Derivative Financial Instruments and Fair Value Measurements
|6 Months Ended|
Dec. 31, 2019
|Derivative Instruments and Hedging Activities Disclosure [Abstract]|
|Derivative Financial Instruments and Fair Value Measurements||
NOTE 10 - DERIVATIVE FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS
Derivative Financial Instruments:
The Company had $216,400 of convertible debt, that contain embedded conversion options and is treated as derivative instruments outstanding at December 31, 2019.
The Company calculates the estimated fair values of the liabilities for derivative instruments using the Binomial Trees Method. The closing price of the Company’s common stock at December 31, 2019, the last trading day of the quarter ended December 31, 2019, was $0.38. Volatility, expected remaining term and risk free interest rates used to estimate the fair value of derivative liabilities at December 31, 2019 are indicated in the table that follows. 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.
Fair Value Measurements:
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 Binomial Trees model. The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2019:
The following is a roll forward for the six months ended December 31, 2019 of the fair value liability of price adjustable derivative instruments:
The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef