Annual report pursuant to Section 13 and 15(d)

NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.7.0.1
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
12 Months Ended
Dec. 31, 2016
Accounting Policies [Abstract]  
Schedule of Deferred Tax Assets and Liabilities [Table Text Block]
Net deferred tax assets consist of the following components as of December 31, 2016 and 2015:

   
2016
   
2015
 
Deferred tax assets:
           
Net operating loss carryforward
 
$
9,785,760
   
$
7,880,283
 
Valuation allowance
   
(9,785,760
)
   
(7,880,283
)
 
 
$
-
   
$
-
 
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]
The federal income tax provision differs from the amount of income tax determined by applying the U.S. federal income tax rate of 35% to pretax income from continuing operations for the years ended December 31, 2016 and 2015 due to the following:

 
 
2016
   
2015
 
Pre-tax book income (loss)
 
$
12,794,609
   
$
(28,116,194
)
Meals and entertainment
   
1,225
     
1,140
 
Common stock, options and warrants issued for services and debt discount
   
2,889,665
     
1,063,207
 
Debt settlement and extinguishment expense
   
-
     
2,114,862
 
Asset impairment expense
   
-
     
2,089,611
 
Debt discount amortization
   
604,046
     
473,413
 
Gain (loss) on derivative liability
   
(18,195,022
)
   
21,379,413
 
Valuation allowance
   
1,905,477
     
994,548
 
 
 
$
-
   
$
-
 
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]
The following table sets forth by level within the fair value hierarchy the Company’s financial assets and liabilities that are measured at fair value on a recurring basis at December 31, 2016 and 2015:

 
Level 1
 
Level 2
 
Level 3
 
Total
 
December 31, 2016
               
  Liabilities:
               
Derivative financial instruments
 
$
-
   
$
-
   
$
18,028,611
   
$
18,028,611
 
December 31, 2015
                               
  Liabilities:
                               
Derivative financial instruments
 
$
-
   
$
-
   
$
70,004,318
   
$
70,004,318