| Derivative Liabilities [Text Block] |
| 10. |
Derivative liabilities |
The derivative liability
is derived from the conversion features in note 9 and stock warrant in note 11. All were valued using the Binomial option pricing
model using the assumptions detailed below. As of March 31, 2019 and June 30, 2018, the derivative liability was $2,541,563 and
$3,069,616, respectively. The Company recorded $4,171,698 and$1,384,423 loss from changes in derivative liability during the nine
months ended March 31, 2019 and 2018, respectively. The Binomial Option Price Model with the following assumption inputs:
| |
|
March 31, 2019 |
|
| Annual dividend yield |
|
|
— |
|
| Expected life (years) |
|
|
0.5-1.00 |
|
| Risk-free interest rate |
|
|
2.40-2.64 |
% |
| Expected volatility |
|
|
118-150 |
% |
| |
|
December 31, 2018 |
|
| Annual dividend yield |
|
|
— |
|
| Expected life (years) |
|
|
0.5-1.00 |
|
| Risk-free interest rate |
|
|
2.49-2.72 |
% |
| Expected volatility |
|
|
118-175 |
% |
| |
|
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 |
|
| Additions |
|
|
865,503 |
|
| Mark to Market |
|
|
2,019,927 |
|
| Reclassification to APIC due to conversions |
|
|
(3,574,808 |
) |
| Balance, December 31, 2018 |
|
$ |
1,734,338 |
|
| Additions |
|
|
583,103 |
|
| Mark to Market |
|
|
510,315 |
|
| Reclassification to APIC due to conversions |
|
|
(286,193 |
) |
| Balance, March 31, 2019 |
|
$ |
2,541,563 |
|
|