Note 6 - Derivative Liability (Tables)

6 Months Ended

Jun. 30, 2016

Tables/Schedules

Schedule of Derivative Liabilities at Fair Value

During the six months ended June 30, 2016, the Company had the following activity in its derivative liability:

Derivative liability at December 31, 2015	$10,852,906
Addition to liability for new debt issued	375,000
Elimination of liability on conversion	(138,540)
Change in fair value	(6,694,891)
Derivative liability at June 30, 2016	$4,394,475

Schedule of Fair Value Assumptions

The significant assumptions used in the Black Scholes valuation of the derivative liability at June 30, 2016 are as follows:

Stock price on the valuation date	$0.0009
Conversion price for the debt	$0.00025- $0.00068
Dividend yield	0.00%
Years to maturity	0.186-1.43
Risk free rate	0.36% - 0.52%
Expected volatility	165.21%% - 259.99%