CONVERTIBLE NOTE PAYABLE (Tables)
|
9 Months Ended |
Sep. 30, 2018 |
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| Debt Disclosure [Abstract] |
|
| Summary of convertible debt |
The following
represents a summary of the convertible debt terms at September 30, 2018:
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Warrants |
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Amount of |
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Maturity |
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Conversion |
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Number of |
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Exercise |
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Exercisable |
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Notes |
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Debt Discount |
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Dates thru |
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Price |
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|
Warrants |
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|
Price |
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|
thru |
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| January and February 2018 Notes |
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|
$ |
294,000 |
|
|
$ |
(19,726 |
) |
|
10/3/2018 to 11/16/2018 |
|
$ |
0.08 |
|
|
1,960,000 |
|
|
$ |
0.15 |
|
|
2/16/2023 |
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| November 2017 Notes |
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|
|
287,502 |
|
|
|
— |
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|
12/31/2018 |
|
$ |
0.08 |
|
|
3,593,776 |
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|
$ |
0.15 |
|
|
11/10/2022 |
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| November 2016 Notes |
|
|
|
287,502 |
|
|
|
— |
|
|
12/31/2018 |
|
$ |
0.08 |
|
|
3,593,776 |
|
|
$ |
0.15 |
|
|
11/10/2022 |
|
| December 2015 Notes |
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|
|
862,500 |
|
|
|
— |
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|
12/31/2018 |
|
$ |
0.08 |
|
|
10,781,250 |
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|
$ |
0.15 |
|
|
11/10/2022 |
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| Total |
|
|
$ |
1,731,504 |
|
|
$ |
(19,726 |
) |
|
|
|
|
|
|
|
19,928,802 |
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| Schedule of fair value and relative fair value |
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January 3, 2018 |
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|
February 16, 2018 |
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Fair value |
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Relative fair value |
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Fair value |
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|
Relative fair value |
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| 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:
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|
September 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:
| |
|
September 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:
| |
|
September 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:
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|
January 3, 2018 |
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|
February 16, 2018 |
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| Common stock price |
|
$ |
0.17 |
|
|
$ |
0.13 |
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| Term |
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|
5 years |
|
|
|
5 years |
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| 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:
| |
|
September 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:
| |
|
September 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:
| |
|
September 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 |
|
|
| 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 |
) |
| September 30, 2018 |
|
$ |
31,875 |
|
|