Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments and Fair Value Measurements (Tables)

v3.19.3
Derivative Financial Instruments and Fair Value Measurements (Tables)
12 Months Ended
Jun. 30, 2019
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2019:

 

    Balance at
June 30, 2019
   

Quoted

Prices

in Active

Markets for

Identical Assets

   

Significant

Other

Observable Inputs

   

Significant

Unobservable Inputs

 
          (Level 1)     (Level 2)     (Level 3)  
Embedded conversion option liabilities   $ 698,264     $     $     $ 698,264  
Total   $ 698,264     $     $     $ 698,264  

 

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2018:

 

    Balance at
June 30, 2018
   

Quoted

Prices
in Active
Markets for
Identical Assets

    Significant
Other
Observable
Inputs
    Significant
Unobservable
Inputs
 
          (Level 1)     (Level 2)     (Level 3)  
Embedded conversion option liabilities   $ 371,532     $     $     $ 371,532  
Total   $ 371,532     $     $     $ 371,532  
Schedule of Derivative Liabilities at Fair Value

The following is a roll forward for the years ended June 30, 2019 and 2018 of the fair value liability of price adjustable derivative instruments:

 

    Fair Value of  
    Liability for  
    Derivative  
    Instruments  
Balance at June 30, 2017   $ 881,172  
Effects of foreign currency exchange rate changes     38  
Reductions due to conversions     (861,695 )
Reductions due to repayment of debt     (199,339 )
Initial fair value of embedded conversion option derivative liability recorded as debt discount     543,744  
Initial fair value of embedded conversion option derivative liability recorded as change in fair value of embedded conversion option     313,694  
Change in fair value included in statements of operations     (306,082 )
Balance at June 30, 2018     371,532  
Reductions due to repayment of debt     (936,650 )
Reduction due to conversions     (1,388,764 )
Initial fair value of embedded conversion option derivative liability recorded as debt discount     180,000  
Initial fair value of embedded conversion option derivative liability recorded as change in fair value of embedded conversion option     382,944  
Change in fair value included in statements of operations     2,089,202  
Balance at June 30, 2019   $ 698,264  
Warrants [Member]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

Warrants

 

    June 30, 2018     June 30, 2019  
Volatility     110 %     N/A  
Expected remaining term     .25       N/A  
Risk-free interest rate     1.93 %     N/A  
Expected dividend yield     None       N/A  
Convertible Debt [Member]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

Convertible Debt

 

    Initial
Valuations
    June 30, 2018     June 30, 2019  
Volatility   320 %     191 - 221 %     355 %
Expected remaining term   1.00       0.56 - 1.1       0.11 - 0.90  
Risk-free interest rate   2.32 %     2.11 - 2.33 %     1.92 - 2.15 %
Expected dividend yield   None       None       None