Derivative Liability

6 Months Ended

Jun. 30, 2023

Derivative Liability

Derivative Liability

Note 12 - 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 June 30, 2023 and at December 31, 2022:

	June 30,			December 31,
	2023			2022
Stock price	$	0.00042		$	0.001
Risk free rate		4.40-5.47	%		4.42-4.76	%
Volatility		182-364	%		213-277	%
		0.00009-			0.0015-
Conversion/ Exercise price	$	0.00043		$	0.0017
Dividend rate		0	%		0	%

The following table represents the Company’s derivative liability activity for the period ended June 30, 2023:

Derivative liability balance, December 31, 2022	$	1,714,142
Issuance of derivative liability during the period		1,369,920
Fair value of beneficial conversion feature of debt converted		(2,002,684	)
Change in derivative liability during the period		13,028,486
Derivative liability balance, March 31, 2023	$	14,109,864