Annual report pursuant to Section 13 and 15(d)

Derivative Financial Instruments and Fair Value Measurements (Tables)

v3.10.0.1
Derivative Financial Instruments and Fair Value Measurements (Tables)
12 Months Ended
Jun. 30, 2018
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, 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  

 

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of June 30, 2017:

 

   
Balance at
June 30, 2017
    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   $ 877,403     $     $     $ 877,403  
Fair value of liability for warrant derivative instruments   $ 3,769     $     $     $ 3,769  
Total   $ 881,172     $     $     $ 881,172  

Schedule of Derivative Liabilities at Fair Value

The following is a roll forward for the years ended June 30, 2018 and 2017 of the fair value liability of price adjustable derivative instruments:

 

    Fair Value of  
    Liability for  
    Derivative  
    Instruments  
Balance at June 30, 2016   $ 1,050,182  
Effects of foreign currency exchange rate changes     1,143  
Initial fair value of embedded conversion option derivative liability recorded as debt discount     650,000  
Initial fair value of embedded conversion option derivative liability recorded as change in fair value of embedded conversion option     214,758  
Change in fair value included in statements of operations     (1,034,911 )
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  

Warrants [Member]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

Warrants

 

             
    June 30, 2017     June 30, 2018  
Volatility     137 %     110 %
Expected remaining term     1.25       .25  
Risk-free interest rate     1.24 %     1.93 %
Expected dividend yield     None       None  

Convertible Debt [Member]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

Convertible Debt

 

    Initial
Valuations
    June 30, 2017     June 30, 2018  
Volatility   139 - 198 %     66-175 %     191 - 221 %
Expected remaining term   1.00 – 2.00       .21 - 1.63       .56 - 1.1  
Risk-free interest rate   1.33 – 2.31 %     1.03 - 1.24 %     2.11 - 2.33 %
Expected dividend yield   None       None       None