DERIVATIVE LIABILITIES

12 Months Ended

Dec. 31, 2020

DERIVATIVE LIABILITIES

NOTE 5 - DERIVATIVE LIABILITIES

The Company analyzed the conversion option for derivative accounting consideration under ASC 815, “Derivatives and Hedging,” and determined that the convertible notes should be classified as a liability since the conversion option becomes effective at issuance resulting in there being no explicit limit to the number of shares to be delivered upon settlement of the above conversion options. The Company accounts for convertible notes and warrants as a derivative liability due to there being no explicit limit to the number of shares to be delivered upon settlement of all conversion options.

The Company determined our derivative liabilities to be a Level 3 fair value measurement and used the Monte Carlo model to calculate the fair value as of December 31, 2020.

The following table summarizes the derivative liabilities included in the balance sheet at December 31, 2020:

Fair Value Measurements Using Significant Observable Inputs (Level 3)

Balance - December 31, 2019	$	989,813
Addition of derivative liabilities upon issuance of convertible note and warrants as debt discount		588,839
Addition of new derivatives liabilities recognized as day one loss
Reduction of derivative liabilities from convertible notes to shares of common stock		(649,742	)
Loss (gain) on change in fair value of the derivative		(308,760	)
Balance - December 31, 2020	$	620,149