertible notes, warrants and stock options, shares reserved conversion prices of convertible securities, exercise prices of warrants and options, and loss per share.
On September 14, 2012, trading of the Company's common stock on NASDAQ was suspended due to the stock price not meeting or exceeding the minimum $1.00 bid price per share for a minimum of ten trading days prior to September 20, 2012, the extended deadline given to the Company to meet this performance requirement. The Company's common stock commenced trading on OTC Market Group's OTCQB tier under the symbol 'SAPX'. On February 25, 2014, the Company's common stock was transferred by the OTC Markets Group, Inc. to the OTCPink tier under the same symbol.
On February 7, 2014, Peter Hoffman resigned as CEO, with Katrina Hoffman, his wife, appointed as replacement CEO.
On August 22, 2014, the Company closed the acquisition of 100% of the capital stock of iPTerra Technologies, Inc. and 100% of the membership interests in Aeronetworks LLC from Sanwire Corporation by issuance of 30,000 shares of Preferred Stock Series D ($100 par value, $3,000,000 total price) convertible into shares of Common Stock at 100% of the volume-weighted average price of the Company's Common Stock for the ten (10) trading days prior to conversion. The closing was subject to a condition subsequent requiring the execution of a Loan Workout Agreement inter alia Palm Finance Corp ('Palm') and the Company, which was not executed until August 29, 2014. On Closing, the entire board, except Antony Hickox, resigned and Mr. Richard Bjorklund ('Chairman and CEO', replacing Katrina Hoffman) and Robert Riggs were appointed to the board. Ms. Candace Wernick resigned as CFO and was replaced by Mr. Robert Lasalle.
On October 15, 2014, the Company changed its name to 'Wireless Connect, Inc.' and redomiciled to Wyoming. The Company changed its name back to Seven Arts Entertainment, Inc. on October 15, 2015, but this was not filed with the February 15, 2018.
Page F-8

Mr. Robert Lasalle resigned as CFO on October 21, 2014, with the Company appointing Rachel Boulds as CFO on December 1, 2014. Mr. Robert Riggs resigned from the board on November 7, 2014, and was replaced by Mr. Bradley Holmes.
On October 15, 2015, Richard Bjorkland and Rachel Boulds resigned as CEO and CFO respectively, with Peter Hoffman re-appointed as CEO.
As of June 4, 2021, Peter Hoffman resigned as CEO and Jason Black was appointed as a director and CEO of the Company.
On July 21, 2021, the Company acquired a fully-owned subsidiary, Muse Media LLC ('Muse'), an Atlanta-based multimedia and entertainment company offering label services and producing compelling original content for streaming distribution. The business has an innovative approach to producing music, videos, and movies, as well as redefining distribution, promotion and access to content. Muse will operate in several capacities, including (i) a s the Atlanta satellite of the Seven Arts, (ii) as alowertierdevelopmentarmfor'indie'styleproductionconcepts,music'A&R'andtestmarketing,withfilmandmusicproductionsthatshowmost promiseadvanced for further investment under Seven Arts; and (iii) spearheading all social media initiatives, hosting music videos, film promotions, and podcasts through platforms such as YouTube, TikTok, Twitter, Instagram, Facebook and others.
OnAugust16,2021,theCompanyre-establisheditsprofilewithOTCMarketstostartreportingagaintoitsshareholders,subsequentlyachievingPinkCurrent reporting status with OTC Markets on September 3, 2021.
On September 23, 2021, the Company secured a $1.5 million credit line to be made available in tranches on request over a six month period. The funding is non- dilutive and designed to be repaid through partial revenues and royalties from upcoming projects funded with the proceeds.
On January 31, 2022, the Company announced a new film project under development, a biopic revolving around a Grammy nominated Los Angeles music icon who rose to prominence in the 1990s. In July 2022, the Company announced that it had completed principal photography and that it will also launch NFTs and an album in conjunction with the release of the documentary.
On July 20, 2022, the Company announced that it had established a new partnership with Ascended Entertainment. Operating in the Atlanta market, Ascended will oversee all post-production work for the Company's productions. In addition, the Company hired an experienced Pro Tools engineer, who will oversee all audio mixing and production needs.
On August 24, 2022, the Company announced that it had added to its board of directors Thom Hazaert, an entertainment industry icon who has participated in deals valued over US$300 million within the music and film industries, to take a more active position in the Company's growth strategy as Chief Revenue Director and Director of A&R.
