Note 6 - Derivatives

9 Months Ended

Sep. 30, 2022

Notes to Financial Statements

Derivative Instruments and Hedging Activities Disclosure [Text Block]

NOTE 6 – DERIVATIVES

Certain warrants issued to placement agents were determined to be a derivative liability due to specific features of the warrants which could, in particular 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 the 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 $35,474 during the nine months ended September 30, 2022 and a loss on the change in fair value of the placement agent warrants of $41,326 during the nine months ended September 30, 2021. As of September 30, 2022, the fair value of the placement agent warrants was $5,862.

The fair value of the agent warrants issued in connection with the May 2020 registered offering were determined to be $7,225 and $42,646 as of September 30, 2022 and December 31, 2021, respectively. The Company recorded a gain on the change in fair value of the placement agent warrants of $35,421 during the nine months ended September 30, 2022 and a loss on the change in fair value of the agent warrants of $39,946 during the nine months ended September 30, 2021.

The placement agent warrants issued in connection with the June 2020 warrant exercise and issuance had a fair value of $9,012 and $45,498 as of September 30, 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 $36,486 during the nine months ended September 30, 2022 and loss on the change in fair value of the agent warrants of $44,051 during the nine months ended September 30, 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
Gain recognized to revalue derivative instrument at fair value		30,909
Derivative liability balance at June 30, 2021	$	229,620

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
Gain recognized to revalue derivative instrument at fair value		(95,254	)
Derivative liability balance at June 30, 2022	$	32,318
Gain recognized to revenue derivative instrument at fair value		(10,219	)
Derivative liability balance at September 30, 2022	$	22,099