Note 8 - Derivative Liability

6 Months Ended

Jun. 30, 2020

Notes to Financial Statements

Disclosure of Credit Derivatives [Table Text Block]

NOTE

8

– DERIVATIVE LIABILITY

As discussed in Note

1,

on a recurring basis, we measure certain financial assets and liabilities based upon the fair value hierarchy. The following table presents information about the Company's liabilities measured at fair value as of

June 30, 2020

and

December 31, 2019:

	Level 1		Level 2		Level 3		Fair Value at June 30, 2020
Liabilities:
Derivative liability	$	-	$	-	$	15,780	$	15,780

	Level 1		Level 2		Level 3		Fair Value at December 31, 2019
Liabilities:
Derivative liability	$	-	$	-	$	65,289	$	65,289

Utilizing Level

3

Inputs, the Company recorded fair market value adjustments related to convertible credit line payable for the

six

months ended

June 30, 2020

and

2019

of

$49,874

and

$470,189,

respectively. The fair market value adjustments as of

June 30, 2020

and

2019

were calculated utilizing the Black-Scholes option pricing model using the following assumptions: exercise price of

$

1.00

,

computed volatility

37%

and

129%

and discount rate

0.16%

and

1.75,

respectively.

A summary of the activity of the derivative liability is shown below at

June 30, 2020:

Balance at December 31, 2019	$	65,289
Debt discount on convertible credit line payable		365
Gain on change in derivative fair value adjustment		(49,874	)
Balance at June 30, 2020	$	15,780