DERIVATIVE LIABILITIES

12 Months Ended

Dec. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITIES

NOTE 12 - DERIVATIVE LIABILITIES

The Company identified the conversion features embedded within its convertible debts as financial derivatives. The Company has determined that the embedded conversion option should be accounted for at fair value.

The following schedule shows the change in fair value of the derivative liabilities at year end December 31, 2017:

Derivative liabilities - December 31, 2016	$	—
Add fair value at the commitment date for convertible notes issued during the current year		213,453
Less derivatives due to conversion		(101,493	)
Fair value mark to market adjustment for derivatives		442,957
Derivative liabilities - December 31, 2017		554,917
Less : current portion		(554,917	)
Long-term derivative liabilities	$	—

The following schedule shows the change in fair value of the derivative liabilities at year end December 31, 2016:
Derivative liabilities - December 31, 2015	$	—
Add fair value at the commitment date for convertible notes issued during the current year		270,331
Less derivatives due to conversion		(412,086	)
Fair value mark to market adjustment for derivatives		141,755
Derivative liabilities - December 31, 2017		—
Less : current portion		—
Long-term derivative liabilities	$	—

The Company recorded the debt discount to the extent of the gross proceeds raised and expensed immediately the remaining value of the derivative as it exceeded the gross proceeds of the note. The Company recorded derivative interest expenses for the year ended December 31, 2017 of $0.

The fair value at the commitment and re-measurement dates for the Company’s derivative liabilities were based upon the following management assumptions during the current quarter:

Assumption	Commitment Date			Remeasurement Date
Expected dividends:		—	%		—	%
Expected volatility:		134	%		130 - 169	%
Expected term (years):		0.42			0.15 - 0.36 years
Risk free interest rate:		1.19	%		1.25 - 1.39	%