Quarterly report pursuant to Section 13 or 15(d)

Equity Transactions

v3.20.2
Equity Transactions
9 Months Ended
Sep. 30, 2020
Equity [Abstract]  
Equity Transactions

NOTE 6 – EQUITY TRANSACTIONS

 

Common Stock:

 

Nine Months Ended September 30, 2019

 

During the nine months ended September 30, 2019, the Company issued an aggregate of 1,250,000 shares of restricted common stock to employees with a total fair value of $131,000 for services rendered. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $131,000 upon issuance. The shares issued were valued at the date earned under the respective agreement based upon closing market price of the Company’s common stock.

 

During the nine months ended September 30, 2019, the Company issued an aggregate of 500,000 shares of common stock in conversion of notes payable with a total fair value of $50,000. As a result, the Company reduced the balance due on the notes by $50,000 upon issuance.

 

Nine Months Ended September 30, 2020

 

During the nine months ended September 30, 2020, the Company issued an aggregate of 1,250,000 shares of restricted common stock to employees with a total fair value of $25,000 for services rendered. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $25,000 upon issuance. The shares issued were valued at the date earned under the respective agreement based upon closing market price of the Company’s common stock.

 

During the nine months ended September 30, 2020, the Company issued an aggregate of 1,007,500 shares of common stock in conversion of notes payable with a total fair value of $152,000. As a result, the Company reduced the balance due on the notes by $152,000 upon issuance.

 

 Options:

 

The following table summarizes common stock options activity:

 

        Weighted
        Average
        Exercise
    Options   Price
  December 31, 2019       9,299,900     $ 0.57  
  Granted       —         —    
  Exercised       —         —    
  Expired       (8,450,000 )     4.79  
  Outstanding, September 30, 2020       849,900     $ 1.00  
  Exercisable, September 30, 2020       849,900     $ 1.00  

 

The weighted average exercise prices, remaining lives for options granted, and exercisable as of September 30, 2020 were as follows:

                     
    Outstanding Options       Exercisable Options
Options           Weighted       Weighted
Exercise Price       Life   Average Exercise       Average Exercise
Per Share   Shares   (Years)   Price   Shares   Price
$1.00   849,900   0.07 – 1.35   $1.00   849,900   $1.00
    849,900       $1.00   849,900   $1.00

 

At September 30, 2020, the Company’s closing stock price was $0.13 per share. As all outstanding options had an exercise price greater than $0.13 per share, there was no intrinsic value of the options outstanding at September 30, 2020.

 

Warrants:

 

The following table summarizes common stock warrants activity:

 

        Weighted
        Average
        Exercise
    Warrants   Price
  Outstanding, December 31, 2019       9,000,000     $ 0.46  
  Granted       800,000       0.25  
  Exercised       —         —    
  Forfeited       —         —    
  Outstanding, September 30, 2020       9,800,000     $ 0.40  
  Exercisable, September 30, 2020       9,800,000     $ 0.40  

 

The weighted average exercise prices, remaining lives for warrants granted, and exercisable as of September 30, 2020, were as follows:

 

    Outstanding and Exercisable Warrants  
Warrants          
Exercise Price       Life  
Per Share   Shares   (Years)  
$0.01   600,000   0.25  
$0.15   1,200,000   0.28  
$0.25   2,500,000   0.55 - 2.78  
$0.40   1,200,000   0.28  
$0.50   2,800,000   0.08 – 2.78  
$0.75   1,250,000   0.66 – 2.78  
$1.00   250,000   0.66  
    9,800,000      

 

At September 30, 2020, the Company’s closing stock price was $0.13 per share. The Company had 600,000 warrants outstanding with exercise prices less than $0.01 with an intrinsic value of $72,000 at September 30, 2020.

 

Shares Reserved:

 

At September 30, 2020, the Company has reserved 30,000,000 shares of common stock in connection with 2 short-term convertible notes with detachable warrants, 50,000,000 shares of common stock in connection with a long-term convertible note with detachable warrants, 100,000,000 shares of common stock in connection with an equity line of credit and 3,500,000 shares of common stock in connection with the court approved settlement agreement for a total of 183,500,000 reserved shares of common stock.