Derivative Liability

9 Months Ended

Sep. 30, 2017

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 September 30, 2017:

Stock price	$0.0001
Risk free rate	1.24%
Volatility	670%
Conversion price	$0.00005–0.00009
Dividend rate	0%
Term (years)	0.01 to 0.63

The following table represents the Company’s derivative liability activity for the period ended September 30, 2017:

Derivative liability balance, December 31, 2016	$	1,559,428
Issuance of derivative liability during the period		782,363
Underlying security converted into common stock		(362,651	)
Change in derivative liability during the period		(1,580,668	)
Derivative liability balance, September 30, 2017	$	398,472