NOTE

– DERIVATIVE LIABILITY

As discussed in Note

on a recurring basis, we measure certain financial assets and liabilities based upon the fair value hierarchy. The following table presents information about the Company’s liabilities measured at fair value as of

March 31, 2019

and

December 31, 2018:

	Level 1		Level 2		Level 3		Fair Value at March 31, 2019
Liabilities

Derivative Liability	$	-	$	-	$	136,446	$	136,446

	Level 1		Level 2		Level 3		Fair Value at December 31, 2018
Liabilities

Derivative Liability	$	-	$	-	$	238,674	$	238,674

As of

March 31, 2019,

the Company had a

$136,446

derivative liability balance on the balance sheet and recorded a gain from derivative liability fair value adjustment of

$472,152

during the

three

months ended

March 31, 2019.

Utilizing Level

Inputs, the Company recorded fair market value adjustments related to convertible notes payable for the

three

months ended

March 31, 2019

$472,152.

The fair market value adjustments as of

March 31, 2019

were calculated utilizing a max valuation method using the following assumptions: exercise price of

$1.00,

136,446

common shares the balance can be converted into and a stock price at measurement date of

$1.00.

A summary of the activity of the derivative liability for the year ended

December 31, 2018

is shown below:

Balance at December 31, 2017	$	. 238,674
Derivative liabilities recorded		49,580
Day one loss		122,362
Change due to note conversion		-
Loss on change in derivative fair value adjustment		197,982
Balance at December 31, 2018	$	608,598

A summary of the activity of the derivative liability for the

three

months ended

March 31, 2019

is shown below:

Balance at December 31, 2018	$	608,598
Derivative liabilities recorded		-
Day one loss		-
Change due to note conversion		-
Gain on change in derivative fair value adjustment		(472,152	)
Balance at March 31, 2019	$	136,446