Quarterly report pursuant to Section 13 or 15(d)

Derivative Liability

v3.20.4
Derivative Liability
6 Months Ended
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Liability
10. Derivative Liability   Due to the variable conversion price associated with some of these convertible promissory notes disclosed in Note 8 above, the Company has determined that the conversion feature is considered a derivative liability for instruments which are convertible and have not yet been settled. The accounting treatment of derivative financial instruments requires that the Company record the fair value of the derivatives on the date they are deemed to be derivative liabilities.
       
      During the six month period ended December 31, 2020, the Company recorded a change in fair value of derivative $264,818. The Company will measure the fair value of each derivative instrument in future reporting periods and record the change based on the change in fair value.

 

      Below is a reconciliation of the derivative liability as presented on the Company's balance sheet as of December 31, 2020:

 

Derivative liability as of June 30, 2019   $ 1,306,748  
Initial derivative liability accounted for convertible notes payable issued during the period ended June 30, 2019     1,723,883  
Change in derivative liability during the period     (858,774 )
Reclassify derivative liability associated with Notes converted into loss on debt conversion account     (581,219 )
Derivative liability as of June 30, 2020   $ 1,590,638  
Initial derivative liability accounted for convertible notes payable issued during the period ended December 31, 2020     373,612  
True-up adjustment in debt discount and derivative liability     37,360  
Change in derivative liability during the period     (264,818 )
Reclassify derivative liability associated with Notes converted into loss on debt conversion account     (320,746 )
Balance at December 31, 2020   $ 1,416,045  

 

Change in derivative liability for the six months ended December 31, 2020 and 2019, totaled $264,818 and $355,625, respectively and change in derivative liability for the three months ended December 31, 2020 and 2019, totaled $57,294 and $165,563, respectively. 

 

As of December 31, 2020 and June 30, 2020, the derivative liability related to convertible notes was $ 1,416,045 and $1,590,638, respectively.