Derivative Liability (Tables)

9 Months Ended

Sep. 30, 2018

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, 2018 and December 31, 2017:

	September 30,			December 31,
	2018			2017
Stock price	$	0.95		$	1.12
Risk free rate		2.59	%		1.76	%
Volatility		165	%		175	%
Conversion/ Exercise price	$	0.51		$	0.60
Dividend rate		0	%		0	%

Schedule of Derivative Liabilities at Fair Value

The following table represents the Company’s derivative liability activity for the nine months ended September 30, 2018:

Derivative liability balance, December 31, 2017	$	95,164
Issuance of derivative liability during the period		337,669
Fair value of beneficial conversion feature of debt repaid		(113,287	)
Change in derivative liability during the period		2,458,506
Derivative liability balance, September 30, 2018	$	2,778,052