Quarterly report pursuant to Section 13 or 15(d)

NOTE 6: DERIVATIVE LIABILITIES (Tables)

v3.5.0.2
NOTE 6: DERIVATIVE LIABILITIES (Tables)
9 Months Ended
Sep. 30, 2016
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block] The Company estimated the fair value of the derivative liabilities using the Black-Scholes option pricing model using the following key assumptions during the nine months ended September 30, 2016

Expected dividends 
   
-
%
Expected term (years)
   
0.17 – 5.00
 
Volatility
   
74% - 190
%
Risk-free rate
   
0.16% - 1.57
%
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] The following table sets forth by level with the fair value hierarchy the Company’s assets and liabilities measured at fair value as of September 30, 2016 and December 31, 2015:

 
 
Level 1
   
Level 2
   
Level 3
   
Total
 
September 30, 2016:
                       
Derivative liabilities – convertible debt
 
$
-
   
$
-
   
$
12,958,760
   
$
12,958,760
 
Derivative liabilities – warrants
   
-
     
-
     
387,904
     
387,904
 
Derivative liabilities – nonemployee options
   
-
     
-
     
8,122
     
8,122
 
Total
 
$
-
   
$
-
   
$
13,354,786
   
$
13,354,786
 
 
                               
December 31, 2015:
                               
Derivative liabilities – convertible debt
 
$
-
   
$
-
   
$
67,316,227
   
$
67,316,227
 
Derivative liabilities – warrants
   
-
     
-
     
2,677,717
     
2,677,717
 
Derivative liabilities – nonemployee options
   
-
     
-
     
10,374
     
10,374
 
Total
 
$
-
   
$
-
   
$
70,004,318
   
$
70,004,318
 
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] The below table presents the change in the fair value of the derivative liabilities during the nine months ended September 30, 2016:

Fair value as of December 31, 2015
 
$
70,004,318
 
Fair value on the dates of issuance recorded as debt discounts
   
1,975,986
 
Fair value on the dates of issuance recognized as loss on derivatives
   
3,176,463
 
Extinguishment of liability to additional paid-in capital
   
(428,257
)
Change in fair value of derivatives
   
(61,373,724
)
Fair value as of September 30, 2016
 
$
13,354,786