Derivative Liabilities

3 Months Ended

Sep. 30, 2020

Derivative Liabilities

Derivative Liabilities [Text Block]

18. 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 September 30, 2020 and June 30, 2020, the derivative liability was $1,416,409 and $5,597,095, respectively. The Company recorded $3,788,146 gain and $1,442,295 loss from changes in derivative liability during the period ended September 30, 2020 and June 30, 2020, respectively. The Binomial model with the following assumption inputs:

	September 30, 2020
Annual dividend yield		—
Expected life (years)		0.5-1.00
Risk-free interest rate		0.09-0.16	%
Expected volatility		89-176	%

	June 30, 2020
Annual dividend yield		—
Expected life (years)		0.5-1.00
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, 2020	$	5,597,097
Additions		1,174,134
Cancellation of Derivative Liabilities Due to Cash Repayment		(228,489	)
Mark to Market		(3,266,657	)
Reclassification to APIC due to conversions		(1,805,189	)
Ending Balance, September 30, 2020	$	1,470,894

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	)
Ending Balance, September 30, 2019	$	3,203,751