9. FINANCIAL INSTRUMENTS	3 Months Ended
Sep. 30, 2017
Financial Instruments
9. 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 September 30, 2017 and June 30, 2017. The fair values of the derivative instruments are measured each quarter, which resulted in a (gain)/loss of $202,820 and $111, and derivative expense of $137,466 and $0 during the three months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, and June 30, 2017, the fair market value of the derivatives aggregated $2,447,585 and $2,145,065, respectively, using the following assumptions: estimated 5-0 year term, estimated volatility of 174.38 -104.82%, and a discount rate of 1.77-0.96%.

9. FINANCIAL INSTRUMENTS

3 Months Ended

Sep. 30, 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 September 30, 2017 and June 30, 2017. The fair values of the derivative instruments are measured each quarter, which resulted in a (gain)/loss of $202,820 and $111, and derivative expense of $137,466 and $0 during the three months ended September 30, 2017 and 2016, respectively. As of September 30, 2017, and June 30, 2017, the fair market value of the derivatives aggregated $2,447,585 and $2,145,065, respectively, using the following assumptions: estimated 5-0 year term, estimated volatility of 174.38 -104.82%, and a discount rate of 1.77-0.96%.