DERIVATIVE LIABILITY

6 Months Ended

Jun. 30, 2020

The Company analyzed the conversion options for derivative accounting consideration under ASC 815, Derivatives and Hedging, and hedging, and determined that the instrument should be classified as a liability when the conversion option becomes effective.

The following table summarizes the derivative liabilities included in the balance sheet at June 30, 2020:

Balance - December 31, 2019	$	3,068,168
Gain on change in fair value of the derivative		(1,480,430	)
Balance - June 30, 2020	$	1,587,738

The following table summarizes the loss on derivative liability included in the income statement for the six months ended June 30, 2020 and 2019, respectively.

	Six Months Ended
	June 30,		June 30,
	2020		2019
Day one loss due to derivative liabilities on convertible notes	$	-	$	(279,421	)
Gain on change in fair value of derivative liabilities on convertible notes and warrants		1,480,430		95,839
Gain (Loss) on change in fair value of derivative liabilities	$	1,480,430	$	(183,582	)

The table below shows the Black-Scholes option-pricing model inputs used by the Company to value the derivative liability at each measurement date:

	Six Months Ended
	June 30,		June 30,
	2020		2019
Expected term	0.06 years		0.48 - 0.49 years
Expected average volatility		-	288% - 1099		%
Expected dividend yield		-		-
Risk-free interest rate		-	2.09% - 2.47		%