Derivative Liabilities

6 Months Ended

Jun. 30, 2022

Derivative Liability [Abstract]

Derivative Liabilities

NOTE 8 – DERIVATIVE LIABILITIES

The embedded conversion options of the Company’s convertible debentures summarized in Note 5, and its convertible preferred Series E stock. contain conversion features that qualify for embedded derivative classification. The fair value of these liabilities is re-measured at the end of every reporting period and the change in fair value is reported in the statement of operations as a gain or loss on derivative financial instruments. Commencing with the second quarter of 2022, the Company changed its accounting treatment for such securities by recording the derivative feature as a put premium on stock settled debt. See Note 7 above for further discussion.

The table below sets forth a summary of changes in the fair value of the Company’s Level 3 financial liabilities: A summary of quantitative information with respect to valuation methodology and significant unobservable inputs used for the Company’s common stock purchase that are categorized within Level 3 of the fair value hierarchy for the periods ended June 30, 2022 and December 31, 2021 is as follows:

	June 30, 2022		December 31, 2021
Stock price		-	$	0.10
Exercise price		-	$	0.05
Contractual term (in years)		-		0.66
Volatility (annual)		-		83	%
Risk-free rate		-		0.39	%