Quarterly report pursuant to Section 13 or 15(d)

Derivative Liability

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Derivative Liability
9 Months Ended
Mar. 31, 2021
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 nine month period ended March 31, 2021, the Company recorded a change in fair value of derivative $887,301. 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 March 31, 2021:


       
Derivative liability as of June 30, 2020   $ 1,590,638  
Initial derivative liability accounted for convertible notes payable issued during the period ended March 31, 2021     512,993  
True-up adjustment in debt discount and derivative liability     37,360  
Change in derivative liability during the period     887,301  
Reclassify derivative liability associated with Notes converted into loss on debt conversion account     (1,716,114 )
Balance at March 31, 2021     1,312,178  

Change in derivative liability for the nine months ended March 31, 20210 and 2020, totaled $887,301 and $(612,093), respectively and change in derivative liability for the three months ended March 31, 2021 and 2020, totaled $1,096,709 and $(256,468), respectively. 


As of March 31, 2021 and June 30, 2020, the derivative liability related to convertible notes was $ 1,312,178 and $1,590,638, respectively.