DERIVATIVE LIABLITY (Tables)

12 Months Ended

Dec. 31, 2016

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of ranges of assumptions utilized in estimating fair value of conversion options and warrants

The ranges of assumptions utilized in estimating the fair value of the warrants and conversion options on the dates of issuance, settlement, and as of and for the years ended December 31, 2016 and 2015, are as follows:

	2016	2015
Expected Volatility	19% to 87%	58% to 83%
Expected Term	0.0 to 5.0 Years	0.0 to 5.0 Years
Risk Free Rate	0.036% to 1.93%	0.02% to 1.8%
Dividend Rate	0.00%	0.00%
Triggering Capital raise probabilities	50% to 75%	25% to 75%

Schedule of derivative activity

A summary of derivative activity for the years ended December 31, 2016 and 2015 is as follows:

Balance at January 1, 2015	$	—
New issuances		5,337,711	1
Conversion feature reclassified to equity upon conversion of related notes payable.		(2,706,167	)
Change in fair value		22,814,101
Balance at December 31, 2015	$	25,445,645
New issuances		648,836
Conversion feature reclassified to equity upon conversion of related note payable and repayments		(692,850	)
Change in fair value		(7,345,000	)
Balance at December 31, 2016	$	18,056,631

¹The fair value of derivative liabilities on the dates of issuance is recorded as a discount up to the face amount of the note. During the year ended December 31, 2015, the fair value of derivative liabilities on the dates of issuance exceeded the face value of the related debt by $3,832,920, which was recorded as derivative expense on the date of issuance and is included in loss on derivatives on the accompanying consolidated statement of operations.