10. FINANCIAL INSTRUMENTS	9 Months Ended
Mar. 31, 2017
Financial Instruments
10. 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, 2017 and 2016. The fair values of the derivative instruments are measured each quarter, which resulted in a gain (loss) of $434,699and $4,374,585, and derivative expense of $197,199 and $0 during the nine months ended March 31, 2017 and 2016, respectively. As of March 31, 2017 and June 30, 2016, the fair market value of the derivatives aggregated $1,539,737 and $0, respectively, using the following assumptions: estimated 0.12 5.02 year term, estimated volatility of 86.22-112.56%, and a discount rate of 0.44-1.87%.

10. FINANCIAL INSTRUMENTS

9 Months Ended

Mar. 31, 2017

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, 2017 and 2016. The fair values of the derivative instruments are measured each quarter, which resulted in a gain (loss) of $434,699and $4,374,585, and derivative expense of $197,199 and $0 during the nine months ended March 31, 2017 and 2016, respectively. As of March 31, 2017 and June 30, 2016, the fair market value of the derivatives aggregated $1,539,737 and $0, respectively, using the following assumptions: estimated 0.12 5.02 year term, estimated volatility of 86.22-112.56%, and a discount rate of 0.44-1.87%.