Annual report pursuant to Section 13 and 15(d)

Nature of Business and Summary of Significant Accounting Policies (Tables)

v3.8.0.1
Nature of Business and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Measured Stock- Based Compensation

The Company measured stock-based compensation using the Black-Scholes option valuation model using the following assumptions:

 

      December 31, 2017  
         
Expected term     2 - 5 years  
Exercise price     $0.0216 - $0.2669  
Expected volatility     184% - 217%  
Expected dividends     None  
Risk-free interest rate     1.50% - 1.87%  
Forfeitures     None  

Schedule of Balances of Liabilities Measured at Fair Value

The following table presents changes in the liabilities with significant unobservable inputs (Level 3) for the years ended December 31, 2017 and 2016:

 

    Fair Value Measurements at December 31, 2017 Using  
    Quoted Prices in     Significant Other     Significant        
    Active Markets for     Observable     Unobservable        
    Identical Assets     Inputs     Inputs        
    (Level 1)     (Level 2)     (Level 3)     Total  
                                 
Derivative liability   $ -     $ -     $ 5,939,600     $ 5,939,600  
Total   $ -     $ -     $ 5,939,600     $ 5,939,600  

 

    Fair Value Measurements at December 31, 2016 Using  
    Quoted Prices in     Significant Other     Significant        
    Active Markets for     Observable     Unobservable        
    Identical Assets     Inputs     Inputs        
    (Level 1)     (Level 2)     (Level 3)     Total  
                                 
Derivative liability   $ -     $ -     $ 1,927,752     $ 1,927,752  
Total   $ -     $ -     $ 1,927,752     $ 1,927,752

Schedule of Changes in the Liabilities with Significant Unobservable Inputs

The following table presents changes in the liabilities with significant unobservable inputs (Level 3) for the years ended December 31, 2017 and 2016:

 

    Liability  
Balance December 31, 2015   $ 3,973,542  
         
Increase in Derivative Liability resulting from Issuance of convertible debt     2,525,515  
Decrease in Derivative Liability resulting from Settlements by debt extinguishment     (1,718,013 )
Decrease in Derivative Liability resulting from Change in estimated fair value     (2,853,292 )
         
Balance December 31, 2016     1,927,752  
         
Increase in Derivative Liability resulting from Issuance of convertible debt     9,185,674  
Decrease in Derivative Liability resulting from Settlements by debt extinguishment     (8,156,369 )
Increase in Derivative Liability resulting from Change in estimated fair value     2,982,543  
         
Balance December 31, 2017   $ 5,939,600

Schedule of Variable Debentures Black-Scholes Valuation Assumptions

The Company measures the derivative liability using the Black-Scholes option valuation model using the following assumptions:

 

      For Year Ending December 31,  
      2017       2016  
                 
Expected term     1 year       1 year - 2 years  
Exercise price     $0.0063-$0.385       $0.0113-$0.81  
Expected volatility     163%-201%       176%-276%  
Expected dividends     None       None  
Risk-free interest rate     0.79%-1.76%       0.45%-1.06%  
Forfeitures     None       None