CONVERTIBLE NOTES PAYABLE (Tables)
|
12 Months Ended |
Dec. 31, 2017 |
|---|
| Debt Disclosure [Abstract] |
|
| Summary of convertible debt |
The following represents a summary of the convertible
debt terms at December 31, 2017:
| |
|
Amount of
Note
|
|
Debt
Discount
|
|
Maturity
Date
|
|
Conversion
Price
|
|
Number of
Warrants
|
|
Exercise
Price
|
|
Warrants
Exercisable
thru
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| November 2017 Note |
|
$ |
287,502 |
|
$ |
(224,904 |
) |
|
6/30/2018 |
|
$ |
0.08 |
|
|
10,781,250 |
|
$ |
0.15 |
|
|
11/10/2022 |
|
| November 2016 Note |
|
|
287,502 |
|
|
— |
|
|
6/30/2018 |
|
$ |
0.08 |
|
|
3,593,776 |
|
$ |
0.15 |
|
|
11/10/2022 |
|
| December 2015 Note |
|
|
862,500 |
|
|
— |
|
|
6/30/2018 |
|
$ |
0.08 |
|
|
3,593,776 |
|
$ |
0.15 |
|
|
11/10/2022 |
|
| Total |
|
$ |
1,437,504 |
|
$ |
(224,904 |
) |
|
|
|
|
|
|
|
17,968,802 |
|
|
|
|
|
|
|
|
| Schedule of change in fair value of warrant liabilities |
| |
|
Change in Fair Value of
Warrant Liability
|
| |
|
|
| November 2017 Note |
|
$ |
(19,938 |
) |
| November 2016 Note |
|
|
74,514 |
|
| December 2015 Note |
|
|
127,320 |
|
| Total |
|
$ |
181,896 |
|
| |
|
Change in Fair Value of
Warrant Liability
|
| |
|
|
| November 2017 Note |
|
$ |
(19,938 |
) |
| November 2016 Note |
|
|
74,514 |
|
| December 2015 Note |
|
|
127,320 |
|
| Total |
|
$ |
181,896 |
|
| |
|
Change in Fair Value of
Warrant Liability
|
| |
|
|
| November 2017 Note |
|
$ |
(19,938 |
) |
| November 2016 Note |
|
|
74,514 |
|
| December 2015 Note |
|
|
127,320 |
|
| Total |
|
$ |
181,896 |
|
|
| Schedule of modification of derivatives |
| |
|
|
Modification of |
|
|
|
|
| |
|
|
Warrant Liability |
|
|
Derivative Liability |
|
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| November 2017 Note |
|
|
$ |
13,819 |
|
|
$ |
(5,000 |
) |
|
$ |
8,819 |
|
| November 2016 Note |
|
|
|
28,993 |
|
|
|
15,301 |
|
|
|
44,294 |
|
| December 2015 Note |
|
|
|
182,173 |
|
|
|
3,649 |
|
|
|
185,822 |
|
| Total |
|
|
$ |
224,985 |
|
|
$ |
13,950 |
|
|
$ |
238,935 |
|
| |
|
|
Modification of |
|
|
|
|
| |
|
|
Warrant Liability |
|
|
Derivative Liability |
|
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| November 2017 Note |
|
|
$ |
13,819 |
|
|
$ |
(5,000 |
) |
|
$ |
8,819 |
|
| November 2016 Note |
|
|
|
28,993 |
|
|
|
15,301 |
|
|
|
44,294 |
|
| December 2015 Note |
|
|
|
182,173 |
|
|
|
3,649 |
|
|
|
185,822 |
|
| Total |
|
|
$ |
224,985 |
|
|
$ |
13,950 |
|
|
$ |
238,935 |
|
| |
|
|
Modification of |
|
|
|
|
| |
|
|
Warrant Liability |
|
|
Derivative Liability |
|
|
Total |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| November 2017 Note |
|
|
$ |
13,819 |
|
|
$ |
(5,000 |
) |
|
$ |
8,819 |
|
| November 2016 Note |
|
|
|
28,993 |
|
|
|
15,301 |
|
|
|
44,294 |
|
| December 2015 Note |
|
|
|
182,173 |
|
|
|
3,649 |
|
|
|
185,822 |
|
| Total |
|
|
$ |
224,985 |
|
|
$ |
13,950 |
|
|
$ |
238,935 |
|
|
| Schedule of reclassification of warrant liability to equity |
| |
|
|
Reclassification of Warrant liability to Equity |
|
| |
|
|
|
|
|
| November 2017 Note |
|
|
$ |
284,493 |
|
| November 2016 Note |
|
|
|
284,493 |
|
| December 2015 Note |
|
|
|
853,473 |
|
| Total |
|
|
$ |
1,422,459 |
|
| |
|
|
Reclassification of Warrant liability to Equity |
|
| |
|
|
|
|
|
| November 2017 Note |
|
|
$ |
284,493 |
|
| November 2016 Note |
|
|
|
284,493 |
|
| December 2015 Note |
|
|
|
853,473 |
|
| Total |
|
|
$ |
1,422,459 |
|
| |
|
|
Reclassification of Warrant liability to Equity |
|
| |
|
|
|
|
|
| November 2017 Note |
|
|
$ |
284,493 |
|
| November 2016 Note |
|
|
|
284,493 |
|
| December 2015 Note |
|
|
|
853,473 |
|
| Total |
|
|
$ |
1,422,459 |
|
|
| Schedule of fair value assumptions using monte carlo simulation |
The fair value of the embedded derivative liability
is measured in accordance with ASC 820 “Fair Value Measurement”, using “Monte Carlo Method” modeling incorporating
the following inputs:
| |
|
December 31, 2017 |
|
|
November 10, 2017 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
55.0 |
% |
| Risk-free interest rate |
|
|
1.53 |
% |
|
|
1.54 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
1.5 |
|
| Stock price |
|
$ |
0.12 |
|
|
$ |
