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, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques

The expected term is equal to the remaining term of the warrants or convertible instruments and the risk free rate is based upon rates for treasury securities with the same term.

Convertible Debt

	Initial Valuations			June 30, 2020			June 30, 2019
Volatility		227- 279	%		264	%		355	%
Expected remaining term		1.00			0.01 – 0.70			0.11 - 0.90
Risk-free interest rate		1.53 – 1.59	%		0.13 – 0.18	%		1.92 - 2.15	%
Expected dividend yield		None			None			None

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, 2020:

	Balance at June 30, 2020		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	$	177,009	$	—	$	—	$	177,009
Total	$	177,009	$	—	$	—	$	177,009

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

Schedule of Derivative Liabilities at Fair Value

The following is a roll forward for the years ended June 30, 2020 and 2019 of the fair value liability of price adjustable derivative instruments:

	Fair Value of
	Liability for
	Derivative
	Instruments
Balance at June 30, 2018	$	371,532
Effects of foreign currency exchange rate changes		-
Reductions due to conversions		(1,388,764	)
Reductions due to repayment of debt		(936,650	)
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
Reductions due to conversions		(362,962	)
Initial fair value of embedded conversion option derivative liability recorded as debt discount		227,000
Initial fair value of embedded conversion option derivative liability recorded as derivative expense		351,461
Change in fair value included in derivative expense (income) in the statement of operations		(736,754	)
Balance at June 30, 2020	$	177,009