Derivative liabilities (Tables)

12 Months Ended

Dec. 31, 2017

Notes to Financial Statements

Summary of derivative liability balance

A summary of the derivative liability balance as of December 31, 2017, is as follows:

	Notes			Warrants			Total
Beginning Balance	$	1,410,647		$	203,023	$	1,613,670
Initial Derivative Liability		3,633,502			415,313		4,048,815
Fair Value Change		1,571,986			1,190,244		2,762,230
Reclassified to Additional paid- in capital		(2,184,277	)		—		(2,184,277	)
Reduction for debt assignment		(823,610	)		—		(823,610	)
Ending Balance	$	3,608,250		$	1,808,580	$	5,416,830

A summary of the derivative liability balance as of December 31, 2016 is as follows:

Beginning Balance	$	167,014
Initial Derivative Liability		4,114,649
Fair Value Change		(1,791,988	)
Debt extinguishment		(84,057	)
Reduction for conversions		(791,851	)
Ending Balance	$	1,613,767

Fair value assumptions for derivative liabilities

The fair value at the commitment date for the 2017 Convertible Notes and the re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2017:

	Commitment date		Remeasurement date
Expected dividends		-0-		-0-
Expected volatility		199%-361%		320%-331%
Expected term		12 months		3-12 months
Risk free interest		.65%-1.78%		1.51%-1.79%

The fair value at the commitment date for the 2016 Convertible Notes and the re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions as of December 31, 2016:

	Commitment date		Remeasurement date
Expected dividends		-0-		-0-
Expected volatility		243%-268%		246%
Expected term		12 months		1-12 months
Risk free interest		.44%-.68%		.48%-.85%

Fair value assumptions for warrants

	Commitment date		Remeasurement date
Expected dividends		-0-		-0-
Expected volatility		203% - 384%		320%
Expected term		3.87 - 4.64 years		3.84 years
Risk free interest		1.72% - 2.05%		1.81%