CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

12 Months Ended

Dec. 31, 2021

Convertible Promissory Note Derivative Liabilities

CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

NOTE 8 - CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

The Convertible Promissory Notes with Power Up Lending Group Ltd., Redstart Holdings Corp. and Geneva Roth Remark Holdings Inc. with issue dates of July 13, 2020, September 11, 2020, February 23, 2021 and May 27, 2021 are accounted for under ASC 815.  The variable conversion price is not considered predominantly based on a fixed monetary amount settleable with a variable number of shares due to the volatility and trading volume of the Company’s common stock. The Company’s convertible promissory note derivative liabilities have been measured at fair value using the binomial model.

The inputs into the binomial models are as follows:

	December 31, 2019	January 20, 2020	February 3, 2020	April 14, 2020	July 13, 2020	September 11, 2020	December 31, 2020
Closing share price	$0.20	$0.18	$0.115	$0.0559	$0.0105	$0.0037	$0.0031
Conversion price	$0.0683	$0.0488	$0.0587	$0.0338	$0.0068	$0.0024	$0.0019
Risk free rate	1.60%	1.57%	1.60%	2.40%	0.16%	0.13%	0.09% to 0.10%
Expected volatility	294%	351%	434%	330%	294%	270%	228% to 284%
Dividend yield	0%	0%	0%	0%	0%	0%	0%
Expected life	0.67 years	0.5 years	1.49 years	1.5 years	1.0 years	1.5 years	0.53 to 1.19 years

	February 23, 2021	May 27, 2021	December 2, 2021
Closing share price	$0.0068	$0.0026	$0.0014
Conversion price	$0.0037	$0.0017	$0.0011
Risk free rate	0.13%	0.13%	0.08%
Expected volatility	276%	194%	152%
Dividend yield	0%	0%	0%
Expected life	1.5 years	1.0 years	0.48 years

The fair value of the convertible promissory note derivative liability relating to the Notes issued to Power Up Lending Group Ltd., Redstart Holdings Corp. and Geneva Roth Remark Holdings Inc on July 13, 2020, September 11, 2020, February 23, 2021 and May 27, 2021 is $0 (2020 - $172,261, 2019 - $266,989), of which $225,000 (2020 - $315,000) was recorded as a debt discount and the remainder of $126,322 (2020 - $258,863) was recorded as initial derivative expense. During the year ended December 31, 2021, the convertible promissory note derivative liability was reduced by $315,322 (2020 - $422,492) for settlement of derivative liabilities due to conversion of the Notes into common stock by the Holders. The decrease in the fair value of the conversion option derivative liability of $208,261 (2020 - $246,098) is recorded as a loss in the consolidated statements of operations for the year ended December 31, 2021.