v3.25.1
DERIVATIVE LIABILITIES
9 Months Ended
Mar. 31, 2025
DERIVATIVE LIABILITIES  
DERIVATIVE LIABILITIES

NOTE 14. DERIVATIVE LIABILITIES

 

The Company has various convertible notes outstanding that require derivative liability considerations for its conversion features. Total derivative liability on March 31, 2025, was $ 83,921 which was principally related to convertible notes issued in 2025. No derivative liability was accrued in prior years due the note terms and immateriality of the derivative value determined.

 

For the period ended March 31, 2025, the Company recorded a loss of $83,921 related to the change in fair value of derivative liabilities.

 

The following table summarizes the weighted average key inputs used in the Black-Scholes model for all outstanding conversion feature derivative liabilities as of the measurement dates:

 

Input

 

Weighted Avg at Inception Date

 

 

Weighted Avg on December 31, 2024

 

 

 

 

 

 

 

 

Stock price

 

$0.35

 

 

$0.35

 

Exercise Price (conversion price

 

$0.50

 

 

$0.50

 

Risk-free interest rate

 

 

4.37%

 

 

4.22%

Expected term (years)

 

 

0.50

 

 

 

0.50

 

Expected volatility

 

 

134.80%

 

 

94.47%

Dividend yield

 

 

0%

 

 

0%

 

Description

 

March 31, 2025

 

 

 

 

 

Derivative liability beginning balance

 

 

-

 

Initial Recognition of derivatives

 

 

85,347

 

Change in fair value

 

 

(1,453)

Settlements/conversions

 

 

-

 

Derivative liability ending balance

 

$83,921