On November 15, 2022, the Company announced that its Board of Directors had approved a stock repurchase plan. Under the terms of this plan, the Company may repurchase $2,000,000-worth of outstanding shares over 12 months, with all stock buybacks conducted according to market conditions and in accordance with all legal and SEC requirements.
On December 1, 2022, the Company announced that it had entered into an affiliate relationship with 4D FUN, whose volumetric modeling generates a 3D representation of a live recorded sequence, producing a fully immersive experience akin to a live performance.
Throughout the period since the formation of the Company, it has had continued operations in the areas of film and music production. Between June 11, 2010, when the Company was formed through a merger with Seven Arts Pictures PLC and August 10, 2016, the business operated in film production. Through the acquisition of different music businesses in late 2011, the Company operated its Seven Arts Music subsidiary, producing and distributing recorded music productions, an activity which continues today.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying financial statements have been prepared for Seven Arts Entertainment, Inc. in accordance with accounting pri nciples generally accepted in the United States of America (US GAAP), with all numbers shown in US Dollars.
In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for fair presentation o f the financial statements have been included. The financial statements include acquired subsidiaries, as discussed below, and include all consolidation entries required to include those subsidiaries.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Cash and Cash Equivalents
For the Balance Sheet and Statement of Cash Flows, all highly liquid investments with maturity of three months or less are considered to be cash equivalents. The Company had no cash equivalents for the year ending June 30, 2023 or June 30, 2022.
Page F-9

Income Taxes
Income taxes are provided in accordance with the FASB Accounting Standards (ASC 740), Accounting for Income Tax. A deferred tax asset or liability is recorded for all temporary differences between financial and tax reporting and net operating loss carry forwards. Any deferred tax expense (benefit) resulting from the net change during the year is shown as deferred tax assets and liabilities. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it was more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabil ities are adjusted for the effects of changes in tax laws and rates on the date of enactment.
Basic and Diluted Net Income (Loss) Per Share
Net income (loss) per unit is calculated in accordance with Codification topic 260, “Earnings per Share” for the periods presented. Basic net loss per share is computed usingtheweightedaveragenumberofcommonsharesoutstanding.Dilutedlosspersharehasnotbeenpresentedbecausethesharesofcommonstock equivalentshave not been included in the per share calculations as such inclusion would be anti-dilutive. Diluted earnings per share is based on the assumption that all dilutive stock options, warrants and convertible debt are converted or exercised applying the treasury stock method. Under this method, options, warrants and convertible debt are assumed exercised at the beginning of the period (or at the time of issuance, if later), and as if funds obtained thereby were used to purchase shares of common stock at the average market price during the period. Options, warrants and/or convertible debt will have a dilutive effect during periods of net profit only when the average market price of the units during the period exceeds the exercise or conversion price of the items.
Stock Based Compensation
Codification topic 718 “Stock Compensation” requires that the cost resulting from all share-based transactions be recorded in the financial statements and establishes fair value as the measurement objective for share-based payment transactions with employees and acquired goods or services from non-employees. The codification also provides guidance on valuing and expensing these awards, as well as disclosure requirements of these equity arrangements. The Company adopted the codification upon creation of the Company and will expense share-based costs in the period incurred. The Company has not yet adopted a stock option plan and all share-based transactions and share based compensation has been expensed in accordance with the codification guidance.
Convertible Instruments
The Company evaluates and accounts for conversion options embedded in its convertible instruments in accordance with professional standards for “Accounting for Derivative Instruments and Hedging Activities”. Professional standards generally provide three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instruments are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur, and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. Professional standards also provide an exception to this rule when the host instrument is deemed to be conventional as defined under professional standards as “The Meaning of Conventional Convertible Debt Instrument”.
The Company accounts for convertible instruments when it has determined that the embedded conversion options should not be bifurcated from their host instruments in accordance with professional standards when “Accounting for Convertible Securities with Beneficial Conversion Features,” as those professional standards pertain to “Certain Convertible Instruments.” Accordingly, the Company records, when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying shares of common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their earliest date of redemption. The Company also records when necessary deemed dividends for the intrinsic value of conversion options embedded inpreferredsharesofcommonstockbaseduponthedifferencesbetweenthefairvalueoftheunderlyingsharesatthecommitmentdateofthenote transactionandthe effective conversion price embedded in the note.
