3. CONVERTIBLE DEBT SECURITIES

9 Months Ended

Sep. 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 September 30, 2019. Management determined the expected volatility between 318.38-487.51%, a risk free rate of interest between 1.75-1.92%, 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		Q3 change			Derivative Balance
	Amount		of Discount		Loss		in FMV			9/30/2019
	$	90,228	$	–	$	58,959	$	(67,989	)	$	–
		162,150		–		74,429		(128,965	)		–
		75,652		–		11,381		–			–
		208,436		–		–		–			–
		79,622		–		8,904		–			–
		65,372		–		5,651		–			–
		55,180		12,344		28,566		(7,305	)		62,544
		33,194		6,647		16,558		(3,934	)		33,677
		29,250		367		–		(340	)		28,368
		49,726		624		–		(579	)		48,226
		41,774		524		–		(486	)		40,514
		29,250		367		–		(340	)		28,368
		40,000		10,055		10,605		(4,593	)		38,274
		64,000		16,339		17,676		(7,348	)		61,238
Subtotal		1,023,834		47,266		232,729		(221,879	)		341,209
Transaction expense		–		–		–		–			–
	$	1,023,834	$	47,266	$	232,729	$	(221,879	)	$	341,209

During the three months ended September 30, 2019, a total of $70,696 in principal and $10,070 in interest were converted into 633,134,558 shares of the Company’s common stock.

As of September 30, 2019 and 2018 respectively, there was $928,702 and $0 of convertible debt outstanding, net of debt discount of $93,138, and $0, As of September 30, 2019 and 2018 respectively, there was derivative liability of $341,209 and $0 related to convertible debt securities.