Derivative Liabilities

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Liabilities

5. Derivative Liabilities

The following inputs and assumptions were used to value the convertible debentures outstanding during the years ended December 31, 2018 and December 31, 2017:

The projected annual volatility for each valuation period was based on the historic volatility of the Company of 381.8% and 431.5% at December 31, 2018 and 2017, respectively. The risk free rate was 2.45% and 1.81% at December 31, 2018 and 2017, respectively. The expected life was one year and the dividend yield was 0% for each year.

A summary of the activity of the derivative liability is shown below:

Balance, December, 2016	$	228,605
Change in value		342,038
Balance, December 31, 2017		570,643
Change in value		4,154
Balance, December 31, 2018	$	574,797