Annual report pursuant to Section 13 and 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)

DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Jun. 30, 2015

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

Warrants

	Initial
	Valuation
	September 30,
	2013		June 30, 2014		June 30, 2015
Volatility	53	%	134	%	408	%
Expected remaining term	5		4.25		3.25
Risk-free interest rate	0.4	%	0.47	%	1.63	%
Expected dividend yield	None		None		None

Convertible Debt

	Initial Valuations		June 30, 2015
Volatility	216 - 377	%	408	%
Expected remaining term	0.83 – 2.00		0.82 – 1.70
Risk-free interest rate	0.5 – 0.7	%	0.64	%
Expected dividend yield	None		None

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2015 and 2014:

	Balance at		Quoted Prices		Significant
	June		in Active		Other		Significant
	30,		Markets for		Observable		Unobservable
	2015		Identical Assets		Inputs		Inputs
			(Level 1)		(Level 2)		(Level 3)

Embedded conversion option liabilities	$	780,281	$	—	$	—	$	780,281
Fair value of liability for warrant derivative instruments	$	269,648	$	—	$	—	$	269,648
Total	$	1,049,929	$	—	$	—	$	1,049,929

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2014:

Balance at

Quoted Prices

Significant

June

in Active

Other

Significant

30,

Markets for

Observable

Unobservable

2014

Identical Assets

Inputs

(Level 1)

(Level 2)

(Level 3)

Fair value of liability for warrant derivative instruments

158,244

—

158,244

Schedule of Derivative Liabilities at Fair Value [Table Text Block]

The following is a roll forward for the years ended June 30, 2015 and 2014 of the fair value liability of price adjustable derivative instruments:

	Fair Value of
	Liability for
	Derivative
	Instruments

Balance at June 30, 2013	$	-
Effects of foreign currency exchange rate changes		(2,519)
Initial fair value of embedded conversion option derivative liability recorded as debt discount		144,241
Change in fair value included in statements of operations		16,522
Balance at June 30, 2014		158,244
Effects of foreign currency exchange rate changes		(42,796)
Initial fair value of embedded conversion option derivative liability recorded as debt discount		392,500
Initial fair value of embedded conversion option derivative liability recorded as change in fair value of ECO		1,082,567
Change in fair value included in statements of operations		(540,586)
Balance at June 30, 2015	$	1,049,929