| Convertible Promissory Notes [Text Block] | 8. Convertible Promissory Notes Summary of convertible promissory note at June 30, 2016 and September 30, 2016 is as follows:
June 30,
Principal
Accretion
Note
Transfer
September 30,
2016
Issued
of issuance
converted
(Loan
2016
cost
Extinguished)
February 13, 2013 $
21,908
$
-
$
-
$
-
$
-
$
21,908
July 22, 2014
185,314
-
-
(8,900
)
-
176,414
August 22, 2014
15,768
-
-
-
(15,768
)
-
February 6, 2015
7,150
-
-
-
-
7,150
March 9, 2015
10,220
-
-
-
(10,220
)
-
February 24, 2015
76,239
-
-
-
(76,239
)
-
August 3, 2015
36,000
-
-
-
-
36,000
September 9, 2015
30,000
-
-
-
-
30,000
September 30, 2015
20,800
-
-
-
(20,800
)
-
November 06,2015
12,000
-
-
-
-
12,000
December 01, 2015
36,000
-
-
-
(18,000
)
18,000
December 03, 2015
17,000
-
-
-
(17,000
)
-
January 27, 2016
29,750
-
-
-
(5,000
)
24,750
February, 1, 2016
49,197
-
-
-
(49,197
)
-
March 01, 2016
13,200
-
-
-
-
13,200
March 24, 2016
12,100
-
-
-
-
12,100
March 28, 2016
42,986
-
-
(2,216
)
(70
)
40,700
April 19, 2016
197,067
-
-
-
(50,000
)
147,067
May 16, 2016
30,250
-
-
-
-
30,250
August 12, 2016
-
40,000
848
-
-
40,848
September 7, 2016
-
100,000
937
(10,275
)
161,420
252,082
September 8, 2016
-
25,000
158
-
-
25,158
September 9, 2016
-
125,000
1,032
-
-
126,032
September 15, 2016
-
232,000
998
-
-
232,998
September 16, 2016
-
-
-
-
125,000
125,000
September 19, 2016
-
-
-
-
1,398,000
1,398,000
September 27, 2016
-
110,000
123
-
-
110,123
$
842,950
$
632,000
$
4,095
(21,391
) $
1,422,126
2,879,780
Less: Unamortized debt discount $
(223,181
) $
(888,963
)
Total note payable, net of debt discount $
619,769
$
1,990,817
Current portion $
619,769
$
1,990,817
Long term portion $
-
$
-
On August 12, 2016 Company issued an aggregate of $46,750
Convertible Promissory Notes with an issuance discount of $4,250
and $2,500
for legal fees that matures on August 12, 2017. These notes bear
10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $64,723
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield: 0.00%
Volatility 371.21%
Risk free rate: 0.56%
The initial fair values of the embedded debt derivative $46,750
was allocated as a debt discount up to the proceeds of the note with the remainder $17,973
was charged to current period operations as interest expense.
On September 7, 2016 Company issued an aggregate of $116,000
Convertible Promissory Notes with an issuance cost of $16,000
that matures on September 7, 2017. These notes bear
10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $122,726
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.57%
The initial fair values of the embedded debt derivative $116,000
was allocated as a debt discount up to the proceeds of the note with the remainder $6,726
was charged to current period operations as interest expense.
On September 7, 2016 Company had transferred an aggregate of $50,000
plus accrued interest of $3,919
in Convertible Promissory Notes from one debt holder to another. The transfer was treated as a modification of the Convertible Promissory Notes. The Convertible Promissory Notes matures on September 7, 2017. These notes bear
10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
On September 7, 2016 Company issued an aggregate of $32,500
Convertible Promissory Notes that matures on September 16, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for maturing in total $37,800
of Convertible Promissory Notes and $2,827
of accrued interest. The Company also agreed to pay $50,000
in cash which is included under non-convertible promissory notes as described in Note 7.
These notes bear
8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $53,765
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.57%
The initial fair values of the embedded debt derivative $23,816
was allocated as a debt discount towards the proceeds of the note with the remainder $29,949
was charged to current period operations as interest expense.
On September 7, 2016 Company issued an aggregate of $75,000
Convertible Promissory Notes that matures on September 16, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for maturing in total $99,239
of Convertible Promissory Notes and $14,925
of accrued interest. The Company also agreed to pay $160,000
in cash which is included under with the non-convertible promissory notes as described in Note 7.
These notes bear
8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $121,129
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.57%
The initial fair values of the embedded debt derivative $54,960
was allocated as a debt discount towards the proceeds of the note with the remainder $66,170
was charged to current period operations as interest expense.
On September 8, 2016 Company issued an aggregate of $27,778
Convertible Promissory Notes with issuance cost of $2,778
that matures on September 8, 2017. These notes bear
10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $59,408
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.57%
The initial fair values of the embedded debt derivative $27,778
was allocated as a debt discount up to the proceeds of the note with the remainder $31,630
was charged to current period operations as interest expense.
