v3.21.2

Derivative Liabilities

12 Months Ended

Dec. 31, 2020

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Liabilities

NOTE 13 – DERIVATIVE LIABILITIES

The Company classified certain conversion features in the convertible notes and preferred stock issued as embedded derivative instruments due to the variable conversion price feature and potential adjustments to conversion prices due to events of default. These conversion features are recorded as derivative liabilities at fair value in the consolidated financial statements. These fair value estimates were measured using inputs classified as Level 3 of the fair value hierarchy. The Company develops unobservable Level 3 inputs using the best information available in the circumstances, which might include its own data, or when it believes inputs based on external data better reflect the data that market participants would use, its bases its inputs on comparison with similar entities. Due to the existence of down round provisions, which create a path-dependent nature of the conversion prices of the convertible notes, For the 2019 audit, the Company used a Lattice-Based Simulation model, which incorporates inputs classified as Level 3 was appropriate. During 2020 the Company reconsidered and reverted to the Black-Scholes model.

The following table present the assumptions used in the Lattice-Based and Black-Scholes Simulation models to determine the fair value of the derivative liabilities as of December 31, 2020 and 2019:

		December 31, 2020 (Black-Scholes)
Risk-free interest rates			0.21	%
Expected life (years)			1.00 year
Expected dividends			0	%
Expected volatility			467	%

		December 31, 2019 (Lattice Model)
Risk-free interest rates			1.74 – 2.63	%
Expected life (years)			0.05 – 1.00 years
Expected dividends			0	%
Expected volatility			226 – 736	%

The following table provides a roll-forward of the fair values of the Company’s derivative liabilities for the years ended December 31, 2020 and 2019:

		Year Ended December 31, 2020
Balance – December 31, 2019		$	5,359,442
Additional new conversion option derivatives			7,272
Conversion of note derivatives			(428,733	)
Change in fair market value of derivative liabilities			18,860,260
Balance – December 31, 2020		$	23,798,240

		Year Ended December 31, 2019
Balance – December 31, 2018		$	2,696,470
Issuance of new derivative liabilities			7,592,844
Conversions to paid-in capital			(822,187
Reclass to additional paid-in capital			(582,824
Change in fair market value of derivative liabilities			(3,524,861
Balance – December 31, 2019		$	5,359,442

X

- References

No definition available.

+ Details

Name:	us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration

X

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-URI http://asc.fasb.org/topic&trid=2229140

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 40
-Section 50
-Paragraph 5
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123477628&loc=d3e90205-114008

+ Details

Name:	us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix:	us-gaap_
Data Type:	dtr-types:textBlockItemType
Balance Type:	na
Period Type:	duration