Warrant Liability

12 Months Ended

Dec. 31, 2021

Warrant Liability [Abstract]

WARRANT LIABILITY

NOTE 4 – WARRANT LIABILITY

The Company issued warrants to purchase 96,246,246 shares of common stock to QFL (see Note 3) in connection with its funding agreement. If on the date of initial exercise the aggregate number of warrant shares purchasable upon exercise of the warrant would yield less than an amount equal to 10% of the aggregate number of outstanding shares of capital stock of the Company (determined on a fully diluted basis), then the number of warrant shares shall be increased to an amount equal to 10% of the aggregate number of outstanding shares of capital stock of the Company (determined on a fully diluted basis), the number of shares underlying the warrants is not fixed until the date of the initial exercise. As such, the warrant issued to QFL requires classification as a liability pursuant to ASC Topic 480, Distinguishing Liabilities from Equity and is valued at its fair value as of the grant date and re-measured at the balance sheet date.

As of December 31, 2021, and February 22, 2021, the aggregate fair value of the outstanding warrant liability was approximately $1,636,187 and $1,154,905, respectively.

The Company estimated the fair value of the warrant liability using the Black-Scholes option pricing model using the following key assumptions as of December 31, 2021 and the grant date:

	As of
	December 31,			February 22,
	2021			2021
Volatility		373	%		252	%
Exercise price		0.0054			0.0054
Risk-free interest rate		1.37	%		1.37	%
Expected dividends		-			-	%
Expected term		9.4			10

The following schedule summarizes the valuation of financial instruments that are remeasured on a recurring basis at fair value in the balance sheets as of December 31, 2021 and 2020:

	Fair Value Measurements as of
	December 31, 2021						December 31, 2020
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
None	$	-	$	-	$	-	$	-	$	-	$	-
Total assets		-		-		-		-		-		-
Liabilities
Warrant liability		-		-		1,636,187		-		-		-
Total liabilities	$	-	$	-	$	1,636,187	$	-	$	-	$	-

The following table sets forth a reconciliation of changes in the fair value of the warrant liabilities classified as Level 3 in the fair value hierarchy:

	Significant Unobservable Inputs (Level 3) as of December 31, 2021
Fair value at grant date	$	1,154,905
Change in fair value		481,282
Balance - December 31, 2021	$	1,636,187

See Notes 3 and 5 for information on the warrant issuance.