Annual report pursuant to Section 13 and 15(d)

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

v3.19.1
Nature of Business and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of Measured Stock- Based Compensation

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

 

      For Year Ending December 31,  
      2018       2017  
                 
Expected term     2 - 3 years       3 - 5 years  
Exercise price     $0.0298 - $0.0470       $0.0216 - $0.0540  
Expected volatility     226% - 261%       184% - 217%  
Expected dividends     None       None  
Risk-free interest rate     1.58% - 2.06%       1.50% - 1.79%  
Forfeitures     None       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, 2018 and 2017:

 

    Fair Value Measurements at December 31, 2018 Using  
    Quoted Prices in
Active Markets for
    Significant Other
Observable
    Significant Unobservable        
    Identical Assets     Inputs     Inputs        
    (Level 1)     (Level 2)     (Level 3)     Total  
                         
Derivative liability   $      -     $        -     $ 4,426,026     $ 4,426,026  
Total   $ -     $ -     $ 4,426,026     $ 4,426,026  

 

    Fair Value Measurements at December 31, 2017 Using  
    Quoted Prices in
Active Markets for
   

Significant Other

Observable

   

Significant

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  

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, 2018 and 2017:

    Derivative  
    Liability  
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 )
Decrease in Derivative Liability resulting from Change in estimated fair value     2,982,543  
         
Balance December 31, 2017     5,939,600  
         
Increase in Derivative Liability resulting from Issuance of convertible debt     2,864,161  
Decrease in Derivative Liability resulting from Settlements by debt extinguishment     (1,773,752 )
Increase in Derivative Liability resulting from Change in estimated fair value     (2,603,983 )
         
Balance December 31, 2018   $ 4,426,026  

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,  
    2018     2017  
                 
Expected term     1 year       1 year  
Exercise price     $0.0111-$0.0326       $0.0063-$0.385  
Expected volatility     119%-195%       163%-201%  
Expected dividends     None       None  
Risk-free interest rate     1.79%-2.71%       0.79%-1.76%  
Forfeitures     None       None