Derivative Instrument

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instrument

13. DERIVATIVE INSTRUMENTS

The Company has convertible notes payable (See note 4) with elements that qualify as a derivative instrument. The notes payable are convertible at the lowest trading price during the previous 10 to 25 days ending on the last trading day prior to the notice of conversion. This variable conversion feature requires bifurcation from the convertible notes and measurement at fair value.

The derivative liability, as it relates to the instrument, is shown in the following table:

Beginning balance, January 1, 2019	$	244,004
Change in value of derivative liability		139,848
Fair Value, December 31, 2019		383,852
Change in value of derivative liability		252,162
Fair Value, December 31, 2020	$	636,014

The derivative liability was valued using the Black-Scholes method with the following inputs:

Expected life	9 months
Stock price volatility	199.33	%
Annual risk-free interest rate	2.63	%
Expected dividends	None