Convertible Promissory Notes | 3 Months Ended |
Sep. 30, 2014 |
Convertible Promissory Notes [Text Block] | ' |
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6. Convertible Promissory Notes |
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Summary of convertible promissory note at September 30, 2014 and June 30, 2014 is as follows: |
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| | June 30, | | | Fair value | | | Fair value | | | Fair value | | | September | |
| | 2014 | | | issued | | | converted | | | repaid | | | 30, 2014 | |
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13-Feb-13 | $ | 461,754 | | $ | - | | $ | (147,469 | ) | $ | - | | $ | 314,285 | |
27-Feb-14 | | 200,000 | | | - | | | (200,000 | ) | | - | | | - | |
27-Feb-14 | | 150,000 | | | - | | | (36,000 | ) | | - | | | 114,000 | |
28-Feb-14 | | 100,000 | | | - | | | (90,250 | ) | | - | | | 9,750 | |
28-Feb-14 | | 200,000 | | | - | | | (45,000 | ) | | - | | | 155,000 | |
28-Feb-14 | | 220,000 | | | - | | | (55,000 | ) | | - | | | 165,000 | |
3-Mar-14 | | 100,000 | | | - | | | (100,000 | ) | | - | | | - | |
3-Mar-14 | | 200,000 | | | - | | | (100,000 | ) | | - | | | 100,000 | |
3-Mar-14 | | 100,000 | | | - | | | (94,810 | ) | | - | | | 5,190 | |
3-Mar-14 | | 230,000 | | | - | | | - | | | - | | | 230,000 | |
3-Mar-14 | | 440,000 | | | - | | | (109,812 | ) | | - | | | 330,188 | |
15-Mar-14 | | 846,154 | | | - | | | (7,692 | ) | | - | | | 838,462 | |
22-Jul-14 | | - | | | 461,538 | | | - | | | | | | 461,538 | |
22-Aug-14 | | - | | | 153,846 | | | - | | | | | | 153,846 | |
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| $ | 3,247,908 | | $ | 615,384 | | $ | (986,033 | ) | $ | - | | $ | 2,877,259 | |
Less: Debt discount | | 2,797,850 | | | | | | | | | | | | 1,934,881 | |
Net Convertible promissory Note | | 450,057 | | | | | | | | | | | | 942,378 | |
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Current portion | $ | 450,057 | | | | | | | | | | | $ | 942,378 | |
Long term portion | $ | - | | | | | | | | | | | $ | - | |
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On February 13, 2013, the Company entered into a securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $1,100,000, at an issuance discount of $100,000 ; resulting in $1,000,000 net proceeds to the Company. |
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As of September 30, 2014, total net proceeds of $675,000 (June 30, 2014 - $675,000) were received with an issuance discount of $67,500 (June 30, 2014 - $67,500) for an aggregate face value of $742,500 (June 30, 2014 - $742,500). During the period ended September 30, 2014, $109,375 (June 30, 2014 - $419,272) in face value of the note including interest was converted to 11,461,697 (June 30, 2014 - 14,164,584) common shares in accordance with the terms of the agreement. |
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There is no guarantee the investor will make additional payments. The note of $314,286 is due on February 13, 2016 and carries a one-time interest rate of 5% over the term of note, with an effective interest rate of 171.61% . The note is convertible at the lower of $0.25 and 70% of the lowest reported sales price of the common stock for the 20 days immediately prior to conversion date subject to various prescribed conditions. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $1,060,714. During the period ended September 30, 2014, an interest expense of $5,977 (June 30, 2014 - $7,409) was accrued. |
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Effective February 27, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $100,000 due on August 27, 2014 and carries an interest rate of 12% per annum over the term of note, with an effective interest rate of 1220.64% . The note is convertible at the lower of 50% discount to the average of the three lowest bids on the 20 days before the date this note executed and 50% discount to the average of the three lowest bids during the 20 days prior to conversion date subject to various prescribed conditions. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $200,000. During the period ended September 30, 2014, $105,984 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 10,390,546 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. The note was fully converted during the period. |
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Effective February 28, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $50,000 due on August 28, 2015 and carries a one-time interest rate of 15% over the term of note, with an effective interest rate of 268.24% . The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $100,000. During the period ended September 30, 2014, $57,697 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 10,544,536 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. During the period ended September 30, 2014, an interest expense of $18,500 (June 30, 2014 - $1,667) was accrued. |
