CONVERTIBLE NOTES PAYABLE AND DERIVATIVE LIABILITY (Tables)

12 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of of the convertible notes payable outstanding

The following is a summary of the convertible notes payable outstanding as of December 31, 2015: 

		December 31, 2015
10% convertible notes payable issued in June 2015	(a)	$	700,000
10% convertible notes payable issued in July 2015	(b)		166,000
12% convertible notes payable issued in September 2015	(c)		172,095
Unamortized discounts on convertible notes			(583,049	)
Unamortized debt issuance costs			(71,700	)
		$	383,346

(a) In June 2015, the Company entered into agreements with nine individual accredited investors, whereby the Company issued separate 10% convertible notes for a total of $700,000 in a private offering and is secured by the assets of the Company. The notes have the following principal terms:

Schedule of assumptions used in calculating the fair value of warrants accounted for as equity

The assumptions used in calculating the fair value of warrants accounted for as equity has been estimated using the Black-Scholes option pricing model for warrants granted during the year ended December 31, 2015 are as follows:

Expected Volatility	80	%
Expected Term	5.0 Years
Risk Free Rate	1.48	%
Dividend Rate	0.00	%

Schedule of the proceeds of the convertible notes payable and a reconciliation

A summary of the proceeds of the convertible notes payable and a reconciliation of those proceeds to the convertible notes balances at December 31, 2015 is as follows:

Balance as of January 1, 2015	$	-
Proceeds from issuances of convertible notes payable		1,040,000
Conversion of note payable, related party, to convertible note payable		172,095
Less debt discount:
Equity warrants		(129,820	)
Beneficial conversion feature		(42,275	)
Derivative liability warrants and conversion features		(947,899	)
Debt issuance costs		(140,700	)
Amortization of debt discount:
Equity warrants and beneficial conversion feature		45,485
Derivative liability warrants and conversion features		491,460
Amortization of debt issuance costs		69,000
Conversion of notes payable to equity		(174,000	)
Balance as of December 31, 2015	$	383,346