XML 27 R19.htm IDEA: XBRL DOCUMENT v3.22.2
Derivative Liability
6 Months Ended
Jun. 30, 2022
Derivative Liability  
Derivative Liability

Note 13- 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 FV of the derivative liability is recorded and shown separately under current liabilities. Changes in the FV 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 FV of derivative liability at June 30, 2022 and December 31, 2021 (audited):

 

       
    June 30,
2022
  December 31,
2021
Stock price   $ 0.002-0.2     $ 0.17-0.19  
Risk free rate     1.06-2.51%       0.07-0.39 %
Volatility     161-242%       167-217 %
Conversion/ Exercise price   $ 0.001-0.095     $ 0.102-0.103  
Dividend rate     0 %     0 %

 

The following table represents the Company’s derivative liability activity for the six months ended June 30, 2022 and December 31, 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     1,480,439  
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     191,741  
Fair value of beneficial conversion feature of debt converted     (1,620,742 )
Change in derivative liability during the period     (3,150,739 )
Derivative liability balance, June 30, 2022   $ 5,612,745