DERIVATIVE LIABILITY

3 Months Ended

Mar. 31, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITY

8 DERIVATIVE LIABILITY

Certain of the short-term convertible notes disclosed in note 7 above and certain warrants disclosed in note 9 below, have variable priced conversion rights with no fixed floor price and will re-price dependent on the share price performance over varying periods of time and certain notes and warrants have fundamental transaction clauses which might result in cash settlement, due to these factors, all convertible notes and any warrants attached thereto are valued and give rise to a derivative financial liability, which was initially valued at inception of the convertible notes using a Black-Scholes valuation model.

During the three months ended March 31, 2021, an additional $2,569,000 was raised as a derivative liability on convertible notes and warrants.

The value of this derivative financial liability was re-assessed at March 31, 2021, and $965,144 was credited to the statement of operations and comprehensive loss, respectively. The value of the derivative liability will be re-assessed at each financial reporting period, with any movement thereon recorded in the statement of operations in the period in which it is incurred.

The following assumptions were used in the Black-Scholes valuation model:

	Three months Ended March 31, 2021			Year Ended December 31, 2020
Conversion price	$	0.045 to 0.24		$	0.015 to 2.00
Risk free interest rate		0.07 to 0.92	%		0.09 to 1.53	%
Expected life of derivative liability		1 to 5 years			1 to 12 months
Expected volatility of underlying stock		181.31 to 215.33	%		171.7 to 222.6	%
Expected dividend rate		0	%		0	%

The movement in derivative liability is as follows:

	March 31, 2021			December 31, 2020
Opening balance	$	2,966,416		$	905,576
Derivative financial liability arising from convertible note		2,569,000			1,406,369
Fair value adjustment to derivative liability		(965,144	)		(654,471	)
	$	4,570,272		$	2,966,416