Derivative Liabilities

12 Months Ended

Jun. 30, 2020

Derivative Liabilities

Derivative Liabilities [Text Block]

19.                   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, 2020 and 2019, the derivative liability was $5,597,095 and $2,991,953, respectively. The Company recorded $1,442,295 and $4,191,727 loss from changes in derivative liability during the year ended June 30, 2020 and 2019, respectively. The Binomial model with the following assumption inputs:

	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	%
		June 30, 2020
Annual Dividend Yield		—
Expected Life (Years)		0.50-1.00
Risk-Free Interest Rate		0.16-2.10	%
Expected Volatility		113-175	%

Fair value of the derivative is summarized as below:

Beginning Balance, June 30, 2019	$	2,991,953
Additions	$	4,522,428
Mark to Market	$	1,442,295
Cancellation of Derivative Liabilities Due to Cash Repayment	$	(345,582	)
Reclassification to APIC Due to Conversions	$	(3,013,999	)
Ending Balance, June 30, 2020		5,597,095