ASC 815-40 provides that, among other things, generally, if an event not within the entity’s control could require net cash settlement, then the contract shall be classified as an asset or a liability.
Fair Value of Financial Instruments
We adopted the guidance of ASC-820 for fair value instruments, which clarifies the definition of fair value, prescribes methods for determining fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value, as follows:
Level 1 Inputs are unadjusted quoted prices in active markets for identical assets or liabilities available at the measurement date.
Level 2 Inputs are quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.
Level 3 Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.
The carrying amounts for cash, accounts receivable, accounts payable and accrued expenses, and loans payable approximate their fair value based on the short-term maturity of these instruments. We identified assets or liabilities that are required to be presented on the balance sheet at fair value in accordance with the accounting guidance as at June 30, 2023, as detailed in Note 11, Derivative Liabilities.
ASC 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (fair value option). The fair valueoptionmaybeelectedonaninstrument-by-instrumentbasisandisirrevocable,unlessanewelectiondateoccurs.Ifthefairvalueoptioniselectedforan instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. We elected to apply the fair value option to outstanding instruments.
Page F-10

Derivative Liabilities
Derivative financial instruments consist of convertible instruments and rights to shares of the Company's common stock. The Company assessed that it had derivative liabilities as at June 30, 2023, as detailed in Note 11, Derivative Liabilities.
ASC 815 generally provides three criteria that, if met, require companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments. These three criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not re-measured at fair value under otherwise applicable generally accepted accounting principles with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument subject to the requirement of ASC 815. ASC 815 also provides an exception to this rule when the host instrument is deemed to be conventional, as described.
Impact of New Accounting Standards
The Company does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Company’s results of operations, financial position, or cash flow.
NOTE 3. GOING CONCERN
The Company’s financial statements are prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization of assets and the liquidation of liabilities in the normal course of business. Realization values may be substantially different from carrying values as shown and these financial statements do not give effect to adjustments that would be necessary to the carrying values and classification of assets and liabilities shouldtheCompanybeunabletocontinueasagoingconcern.Currently,theCompanydoesnothavesignificantcashorothermaterialassets,nordoesithave operations or a source of revenue sufficient to cover its operation costs and allow it to continue as a going concern.
The Company has a limited operating history and had a cumulative net loss from inception to June 30, 2023 of $46,319,142. The Company has a working capital deficit of $5,863,109 as at June 30, 2023.
These financial statements for the year ending June 30, 2023 have been prepared assuming the Company will continue as a going concern, which is dependent upon the Company’s ability to generate future profits and/or obtain necessary financing to meet its obligations as they come due.
The management has committed to an aggressive growth plan for the Company. The Company’s future operations are dependent upon external funding and its ability to execute its business plan, realize sales and control expenses. Management believes that sufficient funding will be available from additional borrowings and private placements to meet its business objectives including anticipated cash needs for working capital, for a reasonable period of time. However, there can be no assurance that the Company will be able to obtain sufficient funds to continue the development of its business operation, or if obtained, upon terms favorable to the Company.
NOTE 4. ACQUISITIONS AND DISPOSALS
The Company has made the following acquisitions:
Muse Media LLC
On July 21, 2021, the Company acquired Muse Media LLC ('Muse'), an Atlanta based production company, with the consideration for this acquisition being the issuance of 6,000,000 shares of Preferred Stock Series A. The purchase price was allocated as follows:
Cash on hand
Current assets
The assets and liabilities acquired totaled nil, with the balance of the purchase price of $60,000 allocated to Goodwill.
Picture Pro LLC
Allocation
$ -
-
Fixed assets -
Current liabilities -
Goodwill 60,000
Total $ 60,000
On June 16, 2022, the Company announced it had purchased a 7.5% interest in Picture Pro LLC, a Los Angeles based production company, who raise capital for film productions. There was no cash outlay associated with this transaction at this stage, as it is based on an ongoing partnership between the Company and Picture Pro.
NOTE 5. OTHER CURRENT ASSETS
The Company had the following current assets as at June 30, 2023 and June 30, 2022.
Page F-11

June 30, 2023
Lease prepaid 3,500
Totals $ 6,500 $
June 30, 2022
-
8,000
Deposit on lease
$ 3,000 $ 8,000
Effective from January 1, 2022, the Company leased an office and production facility at 3440 Oakcliff Road, Suite 104, Atlanta, GA 30340, for $3,500 per month plus utilities, necessitating the deposit shown above.
