Derivative Liability

9 Months Ended

Sep. 30, 2022

Derivative Liability

Derivative Liability

Note 13- Derivative Liability

Certain of the convertible notes payable 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 September 30, 2022 and December 31, 2021 (audited):

Schedule of assumptions to measure fair value

	September 30,			December 31,
	2022			2021
Stock price	$	0.0012-0.2		$	0.17-0.19
Risk free rate		1.06-4.05	%		0.07-0.39	%
Volatility		278-361	%		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 three and nine months ended September 30, 2022:

Derivative liability balance, December 31, 2021	$	10,192,485
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

Issuance of derivative liability during the period		134,174
Fair value of beneficial conversion feature of debt converted		(314,029	)
Change in derivative liability during the period		354,869
Derivative liability balance, September 30, 2022	$	5,787,759