Annual report pursuant to Section 13 and 15(d)

Fair Value of Financial Instruments

v3.21.2
Fair Value of Financial Instruments
12 Months Ended
Jun. 30, 2021
Fair Value Disclosures [Abstract]  
Fair Value of Financial Instruments
17. Fair Value of Financial Instruments The carrying amounts of Cash and Equivalents, Receivables, Other Current Assets, Short-Term Debt, Accounts Payable, Accrued and Other Current Liabilities approximated fair value.
     
    Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. To increase the comparability of fair value measures, Financial Accounting Standards Board (“FASB”) ASC Topic 820-10-35 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements).
     
    Level 1—Valuations based on quoted prices for identical assets and liabilities in active markets.
     
    Level 2—Valuations based on observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data.
     
    Level 3—Valuations based on unobservable inputs reflecting our own assumptions, consistent with reasonably available assumptions made by other market participants. These valuations require significant judgment.
     
    The application of the three levels of the fair value hierarchy under Topic 820-10-35 to our assets and liabilities are described below:

    Fiscal 2021 Fair Value Measurements  
    Level 1     Level 2     Level 3     Total Fair
Value
 
Assets                        
Other assets   $         -     $         -     $         -     $         -  
Total   $ -     $ -     $ -     $ -  
Liabilities                                
Derivative Liabilities   $       $ -     $ -     $    
Total   $       $ -     $       $    

    Fiscal 2020 Fair Value Measurements  
    Level 1     Level 2     Level 3     Total Fair
Value
 
Assets                                
Other assets   $         -     $         -     $         -     $         -  
Total   $ -     $ -     $ -     $ -  
Liabilities                                
Derivative Liabilities   $       $ -     $ 1,590,638     $ 1,590,638  
Total   $       $ -     $ 1,590,638     $ 1,590,638  

Management considers all of its derivative liabilities to be Level 3 liabilities. At June 30, 2021 and 2020, respectively the Company had outstanding derivative liabilities, including those from related parties of $0 and $1,590,638 respectively.