Annual report pursuant to Section 13 and 15(d)

NOTE 6: DERIVATIVE LIABILITIES (Tables)

NOTE 6: DERIVATIVE LIABILITIES (Tables)

12 Months Ended

Dec. 31, 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 and the following key assumptions during the years ended December 31:

	2015			2014
Expected dividends		-	%		-	%
Expected term (years)		0.17 – 5.00			0.12 – 3.00
Volatility		79% - 272	%		155% - 237	%
Risk-free rate		0.16% - 1.57	%		0.09% - 1.76	%

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 years ended December 31, 2016 and 2015:

Fair value as of December 31, 2014	$	1,765,695
Fair value on the date of issuance recorded as debt discounts		5,479,767
Fair value on the date of issuance recognized as loss on derivatives		45,965,278
Loss on extinguishment of debt		1,674,820
Resolution of derivatives		(1,685,616	)
Loss on change in fair value of derivatives		15,118,758
Fair value as of December 31, 2015		70,004,318
Fair value on the date of issuance recorded as debt discounts		2,249,583
Fair value on the date of issuance recognized as loss on derivatives		3,223,499
Resolution of derivatives		(2,239,513	)
Gain on change in fair value of derivatives		(55,209,276	)
Fair value as of December 31, 2015	$	18,028,611