Quarterly report pursuant to Section 13 or 15(d)

DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)

v2.4.1.9
DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)
6 Months Ended
Dec. 31, 2014
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The Company measures and reports at fair value the liability for derivative instruments. The fair value liabilities for price adjustable warrants and embedded conversion options have been recorded as determined utilizing the BSM option pricing model. The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2014:
 
 
 
Balance at
 
Quoted Prices
 
Significant
 
 
 
 
 
December
 
in Active
 
Other
 
Significant
 
 
 
31,
 
Markets for
 
Observable
 
Unobservable
 
 
 
2014
 
Identical Assets
 
Inputs
 
Inputs
 
 
 
 
 
(Level 1)
 
(Level 2)
 
(Level 3)
 
 
 
 
 
 
 
 
 
 
 
Embedded conversion option liability
 
$
49,640
 
$
 
$
 
$
49,640
 
Fair value of liability for warrant derivative instruments
 
$
4,339
 
$
 
$
 
$
4,339
 
Total
 
$
53,979
 
 
 
 
 
 
 
$
53,979
 
Schedule of Derivative Liabilities at Fair Value [Table Text Block]
The following is a roll forward for the six months ended December 31, 2014 of the fair value liability of price adjustable derivative instruments:
 
 
 
Fair Value of
 
 
 
Liability for
 
 
 
Derivative
 
 
 
Instruments
 
 
 
 
 
Balance at June 30, 2014
 
$
158,244
 
Effects of foreign currency exchange rate changes
 
 
(32,958)
 
Initial fair value of embedded conversion option recorded as debt discount
 
 
27,500
 
Initial fair value of embedded conversion option recorded as change in fair value of ECO
 
 
23,935
 
Change in fair value included in statements of operations
 
 
(122,742)
 
Balance at December 31, 2014
 
$
53,979
 
Convertible Debt [Member]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
Convertible Debt
 
 
 
Initial Valuation
 
December
 
 
 
August 6,
 
31,
 
 
 
2014
 
2014
 
Volatility
 
216
%
271
%
Expected remaining term
 
2
 
1.6
 
Risk-free interest rate
 
0.5
%
0.6
%
Expected dividend yield
 
none
 
none
 
Warrant [Member]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]
Warrants
 
 
 
Initial Valuation
 
December
 
 
 
September 30,
 
31,
 
 
 
2013
 
2014
 
Volatility
 
53
%
271
%
Expected remaining term
 
5
 
3.75
 
Risk-free interest rate
 
0.4
%
1.78
%
Expected dividend yield
 
none
 
none