Derivative Liability

12 Months Ended

Dec. 31, 2022

Derivative Liability

Derivative Liability

Note 13 - Derivative Liability

Certain of the convertible notes payable discussed in Note 10 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 December 31, 2022 and 2021:

	December 31,			December 31,
	2022			2021
Stock price	$	0.001		$	0.17
		4.42-
Risk free rate		4.76	%		0.19-0.39%
Volatility		213-277%			167-217%
		0.0015-			0.102-
Conversion/ Exercise price	$	0.0017		$	0.103
Dividend rate		0	%		0	%

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

Derivative liability balance, December 31, 2019	$	—
Issuance of derivative liability during the period		5,767,230
Fair value of beneficial conversion feature of debt converted		(2,038,392	)
Change in derivative liability during the period		1,533,610
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
Issuance of derivative liability during the period		325,915
Fair value of beneficial conversion feature of debt converted		(2,209,887	)
Change in derivative liability during the period		(6,594,370	)
Derivative liability balance, December 31, 2022	$	1,714,143