Derivative Liability

9 Months Ended

Sep. 30, 2021

Derivative Liability

Derivative Liability

Note 10 - Derivative Liability

Certain of the convertible notes payable discussed in Note 7 have a conversion price that can be adjusted based on the Company’s stock 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 a weighted average Black-Scholes option pricing model with the following assumptions to measure the fair value of derivative liability at September 30, 2021 and December 31, 2020:

	September 30,			December 31,
	2021			2020
Stock price	$	0.008		$	0.017
Risk free rate		0.09	%		0.10	%
Volatility		210	%		275	%
Conversion/ Exercise price	$	.006		$	.008-.0085
Dividend rate		0	%		0	%

The following table represents the Company’s derivative liability activity for the nine months ended September 30, 2021:

Schedule of Derivative Liabilities at Fair Value
Derivative liability balance, December 31, 2020	$	5,262,448
Debt modification		13,777,480
Issuance of derivative liability during the period		1,143,515
Fair value of beneficial conversion feature of debt converted		(10,864,918	)
Change in derivative liability during the period		165,402
Derivative liability balance, September 30, 2021	$	9,483,927