WARRANT LIABILITY

12 Months Ended

Dec. 31, 2021

Warrant Liability

WARRANT LIABILITY

NOTE 9 – WARRANT LIABILITY

In conjunction with the issuance of the Senior Convertible Note with Firstfire Global Opportunities Fund, LLC (the “Note”) on March 1, 2019, the Company issued 1,000,000 warrants with an exercise price of $0.20 and a term of two years. The warrants are subject to down round and other anti-dilution protections. The warrant is tainted and classified as a liability as a result of the issuance of the Note since there is a possibility during the life of the warrant the Company would not have enough authorized shares available if the warrant is exercised. The Company’s warrant liability has been measured at fair value using the binomial model.

The inputs into the binomial models are as follows:

	December 31, 2019	April 14, 2020
Closing share price	$0.20	$0.0559
Exercise price	$0.20	$0.20
Risk free rate	1.59%	1.59%
Expected volatility	338%	310%
Dividend yield	0%	0%
Expected life	1.17 years	0.88 years

The fair value of the warrant liability on December 31, 2019 was $185,560. The decrease in the fair value of the warrant liability of $144,059 is recorded as a gain in the consolidated statements of operations for the year ended December 31, 2020. The fair value of the warrant liability is $0 and $0 on December 31, 2021 and 2020, respectively.

On April 14, 2020, the Company issued 2,000,000 shares of common stock with a fair value of $111,800 to fully settle the 1,000,000 warrants issued in conjunction with the issuance of the Senior Convertible Note with Firstfire Global Opportunities Fund, LLC on March 1, 2019. The issue of the shares resulting in a loss on settlement of warrant liability of $70,299.