Derivative Liabilities

12 Months Ended

Jun. 30, 2019

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, 2019 and 2018, the derivative liability was $2,991,953 and $3,069,616, respectively. The Company recorded $4,191,727 and $525,394 loss from changes in derivative liability during the year ended June 30, 2019 and 2018, respectively. 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, 2019
Annual Dividend Yield		—
Expected Life (Years)		0.50-1.00
Risk-Free Interest Rate		1.92-2.64	%
Expected Volatility		87-150	%

Fair value of the derivative is summarized as below:

Beginning Balance, June 30, 2018	$	3,069,616
Additions	$	3,217,870
Mark to Market	$	4,040,238
Reclassification to APIC Due to Conversions	$	(7,335,771	)
Ending Balance, June 30, 2019		2,991,953