Quarterly report pursuant to Section 13 or 15(d)

10. DERIVATIVE FINANCIAL INSTRUMENTS

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10. DERIVATIVE FINANCIAL INSTRUMENTS
9 Months Ended
Sep. 30, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
NOTE 10. DERIVATIVE FINANCIAL INSTRUMENTS

The Company determined that certain embedded features related to the Convertible Notes and Warrant issued in connection with the Convertible Notes as discussed in Note 3 and 9 above are derivative financial instruments.

 

There were no derivative instruments outstanding as of September 30, 2015, due to the extinguishment of the convertible promissory notes as discussed in Notes 3 and 9. There were no derivative instruments issued or outstanding as of December 31, 2014.

 

The amount of gain or recognized for derivative instruments in the statement of operations for the three and nine months ended September 30, 2015 consist of the following:  

               

Derivatives not

designated as

hedging instruments

 

Location of gain

            recognized in income on derivative

 

Three Months

Ended

September 30, 2015

 

Nine Months

Ended

September 30, 2015

 
Convertible Notes Compound Derivatives   Change in fair value of embedded derivative liabilities   $ 252,025   $ 274,331  
Convertible Note Warrant Liability    Change in fair value of warrant liability    $ -   $ 19,600