Annual report pursuant to Section 13 and 15(d)

Derivative Liability

v3.20.2
Derivative Liability
 12 Months Ended
Jun. 30, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Liability

11. 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 year ended June 30, 2020, the Company recorded a gain in fair value of derivative liability of $858,774. The Company will measure the fair value of each derivative instrument in future reporting periods and record a gain or loss 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 June 30, 2020:

  

Derivative liability as of June 30, 2018   $ 1,765,187  
Initial derivative liability accounted for convertible notes payable issued during the period ended June 30, 2019     1,565,535  
Change in derivative liability during the period     712,627  
Reclassify derivative liability associated with Notes converted     (2,736,601 )
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, 2020     1,723,883  
Change in derivative liability during the period     (858,774 )
Reclassify derivative liability associated with Notes converted     (581,219 )
Balance at June 30, 2020   $ 1,590,638