Derivative Liabilities

3 Months Ended

Sep. 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 Binomial option pricing model using the assumptions detailed below. As of September 30, 2018 and June 30, 2018, the derivative liability was $2,423,716 and $3,069,616, respectively. The Company recorded $1,641,457 loss and $140,653 loss from changes in derivative liability during the three months ended September 30, 2018 and 2017, respectively. The Binomial Option Price Model with the following assumption inputs:

	September 30, 2018
Annual dividend yield		—
Expected life (years)		0.5-1.00
Risk-free interest rate		2.15-2.37	%
Expected volatility		87-123	%

	June 30, 2018
Annual dividend yield	—
Expected life (years)	0.15-1.00
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, 2018	$	3,069,616
Additions		427,076
Mark to Market		1,641,457
Reclassification to APIC due to conversions		(2,714,433	)
Balance, September 30, 2018	$	2,423,716