Quarterly report pursuant to Section 13 or 15(d)

Derivative Liabilities (Tables)

v3.10.0.1
Derivative Liabilities (Tables)
3 Months Ended
Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of assumptions used in valuation model

    September 30,     June 30,  
    2018     2018  
Common stock issuable upon exercise of warrants     2,574,570       2,574,570  
Market value of common stock on measurement date   $ 1.12     $ 1.01  
Exercise price   $ 7.50 and $11.25     $ 7.50 and $11.25  
Risk free interest rate (1)     2.50 %     2.33 %
Expected life in years   $ 0.69     $ 0.95  
Expected volatility (2)     125 %     102 %
Expected dividend yields (3)     None        None  

 

(1) The risk-free interest rate was determined by management using the applicable Treasury Bill as of the measurement date.
(2) The historical trading volatility was determined by calculating the volatility of the Company’s stock at September 30, 2018 and June 30, 2018.
(3) The Company does not expect to pay a dividend in the foreseeable future.
Schedule of fair value on a recurring basis

    Markets for
Identical
Assets
    Other
Observable
Inputs
    Significant
Unobservable
Inputs
    Carrying
Value as of
September 30,
 
Description   (Level 1)     (Level 2)     (Level 3)     2018  
Derivative liabilities - warrant instruments   $        -     $         -     $ 59,397     $ 59,397  
Derivative liability – embedded redemption feature  of promissory notes     -       -       4,453,778       4,453,778  
    $ -     $ -     $ 4,513,175     $ 4,513,175  

 

    Markets for
Identical
Assets
    Other
Observable
Inputs
    Significant
Unobservable
Inputs
    Carrying
Value as of
June 30,
 
Description   (Level 1)     (Level 2)     (Level 3)     2018  
Derivative liability – warrant instruments   $       -     $          -     $ 30,526     $ 30,526  
Derivative liabilities – embedded redemption feature  of promissory notes     -       -       4,164,108       4,164,108  
    $ -     $ -     $ 4,194,634     $ 4,194,634  

Schedule of reconciliation of changes in the fair value of financial liabilities

    Significant Unobservable
Inputs (Level 3)
 
    September 30,     September 30,  
    2018     2017  
Beginning balance   $ 4,194,634     $ 175,853  
Fair value of derivative liabilities for redemption feature of promissory notes payable     289,670       2,336,456  
Change in fair value of derivative liabilities - warrants     28,871       5,702  
Ending balance   $ 4,513,175     $ 2,518,011