Company: HYEX
Filing Date: 2025-04-22
Form Type: 10-K/A
Source: 0001096906-25-000553
Chunk: 81

Company: HEALTHY EXTRACTS INC.
Filing Date: 2025-04-22
Form: 10-K/A
Chunk 81
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 at fair value each reporting period. The Company originally recorded a derivative liability in the amount of $ 174,234. The fair value of the derivative liability is remeasured each reporting period using the Black-Scholes option pricing model, and the change in fair value is recorded as an adjustment to the derivative liabilities account with the unrealized gains or losses reflect in other income – change in fair value on derivative. NOTE 8 – DERIVATIVE LIABILITY The Company evaluated the notes under the requirements of ASC 480 “Distinguishing Liabilities From Equity” (ASC 480) and concluded that the notes do not fall within the scope of ASC 480. The Company next evaluated the notes under the requirements of ASC 815 “Derivatives and Hedging Activities” and determined that the scope exception to ASC 815’s derivative accounting provisions does not apply. The Company then evaluated the embedded derivative criteria in ASC 815, and concluded that the conversion features meet all the embedded derivative criteria in ASC 815, and therefore, the conversion features meet the definition of an embedded derivative that should be separated from the notes and accounted for as a derivative liability. F-23

The derivative liabilities were valued using a Black-Scholes option pricing model with the following average assumptions:

|                         | December 31, 2024 |     | Upon Issuance 2024 |     | December 31, 2023 |     | Upon Issuance 2023 |
|:------------------------|------------------:|:----|-------------------:|:----|------------------:|:----|-------------------:|
| Stock Price             |           $2.5099 |     |              $0.00 |     |             $0.06 |     |             $0.048 |
| Exercise Price          |       $1.406-6.00 |     |              $0.00 |     |       $0.017-0.05 |     |             $0.045 |
| Expected Life           |                 0 |     |                  0 |     |                 0 |     |               0.75 |
| Volatility              |              235% |     |                 0% |     |              133% |     |               145% |
| Dividend Yield          |                0% |     |                 0% |     |                0% |     |                 0% |
| Risk-Free Interest Rate |             4.29% |     |