DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Mar. 31, 2016

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 31, 2016:

	Balance at		Quoted Prices		Significant
	March		in Active		Other		Significant
	31,		Markets for		Observable		Unobservable
	2016		Identical Assets		Inputs		Inputs
				(Level 1)		(Level 2)		(Level 3)

Embedded conversion option liabilities	$	3,659,506	$	—	$	—	$	3,659,506
Fair value of liability for warrant derivative instruments	$	80,630	$	—	$	—	$	80,630
Total	$	3,740,136	$	—	$	—	$	3,740,136

The following is a roll forward for the nine months ended March 31, 2016 of the fair value liability of price adjustable derivative instruments:

	Fair Value of
	Liability for
	Derivative
	Instruments

Balance at June 30, 2015	$	1,049,929
Effects of foreign currency exchange rate changes		(10,490)
Initial fair value of embedded conversion option derivative liability recorded as debt discount		2,205,925
Initial fair value of embedded conversion option derivative liability recorded as change in fair value of ECO		2,211,529
Change in fair value included in statements of operations		(1,716,757)
Balance at March 31, 2016	$	3,740,136

Warrants

Convertible Debt

	Initial Valuations (on new derivative instruments entered into during the three months ended March 31, 2016)			March 31, 2016
Volatility		217	%		217	%
Expected Remaining Term		0.70			0.58
Risk Free Interest Rate		0.7	%		0.6	%
Expected dividend yield		none			none