The Company is authorized to issue 10,000,000,000 shares of common stock and 1,000,000 shares of preferred A, 10,000 shares of preferred A-2, 1,000,000 shares of preferred B and 1,000 shares of preferred C class. The increase in authorized shares of common stock from 500,000,000 to 1,000,000,000 was approved by the shareholders and Board of Directors on September 27, 2017. The increase from 1,000,000,000 to 3,000,000,000 shares was effective December 12, 2017, the increase from 3,000,000,000 to 5,000,000,000 shares was effective March 21, 2018 and the increase from 5,000,000,000 to 10,000,000,000 was effective May 17, 2018.

During the six months ended June 30, 2018, the Company issued an aggregate of 665,831,510 shares of common stock for compensation of $2,281,246 and 125,000,000 shares of common stock for outside services of $200,000. During the six months ended June 30, 2017, the Company issued an aggregate of 1,460,000 shares of common stock for services resulting in an expense of $130,000.

During the six months ended June 30, 2018, the Company issued 75,544,798 shares of common stock for note and interest conversion of $51,300. During the six months ended June 30, 2017 the Company issued 1,600,000 of common stock for the conversion of $80,000 of outstanding notes payable and 127,889 shares of common stock for interest.

There were no warrants exercised during the six months ended June 30, 2018. During the six months ended June 30, 2017, the Company issued 1,200,000 shares of common stock for the exercise of warrant.

During the six months ended June 30, 2018, the Company has not issued any shares of common stock for cash. During the six months ended June 30, 2017, the Company issued 7,170,000 shares of common stock for cash of $358,500.

The Company accounted for the issuance of warrants in conjunction from the issuance of convertible notes as an equity instrument and recognized the warrants under the Black-Scholes valuation model based on the company’s market share price on the grant date. The warrants were granted for compensation.

The below table summarizes warrant activity during the six months ended June 30, 2018:

	Number of Shares		Weighted- Average Exercise Price
Balances as of December 31, 2017		14,978,000«56WN5GAJ»	$	0.15
Granted		165,289,256		0.00242
Exercised		-		-
Forfeited		-		-
Balances as of June 30, 2018		180,267,256	$	0.14

The fair value of each warrant on the date of grant is estimated using the Black-Scholes option valuation model. The following weighted-average assumptions were used for options granted during the six months ended June 30, 2018 and 2017:

	Six Months Ended
	June 30,
	2018			2017
Exercise price	$	0.14			0.15
Expected term	1.88 – 2.84 years				1.88-2.9 years
Expected average volatility		266.35	%		642.19
Expected dividend yield		-			-

The following table summarizes information relating to outstanding and exercisable warrants as of June 30, 2018:

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at June 30, 2018, for those warrants for which the quoted market price was in excess of the exercise price (“in-the-money” warrants). As of June 30, 2018, the aggregate intrinsic value of warrants outstanding was $0 based on the closing market price of $0.0008 on June 30, 2018.

The Company values warrants using the Black-Scholes option pricing model. Assumptions used in the Black-Scholes model to value options and warrants issued during the six months ended June 30, 2018 were as follows: