Derivative Liabilities

6 Months Ended

Dec. 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 December 31, 2019 and June 30, 2019, the derivative liability was $3,259,345 and $2,991,953, respectively. The Company recorded $2,314,046 gain and $,3,661,383 loss from changes in derivative liability during the six months ended December 31, 2019 and 2018, respectively. The Binomial Option Price Model with the following assumption inputs:

	December 31, 2019
Annual dividend yield		—
Expected life (years)		0.5-1.00
Risk-free interest rate		1.51-2.09	%
Expected volatility		121-153	%

	December 31, 2018
Annual dividend yield		—
Expected life (years)		0.5-1.00
Risk-free interest rate		2.49-2.72	%
Expected volatility		87-123	%

Fair value of the derivative is summarized as below:

Beginning Balance, June 30, 2019	$2,991,953
Additions	3,538,927
Mark to Market	2,314,089
Reclassification to APIC due to conversions	(957,488)
Balance, December 31, 2019	$3,259,345