Derivative Liabilities

3 Months Ended

Sep. 30, 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 September 30, 2019 and June 30, 2019, the derivative liability was $3,203,751 and $2,991,953, respectively. The Company recorded $1,022,878 and $1,641,457 loss from changes in derivative liability during the three months ended September 30, 2019 and 2018, respectively. The Binomial Option Price Model with the following assumption inputs:

	September 30, 2019
Annual dividend yield		—
Expected life (years)		0.5-1.00
Risk-free interest rate		1.74-2.08	%
Expected volatility		113-151	%

	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	%

Fair value of the derivative is summarized as below:

Beginning Balance, June 30, 2019	$2,991,953
Additions	1,894,203
Mark to Market	1,022,879
Reclassification to APIC due to conversions	(659,526)
Balance, September 30, 2018	$3,203,751