STOCKHOLDERS’ DEFICIT | NOTE 8 STOCKHOLDERS’ DEFICIT (A) Common Stock Issued for Cash On March 9, 2019, the Company entered into a purchase agreement with one investor (the “Purchase Agreement”). Pursuant to the Purchase Agreement, the Company issued the investor 14,797,278 0.06758 1,000,000 14,797,278 14,797,278 0.06 7,398,639 0.08 ● ½ of all $ 0.06 March 8, 2021 ● ½ of all $ 0.06 March 8, 2022 ● ½ of all $ 0.08 March 8, 2022 ● ½ of all $ 0.08 March 8, 2023 On March 2, 2021, the Company determined to amend and extend the expiration of the warrants expiring on March 8, 2021 as follows: ● 1,479,728 shares of all $ 0.06 Warrants shall expire on March 8, 2021 . ● 1,479,728 shares of all $ 0.06 Warrants shall expire on May 8, 2021 ● 1,479,728 shares of all $ 0.06 Warrants shall expire on July 8, 2021 December 8, 2021 ● 1,479,728 shares of all $ 0.06 Warrants shall expire on September 8, 2021 ● 1,479,727 shares of all $ 0.06 Warrants shall expire on November 8, 2021 On March 2, 2021, the Company issued 1,479,728 1,479,728 88,784 On May 4, 2021, the Company issued 1,479,728 1,479,728 88,784 On December 6, 2021, the Company issued 1,479,728 1,479,728 88,784 (B) Common Stock Issued for Services Shares issued for services as mentioned below were valued at the closing price of the stock on the date of grant. On September 3, 2021, the Company issued 3,000,000 242,100 0.0807 (C) Common Stock Warrants and Options On February 24, 2021, the Company issued 70,786 200,000 On March 5, 2021, the Company issued 786,280 2,000,000 On March 2, 2021, the Company issued 1,479,728 1,479,728 88,784 On May 4, 2021, the Company issued 1,479,728 1,479,728 88,784 On December 6, 2021, the Company issued 1,479,728 1,479,728 88,784 On July 30, 2020, the Company issued 9,941,623 10,000,000 On July 8, 2021, the Company issued a 4-year option to purchase 500,000 shares of common stock at an exercise price of $ 0.116 per share to employees for services rendered. The options had a fair value of $ 46,890 , based upon the Black-Scholes option-pricing model on the date of grant and 500,000 options are fully vested on the date granted. SCHEDULE OF OPTION ASSUMPTION Expected dividends 0 % Expected volatility 130.18 % Expected term 4 Risk free interest rate 0.37 % Expected forfeitures 0 % On July 8, 2021, the Company extended the expiration date of the warrant issued on February 9, 2018, to July 8, 2025 100,941 Expected dividends 0 % Expected volatility 130.18 % Expected term 4 Risk free interest rate 0.37 % Expected forfeitures 0 % On April 27, 2021, the Company extended the expiration date of the warrant issued on October 2, 2016 to October 1, 2026 217,715 Expected dividends 0 % Expected volatility 158.54 % Expected term 3 Risk free interest rate 1.37 % Expected forfeitures 0 % On February 2, 2021, the Company extended the expiration date of the warrant to May 29, 2026 85 Expected dividends 0 % Expected volatility 112 % Expected term 5 Risk free interest rate 0.18 % Expected forfeitures 0 % On January 1, 2016, the Company issued 3-year warrant to purchase 6,000,000 0.001 142,526 May 29, 2026 85 Expected dividends 0 % Expected volatility 112 % Expected term 5 Risk free interest rate 0.18 % Expected forfeitures 0 % On January 25, 2021, the Company issued a 7-year option to purchase 2,500,000 0.134 310,165 Options vest 33.3% on the year one anniversary of the grant date, 33.3% will vest on the second anniversary, and 33.3% will vest on the third year anniversary as long as the employee remains with the Company at the end of each successive year for three years. 115,660 Expected dividends 0 % Expected volatility 133.22 % Expected term 7 Risk free interest rate 1.46 % Expected forfeitures 0 % On February 19, 2020 the Company issued a 10-year option to purchase 6,000,000 0.115 626,047 Black-Scholes option-pricing model on the date of grant and 2,000,000 options are fully vested on the date granted and 1,000,000 options vest at the end of each successive year for four years. Options will be exercisable on February 19, 2021, and for a period of 10 years expiring on February 19, 2030 77,988 Expected dividends 0 % Expected volatility 125.19 % Expected term 3 Risk free interest rate 1.50 % Expected forfeitures 0 % On February 19, 2020 the Company issued a 7-year option to purchase 1,340,000 0.115 133,063 Black-Scholes option-pricing model on the date of grant and 268,000 options are fully vested on the date granted and the remaining option vest equally over the remaining 4 years at the end of each successive year. Options will be exercisable on February 19, 2021, and for a period of 6 years expiring on February 19, 2027. 