6. DERIVATIVE LIABILITIES AND FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended 12 Months Ended
Mar. 31, 2016
Dec. 31, 2015
Notes to Financial Statements    
Fair value of financial liabilities

 

    Level 1   Level 2   Level 3   Total
Derivative liability   $ —       $ —       $ —      $ —   
Total   $ —       $ —       $ —      $ —   

 

Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of March 31, 2016:

 

    Level 1   Level 2   Level 3   Total
Derivative liability   $ —       $ —       $ 732,260     $ 732,260  
Total   $ —       $ —       $ 732,260     $ 732,260  

  

 

 The following table provides a summary of changes in fair value of the Company’s Level 3 financial liabilities for the three months ended March 31, 2016:

 

     
Balance, December 31, 2015   $ —    
Transfers in of Level 3     509,404  
Mark-to-market – loss on change in fair value of derivative liability - 2016     222,856  
Balance, March 31, 2016   $ 732,260  

 
Balance, December 31, 2013   $ —    
Transfers in of Level 3     346,467  
Mark-to-market – loss on change in fair value of derivative liability - 2014     753,241  
Balance, December 31, 2014   $ 1,099,708  
Mark-to-market – loss on change in fair value of derivative liability -2015     2,236,401  
Transfers out of Level 3     (3,336,109 )
Balance, December 31, 2015   $ —    
Derivative Liabilities Assumptions Used  
    Commitment Date   Premeasurement Dates
 Expected dividends     0%       0%  
 Expected volatility     150%       75% - 150%  
 Expected term      3-5 years         1.83 – 4.70 years   
 Risk free interest rate      0.75% - 1.1%        0.89% - 1.37%