Quarterly report pursuant to Section 13 or 15(d)

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)

9 Months Ended

Sep. 30, 2017

Schedule of Derivative Liabilities at Fair Value

Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of September 30, 2017:

Level 1

Level 2

Level 3

Total

Warrant liability

85,663

Items recorded or measured at fair value on a recurring basis in the accompanying consolidated financial statements consisted of the following items as of December 31, 2016:

	Level 1		Level 2		Level 3		Total

Derivative liability	$	-	$	-	$	5,115,280	$	5,115,280
Warrant liability						26,903		26,903
Total	$	-	$	-	$	5,142,183	$	5,142,183

Changes in the fair value of the Company's Level 3 financial liabilities

	Debt Derivative Liability			Warrant Liability
Balance, December 31, 2016		5,115,280			26,903
Transfers in (out):
Initial fair value of debt derivative at note issuance		11,023,244			-
Transfers out of Level 3 upon conversion and settlement of notes		(1,146,201	)		-
Transfers out of Level 3 upon note modification		(30,806,073	)
Mark-to-market at September 30, 2017:
Embedded derivative		15,813,750			58,760
Balance, September 30, 2017	$	-0-		$	85,663