NOTE 6. FIXED ASSETS
The Company holds fixed assets with values at June 30, 2023 and June 30, 2022 as follows:
Asset
Accumulated depreciation
Total
Useful Life (years)
June 30, 2023
(420)
980
Based on the acquisition and disposal activity detailed in Note 4, the Company retained the following intangible assets as at June 30, 2023 and June 30, 2022:
$
$
(140)
1,260
June 30, 2022
Plant and equipment 5
$ 1,400 $ 1,400
During the year ended June 30, 2023, a total of $280 was charged to the Statement of Operations for depreciation.
NOTE 7. INTANGIBLE ASSETS
Asset Description
Total
The Company, through its Seven Arts Music subsidiary, made the following music releases:
- the DMX and Machine Gun Kelly single release on August 7, 2012, titled 'I Don't Dance'; - the DMX album release on September 12, 2012, titled 'Undisputed';
- the Bone Thugs-N-Harmony album release on December 13, 2013, titled 'Art of War';
- the DMX compilation album release on January 13, 2015, titled 'Redemption of the Beast'; - the soundtrack album release on October 19, 2018 for the film 'London Fields'.
$
June 30, 2023
60,000 $
June 30, 2022
60,000
Intangible assets
Various music properties acquired by the Company from Big Jake Music and David Michery, $ - $ - now owned by Seven Arts Music ('SAM'), plus any music properties released since the formation
of SAM
Goodwill
Muse Media LLC 60,000 60,000
Due to the uncertainty of collecting royalties due on the various film and music properties included in the Company's assets, including lack of information on where, if at all, any royalties have been paid, the assets have been written down on the Company's balance sheet to zero.
Goodwill is not amortized but is reviewed on an annual basis for impairment to the carrying value. As at June 30, 2022, the Company has determined that there is no impairment to the carrying value of its current goodwill balance.
NOTE 8. LOANS AND NOTES PAYABLE
The Company had loans and notes payable as at June 30, 2023 and June 30, 2022 totaling $222,509 and $218,847 respectively, as follows:
Page F-12

Description
Principal Amount
Date of Loan Maturity Note Date
June 30, 2023
June 30, 2022
Convertible loan from Capitol Capital Corp, 12 months at interest rate of 9%, convertible at $0.001
$ 51,135 8/1/2021 8/1/2022
$ - $ 55,334
Convertible loan from Capitol Capital Corp, 12 months at interest rate of 9%, convertible at $.0001
44,457
9/24/2021
9/24/2022
-
47,517
Convertible loan from Capitol Capital Corp, 12 months at interest rate of 9%, convertible at $.0001
42,075
10/25/2021
10/25/2022
48,393
44,648
Convertible loan from Capitol Capital Corp, 12 months at interest rate of 9%, convertible at $.0001
24,995
12/17/2021
12/17/2022
28,465
26,197
Convertible loan from Capitol Capital Corp, 12 months at interest rate of 9%, convertible at $.0001
45,151
6/30/2022
6/30/2023
49,215
45,151
Convertible loan from Via Capital, 12 months at interest rate of 9%, convertible at $.0001
26,000
12/15/2022
12/15/2023
27,269
Convertible loan from Via Capital, 12 months at interest rate of 9%, convertible at $.0001
Convertible loan from Chestnut Hill Capital, 12 months at interest rate of 9%, convertible at $.0001
Convertible loan from Chestnut Hill Capital, 12 months at interest rate of 9%, convertible at $.0001
Loans and Notes Amortization
Due within 12 months
Due within 24 months
Due within 36 months
Due within 48 months
Due after 48 months
Total
10,000
21,500
6/01/2023 6/01/2024
6/26/2023 6/26/2024
10.000
21,500
Amount Due
222,509
-
-
-
- 222,509
36,100
1/10/2023
1/10/2024
37,667
Total
$ 222,509 $ 218,847
Long-term total
$-$-
Short-term total
$ 222,509 $ 218,847
$
$
Notes
1. On December 27, 2022, Via Capital acquired all of the loans held by Capitol Capital Corp. in the Company, whereby debt conversions subsequent to December 27, 2022 would result in shares issuable to Via Capital.
2. On December 28, 2022 and January 10, 2023 Via Capital made direct loans to the Company of $26,000 and $36,100 respectively.