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Effective February 27, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $75,000 due on February 27, 2015 and carries an interest rate of 10% per annum over the term of the note, with an effective interest rate of 1303.72% . The convertible note is convertible at the investor’s option at any time after 180 days at a price equal to 50% of the lowest bids price for the 20 days prior to conversion date subject to various prescribed conditions. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $150,000. During the period ended September 30, 2014, $19,050 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 6,047,749 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. During the period ended September 30, 2014, an interest expense of $1,425 (June 30, 2014 -$2,500) was accrued. |
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Effective February 28, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $125,500 with 15% prepaid interest per annum, resulting in $100,000 net proceeds to the Company due on August 28, 2015, with an effective interest rate of 227.33% . The note is convertible at the lower of 50% discount of the lowest closing price for the 20 days prior to date of the purchase agreement or the voluntary conversion date subject to various prescribed conditions. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $200,000. During the period ended September 30, 2014, $22,500 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 5,384,616 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. During the period ended September 30, 2014, an interest expense of $3,750 (June 30, 2014 - $5,000) was accrued. |
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Effective February 28, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $110,000, at an issuance discount of $10,000 ; resulting in $100,000 net proceeds to the Company. The note is due on September 1, 2014 and carries a one-time interest rate of 12% over the term of the note, with an effective interest rate of 781.10% . The note is convertible at the lower of $0.075 or 50% of the lowest trade during the 25 consecutive trading days immediately prior to the conversion date of the Note. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $220,000. During the period ended September 30, 2014, $27,500 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 10,000,000 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. During the period ended September 30, 2014, an interest expense of $5,657 (June 30, 2014 - $7,543) was accrued. |
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Effective March 3, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $50,000 due on March 5, 2015 and carries an interest rate of 10% per annum over the term of the note, with an effective interest rate of 1303.72%. The convertible note is convertible at the investor’s option at any time after 180 days at a price equal to 50% of the lowest closing bid price for the 20 days prior to conversion date subject to various prescribed conditions. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $100,000. During the period ended September 30, 2014, $52,596 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 8,497,555 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. The note was fully converted during the period. |
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Effective March 3, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $100,000 due on September 3, 2014 and carries an interest rate of 12% per annum over the term of the note, with an effective interest rate of 1220.64% . The note is convertible at a 50% discount of the lowest closing price for the 20 days prior to date of the purchase agreement or the voluntary conversion date subject to various prescribed conditions. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $200,000. During the period ended September 30, 2014, $50,000 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 9,900,990 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. During the period ended September 30, 2014, an interest expense of $2,000 (June 30, 2014 - $4,000) was accrued. |
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Effective March 3, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $50,000 due on March 4, 2015 and carries an interest rate of 10% per annum over the term of the note, with an effective interest rate of 1303.72%. The convertible note is convertible at the investor’s option at any time after 180 days at a price equal to 50% of the lowest closing bid price for the 20 days prior to conversion date subject to various prescribed conditions. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $100,000. During the period ended September 30, 2014, $47,405 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 10,453,998 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. During the period ended September 30, 2014, an interest expense of $43 (June 30, 2014 - $1,667) was accrued. |
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Effective March 3, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $115,000, at an issuance discount of $15,000 ; resulting in $100,000 net proceeds to the Company. The note is due on April 1, 2015 and carries an interest rate of 15% per annum over the term of the note, with an effective interest rate of 361.67% . The note is convertible at the lower of $0.06 or 50% of the lowest trade during the 20 consecutive trading days immediately prior to the conversion date of the Note. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $230,000. During the period ended September 30, 2014, an interest expense of $4,313 (June 30, 2014 - $5,750) was accrued. |
