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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)
12 Months Ended
Dec. 31, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair value on a recurring basis

Financial liabilities as of December 31, 2018 and 2017 measured at fair value on a recurring basis are summarized below:

 

    December 31,
2018
    Quoted Prices
in Active
Markets for
Identical Assets
(Level 1)
    Significant
Other
Observable
Inputs
(Level 2)
    Significant
Unobservable
Inputs
(Level 3)
 
Derivative liability   $ 54,242     $     $     $ 54,242  
Warrant liability     925,806                   925,806  
Total   $ 980,048     $     $     $ 980,048  

 

    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 years ended December 31, 2018 and 2017:

 

Conversion option:

 

    December 31,     December 31,  
    2018     2017  
Common Stock Closing Price   $ 0.03     $ 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     0.013 to 0.055       0.0188 to 0.0568  
Dividend Yield     0.00 %     0.00 %
Volatility     221.92 %     208.82% to 214.34%  
Risk-free Interest Rate     2.46% to 2.51%       1.03% to 1.76%  
Term     0.32 to .625 years       0.62 to 2 years  

 

Exercise option:

 

    December 31,     December 31,  
    2018     2016  
Common Stock Closing Price   $ 0.03     $ 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     0.026 to 0.028       0.0375 to 0.0723  
Dividend Yield     0.00 %     0.00 %
Volatility     221.92 %     208.82 to 214.34%  
Risk-free Interest Rate     2.46 to 2.51%       1.62 to 2.2%  
Term     2.62 to 4 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 years ended December 31, 2017 and 2016:

 

    Debt     Warrant  
    Derivative     Liability  
Balance December 31, 2016   $ 1,234,106     $ 1,093,765  
Aggregate amount of derivative instruments issued     85,381       644,870  
Transferred in due to conversions     14,551        
Change in fair value of derivative liabilities     (904,897 )     (639,435 )
Balance, December 31, 2017     429,141       1,099,200  
Aggregate amount of derivative instruments issued           226,831  
Transferred in due to conversions     (291,612 )      
Change in fair value of derivative liabilities     (83,287 )     (400,225 )
Balance, December 31, 2018   $ 54,242     $ 925,806