3. On February 21, 2023 and March 06, 2023 the Company issued 150,000,000 and 180,000,000 common shares respectively to Via Capi tal, completing the note issued on September 24, 2021
4. Loan provisions waive interest for the first 30 days, therefore the Company has not recorded accrued interest on loans made on June 01, 2023 and June 26, 2023, during the period ending June 30, 2023
NOTE 9. CAPITAL STOCK
As at June 30, 2023 and June 30, 2022, the Company was authorized to issue Preferred Stock and Common Stock as detailed below.
Preferred Stock
At June 30, 2023 the Company had authorized Preferred Stock in two designations totaling 10,030,000 shares:
Preferred Stock Series A The Company is authorized to issue 10,000,000 shares of Series A, with a par value of $0.01 per share. As at July 1, 2020, the Company had no shares of Series A preferred stock issued and outstanding.
Page F-13

Preferred Stock Series D
On July 21, 2021, 6,000,000 shares of Preferred Stock Series A were issued as part of the acquisition of a new subsidiary, Muse Media LLC.
At June 30, 2023 the Company had 6,000,000 shares of Preferred Stock Series A issued and outstanding.
The Company is authorized to issue 30,000 shares of Series D, with a par value of $100.00 per share. As at July 1, 2020, the Company had 30,000 shares of Series D Preferred Stock issued and outstanding.
No shares of Series D Preferred Stock have been issued or canceled since. As at June 30, 2023, the Company had a total of 6,030,000 shares of Preferred Stock issued and outstanding.
Common Stock
On February 13, 2014, May 2, 2013 and August 31, 2012, the Company affected one-for-one hundred, one-for-fifty and one-for-seventy reverse stock splits, respectively, collectively referred to as the Stock Splits. Unless otherwise noted, all impacted amounts included in the consolidated financial statements and notes thereto have been retroactively adjusted for the Stock Splits. Unless otherwise noted, impacted amounts include shares of common stock authorized and outstanding, share issuances and cancellations, shares underlying preferred stock, convertible notes, warrants and stock options, shares reserved conversion prices of convertible securities, exercise prices of warrants and options, and loss per share.
As at July 1, 2021, the Company was authorized to issue up to 4,500,000,000 shares of Common Stock with a par value of $0.0001 per share. On March 14, 2022, the Company reduced the authorized common stock share capital by 2,700,000,000 to 1,800,000,000. On February 1, 2023, the authorized share capital was increased to 3,000,000,000.
As at June 30, 2023, the Company is authorized to issue up to 3,000,000,000 shares of Common Stock with par value of $0.0001 per share.
As at July 1, 2021, the Company had 4,003,444,252 shares of Common Stock issued and outstanding.
On January 11, 2022 the Company bought back and canceled 2,500,000,000 shares of Common Stock from various shareholders.
On August 2, 2022 the Company issued 55,000,000 shares of Common Stock to a debt holder for debt conversion of $55,000, or $.001 per share.
On November 28, 2022 the Company issued 150,000,000 shares of Common Stock to a debt holder for debt conversion of $15,000, o r $.0001 per share. On February 21, 2023 the Company issued 150,000,000 shares of Common Stock to a debt holder for debt conversion of $15,000, or $.0001 per share. On March 6, 2023 the Company issued 180,000,000 shares of Common Stock to a debt holder for debt conversion of $18,000, or $.0001 per share.
As at June 30, 2023, there were 2,038,444,252 shares of Common Stock issued and outstanding.
NOTE 10. DERIVATIVE LIABILITIES
The Company applies the provisions of ASC Topic 815-40, Contracts in Entity’s Own Equity (“ASC Topic 815-40”), under which convertible instruments, which contain terms that protect holders from declines in the stock price (reset provisions), may not be exempt from derivative accounting treatment. As a result, embedded conversion options in convertible debt are recorded as a liability and are revalued at fair value at each reporting date. If the fair value of the note exceeds the face value of the related debt, the excess is recorded as change in fair value in operations on the issuance date.
The Company identified embedded derivatives related to the Convertible Loan Notes issued on August 1, 2021, September 14, 2021 and September 24, 2021 totaling $95,592. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Notes and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Notes, the Company determined a fair value for the embedded derivative using the Black Scholes Model based on the following assumptions, and applied during the period ended September 30, 2021:
Dividend yield 0.00%
Volatility 122.66-196.14%
Risk-free rate 0.65-0.93%
The initial fair value of the embedded debt derivative was $3,840,375. The proceeds of the note of $95,592 were allocated as a debt discount. The amount in excess of the proceeds of the loan notes of $3,744,783 was charged as interest to the Statement of Operations for the period.