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Effective March 3, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $220,000, at an issuance discount of $20,000 ; resulting in $200,000 net proceeds to the Company. The note is due on September 3, 2014 and carries an interest rate of 12% per annum over the term of the note, with an effective interest rate of 1220.64% . The note is convertible at a 50% discount of the lowest closing price for the 20 trading days immediately prior to (i) date of the purchase agreement, or (ii) the voluntary conversion of the Note. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $440,000. During the period ended September 30, 2014, $58,200 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 15,175,067 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. During the period ended September 30, 2014, an interest expense of $4,400 (June 30, 2014 -$8,800) was accrued. |
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Effective March 15, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $550,000, at an issuance discount of $50,000 ; resulting in $500,000 net proceeds to the Company. The note is due on September 15, 2015 and carries an interest rate of 15% per annum over the term of the note, with an effective interest rate of 207.18% . The note is convertible at a 35% discount of the lowest closing price for the 20 trading days immediately prior to (i) date of the purchase agreement, or (ii) the voluntary conversion of the Note. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $846,154. During the period ended September 30, 2014, $5,000 (June 30, 2014 - $Nil) in face value of the note including interest was converted to 1,818,181 (June 30, 2014 - nil) common shares in accordance with the terms of the agreement. During the period ended September 30, 2014, an interest expense of $20,438 (June 30, 2014 - $24,063) was accrued. |
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Effective July 22, 2014, the Company entered into a securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $600,000 due on January 22, 2016 and carries an interest rate of 12% per annum over the term of the note, with an effective interest rate of 230.27% . |
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As of September 30, 2014, total net proceeds of $300,000 were received. There is no guarantee the investor will make additional payments. The note is convertible at the lowerof 65% of the lowest reported sale price for the20 trading days immediately prior to (i) the closing date on July 22, 2014 or (ii) 65% of the lowest reported sale price for the 20 days prior the conversion date subject to various prescribed conditions. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $923,077. During the period ended September 30, 2014, an interest expense of $6,990 was accrued. |
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Effective August 22, 2014, the Company entered into another securities purchase agreement with one investor. Pursuant to the terms of the agreement, the investor acquired a convertible promissory note with an aggregate face value of $100,000 due on February 23, 2016 and carries an interest rate of 12% per annum over the term of the note, with an effective interest rate of 219.75% . The note is convertible at the lowerof 65% of the lowest reported sale price for the20 trading days immediately prior to (i) the closing date on July 22, 2014 or (ii) 65% of the lowest reported sale price for the 20 days prior the conversion date subject to various prescribed conditions. The convertible note has a fixed stated principal amount but is not convertible into a fixed number of shares, so the conversion feature is considered an imbedded derivative. However, the convertible note as a standalone instrument is to be measured at its fair value in accordance with ASC 480-10-25-14 rather than have its conversion feature bifurcated and reported separately. The fair value at issuance was $153,846. During the period ended September 30, 2014, an interest expense of $1,514 was accrued. |
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Warrants issued along with Convertible Promissory Notes |
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Along with the promissory note issued on February 13, 2013, the Company issued warrants for 540,540 shares of the Company at an exercise price of $0.185 expiring February 13, 2018, 263,158 shares of the Company at an exercise price of $0.190 expiring April 24, 2018, 297,619 shares of the Company at an exercise price of $0.168 expiring June 4, 2018, 400,000 shares of the Company at an exercise price of $0.125 expiring June 27, 2018, 334,821 shares of the Company at an exercise price of $0.224 expiring August 14, 2018, 1,666,667 shares of the Company at an exercise price of $0.0600 expiring December 10, 2018, 714,285 shares of the Company at an exercise price of $0.0700 expiring February 20, 2019 and 3,809,524 shares of the Company at an exercise price of $0.0525 expiring April 16, 2019 respectively. |
