8. FINANCIAL INSTRUMENTS	9 Months Ended
Mar. 31, 2015
Financial Instruments
8. FINANCIAL INSTRUMENTS	The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a multinomial lattice model as of March 31, 2015, and December 31, 2014. The fair values of the derivative instruments are measured each quarter, which resulted in a gain (loss) of 484,041 and $0 during the nine months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, and June 30, 2014, the fair market value of the derivatives aggregated $386,966 and $0, respectively, using the following assumptions: estimated 5-1.76-year term, estimated volatility of 110.10-99.86%, and a discount rate of 1.75-0.26%.

8. FINANCIAL INSTRUMENTS

9 Months Ended

Mar. 31, 2015

The Company has financial instruments that are considered derivatives or contain embedded features subject to derivative accounting. Embedded derivatives are valued separately from the host instrument and are recognized as derivative liabilities in the Company’s balance sheet. The Company measures these instruments at their estimated fair value and recognizes changes in their estimated fair value in results of operations during the period of change. The Company has estimated the fair value of these embedded derivatives for convertible debentures and associated warrants using a multinomial lattice model as of March 31, 2015, and December 31, 2014. The fair values of the derivative instruments are measured each quarter, which resulted in a gain (loss) of 484,041 and $0 during the nine months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, and June 30, 2014, the fair market value of the derivatives aggregated $386,966 and $0, respectively, using the following assumptions: estimated 5-1.76-year term, estimated volatility of 110.10-99.86%, and a discount rate of 1.75-0.26%.