Derivative liability

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative liability

17. Derivative liability

In prior years, the short-term convertible notes, together with certain warrants issued to convertible note holders disclosed in note 11 above and note 17 below, had fixed conversion price rights. The convertible notes as well as the warrants were afforded down-round protection which in terms of previous guidance resulted in a derivate liability. The Company adopted ASU 2020-06 with effect from January 1, 2022, which excluded down-round protection from the determination of a derivative liability.

The prior period consolidated financial statements have not been retrospectively adjusted and continue to be reported under the accounting standards in effect for those periods.

The original derivative financial liability was valued at inception at $1,959,959 using a Black-Scholes valuation model.

As of December 31, 2021, the derivative liability was valued at $515,901.

The movement in derivative liability is as follows: 

Schedule of derivative liability	December 31, 2022			December 31, 2021
Opening balance	$	515,901		$	4,765,387
Elimination of derivative liability on adoption of ASU 2020-06		(515,901	)		—
Mark-to-market adjustments on converted notes		—			(2,914,119	)
Derivative liability on issued convertible notes		—			190,824
Fair value adjustments to derivative liability		—			(1,526,191	)
Closing balance	$	—		$	515,901