Derivative Liabilities

12 Months Ended

Jun. 30, 2015

Derivative Liabilities

Derivative Liabilities

6. Derivative liabilities

The derivative liability is derived from the conversion features in note 5 and stock warrant in note 7. All were valued using the weighted-average Black-Scholes-Merton option pricing model using the assumptions detailed below. As of June 30, 2015 and 2014, the derivative liability was $304,000 and $228,237, respectively. The Company recorded $82,737 loss and $90,662 gain from changes in derivative liability during the years ended June 30, 2015 and 2014, respectively. The Black-Scholes model with the following assumption inputs:

	June 30, 2015			June 30, 2014
Annual dividend yield		—			—
Expected life (years)		0.99			0.41 – 2.15
Risk-free interest rate		0.27	%		0.14% - 0.19%
Expected volatility		377	%		66% - 147%