3. CONVERTIBLE DEBT SECURITIES

6 Months Ended

Jun. 30, 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 June 30, 2019. Management determined the expected volatility between 282.75-460.92%, a risk free rate of interest between 1.75-2.43%, and contractual lives of the debt varying from six months to two years. The table below details the Company's 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		Q2 change			Derivative Balance
	Amount		of Discount		Loss		in FMV			6/30/2019
	$	90,228	$	42,645	$	58,959	$	(38,876	)	$	67,989
		162,150		49,562		74,429		(66,099	)		128,965
		85,100		34,629		11,381		–			–
		236,051		47,253		–		(225,664	)		225,664
		84,483		31,502		8,904		(91,490	)		–
		82,518		29,203		5,651		(124,475	)		–
		65,000		16,205		28,566		(11,042	)		69,848
		35,000		8,726		16,558		(6,857	)		37,611
		29,250		557		–		(199	)		28,708
		49,726		947		–		(338	)		48,805
		41,774		796		–		(285	)		41,000
		29,250		557		–		(199	)		28,708
		40,000		9,945		10,605		(3,738	)		42,867
		64,000		16,161		17,676		(5,290	)		68,586
Subtotal		1,094,530		239,128		232,729		(574,552	)		563,087
Transaction expense		–		–		–		–			–
	$	1,094,530	$	239,128	$	232,729	$	(574,552	)	$	563,087

On April 23, 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 $40,000 with a $2,000 original issue discount and $2,000 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 $36,000 net cash.

On May 3, 2019, the Company entered into a securities purchase agreement with Geneva Roth Remark Holdings, Inc. (“Geneva”) issuing to Geneva a convertible promissory note in the aggregate principal amount of $64,000 with a $6,000 original issue discount and $2,800 in transactional expenses due to Geneva and its counsel. The note bears interest at 9% 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 $55,200 net cash.

During the three months ended June 30, 2019, a total of $130,870 in principal and $5,899 in interest were converted into 137,005,692 shares of the Company’s common stock.

As of June 30, 2019 and 2018 respectively, there was $954,126 and $0 of convertible debt outstanding, net of debt discount of $140,404, and $0, As of June 30, 2019 and 2018 respectively, there was derivative liability of $563,088 and $0 related to convertible debt securities.