DERIVATIVE INSTRUMENT LIABILITIES

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

NOTE 10. DERIVATIVE INSTRUMENT LIABILITIES

The fair market value of the derivative instruments liabilities at September 30, 2016, was determined to be $1,437,544 with the following assumptions: (1) risk free interest rate of .20%, (2) remaining contractual life of years from .01, (3) expected stock price volatility of 307%, and (4) expected dividend yield of zero. Based upon the change in fair value, the Company has recorded a loss on derivative instruments for the nine months ended September 30, 2016, of $1,668,698 and a corresponding increase in the derivative instruments liability.