Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2017

Schedule of Fair Value of Assets and Liabilities Measured on Recurring Basis

The following table sets forth the financial assets and liabilities carried at fair value measured on a recurring basis as of December 31, 2017 and 2016:

	Level 1		Level 2		Level 3		Total
As of December 31, 2016
Beneficial conversion features:
Notes payable	$	-	$	-	$	409,524	$	409,524
Variable priced warrants:
Derivative liabilities	$	-	$	-	$	2,803	$	2,803
As of December 31, 2017
Derivative liabilities	$	-	$	-	$	12,435,250	$	12,435,250

Schedule of Changes in Liabilities of Level 3 Fair Value Hierarchy

The following table reconciles the changes in the liabilities categorized within Level 3 of the fair value hierarchy for the year ended December 31, 2017:

Balance at December 31, 2016	$	412,327
Gain on change in fair value included in net loss		27,406
Reclassifications to equity		(439,733	)
Derivative liabilities		12,435,250
Balance at December 31, 2017	$	12,435,250