Quarterly report pursuant to Section 13 or 15(d)

4. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

v3.5.0.2
4. FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
9 Months Ended
Sep. 30, 2016
Fair Value Of Financial Instruments Tables  
Financial liabilities as of September 30, 2016 measured at fair value on a recurring basis

  

 

 

September 30,

2016

   

Quoted Prices

in Active

Markets for

Identical Assets

(Level 1)

   

Significant

Other

Observable

Inputs

(Level 2)

   

Significant

Unobservable

Inputs

(Level 3)

 
Derivative liability   $ 2,623,013     $ -     $ -     $ 2,623,013  
Warrant liability     2,157,978       -       -       2,157,978  
  Total   $ 4,780,991     $ -     $ -     $ 4,780,991  
Fair value of conversion/exercise options
      At     September 30,  
 

 

 

  Inception     2016  
 

Common Stock Closing Price

 

 

  $ 0.0945     $ 0.14  
 

Conversion Price per Share

 

 

  $ 0.075     $ 0.075  
 

Conversion Shares

 

 

    21,333,334       21,333,334  
 

Call Option Value

 

 

    0.0839       0.1233  
 

Dividend Yield

 

 

    0.00 %     0.00 %
 

Volatility

 

 

    212.53 %     214.57 %
 

Risk-free Interest Rate

 

 

    0.725 %     0.77 %
 

Term

 

 

  2.0 years     1.92 years  

      At     September 30,  
 

 

 

  Inception     2016  
 

Common Stock Closing Price

 

 

  $ 0.0945     $ 0.14  
 

Conversion Price per Share

 

 

  $ 0.100     $ 0.100  
 

Conversion Shares

 

 

    16,000,000       16,000,000  
 

Call Option Value

 

 

    0.0929       0.1349  
 

Dividend Yield

 

 

    0.00 %     0.00 %
 

Volatility

 

 

    212.53 %     214.57 %
 

Risk-free Interest Rate

 

 

    1.15 %     1.14 %
 

Term

 

 

  5.0 years     4.92 years  

Summary of the changes in the fair value of the Company's Level 3 financial liabilities
    Debt     Warrant  
    Derivative     Liability  
Balance, December 31, 2015   $ -0-     $ -0-  
Aggregate amount of derivative instruments issued     1,189,040       1,014,296  
Change in fair value of derivative liabilities     1,433,973       1,143,682  
Balance, September 30, 2016   $ 2,623,013     $ 2,157,978