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Fair Value Measurements (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2017

Dec. 31, 2016

Fair Value Disclosures [Abstract]

Summary of Fair Value Liabilities Measured at Fair Value On Recurring Basis

The following table presents information about the Company’s liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of September 30, 2017 and December 31, 2016:

		Fair value measured at September 30, 2017
		Total carrying value at September 30, 2017				Quoted prices in active markets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs (Level 3)
Assets
Digital Currencies		$	2			$	2				-				-

Liabilities
Derivative liabilities		$	4,341,334				-				-			$	4,341,334

		Fair value measured at December 31, 2016
		Total carrying value at December 31, 2016				Quoted prices in active markets (Level 1)				Significant other observable inputs (Level 2)				Significant unobservable inputs (Level 3)
Assets
Digital Currencies		$	199			$	199				-				-

Liabilities
Derivative liabilities		$	23,231,938				-				-			$	23,231,938
Derivative liabilities for shortfall of shares			14,915,419				-				-				14,915,419
Convertible notes inclusive of derivative liabilities			3,283,034				-				-				3,283,034

The following table presents information about the Company’s liabilities measured at fair value on a recurring basis and the Company’s estimated level within the fair value hierarchy of those assets and liabilities as of December 31, 2016 and 2015:

		Fair value measured at December 31, 2016
		Total carrying value at				Quoted prices in active markets				Significant other observable inputs				Significant unobservable inputs
		December 31, 2016				(Level 1)				(Level 2)				(Level 3)
Assets
Digital Currencies		$	199			$	199

Liabilities
Derivative liabilities		$	23,231,938											$	23,231,938
Derivative liabilities for shortfall of shares		$	14,915,419											$	14,915,419
Convertible notes at fair value		$	3,283,034											$	3,283,034

		Fair value measured at December 31, 2015
		Total carrying value at				Quoted prices in active markets				Significant other observable inputs				Significant unobservable inputs
		December 31, 2015				(Level 1)				(Level 2)				(Level 3)
Assets
Digital Currencies		$	17,036			$	17,036			$	-			$	-

Liabilities
Derivative liabilities		$	3,794,153											$	3,794,153
Convertible notes at fair value			1,781,156				-				-				1,781,156

Schedule of Changes in Level 3 Liabilities Measured at Fair Value

Changes in Level 3 liabilities measured at fair value for the nine months ended September 30, 2017:

Derivative liabilities balance - January 1, 2017		$	23,231,938
Conversion of warrant liabilities			(51,325,017	)
Fair value adjustments for warrant liabilities			40,338,368
Cashless warrant exercise			(11,638,566	)
Loss on issuance of Preferred C			2,809,497
Net proceeds from May fund raising			925,114
Derivative liabilities balance - September 30, 2017		$	4,341,334

Changes in Level 3 liabilities measured at fair value for the years ended December 31, 2016 and 2015:

Derivative liabilities Balance - January 1, 2015		$	-
Fair value of derivative liability on date of issuance (January 19, 2015)			952,600
Fair value of derivative liability on date of issuance (April 20, 2015)			2,843,811
Fair value of derivative liability on date of issuance (April 20, 2015)			537,152
Change in fair value of derivative liability			(482,666	)
Cashless warrants exercise related to derivative liability (October 15, 2015)			(56,744	)
Derivative liabilities Balance - December 31, 2015		$	3,794,153
Change in fair value of derivative liability			(5,921,409	)
Reclassification from derivative liability			92,601
Fair value adjustments for warrant liabilities			25,266,593
Derivative liabilities Balance - December 31, 2016		$	23,231,938

Schedule of Derivative Liabilities for Shortfall of Shares

Derivative liabilities for shortfall of shares balance - January 1, 2017		$	14,915,419
Conversion of shortfall shares liabilities			(14,915,419	)
Derivative liabilities for shortfall of shares balance - September 30, 2017		$	-

Derivative liabilities for shortfall of shares Balance - January 1, 2016		$	-
Change in fair value of derivative liability shortfall of shares			14,915,419
Derivative liabilities for shortfall of shares Balance - December 31, 2016		$	14,915,419

Schedule of Changes in Fair Value of Convertible Notes

Convertible notes at fair value - January 1, 2017		$	3,283,034
Conversion of convertible notes			(20,132,105	)
Change in fair value of convertible notes (including OID discount)			16,849,071
Convertible notes at fair value - September 30, 2017		$	-

Convertible notes at fair value Balance - January 1, 2015		$	-
Fair value of senior convertible notes on date of issuance (December 16, 2015)			1,777,408
Change in fair value of senior convertible notes			3,748
Convertible notes at fair value - December 31, 2015		$	1,781,156
Addition of convertible notes			320,002
Conversion of notes into common stock			4,208,546
Gain on extinguishment of debt			(837,369	)
Change in fair value of convertible notes (including OID discount)			(2,096,700	)
Reclassification to derivative liability			(92,601	)
Convertible notes at fair value - December 31, 2016		$	3,283,034

Summary of Quantitative Information to Valuation Methodology

Warrant Liabilities

Date of valuation		March 2, 2017				May 24, 2017				September 30, 2017
Strike Price			0.025 - 18.000				0.085				0.025 - 18.000
Volatility			186.7% - 208.3%				210.10% - 254.70%				207.65% - 295.61%
Risk-free interest rate			1.25% - 1.83%				1.24% - 1.79%				1.34% - 1.87%
Contractual life (in years)			1.79 to 3.79				1.52 to 5.00				1.17 to 4.65
Dividend yield (per share)			0				0				0

Convertible Notes at Fair Value

Date of valuation		March 2, 2017
Strike Price			0.32
Volatility			267.8%
Risk-free interest rate			0.68%
Dividend yield (per share)			0

A summary of the weighted average (in aggregate) significant unobservable inputs (Level 3 inputs) used in measuring the Company’s derivative liabilities that are categorized within Level 3 of the fair value hierarchy for the year ended December 31, 2016 is as follows:

Warrant Liabilities

Date of valuation		December 31, 2016
Strike Price		0.03 - 60.0
Volatility		118% - 230%
Risk-free interest rate		0.35% - 2.23%
Contractual life (in years)		0.10 to 3.96
Dividend yield (per share)		0

Derivative Liabilities for shortfall of shares

Date of valuation		December 31, 2016
Strike Price		0.0252
Volatility		268.69%
Risk-free interest rate		1.78%
Contractual life (in years)		3.75
Dividend yield (per share)		0%

Senior Convertible Notes at Fair Value

Date of valuation		December 31, 2016
Strike Price		0.0252
Volatility		300.42% - 328.04%
Risk-free interest rate		0.51% - 0.63%
Dividend yield (per share)		0%