Annual report pursuant to Section 13 and 15(d)

Derivative Liability

Derivative Liability

12 Months Ended

Jun. 30, 2022

11.

Derivative Liability

Due to the variable conversion price associated with some of these convertible promissory notes disclosed in Note 10 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.

Below is a reconciliation of the derivative liability as presented on the Company’s balance sheet as of June 30, 2022 and 2021:

Balance at June 30, 2020	$	1,590,638
Initial derivative liability accounted for convertible notes payable issued during the period ended June 30, 2021		512,993
True-up adjustment in debt discount and derivative liability		37,360
Change in derivative liability during the period		(853,329	)
Notes retired due to refinancing		(1,287,662	)
Derivative liability as of June 30, 2021	$	-
Derivative liability as of June 30, 2022	$	-