Quarterly report pursuant to Section 13 or 15(d)


6 Months Ended
Jun. 30, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract]  


Certain of the short-term convertible notes disclosed in note 9 above and note 14 below, have variable priced conversion rights with no fixed floor price and will re-price dependent on the share price performance over varying periods of time, due to the variable priced conversion rights, all convertible notes and any warrants attached thereto, issued subsequent to the variable priced conversion notes are valued and give rise to a derivative financial liability, which was initially valued at inception of the convertible notes using a Black-Scholes valuation model. The value of this derivative financial liability was re-assessed at June 30, 2019 and 2018, a total of $862,413 and $2,271,913 was credited to the statement of comprehensive loss, respectively. The value of the derivative liability will be re-assessed at each financial reporting period, with any movement thereon recorded in the statement of operations in the period in which it is incurred.


The following assumptions were used in the Black-Scholes valuation model:


    Six months ended
June 30,

Conversion price   $ 0.004 to 0.20  
Risk free interest rate     1.92 to 2.59 %
Expected life of derivative liability     1 to 16 months  
Expected volatility of underlying stock     173.07 to 174.49 %
Expected dividend rate     0 %


The movement in derivative liability is as follows:


    June 30,
    December 31,
Opening balance   $ 1,833,672     $ 3,277,621  
Derivative financial liability arising from convertible notes     394,393       2,685,845  
Fair value adjustment to derivative liability     (862,413 )     (4,129,793 )
    $ 1,365,652     $ 1,833,672