STOCKHOLDERS’ EQUITY | (4) STOCKHOLDERS’ EQUITY Common Stock On May 4, 2021, the Company issued 1,200,000 25 0.062 73,920 55,440 On October 29, 2021, the Company issued a private placement memorandum offering to raise up to $ 500,000 through the issuance of restricted shares of the Company’s common stock (par value $ 0.001 ) to qualified investors. On November 5, 2021, the Company received a subscription agreement from an investor, for 40,000 common shares at a purchase price of $ 5 per share, including 200,000 warrants exercisable at $ 5 per share, vested immediately upon issuance, with a five year . Proceeds to the Company totaled $ 200,000 . Warrants to Purchase Common Stock The following table summarizes the changes in warrants outstanding of the Company during the nine months ended December 31, 2021: SCHEDULE OF WARRANT OUTSTANDING Number of Warrants Weighted Average Exercise Price ($) Outstanding at March 31, 2021 3,488,754 $ 0.05 Granted 1,470,000 $ 1.44 Outstanding at December 31, 2021 4,958,754 $ 0.46 During the fiscal year ended March 31, 2021, the Company’s related party lenders consisting of: the Chairman of the Board of Directors and a stockholder, Radiant Life, LLC and Mr. Dickman, the holder of the related party unsecured promissory notes, all amended their agreements to provide each related party with common stock warrants upon the lender’s extension of a maturity due date or upon the loaning of additional monies. The number of warrants issued for an extension is based on the following formula: 10,000 warrants per month the due date is extended plus 1 warrant for every $2 of the principal balance outstanding (not including interest) at the time of the extension (rounded to the nearest whole warrant) . Upon the loaning of additional monies, the lender will also require 2 warrants for each dollar loaned. All warrants issued under these terms vested immediately upon issuance, have an exercise price of $ 0.05 and expire 5 years from the date of issuance. During the nine months ended December 31, 2021, the Company issued 200,000 20,000 On April 6, 2021, the Company borrowed $ 300,000 under an unsecured promissory note with Satco International, Ltd. (see Note 5). In conjunction with this note, the Company issued a warrant for 1,000,000 shares of common stock, vested immediately upon issuance, exercisable at $ 1.00 per share and expiring in 3 years from the date of the promissory note. The value of the warrants on the date of grant, as calculated by the Black-Scholes-Merton valuation model, was not significant. The inputs used in this calculation included a fair value of $ 0.062 per share, a risk-free rate of 0.35 %, volatility of 50.3 % and a dividend rate of 0 %. On July 29, 2021, the Company borrowed an additional $ 50,000 from Radiant Life, LLC, a related party. In conjunction with this specific loan event, a one-time agreement specifies that the associated warrants issued totaled 50,000 , vested immediately upon issuance, have an exercise price of $ 2.00 , and expire in 5 years. On November 5, 2021, the Company issued 40,000 5 200,000 5 five year 200,000 The following table summarizes the warrants issued and outstanding as of December 31, 2021: SCHEDULE OF WARRANTS ISSUED AND OUTSTANDING Exercise Warrants Outstanding Warrants Exercisable Weighted Average Remaining Contractual Life (Years) Proceeds to Company if Exercised ($) 0.05 3,708,754 3,708,754 3.68 185,438 1.00 1,000,000 1,000,000 2.27 1,000,000 2.00 50,000 50,000 4.59 100,000 5.00 200,000 200,000 4.85 1,000,000 4,958,754 4,958,754 2,285,438 The estimated fair value of the warrants on the date of grant, as calculated by the Black-Scholes-Merton valuation model, was not significant. The average remaining outstanding life of the warrants as of December 31, 2021, was 3.28 years. The shares of common stock issuable upon exercise of the warrants are not registered with the Securities and Exchange Commission and the holders of the warrants do not have registration rights with respect to the warrants or the underlying shares of common stock. |