Derivative Liability (Tables)

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Assumptions to measure fair value

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	$0.32
Risk free rate	1.31%
Volatility	200%
Conversion/ Exercise price	$0.12 to $0.13
Dividend rate	0%
Term (years)	5.0 years

Schedule of Derivative Liabilities at Fair Value

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

Derivative liability balance, December 31, 2016	$	–
Issuance of derivative liability during the period		2,715,178
Change in derivative liability during the period		(547,188	)
Derivative liability balance, September 30, 2017	$	2,167,990