Derivative Liabilities

9 Months Ended

Mar. 31, 2020

Derivative Liabilities

Derivative Liabilities [Text Block]

13. 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, 2020 and June 30, 2019, the derivative liability was $3,706,809 and $2,991,953, respectively. The Company recorded $2,075,982 gain and $3,661,383 loss from changes in derivative liability during the nine months ended March 31, 2020 and 2019, respectively. The Binomial Option Price Model with the following assumption inputs:

	March 31, 2020
Annual dividend yield		—
Expected life (years)		0.5-1.00
Risk-free interest rate		0.15-2.09	%
Expected volatility		118-153	%

	June 30, 2019
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		3,999,033
Mark to Market		(2,075,982	)
Reclassification to APIC due to conversions		(1,260,333	)
Balance, March 31, 2020	$	3,706,809