Derivative Liability

3 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

NOTE 7 - DERIVATIVE LIABILITY

The convertible note discussed in Note 6 has a variable conversion price which results in the conversion feature being recorded as a derivative liability.

The fair value of the derivative liability is recorded and shown separately under current liabilities. Changes in the fair value of the derivative liability is recorded in the statement of operations under other income (expense).

The Company uses the Black-Scholes-Merton option pricing model with the following assumptions to measure the fair value of derivative liability at March 31, 2017 and December 31, 2016:

	March 31, 2017			December 31, 2016
Stock price	$	0.0039		$	0.0051
Risk free rate		0.59	%		0.59	%
Volatility		325	%		325	%
Conversion/Exercise price	$	0.0020 - 0.0024		$	0.0025 - 0.007
Dividend rate		0	%		0	%
Terms (years)		0.1 to 0.4			0.1 to 0.7

The following table represents the Company’s derivative liability activity for the period ended March 31, 2017:

Derivative liability at December 31, 2016	$	149,269
Change in fair value of derivative liability during period		10,937
Derivative liability at March 31, 2017	$	160,206

ACCELERA INNOVATIONS, INC. 10-Q