This "Change in fair value of derivative liability" varies wildly;
in the 1st Q, MYDX lost ($4,005,242) in that account, but now they brag that they "made" (made back) $3,711,673 from the same fluctuation in the 2nd Q. They're still $300K in the hole.
The answers is that their stock price must go up and down wildly, and so is the future cost of the shares they will issue in future conversions. This is mostly paper gains and paper losses.
In any case, the shareholders will pay for all of it, thru dilution of their stake.
That's what a convertible is. You borrow money now, against the value of your share price, thus robbing your current shareholders, and also all the next crop of shareholders that will be gullible enough to buy fresh issued dilutive shares in droves.
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