FAIR VALUE OF FINANCIAL MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair value on a recurring basis

Financial liabilities as of March 31, 2017 measured at fair value on a recurring basis are summarized below:

	March 31, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability	$	1,193,980	$	-	$	-	$	1,193,980
Warrant liability		1,103,811		-		-		1,103,811
Total	$	2,297,791	$	-	$	-	$	2,297,791

Financial liabilities as of December 31, 2016 measured at fair value on a recurring basis are summarized below:

	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability	$	1,234,106	$	-	$	-	$	1,234,106
Warrant liability		1,093,765		-		-		1,093,765
Total	$	2,327,871	$	-	$	-	$	2,327,871

Schedule of fair value of the conversion/exercise options

The fair value of the conversion/exercise options were calculated using a binomial lattice formula with the following weighted average assumptions during the three months ended March 31, 2017:

Conversion option:

	At			March 31,
	Inception			2017
Common Stock Closing Price	$	0.0945		$	0.071
Conversion Price per Share	$	0.075		$	0.075
Conversion Shares		21,333,334			21,333,334
Call Option Value		0.0839			0.056
Dividend Yield		0.00	%		0.00	%
Volatility		212.53	%		214.34	%
Risk-free Interest Rate		0.725	%		1.03	%
Term		2.0 years			1.38 years

 Exercise option:

	At			March 31,
	Inception			2017
Common Stock Closing Price	$	0.0945		$	0.071
Conversion Price per Share	$	0.100		$	0.100
Conversion Shares		16,000,000			16,000,000
Call Option Value		0.0929			0.069
Dividend Yield		0.00	%		0.00	%
Volatility		212.53	%		214.34	%
Risk-free Interest Rate		1.15	%		1.93	%
Term		5.0 years			4.38 years

Schedule of change in Company's Level 3 conversion note and warrant liability

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis using significant unobservable input for the three months ended March 31, 2017:

	Debt			Warrant
	Derivative			Liability
Balance, December 31, 2016	$	1,234,106		$	1,093,765
Aggregate amount of derivative instruments issued		-			-
Change in fair value of derivative liabilities		(40,126	)		10,046
Balance, March 31, 2017	$	1,193,980		$	1,103,811