0.20 |
|
| Conversion price |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
The fair value of the embedded derivative liability
is measured in accordance with ASC 820 “Fair Value Measurement”, using “Monte Carlo Method” modeling incorporating
the following inputs:
| |
|
December 31, 2017 |
|
|
December 31, 2016 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
55.0 |
% |
| Risk-free interest rate |
|
|
1.53 |
% |
|
|
1.47 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
1.5-5 |
|
| Stock price |
|
$ |
0.12 |
|
|
$ |
0.11 |
|
| Conversion price |
|
$ |
0.08 |
|
|
$ |
0.12 |
|
| |
|
December 31, 2017 |
|
|
December 31, 2016 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
50.0 |
% |
| Risk-free interest rate |
|
|
1.53 |
% |
|
|
0.62 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
0.5 |
|
| Stock price |
|
$ |
0.12 |
|
|
$ |
0.11 |
|
| Conversion price |
|
$ |
0.08 |
|
|
$ |
0.12 |
|
|
| Schedule of optional redemption fair value assumptions |
| |
|
December 31, 2017 |
|
|
December 31, 2016 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
55.0 |
% |
| Risk-free interest rate |
|
|
1.53 |
% |
|
|
1.47 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
1.5-5 |
|
| Stock price |
|
$ |
0.12 |
|
|
$ |
0.11 |
|
| Conversion price |
|
$ |
0.08 |
|
|
$ |
0.12 |
|
| |
|
December 31, 2017 |
|
|
December 31, 2016 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
50.0 |
% |
| Risk-free interest rate |
|
|
1.53 |
% |
|
|
0.62 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
0.5 |
|
| Stock price |
|
$ |
0.12 |
|
|
$ |
0.11 |
|
| Conversion price |
|
$ |
0.08 |
|
|
$ |
0.12 |
|
|
| Schedule of purchaser warrants fair value assumptions using monte carlo simulation |
The fair value of the November 2017 Purchaser
Warrants is measured in accordance with ASC 820 “Fair Value Measurement”, using “Monte Carlo simulation”
modeling, incorporating the following inputs:
| |
|
December 31, 2017 |
|
|
November 10, 2017 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
55.0 |
% |
| Risk-free interest rate |
|
|
2.07 |
% |
|
|
2.06 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
1.5 |
|
| Stock price |
|
$ |
0.12 |
|
|
$ |
0.20 |
|
| Exercise price |
|
$ |
0.15 |
|
|
$ |
0.08 |
|
The fair value of the November 2016 Purchaser
Warrants is measured in accordance with ASC 820 “Fair Value Measurement”, using “Monte Carlo simulation”
modeling, incorporating the following inputs:
| |
|
December 31, 2017 |
|
|
December 31, 2016 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
55.0 |
% |
| Risk-free interest rate |
|
|
2.07 |
% |
|
|
1.93 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
1.5-5 |
|
| Stock price |
|
$ |
0.12 |
|
|
$ |
0.11 |
|
| Exercise price |
|
$ |
0.15 |
|
|
$ |
0.30 |
|
The fair value of the December 2015 Purchaser
Warrants is measured in accordance with ASC 820 “Fair Value Measurement”, using “Monte Carlo simulation”
modeling, incorporating the following inputs:
| |
|
December 31, 2017 |
|
|
December 31, 2016 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
50.0 |
% |
| Risk-free interest rate |
|
|
2.20 |
% |
|
|
1.70 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
0.5 |
|
| Stock price |
|
$ |
0.12 |
|
|
$ |
0.11 |
|
| Exercise price |
|
$ |
0.15 |
|
|
$ |
0.30 |
|
|
| Schedule of changes in derivative and warrant liabilities |
Changes in the derivative and warrant liabilities were as follows:
| Derivative liabilities: |
|
|
|
| December 31, 2016 |
|
$ |
153,663 |
|
| November 2017 convertible note payable |
|
|
165,000 |
|
| Decrease in fair value |
|
|
(121,871 |
) |
| Change due to extinguishment of debt |
|
|
225,082 |
|
| Change due to modification of debt |
|
|
13,950 |
|
| Valuation of November 2016 Optional Redemption shares |
|
|
35,015 |
|
| December 31, 2017 |
|
$ |
470,839 |
|
| Warrant liabilities: |
|
|
|
| December 31, 2016 |
|
$ |
473,296 |
|
| November 2017 convertible note payable |
|
|
290,612 |
|
| Reclassifications of warrants to equity |
|
|
(1,422,459 |
) |
| Increase in fair value |
|
|
181,896 |
|
| Change due to extinguishment of debt |
|
|
251,670 |
|
| Change due to modification of debt |
|
|
224,985 |
|
| December 31, 2017 |
|
$ |
— |
|
|