Mexus Gold US (MXSG)

[T-Hawk]

If you read the 10q; the notes aren't determined by "the closing price."

From page 14 of the August 2019 10-Q;

9. CONVERTIBLE PROMISSORY NOTE DERIVATIVE LIABILITY

The Convertible Promissory Notes (“Notes”) with Power Up Lending Group Ltd. was accounted for under ASC 815. The variable conversion price is not considered predominately based on a fixed monetary amount settleable with a variable number of shares due to the volatility and trading volume of the Company’s common stock. The Company’s convertible promissory notes derivative liabilities has been measured at fair value at March 31, 2019, April 5, 2019, May 9, 2019, June 11, 2019 and June 30, 2019 using the Black-Scholes model.


The inputs into the Black-Scholes models are as follows:

March 31, 2019 April 5,2019 May 9,2019 June 11, 2019 June 30, 2019

Closing share price
$0.0112 $0.0119 $0.0080 $0.0088 $0.01

Conversion price
$0.0100 $0.0100 $0.0063 $0.0071 $0.0075

The fair value of the conversion option derivative liabilities is $276,090 and $113,091 at June 30, 2019 and March 31, 2019, respectively. The decrease (increase) in the fair value of the conversion option derivative liability for the three months ended June 30, 2019 and 2018 of $27,503 and $68,934, respectively, is recorded as a gain (loss) in the condensed consolidated statements of operations.

Closing price is used to calculate the conversion of the promissory notes.