Derivative Liabilities (Tables)

12 Months Ended

Dec. 31, 2015

Derivative Liabilities Tables

Assumptions used derivative liabilities

The assumptions considered in the valuation model for the December 31, 2014 notes at December 31, 2015 and 2014 were:

	December 31,
	2015				2014
Trading price of common stock on measurement date		$	0.55			$	10.40
Conversion price		$	0.30			$	6.00
Risk free interest rate (1)			0.15	%			0.25	%
Conversion notes lives in years	<1 year				1 year
Expected volatility (2)			208	%			177	%
Expected dividend yield (3)			-				-

   The assumptions considered in the valuation model for the Sept 2015 and Dec 2015 notes were:

	December 31,
	2015
Trading price of common stock on measurement date	$	0.55
Conversion price	$	0.30
Risk free interest rate (1)		0.57%- 0.65	%
Conversion notes lives in years	<1 year to 1 year
Expected volatility (2)		208% - 224	%
Expected dividend yield (3)		-

(1)   The risk-free interest rate was determined by management using the 9 and 12 months Treasury Bill as of the respective measurement date.

(2)   The volatility factor was estimated by using the historical volatilities of the Company’s trading history.

(3)   Management determined the dividend yield to be 0% based upon its expectation that it will not pay dividends for the foreseeable future.

Summary of derivative liability

A summary of the derivative liability at December 31, 2015 is summarized as follows:

Balance, December 31, 2014                                                              $828,830

Allocation from September 2015 and December 2014

Convertible debt offerings                                                                 1,439,432

Change in fair value                                                                          ( 35,676)

Balance, December 31, 2015                                                            $2,232,586