Derivative Liability

3 Months Ended

Mar. 31, 2024

Derivative Liability [Abstract]

DERIVATIVE LIABILITY

12 DERIVATIVE LIABILITY

The convertible notes and warrants issued by the Company to Cavalry, Mercer and RRH as described herein 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.

Between September 12, 2023 and December 20, 2023, the Company entered into a convertible note agreement with RRH which 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, which gave rise to a derivative financial liability, which was initially valued at inception of the convertible notes at $416,317 but limited to the cash value of the convertible notes of $235,000, using a Black-Scholes valuation model.

The net movement on the derivative liability for the three months ended March 31, 2024 was a net mark-to-market credit of $815,941 determined by using a Black-Scholes valuation model.

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

	Three months ended March 31, 2024			Year ended December 31, 2023
Conversion price		$ 0.0684 to $0.345			$ 0.104 to $0.345
Risk free interest rate		4.40 to 5.49 %			3.60 to 5.55	%
Expected life of derivative liability		1 to 41 months			3.5 to 47 months
Expected volatility of underlying stock		157.83 to 201.11	%		158.72 to 217.01	%
Expected dividend rate		0	%		0	%

The movement in derivative liability is as follows:

	March 31, 2024			December 31, 2023
Opening balance	$	1,434,196		$	2,550,642
Derivative financial liability arising from convertible note and warrants		-			385,000
Fair value adjustment to derivative liability		(815,941	)		(1,501,446	)
	$	618,255		$	1,434,196