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Derivative Financial Instruments and Fair Value Measurements | 6 Months Ended
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Dec. 31, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments and Fair Value Measurements | NOTE 10 - DERIVATIVE FINANCIAL INSTRUMENTS and FAIR VALUE MEASUREMENTS Derivative Financial Instruments: The Company applies the provisions of ASC 815-40, Contracts in Entity’s Own Equity, under which convertible instruments and warrants, which contain terms that protect holders from declines in the stock price (reset provisions), may not be exempt from derivative accounting treatment. As a result, warrants and embedded conversion options in convertible debt are recorded as a liability and are revalued at fair value at each reporting date. If the fair value of the warrants exceeds the face value of the related debt, the excess is recorded as change in fair value in operations on the issuance date. The Company has 12,000 warrants and $860,181 of convertible debt, which are treated as derivative instruments outstanding at December 31, 2017. The Company calculates the estimated fair values of the liabilities for derivative instruments using the Binomial Trees Method. The closing price of the Company’s common stock at December 31, 2017 was $0.14. Volatility, expected remaining term and risk free interest rates used to estimate the fair value of derivative liabilities at December 31, 2017 are indicated in the table that follows. The volatility was based on historical volatility at December 31, 2017, the expected term is equal to the remaining term of the warrants and the risk free rate is based upon rates for treasury securities with the same term. Warrants
|  | December 31, 2017 |
Volatility |  |  | 217.69 | %
Expected remaining term (in years) |  |  | .75 |
Risk-free interest rate |  |  | 1.71 | %
Expected dividend yield |  |  | None |
Convertible Debt
|  | Initial Valuations (on new derivative instruments entered into during the three months ended December 31, 2017) |  |  | December 31, 2017 |
Volatility |  |  | n/a |  |  |  | 172.75% – 199.23 | %
Expected Remaining Term (in years) |  |  | n/a |  |  |  | .21 - 1.86 |
Risk Free Interest Rate |  |  | n/a |  |  |  | 1.28% - 1.87 | %
Expected dividend yield |  |  | None |  |  |  | None |
Fair Value Measurements: The Company measures and reports at fair value the liability for derivative instruments. The fair value liabilities for price adjustable warrants and embedded conversion options have been recorded as determined utilizing the Binomial Trees model. The following tables summarize the Company’s financial assets and liabilities measured at fair value on a recurring basis as of December 31 2017:
|  |  |  |  | Quoted Prices |  |  | Significant |  |  |  |
|  |  |  |  | in Active |  |  | Other |  |  | Significant |
|  | Balance at |  |  | Markets for |  |  | Observable |  |  | Unobservable |
|  | December 31, 2017 |  |  | Identical Assets |  |  | Inputs |  |  | Inputs |
|  |  |  |  | (Level 1) |  |  | (Level 2) |  |  | (Level 3) |
Embedded conversion option liabilities |  | $ | 1,001,715 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,001,715 |
Fair value of liability for warrant derivative instruments |  | $ | 143 |  |  | $ | — |  |  | $ | — |  |  | $ | 143 |
Total |  | $ | 1,001,858 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,001,858 |
The following is a roll forward for the six months ended December 31, 2017 of the fair value liability of price adjustable derivative instruments:
|  | Fair Value of |
|  | Liability for |
|  | Derivative |
|  | Instruments |
Balance at June 30, 2017 |  | $ | 881,172 |
Effects of foreign currency exchange rate changes |  |  | 60 |
Reductions due to conversions |  |  | (419,145) |
Initial fair value of embedded conversion option derivative liability recorded as debt discount |  |  | 310,000 |
Initial fair value of embedded conversion option derivative liability recorded as change in fair value of embedded conversion option |  |  | 268,212 |
Change in fair value included in statements of operations |  |  | (38,441 | )
Balance at December 31, 2017 |  | $ | 1,001,858 |

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- References No definition available. + Details
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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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