3. CONVERTIBLE DEBT SECURITIES

3 Months Ended

Mar. 31, 2019

Debt Disclosure [Abstract]

CONVERTIBLE DEBT SECURITIES

NOTE 3 – CONVERTIBLE DEBT SECURITIES

The Company uses the Black-Scholes Model to calculate the derivative value of its convertible debt. The valuation result generated by this pricing model is necessarily driven by the value of the underlying common stock incorporated into the model. The values of the common stock used were based on the price at the date of issue of the debt security as of March 31, 2019. Management determined the expected volatility between 320.82-442.87%, a risk free rate of interest between 2.27-2.408%, and contractual lives of the debt varying from six months to two years. The table below details the Company's nine outstanding convertible notes, with totals for the face amount, amortization of discount, initial loss, change in the fair market value, and the derivative liability.

	Face		Amortization		Initial		Q1 change			Derivative Balance
	Amount		of Discount		Loss		in FMV			3/31/2019
	$	90,228	$	46,788	$	58,959	$	(38,166	)	$	106,865
		162,150		49,562		74,429		53,598			195,064
		90,500		26,886		11,381		(78,377	)		–
		247,500		50,034		–		102,626			225,664
		100,000		32,967		8,904		16,327			91,490
		103,000		35,517		5,651		47,076			124,475
		65,000		16,027		28,566		(5,576	)		80,890
		35,000		8,630		16,558		(2,090	)		44,468
		29,250		557		–		26,144			28,907
		49,726		947		–		44,888			49,143
		41,774		796		–		37,710			41,285
		29,250		557		–		26,144			28,908
Subtotal		1,043,378		269,268		204,448		230,304			1,017,159
Transaction expense		–		–		–		–			–
	$	1,043,378	$	269,268	$	204,448	$	230,304		$	1,017,159

On January 10, 2019, the Company entered into a securities purchase agreement with GS Capital Partners, LLC, ("GS Capital") issuing to GS Capital a convertible promissory note in the aggregate principal amount of $65,000 with a $4,000 original issue discount and $3,100 in transactional expenses due to GS Capital and its counsel. The note bears interest at 8% per annum and may be converted into common shares of the Company's common stock at a conversion price equal to 70% of the average of the three lowest trading prices of the Company's common stock during the 20 prior trading days. As of the date the consolidated financial statements were available for issuance, DPI received $57,900 net cash.

On February 12, 2019, the Company entered into a securities purchase agreement with Crown Bridge Partners, LLC, (“Crown Bridge”) issuing to Crown Bridge a convertible promissory note in the aggregate principal amount of $35,000 with a $3,500 original issue discount and $1,500 in transactional expenses due to Crown Bridge and its counsel. The note bears interest at 8% per annum and may be converted into common shares of the Company's common stock at a conversion price equal to 70% of the lowest trading price of the Company's common stock during the 20 prior trading days. The Company received $30,000 net cash.

As of March 31, 2019 and 2018 respectively, there was $767,846 and $0 of convertible debt outstanding, net of debt discount of $275,532, and $0, As of March 31, 2019 and 2018 respectively, there was derivative liability of $1,017,159 and $0 related to convertible debt securities.