DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Dec. 31, 2016

The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2016:

			Quoted Prices		Significant
	Balance at		in Active		Other		Significant
	December 31,		Markets for		Observable		Unobservable
	2016		Identical Assets		Inputs		Inputs
			(Level 1)		(Level 2)		(Level 3)

Embedded conversion option liabilities	$	1,100,368	$	—	$	—	$	1,100,368
Fair value of liability for warrant derivative instruments	$	19,543	$	—	$	—	$	19,543
Total	$	1,119,911	$	—	$	—	$	1,119,911

The following is a roll forward for the six months ended December 31, 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		122
Initial fair value of embedded conversion option derivative liability recorded as debt discount		400,000
Initial fair value of embedded conversion option derivative liability recorded as change in fair value of embedded conversion option		55,342
Change in fair value included in statements of operations		(385,735)
Balance at December 31, 2016	$	1,119,911

Warrants

	December 31,
	2016
Volatility		174	%
Expected remaining term (in years)		1.75
Risk-free interest rate		1.2	%
Expected dividend yield		None

Convertible Debt

	Initial Valuations
	(on new
	derivative
	instruments
	entered into
	during
	the six months
	ended December 31,			December 31,
	2016)			2016
Volatility		135% - 261	%	126.7% – 247.77%
Expected Remaining Term (in years)		1.00 - 2.00		.16 - 1.88
Risk Free Interest Rate		.63% - 1.07	%	0.85% - 1.2%
Expected dividend yield		None		None