v3.20.4

Fair Value Measurements | 3 Months Ended | 12 Months Ended
--- | --- | ---
Sep. 30, 2020 | Jun. 30, 2020
Fair Value Disclosures [Abstract] |  |
Fair Value Measurements | Note 7– Fair Value Measurements The following table presents information about the assets and liabilities that are measured at fair value on a recurring basis at September 30, 2020 and June 30, 2020 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.
At September 30, 2020 |  |  |  |  |
|  | Total | Level 1 | Level 2 | Level 3
Assets |  |  |  |  |
| Customer List | $704,803 | - | - | $704,803
| Vendor Relationship | 383,203 | - | - | 383,203
| Development Costs | 287,797 | - | - | 287,797
|  | $1,355,803 | - | - | $1,355,803
Liabilities |  |  |  |  |
| Original Issue discount, convertible debt | $1,276,312 | - | - | $1,276,312
At June 30, 2020 |  |  |  |  |
|  | Total | Level 1 | Level 2 | Level 3
Assets |  |  |  |  |
| Customer list | $748,847 | - | - | $748,847
| Vendor relationship | 407,153 | - | - | 407,153
| Development costs | 280,315 | - | - | 280,315
|  | $1,436,315 | - | - | $1,436,315
Liabilities |  |  |  |  |
| Original issue discount, convertible debt | $213,300 | - | - | $213,300
| Derivative liability warrants | 33,312 | - | - | 33,312
Total |  | $246,612 | - | - | $246,612
As of September 30, 2020 and June 30, 2020, the only asset required to be measured on a nonrecurring basis was goodwill and the fair value of the asset amounted to $834,220 using level 3 valuation techniques. The Company measures the fair market value of the Level 3 liability components using the Monte Carlo model and projected discounted cash flows, as appropriate. These models were prepared by an independent third party and consider management's best estimate of the conversion price of the stock, an estimate of the expected time to conversion, an estimate of the stock's volatility, and the risk-free rate of return expected for an instrument with a term equal to the duration of the convertible note. The derivative liability was valued using the Monte Carlo pricing model with the following inputs:
At September 30, 2020 |  |
| Risk-free interest rate: |  | 0.08%
| Expected dividend yield: |  | 0.00%
| Expected stock price volatility: |  | 325.00%
| Expected option life in years: |  | 0.48 to 1.44 years
At June 30, 2020 |  |
| Risk-free interest rate: |  | 0.09%
| Expected dividend yield: |  | 0.00%
| Expected stock price volatility: |  | 300.00%
| Expected option life in years: |  | .085 to 1.69 years
The following table sets forth a reconciliation of changes in the fair value of the Company's convertible debt components classified as Level 3 in the fair value hierarchy at September 30, 2020 and June 30, 2020:
Balance at June 30, 2020 |  | $ 246,612
Additional convertible securities at inception |  | 2,000
Realized |  | (5,300)
Unrealized |  | 1,033,000
Ending balance at September 30, 2020 |  | $ 1,276,312
Balance at June 30, 2019 |  | $ 1,025,944
Additional convertible securities at inception |  | 2,027,000
Settlement of conversion features and warrants |  | (152,374)
Realized |  | (240,903)
Unrealized |  | (2,413,055)
Ending balance at June 30, 2020 |  | $ 246,612
| Note 5 – Fair Value Measurements The following table presents information about the assets and liabilities that are measured at fair value on a recurring basis at June 30, 2020 and 2019 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value.
At June 30, 2020 |  |  |  |
Assets: | Total | Level 1 | Level 2 | Level 3
Goodwill | $ 834,220 | $ - | $ - | $ 834,220
Customer list | 748,853 | - | - | 748,853
Vendor relationship | 407,153 | - | - | 407,153
Development costs | 280,315 | - | - | 280,315
| $1,990,226 | $ - | $ - | $1,990,226
Liabilities: |  |  |  |
Original issue discount, convertible debt | $ 213,300 | $ - | $ - | $ 213,300
Derivative liability, warrants | 33,312 | - | - | 33,312
Total: | $ 246,612 | $ - | $ - | $ 246,612
At June 30, 2019 |  |  |  |
Liabilities: | Total | Level 1 | Level 2 | Level 3
Original issue discount, convertible debt | $979,569 | $ - | $ - | $ 979,569
Derivative liability, warrants | 46,375 | - | - | 46,375
Total: | $ 1,025,944 | $- | $- | $ 1,025,944
As of June 30, 2020, the only asset required to be measured on a nonrecurring basis was goodwill and the fair value of the asset amounted to $834,220 using level 3 valuation techniques. The Company measures the fair market value of the Level 3 liability components using the Monte Carlo model and projected discounted cash flows, as appropriate. These models were initially prepared by an independent third party and consider management’s best estimate of the conversion price of the stock, an estimate of the expected time to conversion, an estimate of the stock’s volatility, and the risk-free rate of return expected for an instrument with a term equal to the duration of the convertible note. The significant unobservable valuation inputs for the convertible notes include an expected rate of return of 0%, a risk-free rate of 0.09% and volatility of 300%. The derivative liability was valued using the Monte Carlo pricing model with the following inputs:
At June 30, 2020 |
Risk-free interest rate: | 0.09%
Expected dividend yield: | 0.00%
Expected stock price volatility: | 300.00%
Expected option life in years: | .089 to 1.69 years
At June 30, 2019 Risk-free interest rate: | 1.72 -2.83%
Expected dividend yield: | 0.00%
Expected stock price volatility: | 180.00%
Expected option life in years: | 2.80 to 3.00 years
The following table sets forth a reconciliation of changes in the fair value of the Company’s convertible debt components classified as Level 3 in the fair value hierarchy at June 30, 2020:
Balance at June 30, 2019 | $ 1,025,944
Convertible securities at inception | 2,027,000
Settlement of conversion features and warrants | (152,374)
Realized | (240,903)
Unrealized | (2,413,055)
Balance at June 30, 2020 | $ 246,612
Balance at June 30, 2018 | $ -
Convertible securities at inception | 1,238,359
Settlement of conversion features and warrants | (301,613)
Realized | (83,487)
Unrealized | 172,685
Balance at June 30, 2019 | $ 1,025,944

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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