DERIVATIVE LIABILITIES

9 Months Ended

Sep. 30, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITIES

NOTE 11 – DERIVATIVE LIABILITIES

The Company had issued certain convertible notes payable that contain conversion options with variable settlement features which make their conversion options a derivative liability. The conversion option derivatives were embedded in their respective note payables and for accounting purposes have been bifurcated from the host instruments. As of September 30, 2024 and December 31, 2023, the Company did not have any of these convertible notes payable outstanding. Please see Note 10 – Convertible Notes Payable for more information.

On February 12, 2021, the Company granted 25,000 warrants (the “Platinum Point Warrants”) that had a term of three-years and an exercise price of $11.60 to Platinum Point Capital, LLC. The warrants granted contain certain price protections that make the value of the warrants a derivative liability. On February 12, 2024, the Platinum Point Warrants expired and as a result, the related derivative liability decreased to $0.

The fair value of the Platinum Point Warrants derivative liability was estimated using a Black-Scholes valuation model with a stock price of $11.60. Changes to the inputs used in the model could produce a significantly higher or lower fair value. The following assumptions were used as of September 30, 2024 and December 31, 2023:

	Nine Months Ended September 30, 2024			Year Ended December 31, 2023
Expected term (years)		N/A			0.12
Expected volatility		N/A	%		1,288.16	%
Expected dividend yield		N/A	%		0.00	%
Risk-free interest rate		N/A	%		4.79	%

The derivative liabilities as of September 30, 2024 and December 31, 2023 were as follows:

	September 30, 2024		December 31, 2023
Fair value of the Platinum Point Warrants (25,000 warrants)		-		17,500
	$	-	$	17,500

Activity related to the derivative liabilities for the nine months ended September 30, 2024 were as follows:

Beginning balance as of December 31, 2023	$	17,500
Change in fair value of warrant - derivative liability		(17,500	)
Ending balance as of September 30, 2024	$	-