Note 7 - Derivatives

3 Months Ended

Mar. 31, 2022

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 7 – DERIVATIVES

Certain warrants issued to placement agents were determined to be a derivative liability due to certain features of the warrants which could, in certain circumstances, result in the holder receiving the Black Scholes value of the outstanding warrants in the same type of consideration as the common stockholders. As a result, in those circumstances, the amount of consideration would differ from that provided to holders of common stock, therefore, the warrants were classified as a liability.

The fair value of the agent warrants issued in connection with a March 2020 private placement was determined to be $41,336 as of December 31, 2021. The Company recorded a gain on the change in fair value of the placement agent warrants of $1,190 during the three months ended March 31, 2022 and a loss on the change in fair value of the placement agent warrants of $32,507 during the three months ended March 31, 2021. As of March 31, 2022, the fair value of the placement agent warrants was $40,157.

The fair value of the agent warrants issued in connection with the May 2020 were determined to be $42,139 and $42,645 as of March 31, 2022 and December 31, 2021, respectively. The Company recorded a gain on the change in fair value of the placement agent warrants of $505 during the three months ended March 31, 2022 and a loss on the change in fair value of the agent warrants of $31,320 during the three months ended March 31, 2021.

The placement agent warrants issued in connection with the June 2020 warrant exercise and issuance had a fair value of $45,285 and $45,498 as of March 31, 2022 and December 31, 2021, respectively. The Company recorded a recorded a gain on the change in fair value of the placement agent warrants of $213 during the three months ended March 31, 2022 and loss on the change in fair value of the agent warrants of $34,710 during the three months ended March 31, 2021.

The table below discloses changes in value of the Company’s embedded derivative liabilities discussed above.

Derivative liability balance at December 31, 2020	$	294,382
Gain recognized to revalue derivative instrument at fair value		(95,671	)
Derivative liability balance at March 31, 2021	$	198,711

Derivative liability balance at December 31, 2021	$	129,480
Gain recognized to revalue derivative instrument at fair value		(1,908	)
Derivative liability balance at March 31, 2022	$	127,572