The Company identified embedded derivatives related to the Convertible Loan Notes issued on October 12, 2021, October 26, 2021, November 18, 2021 and December 17, 2021, totaling $67,070. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Notes and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Notes, the Company determined a fair value for the embedded derivative using the Black Scholes Model based on the following assumptions, and applied during the period ended December 31, 2021:
Page F-14

Dividend yield 0.00%
Volatility
165.23-349.53%
Risk-free rate 1.06-1.24%
The initial fair value of the embedded debt derivatives was $1,917,872. The proceeds of the notes of $67,070 were allocated as a debt discount. The amount in excess of the proceeds of the loan notes of $1,850,802 was charged as interest to the Statement of Operations for the period.
The Company identified embedded derivatives related to the Convertible Loan Notes issued on April 1, 2022 and June 30, 2022, totaling $45,151. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Notes and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Notes, the Company determined a fair value for the embedded derivative using the Black Scholes Model based on the following assumptions, and applied during the period ended June 30, 2022:
The initial fair value of the embedded debt derivatives was $801,175. The proceeds of the notes of $45,151 were allocated as a debt discount. The amount in excess of the proceeds of the loan notes of $756,024 was charged as interest to the Statement of Operations for the period.
The Company identified embedded derivatives related to the Convertible Loan Notes issued on or around December 15, 2022, totaling $26,000. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Notes and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Notes, the Company determined a fair value for the embedded derivative using the Black Scholes Model based on the following assumptions, and applied during the period ended December 31, 2022:
The initial fair value of the embedded debt derivatives was $363,659. The proceeds of the notes of $26,000 were allocated as a debt discount. The amount in excess of the proceeds of the loan notes of $337,659 was charged as interest to the Statement of Operations for the period.
The Company identified embedded derivatives related to the Convertible Loan Notes issued on or around January 9, 2023, totali ng $36,100. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Notes and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Notes, the Company determined a fair value for the embedded derivative using the Black Scholes Model based on the following assumptions, and applied during the period ended March 31, 2032:
The initial fair value of the embedded debt derivatives was $504,989. The proceeds of the notes of $36,100 were allocated as a debt discount. The amount in excess of the proceeds of the loan notes of $468,889 was charged as interest to the Statement of Operations for the period.
The fair value of the embedded debt derivative was reviewed at March 31, 2023, using the following inputs:
The fair value of the embedded debt derivative at March 31, 2023 was $2,488,991, a decrease in the valuation of the embedded debt derivative of $1,071,093 for the period.
Dividend yield 0.00%
Volatility 88.15-104.91%
Risk-free rate 2.42-3.15%
Dividend yield 0.00%
Volatility 162.28%
Risk-free rate 3.65%
Dividend yield 0.00%
Volatility 165.17%
Risk-free rate 3.65%
Dividend yield
0.00%
Volatility
165.66%
Risk-free rate
3.66%
The following table provides a summary of changes in fair value of the Company’s Level 3 derivative liabilities as at June 30, 2023:
Balance, beginning of period $ 2,691,436
Additions 868,648
Mark-to-market at modification date (1,071,093)
Reclassified to additional paid-in capital upon modification of term -
Balance, June 30, 2023 $ 2,488,991
Net gain due to change in fair value for the period included in statement of operations $ 1,071,093
June 30, 2023,
June 30, 2022,
6,559,422
(3,867,986)
-
2,691,436
3,867,986
$
$
$
-
Page F-15

This mark-to-market decrease of $1,071,093 for the year ending June 30, 2023 was charged to the statement of operations as a gain on change in value of derivative liabilities.
NOTE 11. INCOME TAXES
The Company uses the assets and liability method of accounting for income taxes pursuant to SFAS No. 109 “Accounting for Income Taxes”. Under the assets and liability method of SFAS No. 109, deferred tax assets and liabilities are recognized for the future tax consequences attributable to temporary differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be re covered or settled.
In June 2006, the FASB issued FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes.” Specifically, the pronouncement prescribes a recognition threshold and a measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken from year ended December 31, 2015 tax return onwards. The interpretation also provides guidance on the related derecognition, classification, interest and penalties, accounting for interim periods, disclosure and transition of uncertain tax positions. The Company adopted this interpretation effective on inception.
