Derivative Liability

3 Months Ended

Mar. 31, 2016

Derivative Liability [Abstract]

DERIVATIVE LIABILITY

NOTE 5 – DERIVATIVE LIABILITY

The convertible notes discussed in Note 3 have a conversion price that is variable based on a percentage of the Company’s stock price which results in this embedded conversion feature being recorded as a derivative liability.

The fair value of the derivative liability is recorded and shown separately under current liabilities. Changes in the fair value of the derivative liability is recorded in the statement of operations under other income (expense).

The Company uses a weighted average Black-Scholes-Merton option-pricing model with the following assumptions to measure the fair value of derivative liability at March 31, 2016:

Stock price	$	0.014
Risk free rate		0.39-0.79%
Volatility		739	%
Conversion price	$	0.007–0.012
Dividend rate		0	%
Term (years)		0.01 to 1.9

The following table represents the Company’s derivative liability activity for the period ended March 31, 2016:

Derivative liability balance, December 31, 2015	$	50,276
Issuance of derivative liability during the period ended March 31, 2016		195,970
Change in derivative liability during the period ended March 31, 2016		(57,722	)
Derivative liability balance, March 31, 2016	$	188,524