Derivative Liabilities

12 Months Ended

Jun. 30, 2019

Derivative Liability [Abstract]

Derivative Liabilities

10. Derivative Liabilities

Derivative liabilities consisted of the following:

	2019		2018
June 2019 Convertible Debt - $750,000		695,989	$	-
Total derivative liabilities		695,989	$	-

The Company applies the provisions of ASC Topic 815-40, Contracts in Entity’s Own Equity (“ASC Topic 815-40”), under which convertible instruments, which contain terms that protect holders from declines in the stock price, may not be exempt from derivative accounting treatment. As a result, embedded conversion options (whose exercise price is not fixed and determinable) in convertible debt (which is not conventionally convertible due to the exercise price not being fixed and determinable) are initially recorded as a liability and are revalued at fair value at each reporting date using the Black Sholes Model.

June 2019 Convertible Debt - $750,000

In June 2019, the Company entered into a $750,000 convertible note with variable conversion pricing. The following inputs were used within the Black Sholes Model to determine the initial relative fair values of the $750,000 convertible note with expected term of 1 year with interest bearing and payable at 6% annum. The note matures on June 4, 2020 and has conversion rights at $.70 per share if converted within the first 180 days of issuance (June 4, 2019), after which the holder has the right to convert each share at 65% of the lowest closing bid price on date of conversion.

	Balance at 6/30/2018		Additions		Changes		Balance at 6/30/2019
June 2019 Convertible Debt - $750,000		-		695,989		-		695,989
Total		-		695,989		-		695,989

The Company revalues these derivatives each quarter using the Black Sholes Model. The change in valuation is accounted for as a gain or loss in derivative liability. The following table describes the derivative liability as of June 30, 2018 and June 30, 2019.