CONVERTIBLE NOTE PAYABLE (Tables)
|
6 Months Ended |
Jun. 30, 2018 |
|---|
| Debt Disclosure [Abstract] |
|
| Summary of convertible debt |
The following represents a summary of the convertible
debt terms at June 30, 2018:
| |
|
|
Amount of
Notes
|
|
|
Debt Discount |
|
|
Maturity
Dates
thru
|
|
Conversion
Price
|
|
|
Number of
Warrants
|
|
|
Exercise
Price
|
|
|
Warrants
Exercisable
thru
|
| January and February |
|
|
|
|
|
|
|
|
10/3/2018 to |
|
|
|
|
|
|
|
|
|
|
|
| 2018 Notes |
|
|
$ |
294,000 |
|
|
$ |
(100,548 |
) |
|
11/16/2018 |
|
$ |
0.08 |
|
|
|
1,960,000 |
|
|
$ |
0.15 |
|
|
2/16/2023 |
| November 2017 Notes |
|
|
|
287,502 |
|
|
|
— |
|
|
12/31/2018 |
|
$ |
0.08 |
|
|
|
3,593,776 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
| November 2016 Notes |
|
|
|
287,502 |
|
|
|
— |
|
|
12/31/2018 |
|
$ |
0.08 |
|
|
|
3,593,776 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
| December 2015 Notes |
|
|
|
862,500 |
|
|
|
— |
|
|
12/31/2018 |
|
$ |
0.08 |
|
|
|
10,781,250 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
| Total |
|
|
$ |
1,731,504 |
|
|
$ |
(100,548 |
) |
|
|
|
|
|
|
|
|
19,928,802 |
|
|
|
|
|
|
|
|
| Schedule of fair value and relative fair value |
| |
|
January 3, 2018 |
|
|
February 16, 2018 |
|
| |
|
Fair value |
|
|
Relative fair value |
|
|
Fair value |
|
|
Relative fair value |
|
| Warrant |
|
$ |
95,324 |
|
|
$ |
19,784 |
|
|
$ |
65,292 |
|
|
$ |
16,955 |
|
| Common sock |
|
$ |
70,833 |
|
|
$ |
14,701 |
|
|
$ |
54,167 |
|
|
$ |
14,066 |
|
| Redeemable shares |
|
$ |
255,000 |
|
|
$ |
52,923 |
|
|
$ |
195,000 |
|
|
$ |
50,637 |
|
| Remaining note value |
|
$ |
110,300 |
|
|
$ |
22,892 |
|
|
$ |
110,300 |
|
|
$ |
28,642 |
|
| Total |
|
$ |
531,457 |
|
|
$ |
110,300 |
|
|
$ |
424,759 |
|
|
$ |
110,300 |
|
|
| Schedule of optional redemption fair value assumptions |
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:
| |
|
June 30, 2018 |
| |
|
|
|
| Expected dividend yield |
|
0.00% |
| Expected stock-price volatility |
|
47.5% |
| Risk-free interest rate |
|
2.11% |
| Expected term of options (years) |
|
0.5 |
| Stock price |
|
$0.019 |
| Conversion price |
|
$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:
| |
|
June 30, 2018 |
|
|
December 31, 2017 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
47.5 |
% |
| Risk-free interest rate |
|
|
2.11 |
% |
|
|
1.53 |
% |
| Expected term of options (years) |
|
|
0.50 |
|
|
|
0.5 |
|
| Stock price |
|
$ |
0.019 |
|
|
$ |
0.12 |
|
| 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:
| |
|
June 30, 2018 |
|
|
December 31, 2017 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
47.5 |
% |
| Risk-free interest rate |
|
|
2.11 |
% |
|
|
1.53 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
0.5 |
|
| Stock price |
|
$ |
0.019 |
|
|
$ |
0.12 |
|
| Conversion price |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
| Schedule of purchaser warrants fair value assumptions using monte carlo simulation |
The assumptions used
in the Black-Scholes option-pricing method is set forth below:
| |
January 3, 2018 |
February 16, 2018 |
| Common stock price |
$0.17 |
$0.13 |
| Term |
5 years |
5 years |
| Strike price |
$0.15 |
$0.15 |
| Dividend yield |
0 |
0 |
| Risk free rate |
2.25% |
2.63% |
| Volatility |
62.5% |
62.5% |
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:
| |
|
June 30, 2018 |
|
|
December 31, 2017 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
47.5 |
% |
| Risk-free interest rate |
|
|
2.11 |
% |
|
|
1.53 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
0.5 |
|
| Stock price |
|
$ |
0.019 |
|
|
$ |
0.12 |
|
| 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:
| |
|
June 30, 2018 |
|
|
December 31, 2017 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
47.5 |
% |
| Risk-free interest rate |
|
|
2.11 |
% |
|
|
1.53 |
% |
| Expected term of options (years) |
|
|
0.50 |
|
|
|
0.5 |
|
| Stock price |
|
$ |
0.019 |
|
|
$ |
0.12 |
|
| 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:
| |
|
June 30, 2018 |
|
|
December 31, 2017 |
|
| |
|
|
|
|
|
|
| Expected dividend yield |
|
|
0.00 |
% |
|
|
0.00 |
% |
| Expected stock-price volatility |
|
|
47.5 |
% |
|
|
47.5 |
% |
| Risk-free interest rate |
|
|
2.11 |
% |
|
|
1.53 |
% |
| Expected term of options (years) |
|
|
0.5 |
|
|
|
0.5 |
|
| Stock price |
|
$ |
0.019 |
|
|
$ |
0.12 |
|
| Conversion price |
|
$ |
0.08 |
|
|
$ |
0.08 |
|
|
| Schedule of changes in derivative and warrant liabilities |
Changes in the derivative liabilities were as follows:
| |
|
|
|
| Derivative liabilities: |
|
|
|
| December 31, 2017 |
|
$ |
470,839 |
|
| Change due to extinguishment of debt |
|
|
59,999 |
|
| Valuation of November 2017 Optional Redemption shares |
|
|
6,375 |
|
| Decrease in fair value |
|
|
(505,338 |
) |
| June 30, 2018 |
|
$ |
31,875 |
|
|