DERIVATIVE INSTRUMENT LIABILITIES

6 Months Ended

Jun. 30, 2019

DERIVATIVE INSTRUMENT LIABILITIES

NOTE 5. DERIVATIVE INSTRUMENT LIABILITIES

The fair market value of the derivative instruments liabilities at June 30, 2019, was determined to be $4,268,358with the following assumptions: (1) risk free interest rate of 2.18%, (2) remaining contractual life of years .01, (3) expected stock price volatility of 146%, 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 six months ended June 30, 2019 of $553,378 and a corresponding increase in the derivative instruments liability.

The entire amount of derivative instrument liabilities are classified as current due to the fact that settlement of the derivative instruments could be required within twelve months of the balance sheet date.