Annual report pursuant to Section 13 and 15(d)

Derivative Liabilities (Tables)

v3.10.0.1
Derivative Liabilities (Tables)
12 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair value measurement of financial assets and liabilities using significant unobservable inputs

The table below provides a summary of the changes in fair value, including net transfers in and/or out, of all financial assets and liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3) during the years ended June 30, 2018 and 2017:

 

    Fair Value
Measurement
Using Level 3
Inputs
 
    Total  
Balance, July 1, 2016   $ 1,322,729  
Change in fair value of derivative warrant liabilities     877,490  
Reclassification of derivative liability to additional paid in capital     (2,200,219 )
Balance, June 30, 2017      
Issuance of derivative feature of make whole provision in convertible note     702,900  
Issuance of derivative feature of change in control provision in convertible note     455,900  
Change in fair value of derivative warrant liabilities     (54,099 )
Balance, June 30, 2018   $ 1,104,701  
Schedule of fair value of the derivative feature of the warrant

The fair value of the derivative feature of the warrants on the date of reclassification to equity was calculated using a binomial option model valued with the following weighted average assumptions: 

 

    January 19,
2017
 
Risk free interest rate     1.01 %
Dividend yield     0.00 %
Expected volatility     39 %
Remaining term (years)     3.89 - 4.79  
Schedule of fair value of the derivative features of the convertible note on the issuance dates

The fair value of the derivative features of the convertible note on the issuance dates, and at the balance sheet date were calculated using the with-and-without method, a form of the income approach, valued with the following weighted average assumptions: 

 

   

May 14,

2018

   

June 30,

2018

 
Risk free interest rate     2.85 %     2.73 %
Dividend yield     0.00 %     0.00 %
Expected volatility     40 %     42 %
Remaining term (years)     5.05       4.92