7. DERIVATIVE LIABILITIES AND FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Mar. 31, 2017

Notes to Financial Statements

Fair value of financial liabilities

	March 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	$	636,273	$	—	$	—	$	636,273

	December 31, 2016		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability	$	1,301,138	$	—	$	—	$	1,301,138

Balance, January 1, 2017	$	1,301,138
Transfers out due to warrant exercise		(610,967	)
Mark to market to March 31, 2017		(53,898	)
Balance, March 31, 2017	$	636,273
Gain on change in warrant liabilities for the three months ended March 31, 2017	$	53,898