Note 6 - Derivative Liabilities

9 Months Ended

Sep. 30, 2019

Note 6 – Derivative Liabilities

Certain of the Company’s convertible notes contain conversion features that create derivative liabilities. The pricing model the Company uses for determining fair value of its derivatives is the Lattice Model. Valuations derived from this model are subject to ongoing internal and external verification and review. The model uses market-sourced inputs such as interest rates and stock price volatilities. Selection of these inputs involves management’s judgment and may impact net income. The derivative components of these notes are valued at issuance, at conversion, at restructure, and at each period end.

Derivative liability activity for the nine months ended September 30, 2019 is summarized in the table below:

December 31, 2019	$	-
Conversion features issued		780,565
Warrants issued		148,310
Debt converted		(203,730	)
Loss on revaluation		69,611
September 30, 2019	$	794,756