On September 9, 2016 Company issued an aggregate of $144,100
Convertible Promissory Notes with issuance cost of $19,100
that matures on September 9, 2017. These notes bear
10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
65% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $47,089
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.58%
The initial fair values of the embedded debt derivative $47,089
was allocated as a debt discount towards the proceeds of the note with the remainder $0.00
was charged to current period operations as interest expense.
On September 15, 2016 Company issued an aggregate of $257,778
Convertible Promissory Notes with issuance cost of $25,778
that matures on September 15, 2017. These notes bear
10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $88,122
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.60%
The initial fair values of the embedded debt derivative $88,122
was allocated as a debt discount towards the proceeds of the note with the remainder $0.00
was charged to current period operations as interest expense.
On September 16, 2016 Company issued an aggregate of $25,000
Convertible Promissory Notes that matures on September 16, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for maturing Convertible Promissory Notes and accrued interest. The Company also agreed to pay $50,000
in cash which is included under the non-convertible promissory notes as described in Note 7.
These notes bear
8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $36,510
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.61%
The initial fair values of the embedded debt derivative $13,462
was allocated as a debt discount up to the proceeds of the note with the remainder $23,048
was charged to current period operations as interest expense.
On September 16, 2016 Company issued an aggregate of $100,000
Convertible Promissory Notes that matures on September 16, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for maturing in total $49,197
of Convertible Promissory Notes, $2,426
of accrued interest and warrants. The Company also agreed to pay $50,000
in cash which is included under in conjunctions with the non-convertible promissory notes as described in Note 7.
These notes bear
8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $75,414
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.61%
The initial fair values of the embedded debt derivative $53,846
was allocated as a debt discount towards the proceeds of the note with the remainder $21,568
was charged to current period operations as interest expense.
On September 19, 2016 Company issued an aggregate of $708,000
Convertible Promissory Notes that matures on September 19, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for cancellation of outstanding warrants.
These notes bear
8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
60% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $82,535
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.60%
The initial fair values of the embedded debt derivative $82,535
was allocated as a debt discount up to the proceeds of the note with the remainder $0.00
was charged to current period operations as interest expense.
On September 19, 2016 Company issued an aggregate of $550,000
Convertible Promissory Notes that matures on September 19, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for cancellation of outstanding Warrants.
These notes bear
8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $82,361
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.60%
The initial fair values of the embedded debt derivative $82,361
was allocated as a debt discount up to the proceeds of the note with the remainder $0.00
was charged to current period operations as interest expense.
On September 19, 2016 Company issued an aggregate of $140,000
Convertible Promissory Notes that matures on September 19, 2017. These Convertible Promissory Notes were issued as a part of settlement agreement for cancellation of outstanding Warrants.
These notes bear
8% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $82,361
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.60%
The initial fair values of the embedded debt derivative $82,361
was allocated as a debt discount up to the proceeds of the note with the remainder $0.00
was charged to current period operations as interest expense.
On September 27, 2016 Company issued an aggregate of $64,900
Convertible Promissory Notes with issuance cost of $9,900
that matures on September 27, 2017. These notes bear
10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
65% of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $23,828
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.58%
The initial fair values of the embedded debt derivative $23,828
was allocated as a debt discount wards the proceeds of the note with the remainder $0.00
was charged to current period operations as interest expense.
On September 29, 2016 Company issued an aggregate of $61,112
Convertible Promissory Notes with issuance cost of $6,112
that matures on September 29, 2017. These notes bear
10% interest per annum and the Holder of this Note is entitled, at its option, at any time, to convert all or any amount of the principal face amount of this Note then outstanding into shares of the Company's common stock at a price equal to
50% discount of the lowest trading price of the Common Stock as reported on the OTC Markets for the twenty prior trading days including the day upon which a Notice of Conversion is received.
The Company identified embedded derivatives related to the Convertible Promissory Notes. These embedded derivatives included certain conversion features. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives as of the inception date of the Convertible Promissory Note and to adjust the fair value as of each subsequent balance sheet date. At the inception of the Convertible Promissory Note, the Company determined a fair value of $63,730
of the embedded derivative. The fair value of the embedded derivative was determined using the Black Scholes Model based on the following assumptions:
Dividend yield:
0.00%
Volatility
371.21%
Risk free rate:
0.59%
The initial fair values of the embedded debt derivative $61,112
was allocated as a debt discount up to the proceeds of the note with the remainder $2,618
was charged to current period operations as interest expense.
As a part of settlement agreement for maturing in total $15,768
of Convertible Promissory Notes, $4,505
of accrued interest and warrants valuing $120,500, the Company agreed to pay $150,000
in cash which is included under in conjunctions with the non-convertible promissory notes as described in Note 7.
