Quarterly report pursuant to Section 13 or 15(d)

NOTE 6: DERIVATIVE LIABILITIES (Tables)

v3.7.0.1
NOTE 6: DERIVATIVE LIABILITIES (Tables)
 3 Months Ended
Mar. 31, 2017
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 three months ended March 31, 2017

Expected dividends 
 
 
-
%
Expected term (years)
 
 
0.25 – 5.00
 
Volatility
 
 
95% - 222
%
Risk-free rate
 
 
0.50% - 1.93
%
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 March 31, 2017 and December 31, 2016:

 
  
Level 1
    
Level 2
    
Level 3
    
Total
  
March 31, 2017:
                        
Liabilities:
                        
Derivative financial instruments
  
$
-
    
$
-
    
$
8,669,572
    
$
8,669,572
  
 
                                
December 31, 2016:
                                
Liabilities:
                                
Derivative financial instruments
  
$
-
    
$
-
    
$
18,028,611
    
$
18,028,611
  
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 three months ended March 31, 2017:

Fair value as of December 31, 2016
  
$
18,028,611
  
Fair value on the dates of issuance recorded as debt discounts
    
150,471
  
Extinguishment of liability to additional paid-in capital
    
(721,178
)
Change in fair value of derivatives
    
(8,788,332
)
Fair value as of March 31, 2017
  
$
8,669,572