The FASB has issued authoritative guidance whereby instruments which do not have fixed settlement provisions are deemed to be derivative instruments. The conversion prices of the Notes described in Note 6 were not a fixed amount because they were either subject to an adjustment based on the occurrence of future offerings or events or they were variable. Since the number of shares is not explicitly limited, the Company is unable to conclude that enough authorized and unissued shares are available to settle the conversion option. In accordance with the FASB authoritative guidance, the conversion features have been characterized as derivative liabilities to be re-measured at the end of every reporting period with the change in value reported in the statement of operations. As of December 31, 2019 and 2018, the derivative liabilities were valued using probability weighted option pricing models with the following assumptions:

	December 31, 2019			Issued During 2019			December 31, 2018

Exercise Price	$	0.00015–0.00018		$	0.00015–0.035		$	0.005–0.035
Stock Price	$	0.0003		$ 0.020-0.003			$	0.016
Risk-free interest rate		1.59	%	1.59–1.85		%		2.59	%
Expected volatility		236	%	236-388		%		293	%
Expected life (in years)		1.00			1.00			1.00
Expected dividend yield		0	%	0		%		0	%
Fair Value:	$	922,509		$	546,651		$	1,744,601

The risk-free interest rate was based on rates established by the Federal Reserve Bank. The Company uses the historical volatility of its common stock to estimate the future volatility for its common stock. The expected life of the conversion feature of the notes was based on the remaining term of the notes. The expected dividend yield was based on the fact that the Company has not customarily paid dividends in the past and does not expect to pay dividends in the future.

During the year ended December 31, 2019, the Company recorded derivative liabilities of $357,465 related to the issuance of certain new convertible notes, a modification of $189,186 relating to an additional derivative, and recognized $1,179,556 as other income, which represented the net change in the value of the derivative liability at December 31.