v3.23.1
Derivative Instruments
 12 Months Ended
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Instruments and Hedging Activities Disclosure [Text Block]

Note 11 – Derivative Instruments

 

The Financial Accounting Standard ASC 815 Accounting for Derivative Instruments and Hedging Activities require that instruments with embedded derivative features be valued at their market values. The Black Scholes model was used to value the derivative liability for the fiscal year ending December 31, 2022, and December 31, 2021. The initial valuation of the derivative liability on the non-converted common shares totaled $0 on December 31, 2022. This value includes the fair value of the shares that may be issued according to the contracts of the holders and valued according to our common share price at the time of acquisition.

 

The Company complies with the provisions of FASB ASC No. 820, Fair Value Measurements and Disclosures (“ASC 820”), in measuring fair value and in disclosing fair value measurements at the measurement date. ASC 820 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements required under other accounting pronouncements. FASB ASC No. 820-10-35, Fair Value Measurements and Disclosures- Subsequent Measurement (“ASC 820-10-35”), clarifies that fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. ASC 820-10-35-3 also requires that a fair value measurement reflect the assumptions market participants would use in pricing an asset or liability based on the best information available. Assumptions include the risks inherent in a particular valuation technique (such as a pricing model) and/or the risks inherent in the inputs to the model.

 

The following table shows the change in the fair value of the derivative liabilities on all outstanding convertible debt on December 31, 2022, and on December 31, 2021:

 

Description

  

December 31,

2022

    

December 31,

2021

  

Purchase price of the convertible debenture - net of discount -total at year end

   $ 175,000     $ 136,250  

Derivative Valuation increase during the period

     268,311       97,560  

Balance of convertible debenture and derivative liability net of discount on the notes (See Consolidated Balance sheet liabilities)

   $ 443,311     $ 233,810  
                 

Derivative calculations and presentations on the Statement of Operations

                

Loss on note issuance

   $ -     $ 106,498  

Change in Derivative (Gain) Loss

     (169,277

)

     -  

Derivative Finance fees

     -       (93,706

)

Gain (loss) on extinguishment of debt derivatives only

     -       -  

Derivative expense charged to operations in 2020 and 2019 (See Consolidated Statement of Operations)

   $ (169,277

)

   $ (12,792

)