31,805 20,853 800,000 Expected dividends 0 % Expected volatility 125.19 % Expected term 6 Risk free interest rate 1.46 % Expected forfeitures 0 % On August 8, 2019, the Company issued a 3-year option to purchase 2,000,000 0.2299 291,842 Black-Scholes option-pricing model on the date of grant and is fully vested on August 8, 2021. Options will be exercisable on August 8, 2023, and for a period of 3 years expiring on August 8, 2026 51,816 Expected dividends 0 % Expected volatility 105.73 % Expected term 3 Risk free interest rate 1.54 % Expected forfeitures 0 % On August 8, 2019, the Company issued a 2-year options to purchase 125,000 0.2299 18,240 Black-Scholes option-pricing model on the date of grant and are fully vested on August 8, 2021. Options will be exercisable on August 8, 2023, and for a period of 3 years expiring on August 8, 2026. 9,133 12,751 Expected dividends 0 % Expected volatility 105.73 % Expected term 3 Risk free interest rate 1.54 % Expected forfeitures 0 % On August 8, 2019, the Company issued a 2-year options to purchase 125,000 0.2299 19,525 Black-Scholes option-pricing model on the date of grant and are fully vested on August 8, 2022. Options will be exercisable on August 8, 2024, and for a period of 3 years expiring on August 8, 2027. 6,520 9,103 Expected dividends 0 % Expected volatility 105.73 % Expected term 3 Risk free interest rate 1.54 % Expected forfeitures 0 % SCHEDULE OF WARRANTS ACTIVITY Number of Warrants Weighted Average Exercise Price Weighted Average Remaining Contractual Life (in Years) Balance, December 31, 2019 55,995,917 - 2.77 Granted 3,125,000 - - Exercised (10,000 ) - - Cancelled/Forfeited - - - Balance, December 31, 2020 49,120,917 - 1.83 Granted 8,500,000 - - Exercised (5,439,184 ) - - Cancelled/Forfeited (3,209,454 ) - - Balance, December 31, 2021 48,972,279 - 2.64 Intrinsic Value $ 1,248,451 For the year ended December 31, 2021, the following warrants were outstanding: SCHEDULE OF WARRANTS OUTSTANDING Exercise Price Warrants Weighted Average Aggregate $ 0.001 11,000,000 3.07 $ 913,900 $ 0.056 1,000,000 3.52 $ 27,900 $ 0.04 2,300,000 4.75 $ 100,970 $ 0.06 7,398,639 0.18 $ 176,827 $ 0.08 3,699,320 0.18 $ 14,427 $ 0.08 3,699,320 1.18 $ 14,427 $ 0.2299 8,250,000 3.21 $ - $ 0.16 3,125,000 4.95 $ - $ 0.25 8,000,000 4.23 $ - $ 0.1160 500,000 3.52 $ - For the year ended December 31, 2020, the following warrants were outstanding: Exercise Price Warrants Weighted Average Remaining Aggregate $ 0.001 11,000,000 1.19 $ 1,371,500 $ 0.056 2,000,000 0.60 $ 139,000 $ 0.04 2,300,000 0.65 $ 196,650 $ 0.06 7,398,639 0.18 $ 484,611 $ 0.06 7,398,639 1.18 $ 484,611 $ 0.08 3,699,320 1.18 $ 168,319 $ 0.08 3,699,320 2.18 $ 168,319 $ 0.2299 8,500,000 4.27 $ - $ 0.16 3,125,000 4.95 $ - For the year ended December 31, 2021, the following options were outstanding: SCHEDULE OF OPTIONS OUTSTANDING Weighted Average Exercise Options Options Remaining Price Outstanding Exercisable Contractual Life $ 0.115 - 26,802,500 19.11 For the year ended December 31, 2020, the following options were outstanding: Weighted Average Exercise Options Options Remaining Price Outstanding Exercisable Contractual Life $ 0.115 - 22,267,800 22.6 (D) Amendment to Articles of Incorporation On February 16, 2009, the Company amended its articles of incorporation to amend the number and class of shares the Company is authorized to issue as follows: ● Common stock Class A, unlimited number of shares authorized, no par value ● Common stock Class B, unlimited number of shares authorized, no par value ● Preferred stock, unlimited number of shares authorized, no par value Effective December 17, 2013, the Company amended its articles of incorporation to designate a Series A no par value preferred stock. Two shares of Series A Preferred stock have been authorized. (E) Common Stock Issued for Debt On April 23, 2021, the Company issued 836,574 100,000 1,644 On April 26, 2021, the Company issued 2,063,391 250,000 3,178 On April 30, 2021, the Company issued 2,058,686 250,000 3,630 338,654 On June 7, 2021, the Company issued 2,431,506 200,000 25,644 On June 23, 2021, the Company issued 2,422,195 200,000 10,247 On July 6, 2021, the Company issued 2,343,919 200,000 7,671 On July 20, 2021, the Company issued 1,664,823 100,000 60,822 On July 29, 2021, the Company issued 3,101,546 200,000 11,836 On August 16, 2021, the Company issued 2,277,273 150,000 6,904 On August 23, 2021, the Company issued 3,454,203 200,000 11,397 On August 30, 2021, the Company issued 2,284,808 150,000 3,082 On September 8, 2021, the Company issued 4,311,269 250,000 6,521 On September 14, 2021, the Company issued 2,936,668 200,000 2,630 On September 20, 2021, the Company issued 4,138,369 250,000 4,095 On October 4, 2021, the Company issued 2,957,622 200,000 2,301 On October 12, 2021, the Company issued 4,205,118 250,000 5,671 On October 25, 2021, the Company issued 3,043,955 200,000 1,205 On October 28, 2021, the Company issued a 7-year option to purchase 750,000 0.0785 On November 10, 2021, the Company issued 3,528,221 200,000 5,342 On November 22, 2021, the Company issued 3,561,885 200,000 1,603 On December 6, 2021, the Company issued 5,175,822 250,000 1,027 On December 21, 2021, the Company issued 5,874,062 250,000 35,479 |