7. DERIVATIVE LIABILITIES AND FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

Fair value of financial liabilities

	September 30, 2017		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Derivative liability	$	1,506,414	$	—	$	—	$	1,506,414

	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 in due to issuance of liability warrants in connection with sale of common stock		1,003,870
Transfers in due to issuance of convertible notes and warrants with embedded conversion and reset options		798,431
Transfers out due to warrant exercise		(610,967	)
Mark to market to September 30, 2017		(986,058	)
Balance, September 30, 2017	$	1,506,414
Gain on change in warrant liabilities for the nine months ended September 30, 2017	$	986,058