The modification of the Notes was evaluated under FASB Accounting Standards Codification (“ASC”) Topic No. 470-50-40, “Debt Modification and Extinguishments”. Therefore, according to the guidance, the instruments were determined to be substantially different, and the transaction qualified for extinguishment accounting. During the three months ended September 30, 2016, $1,491,082
was recorded as loss on extinguishment of debt due to settlement agreement with note holders.
The $1,491,082
consists of net increase in principal of convertible promissory notes of $1,393,027
(net of extinguished interests of $29,098), increase in principal of non-convertible promissory notes of $460,000, extinguished derivative liabilities for debt and warrants with fair values on date of conversion was $250,873
and $111,072
respectively.
During the three months period ended September 30, 2016 the Company amortized the debt discount on all the notes of $142,332
to operations as expense including $4,095
for accretion expenses. During the three months period ended September 30, 2015 the Company amortized the debt discount on all the notes of $170,943
to operations as expense.
Derivative Liability- Debt
The fair value of the described embedded derivative on all debt was valued at $2,847,823
and $1,162,058
at September 30, 2016 and June 30, 2016, respectively, which was determined using the Black Scholes Model with the following assumptions:
September 30, 2016 June 30, 2016
Dividend yield:
0%
0%
Volatility
240.7
–
341.9%
346.6
–
453.3%
Risk free rate:
0.45% %
0.39%
The Company adjusted the recorded fair value of the derivative liability on debt to market resulting in non-cash, non-operating loss of $969,083
and $7,589,738
during the three months ended September 30, 2016 and 2015, respectively.
During the period ended September 30, 2016 and June 30, 2016 the Company reclassed the derivative liability of $36,147
and $768,175, respectively, to additional paid in capital on conversion of convertible note.
The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of September 30, 2016 and June 30, 2016:
Derivative
Liability (convertible
promissory notes)
Balance, June 30, 2015 $
1,646,448
Initial fair value at note issuances
1,027,009
Fair value of liability at note conversion
(768,175
)
Mark-to-market at June 30, 2016
(743,224
)
Balance, June 30, 2016 $
1,162,058
Initial fair value at note issuances
1,003,702
Fair value of liability at note conversion
(36,147
)
Extinguishment of derivative liability
(250,873
)
Mark-to-market at September 30, 2016
969,083
Balance, September 30, 2016 $
2,847,823
Net loss for the year included in earnings relating to the liabilities held at September 30, 2016 $
969,083
Derivative Liability- Warrants Along with the promissory notes, the Company issued warrants that 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 480. The warrants are recorded at fair value using the Black-Scholes option pricing model and marked-to-market at each reporting period, with the changes in the fair value recorded in the consolidated statement of operations and comprehensive income (loss). During the period ended September 30, 2016 and the year ended June 30, 2016 no warrants were issued along with convertible note.
The fair value of the described embedded derivative on all warrants was valued at $338,785
at September 30, 2016 and $268,611
at June 30, 2016 which was determined using the Black Scholes Model with the following assumptions:
September 30, 2016 June 30, 2016
Dividend yield:
0%
0%
Volatility
240.7
–
290.1%
229.1
–
275.4%
Risk free rate:
1.14%
0.71
–
1.01%
Warrants
Weighted
Weighted
Outstanding
Average
Average
Exercise
Remaining
Price
life
Balance, June 30, 2015
27,092
$
100.98
3.79
years
Exercised
(120
)
280.00
-
Issued
-
-
-
Expired
-
-
-
Cancelled
-
-
-
Balance, June 30, 2016
26,972
$
100.20
2.79
years
Exercised
-
-
-
Issued
-
-
-
Expired
-
-
-
Cancelled
(10,834
)
164.80
-
Balance, September 30, 2016
16,138
$
211.60
3.16
years
The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities as of September 30, 2016 and June 30, 2016:
Derivative
Liability (warrants)
Balance, June 30, 2015 $
143,375
Initial fair value of warrant derivatives at note issuances
-
Fair value of warrant exercised
(22,476
)
Mark-to-market at June 30, 2016 – warrant liability
147,712
Balance, June 30, 2016 $
268,611
Fair value of warrant cancelled
(111,073
)
Mark-to-market at September 30, 2016 – warrant liability
181,247
Balance, September 30, 2016 $
338,785
Net loss for the year included in earnings relating to the liabilities held at September 30, 2016 $
181,247
At September 30, 2016 and 2015 the Company adjusted the recorded fair value of the derivative liability on warrants to market resulting in non-cash, non-operating loss of $181,247
and $852,035
for the three months ended September 30, 2016, and 2015, respectively.
During the period ended September 30, 2016 and June 30, 2016 the Company reclassed the derivative liability on warrants of $Nil
and $22,476, respectively, to additional paid in capital on exercise of warrants. |
