Derivative Financial Instruments

12 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 10 – DERIVATIVE FINANCIAL INSTRUMENTS

Derivative financial instruments are comprised of (i) the fair value of conversion features embedded in convertible promissory notes for which the conversion rate is not fixed, but instead is adjusted based on a discount to the market price of the Company’s common stock, and (ii) the fair value of certain warrants issued in connection with the July 2018 Private Placement (as defined in Note 11) for which the exercise price or the number of shares issuable was not fixed upon the issuance of the warrants. The fair market value of derivative liabilities related to convertible promissory notes was calculated at inception of each convertible promissory note for which the conversion rate was not fixed and allocated to the components of the respective convertible notes, with any excess recorded as a charge to “Financing cost.” The fair market value of derivative liabilities related to warrants issued in the July 2018 Private Placement was initially allocated to the proceeds of the transaction. When the exercise price and number of shares became fixed in September 2018, the fair value of the warrants was reallocated to shareholders’ equity. Derivative financial instruments are revalued at the end of each period, with the change in value recorded to “Change in fair value of on derivative financial instruments.”

Derivative financial instruments recorded in years ended December 31, 2018 include the following:

					Change in
	Fair Value		Inception of		Fair Value			Extinguishment			Fair Value
	as of		Derivative		of Derivative			of Derivative			as of
	December 31,		Financial		Financial			Financial			December 31,
	2017		Instruments		Instruments			Instruments			2018
$53k Note - July 2017	$	48,876	$	---	$	5,017		$	(53,893	)	$	---
$35k Note - September 2017		36,161		---		1,108			(37,269	)		---
$55k Note - September 2017		64,656		---		5,032			(69,688	)		---
$53k Note #2 - October 2017		58,216		---		(2,427	)		(55,789	)		---
$171.5k Note - October 2017		190,580		---		(108,201	)		147,523			229,902
$57.8k Note - January 2018		---		82,652		(19,103	)		(63,549	)		---
$112.8k Note - February 2018		---		161,527		(20,565	)		(140,962	)		---
$83k Note - February 2018		---		119,512		(12,792	)		(106,720	)		---
$105k Note - March 2018		---		153,371		(17,196	)		(136,175	)		---
$63k Note - April 2018		---		83,806		(11,469	)		(72,337	)		---
$57.8k Note - April 2018		---		83,397		(8,968	)		(74,429	)		---
$90k Note - April 2018		---		130,136		(7,106	)		(123,030	)		---
$53k Note II - April 2018		---		71,679		(12,147	)		(59,532	)		---
$68.3k Note - May 2018		---		99,422		(8,290	)		(91,132	)		---
$37k Note - May 2018		---		54,086		(6,323	)		(47,763	)		---
$63k Note II - May 2018		---		90,390		(9,373	)		(81,017	)		---
$78.8k Note - May 2018		---		116,027		(15,358	)		(100,669	)		---
$2M PIPE - July 2018		---		2,397,516		385,856			(2,783,372	)		---
$103k Note I - October 2018		---		143,834		(12,217	)		---			131,617
$103k Note II - November 2018		---		142,915		(7,070	)		---			135,845
$153k Note - November 2018		---		166,378		(8,952	)		---			157,426
$103k Note III - December 2018		---		148,965		(3,315	)		---			145,650
	$	398,489	$	4,245,613	$	106,141		$	(3,949,803	)	$	800,440

Fair market value of the derivative financial instruments is measured using the Black-Scholes pricing model with the following assumptions: risk-free interest rate of 1.21% to 2.73%, expected life of 0.01 to 1.17 years, volatility of 172.67% to 303.06%, and expected dividend yield of zero. The entire amount of derivative instrument liabilities is classified as current due to the fact that settlement of the derivative instruments could be required within twelve months of the balance sheet date.