Stock warrants

9 Months Ended

Mar. 31, 2019

Notes to Financial Statements

Stock warrants

11. Stock warrants

On various dates during June 2014 and December 2014 the Company and holders of certain convertible notes agreed to cancel warrants to purchase common shares in the Company and to extend the due dates on the Notes to July 1, 2016. $0.50 warrants and “Bonus Warrants” priced at $0.01, as defined in the original Convertible Note Purchase Agreements we cancelled pertaining to the Note and warrants acquired on the following dates for the following Convertible Notes and amounts. These warrants were expired on July 1, 2016.

On May 17, 2017, the Company entered a promissory note with an accredited investor for a total amount of $1,375,000 (after $10,000 legal and due diligence fee) with an OID of $125,000, the note will be fulfilled through a series of funding. In connection with the note, the investor will also receive warrants and is calculated based on 15% of the maturity amount. The warrants have a life of four years with an exercise price of $0.15 per share and have cashless exercise option. The fair value of the warrants at the grant date was $40,400. As of March 31, 2019 and June 30, 2018, the fair value of the warrant liability was $9,090 and $40,400, respectively.

On September 7, 2018, the Company entered a settlement agreement with several investors to settle all disputes by issues additional unrestricted shares. In connection with the note each individual investor will also receive warrants equal to the number of the shares the investors own as of the effective date of the settlement agreement. The warrants have a life of five years with an exercise price as of the date of exchange. The fair value of the warrants at the grant date was $56,730. As of March 31, 2019 and June 30, 2018, the fair value of the warrant liability was $30,102 and $0, respectively.

As of March 31, 2019 and June 30, 2018, the total fair value of the warrant liability was $39,192 and $40,400, respectively.

The Binomial Option Price Model with the following assumption inputs:

Warrants liability	March 31, 2019
Annual dividend yield		—
Expected life (years)		0.5-5
Risk-free interest rate		2.23%-2.82	%
Expected volatility		119%-393	%
	June 30, 2018
Warrants issued in May 2017
Annual dividend yield		—
Expected life (years)		0.5
Risk-free interest rate		2.06	%
Expected volatility		151	%

Below is the movement of warrants for the period ending March 31, 2019:

	Number of  Shares		Weighted Average  Exercise Price		Weighted Average Remaining contractual life
Outstanding at June 30, 2016		131,250	$	0.20
Expired		131,250		0.20		4.00
Granted		505,000	$	0.15		3.86
Outstanding at June 30, 2017		505,000		0.20
Exercised		—		—
Granted		—	$	—
Outstanding at June 30, 2018		505,000	$	0.15		0.50
Granted		578,880		0.08		5.00
Exercised		—		—
Outstanding at March 31, 2019		1,083,880	$	0.15		0.50