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Along with the promissory note entered on September 16, 2013, the Company issued warrants for 2,777,778 shares of the Company at an exercise price of $0.090 and warrants for 3,703,704 shares of the Company at an exercise price of $0.068 for a period of five years. |
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Along with the promissory note entered on February 27, 2014, the Company issued warrants to acquire a total of 1,111,111 shares of the Company for a period of five years at an exercise price of $0.090. |
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Along with the promissory note entered on February 28, 2014, the Company issued warrants to acquire a total of 5,156,250 shares of the Company for a period of 180 days at an exercise price of $0.060. |
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Along with the promissory note entered on February 28, 2014, the Company issued warrants to acquire a total of 1,481,481 shares of the Company for a period of five years at an exercise price of $0.0675. |
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Along with the promissory note entered on February 28, 2014, the Company issued warrants to acquire a total of 10,312,500 shares of the Company for a period of five years at an exercise price of $0.0600. |
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Along with the promissory note entered on March 3, 2014, the Company issued warrants to acquire a total of 941,619 shares of the Company for a period of five years at an exercise price of $0.0531. |
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Along with the promissory note entered on March 3, 2014, the Company issued warrants to acquire a total of 2,000,000 shares of the Company for a period of three years at an exercise price of $0.0500. |
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Along with the promissory note entered on March 3, 2014, the Company issued warrants to acquire a total of 941,619 shares of the Company for a period of five years at an exercise price of $0.0531. |
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Along with the promissory note entered on March 3, 2014, the Company issued warrants to acquire a total of 1,666,666 shares of the Company for a period of five years at an exercise price of $0.0600. |
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Along with the promissory note entered on March 3, 2014, the Company issued warrants to acquire a total of 4,000,000 shares of the Company for a period of three years at an exercise price of $0.0500. |
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Along with the promissory note entered on March 15, 2014, the Company issued warrants to acquire a total of 18,333,333 shares of the Company for a period of three years at an exercise price of $0.0600. |
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Along with the promissory note entered on July 22, 2014, the Company issued warrants to acquire a total of 16,800,000 shares of the Company for a period of five years at an exercise price of $0.0400. |
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Along with the promissory note entered on August 22, 2014, the Company issued warrants to acquire a total of 4,303,571 shares of the Company for a period of five years at an exercise price of $0.2800. |
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Derivative Liability |
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The warrants bear a cashless exercise provision. The warrants also include anti-dilution protection with respect to lower priced issuances of common stock or securities convertible or exchangeable into common stock, which provision resulted in derivative liability treatment under ASC topic 815-10-55. Fair values at issuance totaled $669,682, $1,126,054, $709,074 for warrants issued along with the promissory note on February 28, 2013, March 1, 2013, and September 16, 2013 respectively. Fair values at issuance for warrants issued on February 27, 2014, February 28, 2014, March 3, 2014, March 15, 2014, April 16, 2014, July 22, 2014, August 22, 2014 totaled $58,966, $938,833, $1,732,432, $1,267,156, $199,917, $634,669, and $162,401 respectively. |
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On July 9, 2014, 2,777,778 warrants were exercised for 9,713,996 common shares of the Company at a deemed price of $0.01 in accordance with the terms of the agreement. A gain on change in fair value of derivative liability of $15,276 was recorded when the warrants were valued prior to the warrants exercise. |
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On July 30, 2014, 10,312,500 warrants were exercised for 18,113,654 common shares of the Company at a deemed price of $0.02 in accordance with the term of the agreement. A gain on change in fair value of derivative liability of $108,275 was recorded when the warrants were valued prior to the warrants exercise. |
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On August 5, 2014, 1,083,333 warrants were exercised for 20,645,463 common shares of the Company at a deemed price of $0.002 in accordance with the term of the agreement. A gain on change in fair value of derivative liability of $10,725 was recorded when the warrants were valued prior to the warrants exercise. |
