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Note 8 - Derivative Liability

9 Months Ended

Sep. 30, 2021

Notes to Financial Statements

Derivatives and Fair Value [Text Block]

NOTE 8 – DERIVATIVE LIABILITY

As discussed in Note 1, we measure certain financial assets and liabilities based upon the fair value hierarchy. The following table presents information about the Company’s financial liabilities, measured at fair value on a recurring basis, as of September 30, 2021 and December 31, 2020:

_{Level 1}

_{Level 2}

_{Level 3}

_{Fair Value at}

_{September 30,}

₂₀₂₁

_Liabilities:

_{Derivative liability}

$

-

$

-

$

136,030

$

136,030

_{Level 1}

_{Level 2}

_{Level 3}

_{Fair Value at}

_{December 31,}

₂₀₂₀

_Liabilities:

_{Derivative liability}

$

-

$

-

$

96,369

$

96,369

Utilizing Level 3 Inputs, the Company recorded a loss on fair market value adjustments related to convertible credit line payable for the nine months ended September 30, 2021 of $24,299. The fair market value adjustments as of September 30, 2021 were calculated utilizing the Black-Scholes option pricing model using the following assumptions: exercise price of $1.00, computed volatility of 202% and discount rate of 0.28%.

A summary of the activity of the derivative liability is shown below at September 30, 2021:

Balance at December 31, 2020		$	96,369
Debt discount on convertible credit line payable			15,362
Loss on change in derivative fair value adjustment			24,299
Balance at September 30, 2021		$	136,030