DERIVATIVE LIABILITY

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE LIABILITY

9 DERIVATIVE LIABILITY

Certain of the short-term convertible notes disclosed in note 8 above and certain warrants disclosed in note 10 below 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.

The value of this derivative financial liability was re-assessed at March 31, 2022 at $315,000, and $92,161 was credited to the statement of operations. 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, 2022			Year ended December 31, 2021
Conversion price	$	0.05 to $0.15		$	0.05 to $0.24
Risk free interest rate		0.79 to 2.45	%		0.05 to 1.12	%
Expected life of derivative liability		4.6 to 46.6 months			1.6 to 49.6 months
Expected volatility of underlying stock		151.07 to 194.99	%		161.19 to 215.33	%
Expected dividend rate		0	%		0	%

The movement in derivative liability is as follows:

	March 31, 2022			December 31, 2021
Opening balance	$	407,161		$	2,966,416
Derivative financial liability arising from convertible note		-			2,569,000
Fair value adjustment to derivative liability		(92,161	)		(5,128,255	)
	$	315,000		$	407,161