| Derivative Liability |
During the years ending December 31, 2016 and
2015, the Company had the following activity in their derivative liability account:
| |
|
Warrants |
|
|
Conversion
Feature |
|
|
Total |
|
| Derivative Liability at December 31, 2014 |
|
|
1,263,929 |
|
|
|
10,238,451 |
|
|
|
11,502.380 |
|
| Derivative Liability Recorded on New Instruments |
|
|
- |
|
|
|
698,705 |
|
|
|
698,705 |
|
| Elimination of Liability on Conversion |
|
|
- |
|
|
|
(79,044 |
) |
|
|
(79,044 |
) |
| Change in Fair Value |
|
|
(549,528 |
) |
|
|
(7,337,497 |
) |
|
|
(7,887,025 |
) |
| Derivative Liability at December 31, 2015 |
|
|
714,401 |
|
|
|
3,520,615 |
|
|
|
4,235,016 |
|
| Derivative Liability Recorded on New Instruments |
|
|
- |
|
|
|
6,150,026 |
|
|
|
6,150,026 |
|
| Elimination of Liability on Conversion |
|
|
(1,266,795 |
) |
|
|
(10,381,138 |
) |
|
|
(11,647,933 |
) |
| (Gain) on Settlement of Debt |
|
|
- |
|
|
|
(656,930 |
) |
|
|
(656,930 |
) |
| Change in Fair Value |
|
|
552,452 |
|
|
|
1,691,901 |
|
|
|
(2,244,353 |
) |
| Derivative Liability at December 31, 2016 |
|
|
58 |
|
|
|
324,474 |
|
|
|
324,532 |
|
The Company uses the
Black-Scholes pricing model to estimate fair value for those instruments convertible into common stock at inception, at conversion
date, and at each reporting date. During the year ending December 31, 2016, and 2015, the Company used the following
assumptions in their Black-Scholes model:
| |
|
December 31, 2016 |
|
|
December 31, 2015 |
|
| |
|
Warrants |
|
|
Conversion Feature |
|
|
Warrants |
|
|
Conversion Feature |
|
| Risk-free interest rate |
|
|
0.46% - 1.38% |
|
|
|
0.12% - 0.85% |
|
|
|
0.65% - 1.31% |
|
|
|
0.02% - 0.25% |
|
| Expected life in years |
|
|
0.53 - 4.08 |
|
|
|
0.01 - 1.00 |
|
|
|
0.70 - 4.00 |
|
|
|
0.07 - 0.94 |
|
| Dividend yield |
|
|
0% |
|
|
|
0% |
|
|
|
0% |
|
|
|
0% |
|
| Expected volatility |
|
|
156.29% - 273.70% |
|
|
|
115.46% - 239.93% |
|
|
|
197.83% - 263.33% |
|
|
|
279.01% - 555.60% |
|
|