General form of registration statement for all companies including face-amount certificate companies

Derivative Financial Instruments (Tables)

v3.19.3
Derivative Financial Instruments (Tables)
9 Months Ended
Sep. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Fair Value Assumptions Related to Option Issued

The Company estimates the fair value of these derivative liabilities using the Black-Scholes valuation model. The initial value is used in the determination of a note discount with each subsequent change in fair value as a component of operations. The range of fair value assumptions used for derivative financial instruments during the nine-months ended September 30, 2019, were as follows:

 

Dividend yield     0.0 %
Risk-free rate     1.75% - 2.44 %
Volatility     102% - 137 %
Expected term     1 year  

 

The following table presents the three-level hierarchy prescribed by U.S. GAAP for derivative liabilities since it is a liability that is measured and recognized at fair value on a recurring basis as of:

 

    Level 1     Level 2     Level 3  
                         
September 30, 2019      -        -     $ 246,414