Derivative Liabilities

12 Months Ended

Jun. 30, 2018

Derivative Liabilities

Derivative Liabilities [Text Block]

9.Derivative Liabilities

The derivative liability is derived from the conversion features in note 8 and stock warrant in note 10. All were valued using the weighted-average Binomial option pricing model using the assumptions detailed below. As of June 30, 2018 and 2017, the derivative liability was $3,069,616 and $1,134,000, respectively. The Company recorded $525,394 gain and $437,000 loss from changes in derivative liability during the year ended June 30, 2018 and 2017, respectively. During the year ended June 30, 2018, the Company changed the method to value the fair market value from Black-Scholes to Binomial Option model. The Binomial model with the following assumption inputs:

	June 30, 2018
Annual Dividend Yield		—
Expected Life (Years)		0.15-1.00
Risk-Free Interest Rate		1.13%-2.06	%
Expected Volatility		94%-212	%
		June 30, 2017
Annual Dividend Yield		—
Expected Life (Years)		0.47-1.00
Risk-Free Interest Rate		1.08-2.12	%
Expected Volatility		103-202	%

Fair value of the derivative is summarized as below:

Beginning Balance, June 30, 2017	$	1,134,000
Additions	$	1,913,992
Mark to Market		525,394
Reclassification to APIC Due to Conversions	$	(503,770	)
Ending Balance, June 30, 2018		3,069,616