Quarterly report pursuant to Section 13 or 15(d)

Derivative Liabilities (Tables)

v3.19.1
Derivative Liabilities (Tables)
9 Months Ended
Mar. 31, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of assumptions used in valuation model
    June 30,  
    2018  
Common stock issuable upon exercise of warrants     2,574,570  
Market value of common stock on measurement date   $ 1.01  
Exercise price     $7.50 and $11.25  
Risk free interest rate (1)     2.33 %
Expected life in years   $ 0.95  
Expected volatility (2)     102 %
Expected dividend yields (3)     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.
(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
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

    Nine months ended  
    March 31,     March 31,  
    2019     2018  
Beginning balance   $ 4,194,634     $ 175,853  
Adoption of ASU 2017-11 – warrants     (59,397 )     -  
Fair value of derivative liabilities for redemption feature of promissory notes payable     -       3,862,095  
Change in fair value of derivative liabilities     54,634       (80,542 )
Extinguishment of derivative liabilities on conversion of promissory notes.     (4,189,871 )     -  
Ending balance   $ -     $ 3,957,406