Quarterly report pursuant to Section 13 or 15(d)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

v3.5.0.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
6 Months Ended
Jun. 30, 2016
Accounting Policies [Abstract]  
Schedule of assets and liabilities' fair value measurement on a recurring basis

The following table provides a summary of the relevant assets and liabilities that are measured at fair value on a recurring basis:

 

    Total     Quoted Prices
in Active
Markets for
Identical
Assets or
Liabilities
(Level 1)
    Quoted Prices
for Similar
Assets or
Liabilities in
Active
Markets
(Level 2)
    Significant
Unobservable
Inputs
(Level 3)
 
June 30, 2016                                
Marketable securities   $ 28,390     $ 10,825     $     $ 17,565  
Total assets   $

28,390

    $ 10,825     $     $ 17,565  
                                 
Warrant liability     5,552                       5,552  
Derivative liability     2,159,066                   2,159,066  
                                 
Total liabilities   $ 2,164,618     $     $     $ 2,164,618  

 

    Total    

Quoted Prices

in Active

Markets for

Identical

Assets or

Liabilities

(Level 1)

   

Quoted Prices

for Similar

Assets or

Liabilities in

Active

Markets

(Level 2)

   

Significant

Unobservable

Inputs

(Level 3)

 
December 31, 2015                                
Marketable securities   $ 9,410     $ 5,629           $ 3,781  
Total assets   $ 9,410     $ 5,629     $     $ 3,781  
                                 
Warrant liability     940,000                       940,000  
Derivative liability     19,246,594                   19,246,594  
                                 
Total liabilities   $ 20,186,594     $     $     $ 20,186,594  
Schedule of changes in fair value of company's Level 3 financial liabilities measured at fair value on a recurring basis

The following table sets forth a summary of the changes in the fair value of the Company’s Level 3 financial liabilities that are measured at fair value on a recurring basis:

 

   

For the six

months ended

June 30, 2016

 
    Total  
Beginning balance   $ 20,186,594  
Initial recognition of conversion feature     4,932,162  
Change in fair value of conversion feature     (18,819,893 )
Reclassified to equity upon conversion     (3,199,797 )
Additions to warrant liability     62,673  
Change in fair value of warrant liability     (997,121 )
         
Ending Balance   $ 2,164,618  

Schedule of estimated useful lives for significant property and equipment

The estimated useful lives for significant property and equipment categories are as follows:

 

Vehicles   5 years
Furniture and Fixtures   3 - 5 years
Office equipment   3 years
Machinery   2 years
Buildings   10 - 39 years