SENIOR CONVERTIBLE PROMISSORY NOTES (Tables)

3 Months Ended

Mar. 31, 2017

SENIOR CONVERTIBLE PROMISSORY NOTES

Schedule of the inputs to the models that were used to value the embedded derivatives

	March 31, 2017		December 31, 2016
Stock Price	$	0.50	$	0.25
Maturity Date		December 31, 2019		December 31, 2019
Risk-Free Interest Rate		1.44%		1.47%
Estimated Stock Volatility		40.00%		40.00%
Default Intensity		2.00%		2.00%
Recovery Rate		30.00%		30.00%

Type of Event	Expected Date	Probability of Event
Mandatory Redemption	October 17, 2018	80%
Conversion Option	March 31, 2019	10%
Note Reaches Maturity	December 31, 2019	10%