Derivative Liability (Tables)

12 Months Ended

Dec. 31, 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 December 31, 2017:

Stock price	$1.12
Risk free rate	1.76%
Volatility	175%
Conversion/ Exercise price	$0.60
Dividend rate	0%
Term (years)	0.5 years

Schedule of Derivative Liabilities at Fair Value

The following table represents the Company’s derivative liability activity for the year ended December 31, 2017:

Derivative liability balance, December 31, 2016	$	—
Issuance of derivative liability during the period		3,214,879
Fair value of beneficial conversion feature of debt repaid/converted		(2,745,485	)
Change in derivative liability during the period		(374,230	)
Derivative liability balance, December 31, 2017	$	95,164