CONVERTIBLE NOTE	6 Months Ended
Jun. 30, 2018
Notes to Financial Statements
NOTE 7 - CONVERTIBLE NOTE	On April 16, 2018, the Company executed a convertible promissory note with Auctus Fund, LLC for $350,000. The note bears interest at 10% per annum and matures on January 16, 2019. The holder has the right at any time to convert any portion of the note and/or interest into shares of common stock at a 40% discount to the average of the two lowest trades during the previous twenty-five days of conversion, provided that the conversion price is not less than $0.17 prior to the 180^thday after issue. The Company received $322,250 net of OID and applicable fees. The company bifurcated the conversion feature and accounted for it as a derivative liability. The Company recorded the derivative liability at its fair value of $689,923 based on the Black Scholes Merton pricing model, a loss on issuance of $448,361 and a corresponding debt discount of $241,562 to be amortized utilizing the interest method of accretion over the term of the note. As of June 30, 2018, the Company fair valued the derivative at $607,195 resulting in a gain on the change in the fair value of $82,728. In addition, $95,455 of the debt discount has been amortized to interest expense.

CONVERTIBLE NOTE

6 Months Ended

Jun. 30, 2018

On April 16, 2018, the Company executed a convertible promissory note with Auctus Fund, LLC for $350,000. The note bears interest at 10% per annum and matures on January 16, 2019. The holder has the right at any time to convert any portion of the note and/or interest into shares of common stock at a 40% discount to the average of the two lowest trades during the previous twenty-five days of conversion, provided that the conversion price is not less than $0.17 prior to the 180^thday after issue. The Company received $322,250 net of OID and applicable fees. The company bifurcated the conversion feature and accounted for it as a derivative liability. The Company recorded the derivative liability at its fair value of $689,923 based on the Black Scholes Merton pricing model, a loss on issuance of $448,361 and a corresponding debt discount of $241,562 to be amortized utilizing the interest method of accretion over the term of the note. As of June 30, 2018, the Company fair valued the derivative at $607,195 resulting in a gain on the change in the fair value of $82,728. In addition, $95,455 of the debt discount has been amortized to interest expense.