For the year ended June 30, 2023, the Company had available for US federal income tax purposes net operating loss carryovers of $46,290,967, all of which will expire by 2042.
The Company has provided a full valuation allowance against the full amount of the net operating loss benefit, since, in the opinion of management, based upon the earnings history of the Company, it is more likely than not that the benefits will not be realized.
June 30, 2023
Statutory state income tax rate 0.00% Effective tax rate 0.00%
June 30, 2022
0.00%
0.00%
Statutory federal income tax rate
21.00% 21.00%
Valuation allowance
(21.00%) (21.00%)
Deferred income taxes result from temporary differences in the recognition of income and expenses for financial reporting purposes and for tax purposes. The tax effect of these temporary differences representing deferred tax assets result principally from the following:
Deferred Tax Assets (Gross Values)
Net operating loss carry forward
Less valuation allowance Net deferred tax asset
NOTE 12. RELATED PARTY TRANSACTIONS
There were multiple related party transactions during the year ending June 30, 2023 and year ending June 30, 2022. During both years, the Company's CEO paid various expenses and the balance is noted in related party loans.
NOTE 13. COMMITMENTS AND CONTINGENCIES
June 30, June 30, 2023 2022
$ (43,830,151) $ (43,708,678)
43,830,151 43,708,678 $ - $ -
Owing to the various activities and multiple changes to the Company over the past several years, there are significant contingent assets and liabilities as at June 30, 2023 and June 30, 2022.
Contingent Assets
Numerous music releases have been made by the Company's subsidiary, Seven Arts Music ('SAM'), from which royalties due to the Company have been generated. However, these royalties have not been received by the Company and the Company's management has instigated an investigation to determine where these royalties have been directed. In consequence, the Company has not been able to recognize these royalties as revenues and the royalties, as yet unquantified, remain a contingent asset until their whereabouts can be determined. The following releases are such assets of the Company:
- the DMX and Machine Gun Kelly single release on August 7, 2012, titled 'I Don't Dance'; - the DMX album release on September 12, 2012, titled 'Undisputed';
- the Bone Thugs-N-Harmony album release on December 13, 2013, titled 'Art of War';
- the DMX compilation album release on January 13, 2015, titled 'Redemption of the Beast'; - the DMX compilation album release on January 13, 2015, titled 'Redemption of the Beast'; - the soundtrack album release on October 19, 2018 for the film 'London Fields'.
Page F-16

Legal Action
From time to time, the Company is subject to legal action that may be taken by third parties against the Company, or that may involve the Company in some way. Many such actions are insignificant and considered to be a part of the Company's daily activities; however, there are two actions that are of a significance to be disclosed:
US -v- Peter Hoffman
In February 2014, the Company's former CEO, Peter Hoffman, was indicted by Federal prosecutors on charges of mail and wire fraud for a tax scheme regarding the Louisiana Motion Picture Incentive Act. Following his conviction in April 2015, and a subsequent series of appeals, Mr. Hoffman ultimately had his sentence reduced to 20 months, which also continues to be subject to appeal. It is believed that there is no related liability to be borne by the Company in connection with this matter.
Arrowhead Capital Finance Ltd -v- the Company
In 2016, Arrowhead Capital Finance Ltd ('Arrowhead') sued the Company in the US District Court of New York (the 'Court') for loans due in 2009 from Seven Arts Pictures Ltd, the Company's predecessor. On January 3, 2020, the Court found the Company liable and awarded Arrowhead a judgement of $2,496,160, plus interest at a rate of 9% per annum on the outstanding principal balance, until paid and accruing since June 5, 2018. The Company recognized a liability of $2,496,160 on its balance sheet as of June 5, 2018, with interest applied on the principal at 9% since that date, and recognized as a cost in the Company's Statement of Operations.
George Sharp -v- the Company
In July of 2021, following a series of online slanders made against the issuer, George Sharp, an OTC CEO, described in social media as a "failed stock promoter" and a "litigious penny stock gadfly", with an extensive history of filing civil claims against public companies, initiated a lawsuit against the issuer in San Diego Superior Court. The matter remains pending and the issuer will continue to vigorously defend against Mr. Sharp's actions.
NOTE 14. SUBSEQUENT EVENTS
On July 22, 2023, the Company entered into a joint venture agreement with THC Music & Films, an entity controlled by the Company's director, Thom Hazaert, to develop various media assets.
Page F-17