Hostastock, maybe I can help out here, not because I can figure out what the concept of "derivative liability" is all about but rather because I maybe can make it much less important/helpful to know about it.
I believe that the convertible note liability to TCA Global as of September 30 is about 500K, of which most is reported as a derivative liability and the rest is reported as part of convertible notes payable in the current liabilities section of the balance sheet. So what I'm saying here is that all that matters is that the company owes TCA Global 500K, and who cares about how that's split between the category of convertible note payable and the category of derivative liability.
Also muddying the picture is some debt owed to Iliad/Fife at September 30, but regarding which we learn from a footnote that it's been paid off between September 30 and the release of the 10Q.
Incidentally, the other (non-convertible) notes payable have to do with financing the purchase of a vehicle, financing the purchase of directors and officers liability insurance, and financing the general insurance policy. Don't worry about those, as there's nothing toxic nor dilutive about them.
Bottom line of all of this - the company has borrowed only around 500K that really matters. We don't need to worry so much about money borrowed to pay for insurance policies and money borrowed from the Winthers themselves. A currently profitable company, running at an annual sales rate of roughly $10 million, should feel thrilled to have so little debt.
...which takes us back full circle to the question of why the market is pricing this company as being worth only a million dollars (approximately 90 million outstanding shares selling at approximately 1.1 cents per share). I can think of a few reasons, but no good reasons - the regulatory challenge is declining with Trump coming into office; the 2014 pump and dump is fading into history, not to mention that the Winthers did not sell into the pump and thus were hurt more than anyone by the P&D; it's a family company lacking some checks and balances, but now it is a profitable family company so there's less worry about the management being competent.
That's enough ranting for this extended weekend...
