Warrants and Options

9 Months Ended

Sep. 30, 2018

Share-based Payment Arrangement [Abstract]

Warrants and Options

Note 11 – WARRANTS AND OPTIONS

As of September 30, 2018, there were 1,000,000 options outstanding and exercisable, issued in relation with loans payable due to related parties. Each whole share purchase option has an exercise price of $0.015 per common share. The options were evaluated for purposes of classification between liability and equity. The options contain features that would require a liability classification and are therefore recorded as derivative liability. The Binomial model was used to estimate the fair value of $1,021 for the options. Following inputs were used for the Binomial model:

Options		1,000,000
Term		3-6 months
Exercise price	$	0.015
Volatility		285%-326	%
Risk Free Interest Rate		1.73%-1.93	%
Fair Value	$	1,021

These options expired on November 1, 2018.

As of September 30, 2018, there were 250,000 warrants outstanding and exercisable, issued in relation with a convertible note payable. Each whole share purchase option has an exercise price of $0.015 per common share. The warrants were evaluated for purposes of classification between liability and equity. The warrants contain features that would require a liability classification and are therefore recorded as derivative liability. The Binomial model was used to estimate the fair value of $255 for the Warrants. The following inputs were used for the Binomial model:

Warrants		250,000
Term		3 Years
Exercise price	$	0.10
Volatility		285	%
Risk Free Interest Rate		2.33	%
Fair Value	$	255