| Schedule of Fair Values Determined by Level 3 Inputs |
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 |
|
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
| |
| Schedule of Derivative Liability Valued Using Monte Carlo Pricing Model |
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 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 | |
| Schedule of Reconciliation of Changes in Fair Value of Convertible Debt |
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
|
|
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
| |