Fair Value Measurements (Tables)

6 Months Ended

12 Months Ended

Dec. 31, 2019

Jun. 30, 2019

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 December 31, 2019 and June 30, 2019 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical instruments. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates, and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the financial instrument, and included situations where there is little, if any, market activity for the instrument:


At December 31, 2019
		Total	Level 1	Level 2	Level 3
Assets:
	Anti-dilutive nature of employment agreement included in goodwill	$ 235,350	$ -	$ -	$ 235,350

Liabilities:
	Original issue discount, convertible debt	$ 638,000	$ -	$ -	$ 638,000
	Derivative liability, warrants	33,312	-	-	33,312
Total:		$ 671,312	$ -	$ -	$ 671,312

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

The following table presents information about the assets and liabilities that are measured at fair value on a recurring basis at June 30, 2019 and indicates the fair value hierarchy of the valuation techniques the Company utilized to determine such fair value. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical instruments. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates, and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the financial instrument, and included situations where there is little, if any, market activity for the instrument:


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 December 31, 2019 and June 30, 2019:


At December 31, 2019
	Risk-free interest rate:	1.86%
	Expected dividend yield:	0.00%
	Expected stock price volatility:	160.00%
	Expected option life in years:	1.83 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 - 3.00 years

he derivative liability was valued using the Monte Carlo pricing model with the following inputs 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 -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 December 31, 2019:


Balance at June 30, 2019	$ 1,025,944
Additional convertible securities at inception	1,823,000
Settlement of conversion features and warrants	(152,374)
Realized	(227,903)
Unrealized	(1,797,355)
Balance at December 31, 2019	$ 671,312

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, 2019:


Beginning balance	$	-
Convertible Securities at inception		1,238,359
Settlement of conversion features and warrants		(301,613)
Realized		(83,487)
Unrealized		172,685

Ending balance	$	1,025,944