DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Sep. 30, 2016

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of September 30, 2016:

			Quoted Prices		Significant
	Balance at		in Active		Other		Significant
	September 30,		Markets for		Observable		Unobservable
	2016		Identical Assets		Inputs		Inputs
			(Level 1)		(Level 2)		(Level 3)

Embedded conversion option liabilities	$	795,658	$	—	$	—	$	795,658
Fair value of liability for warrant derivative instruments	$	36,934	$	—	$	—	$	36,934
Total	$	832,592	$	—	$	—	$	832,592

The following is a roll forward for the three months ended September 30, 2016 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		1,783
Initial fair value of embedded conversion option derivative liability recorded as debt discount		150,000
Initial fair value of embedded conversion option derivative liability recorded as change in fair value of embedded conversion option		49,585
Change in fair value included in statements of operations		(418,958)
Balance at September 30, 2016	$	832,592

Warrants

			September 30, 2016
Volatility			270%
Expected remaining term (in years)			2.00
Risk-free interest rate			1.14%
Expected dividend yield			None

Convertible Debt

	Initial Valuations
	(on new
	derivative
	instruments
	entered into during
	the three months		September 30,
	ended September 30, 2016)		2016
Volatility		135%		76% – 135%
Expected Remaining Term (in years)		1.00		.41 - .95
Risk Free Interest Rate		0.63%		0.59%
Expected dividend yield		None		None