5. DERIVATIVE LIABILITIES AND FAIR VALUE MEASUREMENTS (Tables)

12 Months Ended

Dec. 31, 2015

Notes to Financial Statements

Fair value of financial liabilities

Balance, December 31, 2013	$	—
Transfers in of Level 3		346,467
Mark-to-market – loss on change in fair value of derivative liability - 2014		753,241
Balance, December 31, 2014	$	1,099,708
Mark-to-market – loss on change in fair value of derivative liability -2015		2,236,401
Transfers out of Level 3		(3,336,109	)
Balance, December 31, 2015	$	—

Derivative Liabilities Assumptions Used

	Commitment Date		Premeasurement Dates
Expected dividends		0%		0%
Expected volatility		150%		75% - 150%
Expected term		3-5 years		1.83 – 4.70 years
Risk free interest rate		0.75% - 1.1%		0.89% - 1.37%