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Derivative Liabilities
12 Months Ended
Jun. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Liabilities

7. Derivative Liabilities

 

The Company records the fair value of the conversion option of convertible debentures in accordance with ASC 815 - Derivatives and Hedging. The fair value of the derivatives is generally calculated using a multi-nominal lattice model. The fair value of the derivative liabilities is revalued on each balance sheet date with corresponding gains and losses recorded in the consolidated statements of operations.

 

For the fiscal year ended June 30, 2021, the Company recognized an expense related to the change in fair value of derivative liabilities of $19,655,296, offset by gain on settlement of debt of $18,683,279 for the same period. For the fiscal year ended June 30, 2022, the Company did not record an expense associated with the change in fair market value of derivatives. The Company had no derivative liabilities at June 30, 2022 and 2021.