Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENTS

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FAIR VALUE MEASUREMENTS
9 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Note 11. FAIR VALUE MEASUREMENTS

The following table represents the fair value hierarchy for those financial assets measured at fair value on a recurring basis:

 

    Fair Value at                    
    September 30,     Fair Value Measurement Using  
    2016     Level 1     Level 2     Level 3  
                         
Derivative Liability - Conversion Feature   $ 6,895,000       -       -     $ 6,895,000  
    $ 6,895,000       -       -     $ 6,895,000  

 

    Fair Value at                    
    December 31,     Fair Value Measurement Using  
    2015     Level 1     Level 2     Level 3  
                         
Derivative Liability - Conversion Feature   $ 743,400       -       -     $ 743,400  
    $ 743,400       -       -     $ 743,400  

 

Liabilities measured at fair value on a recurring basis using significant unobservable inputs (Level 3):

 

Balance at December 31, 2015   $ 743,400  
Change in fair market value of conversion feature     595,700  
Issuance of equity instruments with debt greater than debt carrying amount     1,355,000  
Derivative debt converted into equity     (570,100 )
Issuance of equity instruments with derivatives     4,771,000  
Balance at September 30, 2016   $ 6,895,000