| NOTE 4 - CAPITAL STOCK | Capitalization The
authorized capital of the Company is 500,000,000 shares of capital stock, divided into 480,000,000 shares of common stock with
a par value of $0.001 per share, and 20,000,000 shares of preferred stock with a par value of $0.001 per share. The Company reserved
10,000,000 shares of common stock for issuance under its 2016 Omnibus Equity Incentive Plan. The Company has issued 50,605,965
common shares and no preferred shares. During the three months ended March 31, 2019, the Company did not issue any shares of its
common stock. Options A
total of 10,000,000 options are issued and outstanding. On
November 20, 2018, the Company granted 500,000 non-qualified stock options pursuant to its Equity Incentive Plan, to key outside
consultants, with 50% vesting after one year and 50% vesting after two years. Each option is exercisable into one share of the
Company’s common stock at a price of $0.06 per share, for a term of five years. The options had an estimated grant date
fair value of $10,408. For the quarter ended March 31, 2019, $2,474 (December 31, 2018 - $1,340) was included in consulting services
expense, based on fair value estimates determined using the Black-Scholes option pricing model with an average risk-free rate
of 2.51%, a weighted average life of 4.89 years, volatility of 190.47%, and dividend yield of 0%. At March 31, 2019, the options
had an intrinsic value of $0 (December 31, 2018: $0) based on the exercise price of $0.06 per option and a market price of $0.06
per share on the closest trading date. On
February 14, 2017, the Company granted 9,500,000 non-qualified stock options pursuant to its Equity Incentive Plan, to key corporate
officers and outside consultants, with 25% vesting immediately and a further 25% vesting every six months thereafter for eighteen
months. Each option is exercisable into one share of the Company’s common stock at a price of $0.06 per share, equal to
the closing price of the common stock on the grant date, for a term of five years. The options had an estimated grant date fair
value of $536,750. The options were fully expensed by the end of the third quarter of 2018, based on fair value estimates determined
using the Black-Scholes option pricing model. Therefore, no related expense was incurred in the current period. For the three-month
period ended March 31, 2018, $30,819 was included in Consulting services expense. At March 31, 2019, the options had an intrinsic
value of $0 (December 31, 2018: $0) based on the exercise price of $0.06 per option and a market price of $0.06 per share on the
closest trading date. Summary
of option activity in the current three-month period and options outstanding at March 31, 2019:
Options Exercise
Price Weighted
Average Exercise Price Weighted
Average Life Remaining (Years) Expiry
Date Intrinsic
Value
Issued Vested
9,500,000 9,500,000 $0.06 February
14, 2022
500,000 - $0.06 November
20, 2023
Balance
December 31, 2018 10,000,000 9,500,000 $0.06 3.21 -
Issued - - - - - - -
Expired - - - - - - -
Exercised - - - - - - -
Vested - - - - - - -
Balance
March 31, 2019 10,000,000 9,500,000 $0.06 2.96 - Warrants During
the three months ended March 31, 2019, no warrants to purchase shares of common stock were issued, exercised or expired. At March
31, 2019, warrants issued in 2015 had an intrinsic value of $133,442 (December 31, 2018: $6,672), based on the exercise price
of $0.02 per warrant and a market price of $0.06 per share on the closest trading date. Summary
of warrant activity in the current three-month period and warrants outstanding at March 31, 2019:
Number
of Warrants Exercise
Price Weighted
Average Exercise Price Weighted
Average Life Remaining (Years) Expiry
Date Intrinsic
Value
Balance
December 31, 2018 3,336,060 $0.02 $0.02 1.88 November
19, 2020 $6,672
Issued - - - - - -
Expired - - - - - -
Exercised - - - - - -
Balance
outstanding and exercisable at March 31, 2019 3,336,060 $0.02 $0.02 1.64 November
19, 2020 $133,442 |
