Convertible Notes Payable (Tables)

6 Months Ended

Dec. 31, 2015

Convertible Notes Payable Tables

Schedule of Assumptions Used in Valuation of Derivatives

For purpose of determining the fair market value of the derivative liability, the Company used Black Scholes option valuation model. The significant assumptions used in the Black Scholes valuation of the derivative are as follows:

Stock price on the valuation dates	$	0.0168
Conversion price for the debt	$	0.004 - 0.0085
Dividend yield		0	%
Months to maturity		12 - 18 months
Risk free rate		0.33% - 0.69%
Expected volatility		88.74% - 193.77%

Schedule of Maturity of Convertible Notes Payable

Following is the five year maturity schedule for our convertible notes payable:

Year ended June 30,	Amount Due
2016	$	835,909
2017	$	397,793
2018	$	—
2019	$	—
2020	$	—

Schedule of Fair Value Assets and Liabilities Measured on Recurring Basis

Assets and liabilities measured at fair value on a recurring basis are as follows at June 30, 2015:

	Total		(Level 1)		(Level 2)		(Level 3)
Assets	$	—	$	—	$	—	$	—
Total assets measured at fair value	$	—	$	—	$	—	$	—
Liabilities
Derivative liability		1,951,201		—		—		1,951,201
Total liabilities measured at fair value	$	1,951,201	$	—	$	—	$	1,951,201

Schedule of Reconcilation of Derivative Liability

The following is a reconciliation of the derivative liability for which Level 3 inputs were used in determining the approximate fair value:

Beginning balance as of July 1, 2015	$	1,951,201
Fair value on issuance of debt		426,500
Change on settlement of debt		(5,636,592	)
Loss on change in derivative liability		3,258,891
Ending balance as of December 31, 2015	$	—