DERIVATIVE LIABILITY

3 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITY

9 DERIVATIVE LIABILITY

Certain of the short-term convertible notes disclosed in note 7 above and note 12 below, have variable priced conversion rights with no fixed floor price and will re-price dependent on the share price performance over varying periods of time, due to the variable priced conversion rights, all convertible notes and any warrants attached thereto, issued subsequent to the variable priced conversion notes are valued and give rise to a derivative financial liability, which was initially valued at inception of the convertible notes using a Black-Scholes valuation model. The value of this derivative financial liability was re-assessed at March 31, 2018 and 2017 and $2,531,332 was credited to the statement of comprehensive loss and $247,770 was charged to the statement of comprehensive loss, respectively. The value of the derivative liability will be re-assessed at each financial reporting period, with any movement thereon recorded in the statement of operations in the period in which it is incurred.

The following assumptions were used in the Black-Scholes valuation model:

	Three months ended March 31, 2018
Conversion price	$	0.08 to 0.20
Risk free interest rate		1.78 to 2.09	%
Expected life of derivative liability		9 to 12 months
Expected volatility of underlying stock		208.3 to 230.6	%
Expected dividend rate		0	%

The movement in derivative liability is as follows:

	March 31, 2018			December 31, 2017
Opening balance	$	3,277,621		$	113,074
Derivative financial liability arising from convertible note		668,545			2,834,413
Fair value adjustment to derivative liability		(2,531,332	)		330,134
	$	1,414,834		$	3,277,621