DERIVATIVE LIABILITY

9 Months Ended

Sep. 30, 2021

DERIVATIVE LIABILITY

NOTE 14 - DERIVATIVE LIABILITY

NOTE 14 – DERIVATIVE LIABILITY

The Company evaluates its convertible instruments, options, warrants or other contracts, to determine if those contracts or embedded components of those contracts qualify as derivatives to be separately accounted for under ASC Topic 815, “Derivatives and Hedging.” The result of this accounting treatment is that the fair value of the derivative is marked-to-market each balance sheet date and recorded as a liability. In the event that the fair value is recorded as a liability, the change in fair value is recorded in the statement of operations as other income (expense). Upon conversion or exercise of a derivative instruments, the instrument is marked to fair value at the conversion date then that fair value is reclassified to equity. Equity instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liabilities at the fair value of the instrument on the reclassification date.

The following table presents a reconciliation of the derivative liability measured at fair value on a recurring basis from December 31, 2019 to September 30, 2021 (in thousands):

	Fair value of derivative liabilities
Balance at December 31, 2019	$	91
Loss on change in fair value included in earnings		(91	)
Balance at December 31, 2020		-
Gain on change in fair value included in earnings		-
Balance at September 30, 2021	$	-