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On August 8, 2014, 3,703,704 warrants were exercised for 8,904,569 common shares of the Company at a deemed price of $0.01 in accordance with the term of the agreement. A gain on change in fair value of derivative liability of $41,112 was recorded when the warrants were valued prior to the warrants exercise. |
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On August 12, 2014, 1,666,667 warrants were exercised for 3,200,066 common shares of the Company at a deemed price of $0.02 in accordance with the terms of the agreement. A gain on change in fair value of derivative liability of $20,000 was recorded when the warrants were valued prior to the warrants exercise. |
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On September 4, 2014, 100,000 warrants were exercised for 583,333 common shares of the Company at a deemed price of $0.003 in accordance with the terms of the agreement. A gain on change in fair value of derivative liability of $1,490 was recorded when the warrants were valued prior to the warrants exercise. |
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On September 15, 2014, 583,333 warrants were exercised for 10,946,967 common shares of the Company at a deemed price of $0.002 in accordance with the terms of the agreement. A gain on change in fair value of derivative liability of $5,777 was recorded when the warrants were valued prior to the warrants exercise. |
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The Company used the Lattice Model for valuing warrants using the following assumptions: |
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| 30-Sep-14 | 30-Jun-14 | | | | | | | | | | | | | |
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Risk-free interest rates | 1.55% - 1.85% | 1.39% - 1.77% | | | | | | | | | | | | | |
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Term | 180 days – 5 years | 180 days – 5 years | | | | | | | | | | | | | |
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Dividend yield | 0% | 0% | | | | | | | | | | | | | |
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Underlying stock prices | $0.42 | $0.42 | | | | | | | | | | | | | |
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Volatilities | 278% - 489% | 278% - 489% | | | | | | | | | | | | | |
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At September 30, 2014, the warrants were valued at $404,937 (June 30, 2014 - $2,832,989) resulting in a gain of $2,255,791 (June 30, 2014 - $2,650,532). The corresponding debt discount of the promissory notes was accreted to interest expense over the terms of notes of 3 years, 1 year, 18 months and 6 months respectively. During the period ended September 30, 2014, an accretion of $492,321 (June 30, 2014 - $412,447) was recognized as interest expense. |
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| | Warrants | | | Weighted | | | Weighted | | | | | | | |
| | Outstanding | | | Average | | | Average | | | | | | | |
| | | | | Exercise | | | Remaining | | | | | | | |
| | | | | Price | | | life | | | | | | | |
Balance, June 30, 2013 | | 5,133,750 | | | 0.18 | | | 4.71 years | | | | | | | |
Warrants issued | | 61,151,358 | | | 0.062 | | | 2.63 years | | | | | | | |
Exercised | | (5,468,571 | ) | | 0.182 | | | - | | | | | | | |
Cancelled | | - | | | - | | | - | | | | | | | |
Expired | | - | | | - | | | - | | | | | | | |
Balance, June 30, 2014 | | 60,816,537 | | $ | 0.061 | | | 2.62 years | | | | | | | |
Warrants issued | | 21,103,571 | | | 0.088 | | | 4.84 years | | | | | | | |
Exercised | | (20,227,315 | ) | | 0.065 | | | - | | | | | | | |
Cancelled | | - | | | - | | | - | | | | | | | |
Expired | | - | | | - | | | - | | | | | | | |
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Balance, September 30, 2014 | | 61,692,793 | | $ | 0.097 | | | 3.48 years | | | | | | | |
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The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of September 30, 2014 and June 30, 2014: |
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| | Derivative | | | | | | | | | | | | | |
| | Liability | | | | | | | | | | | | | |
Balance, June 30, 2013 | $ | 513,375 | | | | | | | | | | | | | |
Initial fair value of warrant derivatives at note issuances | | 5,558,520 | | | | | | | | | | | | | |
Fair value of warrant exercised | | (588,375 | ) | | | | | | | | | | | | |
Mark-to-market at June 30, 2014 - Embedded debt derivatives | | (2,650,532 | ) | | | | | | | | | | | | |
Balance, June 30, 2014 | $ | 2,832,988 | | | | | | | | | | | | | |
Initial fair value of warrant derivatives at note issuances | | 797,070 | | | | | | | | | | | | | |
Fair value of warrant exercised | | (766,675 | ) | | | | | | | | | | | | |
Mark-to-market at September 30, 2014 - Embedded debt derivatives | | (2,458,446 | ) | | | | | | | | | | | | |
Balance, September 30, 2014 | $ | 404,937 | | | | | | | | | | | | | |
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Net gain for the period included in earnings relating to the liabilities held at September 30, 2014 | $ | 2,458,446 | | | | | | | | | | | | | |