FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

9 Months Ended

Sep. 30, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair value on a recurring basis

Financial liabilities as of September 30, 2018 measured at fair value on a recurring basis are summarized below:

	September 30, 2018		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability	$	109,605	$	—	$	—	$	109,605
Warrant liability		1,257,657		—		—		1,257,657
Total	$	1,367,262	$	—	$	—	$	1,367,262

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

	December 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	$	429,141	$	—	$	—	$	429,141
Warrant liability		1,099,200		—		—		1,099,200
Total	$	1,528,341	$	—	$	—	$	1,528,341

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 nine months ended September 30, 2018 and the year ended December 31, 2017:

Conversion option:

	September 30, 2018			December 31, 2017
Common Stock Closing Price	$	0.04		$	0.04 to 0.07
Conversion Price per Share		$0.075 to 0.10		$	0.075 to 0.10
Conversion Shares		5,333,333			21,666,667
Call Option Value		0.016 to 0.023			0.0188 to 0.0568
Dividend Yield		0.00	%		0.00	%
Volatility		216.44	%		208.82% to 214.34	%
Risk-free Interest Rate		2.36% to 2.59	%		1.03% to 1.76	%
Term		0.57 to 0.87 years			0.62 to 2 years

Exercise option:

	September 30, 2018			December 31, 2017
Common Stock Closing Price	$	0.04		$	0.04 to 0.075
Conversion Price per Share	$	0.10 to 0.15		$	0.10 to 0.15
Conversion Shares		34,000,000			29,000,000
Call Option Value		0.036 to 0.038			0.0375 to 0.0723
Dividend Yield		0.00	%		0.00	%
Volatility		216.44	%		208.82 to 214.34	%
Risk-free Interest Rate		2.40 to 2.94	%		1.62 to 2.2	%
Term		2.87 to 4.35 years			3.62 to 5 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 nine months ended September 30, 2018:

	Debt Derivative			Warrant Liability
Balance, December 31, 2017	$	429,141		$	1,099,200
Aggregate amount of derivative instruments issued		—			226,834
Transferred in due to conversions		(229,381	)		—
Change in fair value of derivative liabilities		(90,155	)		(68,377	)
Balance, September 30, 2018	$	109,605		$	1,257,657