Note 8 - Derivative Liability
 3 Months Ended
Mar. 31, 2018
Notes  
Note 8 - Derivative Liability

NOTE 8 – Derivative Liability

 

The Company analyzed the conversion options for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability when the conversion option becomes effective.

 

The derivative liability in connection with the conversion feature of the convertible debt is measured using, level 3 inputs.

 

The change in the fair value of derivative liabilities is as follows:

 

 

Balance - December 31, 2017

 

$

1,879,930

 

Addition of new derivative as derivative loss

 

 

293,613

 

Resolution of derivatives upon conversion

 

 

(321,590

)

Debt discount from derivative liability

 

 

205,000

 

Loss on change in fair value of the derivative

 

 

1,310,093

 

Balance – March 31, 2018

 

$

3,367,046

 

 

The table below shows the Black-Scholes option-pricing model inputs used by the Company to value the derivative liability at each measurement date:

 

 

 

For the Three Months Ended March 31,

 

 

Year ended

December 31,

 

 

2018

 

 

2017

 

Expected term

0.25 – 3.45 years

 

 

0.02 – 3.65 years

 

Expected average volatility

 

 

86.14% -346.467

%

 

 

108.61% -584.87

%

Expected dividend yield

 

 

-

 

 

 

-

 

Risk-free interest rate

 

 

1.43% - 2.48

%

 

 

1.53% - 1.98

%