Quarterly report pursuant to Section 13 or 15(d)

Derivative Liability

v3.19.3
Derivative Liability
 3 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Liability
9. 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 three month period ended September 30, 2019, the Company recorded a gain in fair value of derivative $190,062. 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 September 30, 2019:

  

  Derivative liabilityas of June 30, 2019   $ 1,306,748  
  Initial derivative liability accounted for convertible notes payable issued during the period ended September 30, 2019     845,902  
  Reclassed to additional paid in capital for notes converted into shares of common stock     (213,739 )
  Change in derivative liability during the period     (190,062 )
  Balance at September 30, 2019   $ 1,748,849