CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITIES

3 Months Ended

Mar. 31, 2022

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 on December 31, 2020, February 23, 2021, May 27, 2021 and December 2, 2021 using the binomial model.

The inputs into the binomial models are as follows:

	December 31, 2020	February 23, 2021	May 27, 2021	December 2, 2021
Closing share price	$0.0031	$0.0068	$0.0026	$0.0014
Conversion price	$0.0019	$0.0037	$0.0017	$0.0011
Risk free rate	0.09% to 0.10%	0.13%	0.13%	0.08%
Expected volatility	228% to 284%	276%	194%	152%
Dividend yield	0%	0%	0%	0%
Expected life	0.53 to 1.19 years	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 (December 31, 2021 - $0, December 31, 2020 - $172,261. During the three months ended March 31, 2021, the convertible promissory note derivative liability was reduced by $154,384 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 $68,613 is recorded as a loss in the condensed consolidated statements of operations for the three months ended March 31, 2021.