Warrant Liability	6 Months Ended
Jun. 30, 2016
Warrant Liability
Warrant Liability	5. WARRANT LIABILITY In 2014, in connection with the sale of common stock, the Company issued an aggregate of 5,000,000 common stock purchase warrants to purchase the Company’s common stock with an exercise prices of $0.10 to $0.15 per share for three years with anti-dilutive (reset) provisions. The Company has identified embedded derivatives related to the issued warrants. The accounting treatment of derivative financial instruments requires that the Company record allocated fair value of the derivatives as of the inception date and to fair value as of each subsequent reporting date. At June 30, 2016, the fair value of the reset provision of $30,070 was determined using the Black-Scholes Option Pricing model with the following assumptions: dividend yield: 0%; volatility: 119%; risk free rate: 0.56%; and expected life: 0.75 to 0.77 years. The Company recorded a loss on change in derivative liabilities of $8,658 during the three months ended June 30, 2016.

Warrant Liability

6 Months Ended

Jun. 30, 2016

5. WARRANT LIABILITY

In 2014, in connection with the sale of common stock, the Company issued an aggregate of 5,000,000 common stock purchase warrants to purchase the Company’s common stock with an exercise prices of $0.10 to $0.15 per share for three years with anti-dilutive (reset) provisions.

The Company has identified embedded derivatives related to the issued warrants. The accounting treatment of derivative financial instruments requires that the Company record allocated fair value of the derivatives as of the inception date and to fair value as of each subsequent reporting date.

At June 30, 2016, the fair value of the reset provision of $30,070 was determined using the Black-Scholes Option Pricing model with the following assumptions: dividend yield: 0%; volatility: 119%; risk free rate: 0.56%; and expected life: 0.75 to 0.77 years. The Company recorded a loss on change in derivative liabilities of $8,658 during the three months ended June 30, 2016.

chatAND, Inc. 10-Q