Derivative Liability

3 Months Ended

Mar. 31, 2022

Derivative Liability

Derivative Liability

Note 14- Derivative Liability

Certain of the convertible notes payable discussed in these financials 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 March 31, 2022 and December 31, 2021:

	March 31, 2022			December 31, 2021
Stock price	$	0.11-0.20		$	0.17-0.19
Risk free rate		1.06-1.63%			0.39	%
Volatility		145-174%			167-217	%
Conversion/ Exercise price	$	0.093-0.095		$	0.102-0.103
Dividend rate		0	%		0	%

The following table represents the Company’s derivative liability activity for the years ended March 31, 2022 and December 31, 2021:

Derivative liability balance, December 31, 2020		5,262,448
Debt modification		13,777,480
Issuance of derivative liability during the period		1,480,439
Fair value of beneficial conversion feature of debt converted		(116,669	)
Change in derivative liability during the period		1,339,117
Derivative liability balance, December 31, 2021	$	10,192,485
Debt modification		-
Issuance of derivative liability during the period		-
Fair value of beneficial conversion feature of debt converted		(49,504	)
Change in derivative liability during the period		(5,239,579	)
Derivative liability balance, March 31, 2022	$	4,903,403