STOCKHOLDERS' EQUITY | NOTE 12 - STOCKHOLDERS’ EQUITY The Company is authorized to issue 95,000,000 shares of common stock, $0.001 par value, and 5,000,000 shares of preferred stock, $0.001 par value. The preferred stock may be issued in series with such designations, preferences, stated values, rights, qualifications or limitations as determined solely by the Company’s Board. According to relevant PRC laws, companies registered in the PRC, including the Company’s PRC subsidiary, Helpson, are required to allocate at least 10% of their after tax income, as determined under the accounting standards and regulations in the PRC, to statutory surplus reserve accounts until the reserve account balances reach 50% of the company’s registered capital prior to their remittance of funds out of the PRC. Allocations to these reserves and funds can only be used for specific purposes and are not transferrable to the parent company in the form of loans, advances or cash dividends. The amount designated for general and statutory capital reserves is $8,145,000 as of March 31, 2022 and December 31, 2021. 2022 Share Issuances On March 21, 2022 the Investor as discussed in Note 8 delivered its notice of redemption for $100,000 of the Note and related interest at the lowest volume weighted average price of $0.3113 during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 321,233 shares of common stock to the Investor on March 23, 2022. On March 30, 2022 the Investor as discussed in Note 8 delivered its notice of redemption for $200,000 of the Note and related interest at the lowest volume weighted average price of $0.3129 during the ten trading days immediately preceding the applicable redemption conversion. Accordingly, the Company issued a total of 639,181 shares of common stock to the Investor on March 31, 2022. 2010 Incentive Plan On November 12, 2010, the Company’s Board adopted the Company’s 2010 Incentive Plan (the “Plan”), which was then approved by stockholders on December 22, 2010. On October 17, 2019, the Board of Directors approved the First Amendment to the 2010 Incentive Plan (the “Amendment”), pursuant to which the term of the 2010 Incentive Plan was extended to December 31, 2029. The Amendment was adopted by the stockholders on December 19, 2019. On October 25, 2021, the Board of Directors approved, and on December 27, 2021 our stockholders adopted the Amendment No.2 to the Plan to increase the number of shares of the Common Stock, that are reserved thereunder by 5,000,000 shares from 4,000,000 shares to 9,000,000 shares. The Plan gave the Company the ability to grant stock options, restricted stock, stock appreciation rights and performance units to its employees, directors and consultants, or those who will become employees, directors and consultants of the Company and/or its subsidiaries. The Plan currently allows for equity awards of up to 9,000,000 shares of common stock. Through March 31, 2022, there were 3,935,000 shares of stock granted and outstanding under the Plan. A total of 65,000 options were outstanding as of March 31, 2022 under the Plan. As such, there are 5,000,000 additional shares available for issuance under the Plan. As of March 31, 2022, there was no remaining unrecognized compensation expense related to stock options or restricted stock grants. |