DERIVATIVE INSTRUMENT LIABILITIES

9 Months Ended

Sep. 30, 2017

Notes to Financial Statements

NOTE 6 - DERIVATIVE INSTRUMENT LIABILITIES

The fair market value of the derivative instruments liabilities at September 30, 2017, was determined to be $15,959,257 with the following assumptions: (1) risk free interest rate of .96%, (2) remaining contractual life of years from .01 to .28, (3) expected stock price volatility of 250% to 696%, 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, 2017, of $8,800,844 and a corresponding increase in the derivative instruments liability.