Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)

v2.4.1.9
DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)
9 Months Ended
Mar. 31, 2015
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The Company measures and reports at fair value the liability for derivative instruments. The fair value liabilities for price adjustable warrants and embedded conversion options have been recorded as determined utilizing the BSM option pricing model. The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2015:
 
 
 
Balance at
 
Quoted Prices
 
Significant
 
 
 
 
 
 
March
 
in Active
 
Other
 
Significant
 
 
 
31,
 
Markets for
 
Observable
 
Unobservable
 
 
 
2015
 
Identical Assets
 
Inputs
 
Inputs
 
 
 
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Embedded conversion option liability
 
$
101,384
 
$
 
$
 
$
101,384
 
Fair value of liability for warrant derivative instruments
 
$
44,966
 
$
 
$
 
$
44,966
 
Total
 
$
146,350
 
 
 
 
 
 
 
$
146,350
 
Schedule of Derivative Liabilities at Fair Value [Table Text Block]
The following is a roll forward for the nine months ended March 31, 2015 of the fair value liability of price adjustable derivative instruments:
 
 
 
Fair Value of
 
 
 
Liability for
 
 
 
Derivative
 
 
 
Instruments
 
 
 
 
 
 
Balance at June 30, 2014
 
$
158,244
 
Effects of foreign currency exchange rate changes
 
 
(19,454)
 
Initial fair value of embedded conversion option derivative liability recorded as debt discount
 
 
87,500
 
Initial fair value of embedded conversion option derivative liability recorded as change in fair value of ECO
 
 
985,399
 
Change in fair value included in statements of operations
 
 
(1,065,339)
 
Balance at March 31, 2015
 
$
146,350
 
Convertible Debt [Member]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
Convertible Debt
 
 
 
Initial Valuations
 
March 31,
2015
 
Volatility
 
216 - 377
%
271 - 380
%
Expected remaining term
 
2
 
1.35 - 1.95
 
Risk-free interest rate
 
0.5 - 0.7
%
0.56
%
Expected dividend yield
 
None
 
None
 
Warrant [Member]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
Warrants
 
 
 
Initial Valuation
September 30,
2013
 
March 31,
2015
 
Volatility
 
53
%
380
%
Expected remaining term
 
5
 
3.5
 
Risk-free interest rate
 
0.4
%
1.37
%
Expected dividend yield
 
None
 
None