Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

v2.4.1.9
FAIR VALUE MEASUREMENTS
 9 Months Ended
Mar. 31, 2015
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE 8 – FAIR VALUE MEASUREMENTS
 
We follow FASB ASC Topic No. 820, Fair Value Measurements and Disclosures (“ASC 820”) in connection with financial assets and liabilities measured at fair value on a recurring basis subsequent to initial recognition.
 
ASC 820 requires that assets and liabilities carried at fair value will be classified and disclosed in one of the following categories:
 
Level 1: Quoted market prices in active markets for identical assets and liabilities.
Level 2: Observable market based inputs or unobservable inputs that are corroborated by market data.
Level 3: Unobservable inputs that are not corroborated by market data.
 
The hierarchy noted above requires us to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value.
 
The fair value of our recorded derivative liabilities is determined based on unobservable inputs that are not corroborated by market data, which is a (Level 3) classification. We record derivative liabilities on our balance sheets at fair value with changes in fair value recorded in our condensed consolidated statements of operations.
 
The table below sets forth a summary of changes in the fair value of our (Level 3) financial instruments for the nine months ended March 31, 2015:
 
 
 
 
 
Estimated fair
 
Change in estimated
 
 
 
 
 
Balance at
 
value of new
 
fair value
 
Balance at
 
 
 
June 30,
 
derivative
 
recognized in results
 
March 31,
 
 
 
2014
 
liabilities
 
of operations
 
2015
 
 
 
 
 
 
 
 
 
 
 
Warrant derivative liabilities
 
$
571,000
 
$
-
 
$
(498,000)
 
$
73,000