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Fair Value Measurements | 12 Months Ended
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Dec. 31, 2017
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Note 8 - Fair Value Measurements The Company’s assets and liabilities recorded at fair value have been categorized based upon a fair value hierarchy. 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, 2017 and 2016:
|  | Fair value measured at December 31, 2017
|  |  | Total carrying value at December 31, |  |  |  | Quoted prices in active markets |  |  |  | Significant other observable inputs |  |  |  | Significant unobservable inputs |
|  |  | 2017 |  |  |  | (Level 1) |  |  |  | (Level 2) |  |  |  | (Level 3) |
Liabilities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative liabilities |  | $ | - |  |  |  | - |  |  |  | - |  |  | $ | - |
|  | Fair value measured at December 31, 2016
|  | Total carrying value at December 31, |  |  | Quoted prices in active markets |  |  | Significant other observable inputs |  |  | Significant unobservable inputs |
|  | 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 inclusive of derivative liabilities |  |  | 3,283,034 |  |  |  | - |  |  |  | - |  |  |  | 3,283,034 |
There were no transfers between Level 1, 2 or 3 during the years ended December 31, 2017 and 2016. Level 3 Valuation Techniques The following table presents additional information about Level 3 assets and liabilities measured at fair value. Both observable and unobservable inputs may be used to determine the fair value of positions that the Company has classified within the Level 3 category. As a result, the unrealized gains and losses for assets and liabilities within the Level 3 category may include changes in fair value that were attributable to both observable (e.g., changes in market interest rates) and unobservable (e.g., changes in unobservable long-dated volatilities) inputs. Changes in Level 3 liabilities measured at fair value for the years ended December 31, 2017 and 2016:
Derivative liabilities balance - January 1, 2016 |  | $ | 3,794,153 |
Change in fair value of derivative liability |  |  | (5,921,409 | )
Reclassification from derivative |  |  | 92,601 |
Fair value adjustments for warrant liabilities |  |  | 25,266,593 |
Derivative liabilities balance - December 31, 2016 |  | $ | 23,231,938 |
Conversion of warrant liabilities |  |  | (51,325,017 | )
Fair value adjustments for warrant liabilities |  |  | 39,222,099 |
Cashless warrant exercise |  |  | (12,277,968 | )
Loss on issuance of Series C Convertible Preferred stock |  |  | 2,809,497 |
Net proceeds from issuance of Series C Convertible Preferred Stock and warrants for cash in an offering |  |  | 925,115 |
Loss on issuance of Series C-1 Convertible Preferred stock |  |  | 478,035 |
Net cash proceeds from issuance of Series C-1 Convertible Preferred Stock and warrants for cash and digital currency in an offering |  |  | 825,005 |
Net digital currency proceeds from issuance of Series C-1 Convertible Preferred Stock and warrants for cash and digital currency in an offering |  |  | 250,000 |
Reclassification between convertible notes and derivative liabilities |  |  | (4,138,704 | )
Derivative liabilities balance - December 31, 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 |
Conversion of shortfall shares liabilities |  |  | (14,915,419 | )
Derivative liabilities for shortfall of shares balance - December 31, 2017 |  | $ | - |
Convertible notes at fair value - January 1, 2016 |  | $ | 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 |
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 - December 31, 2017 |  | $ | - |
The Company’s derivative liabilities are measured at fair value using the Monte Carlo simulation valuation methodology. 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, 2017 is as follows: Warrant Liabilities
Date of valuation |  | March 2, 2017 |  |  | May 24, 2017 |  |  | December 7, 2017 |  |  | December 31, 2016 |
Strike Price |  |  | 0.025 - 18.000 |  |  |  | 0.085 |  |  |  | 0.025 - 0.085 |  |  |  | 0.03 - 60.0 |
Volatility |  |  | 186.7% - 208.3 | % |  |  | 210.10% - 254.70 | % |  |  | 255.89% - 465.94 | % |  |  | 118% - 230 | %
Risk-free interest rate |  |  | 1.25% - 1.83 | % |  |  | 1.24% - 1.79 | % |  |  | 1.67% - 2.14 | % |  |  | 0.35% - 2.23 | %
Contractual life (in years) |  |  | 1.79 to 3.79 |  |  |  | 1.52 to 5.00 |  |  |  | 0.98 to 4.88 |  |  |  | 0.10 to 3.96 |
Dividend yield (per share) |  |  | 0 |  |  |  | 0 |  |  |  | 0 |  |  |  | 0 |
Senior Convertible Notes at Fair Value
Date of valuation |  | March 2, 2017 |  |  | December 31, 2016 |
Strike Price |  |  | 0.32 |  |  |  | 0.0252 |
Volatility |  |  | 267.8 | % |  |  | 300.42% - 328.04 | %
Risk-free interest rate |  |  | 0.68 | % |  |  | 0.51% - 0.63 | %
Dividend yield (per share) |  |  | 0 |  |  |  | 0 | %
The development and determination of the unobservable inputs for Level 3 fair value measurements and fair value calculations are the responsibility of the Company’s Management.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -URI http://asc.fasb.org/topic&trid=2155941 + Details
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