Derivative Liabilities

9 Months Ended

Mar. 31, 2019

Derivative Liabilities

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