SHAREHOLDERS’ EQUITY | NOTE 6 – SHAREHOLDERS’ EQUITY Authorized shares On September 3, 2019, the Company’s Board of Directors unanimously approved the amendment of its Articles of Incorporation to increase the total authorized capital stock from 185,000,000 200,000,000 123,877,077 118,252,077 Common Shares Issued for Services to Consultants During the year ended September 30, 2020, the Company issued 285,000 22,800 Restricted Stock Grants to Officers and Directors During the year ended September 30, 2020, the Company’s Board of Directors approved the issuance of a combined total of 20,170,000 7,120,000 1,800,000 11,250,000 13,050,000 2,775,000 4,650,000 During the year ended September 30, 2021, the Company’s Board of Directors approved the issuance of a combined total of 3,750,000 625,000 During the year ended September 30, 2021, the Company’s Board of Directors approved the issuance of a combined total of 41,353,731 16,093,018 Stock Warrants The following table summarizes restricted common stock activity: SUMMARY OF RESTRICTED COMMON STOCK Number of Restricted Shares Fair Value Weighted Average Grant Date Fair Value Non-vested, September 30, 2019 - $ - $ - Granted 20,170,000 605,100 0.03 Vested (9,895,000 ) (296,850 ) 0.03 Forfeited - - - Non-vested, September 30, 2020 10,275,000 308,250 0.03 Granted 3,750,000 187,500 0.05 Vested (5,275,000 ) (170,750 ) 0.03 Forfeited - - - Non-vested, September 30, 2021 8,750,000 $ 325,000 $ 0.04 During the years ended September 30, 2021 and 2020, the Company recorded $ 170,750 296,850 325,000 Stock Options On December 22, 2010, effective retroactively as of June 30, 2010, the Company’s Board of Directors approved the adoption of the “2010 Non-Qualified Stock Option Plan” (“2010 Option Plan”) by unanimous consent. The 2010 Option Plan was initiated to encourage and enable officers, directors, consultants, advisors and key employees of the Company to acquire and retain a proprietary interest in the Company by ownership of its common stock. A total of 7,500,000 7,500,000 30,000,000 The Company’s policy is to recognize compensation cost for awards with only service conditions and a graded vesting schedule on a straight-line basis over the requisite service period for the entire award. Additionally, the Company’s policy is to issue new shares of common stock to satisfy stock option exercises. The Company applied fair value accounting for all share-based payments awards. The fair value of each option granted is estimated on the date of grant using the Black-Scholes option-pricing model. The table below summarizes the Company’s stock option activities for the year ended September 30, 2021: SCHEDULE OF STOCK OPTION ACTIVITY Number of Option Shares Exercise Price Range Per Share Weighted Average Exercise Price Balance, September 30, 2019 15,237,738 $ 0.03 2.00 $ 0.28 Granted 5,000,000 0.04 0.09 0.05 Cancelled (4,910,000 ) 0.14 0.30 0.14 Exercised - - - Expired (1,200,000 ) 0.11 0.25 0.15 Balance, September 30, 2020 14,127,738 0.03 2.00 0.23 Granted - - - Cancelled (7,262,500 ) 0.04 0.40 0.06 Exercised - - - Expired (1,587,500 ) 0.11 2.00 1.29 Balance, September 30, 2021 5,277,738 $ 0.03 0.26 $ 0.15 Vested and exercisable, September 30, 2021 5,277,738 $ 0.03 0.26 $ 0.15 Unvested, September 30, 2021 - $ - $ - The following table summarizes information concerning outstanding and exercisable options as of September 30, 2021: SCHEDULE OF OUTSTANDING AND EXERCISABLE OPTIONS BY EXERCISE PRICE RANGE Options Outstanding Options Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average Remaining Contractual Life (in years) Weighted Average Exercise Price $ 0.03 0.26 5,277,738 1.58 $ 0.15 - - $ - $ $ 0.03 0.26 5,277,738 1.58 $ 0.15 - - $ - Stock Option Activity during the Fiscal Year Ended September 30, 2020 During the year ended September 30, 2020, the Company’s Board of Directors approved the cancellation of stock options to purchase 3,360,000 0.14 0.30 1,550,000 0.14 The Board approved the grant of stock options to its Chief Executive Officer to purchase 4,250,000 0.04 127,500 1,125,000 3,125,000 a. Repricing of stock options to purchase 1,200,000 0.14 0.04 b. Repricing of stock options to purchase 600,000 0.14 0.04 c. Extend the expiration of the options to ten years from the date of grant, rather than the five In accounting for the modification, the Company calculated for the fair value of the options before modification using current valuation inputs including the Company’s closing stock price of $ 0.03 183 0.34 22,680 In addition to the options granted to the Company’s Chief Executive Officer noted above, during the year ended September 30, 2020, the Company granted options to several employee to purchase a total of 750,000 59,376 0.04 0.09 five years The assumptions used for all of the options granted during the year ended September 30, 2020 are as follows: SCHEDULE OF ASSUMPTIONS USED FOR OPTIONS GRANTED Exercise price $ 0.04 0.09 Expected dividends - Expected volatility 157.6 197.0 % Risk free interest rate 0.17 1.60 % Expected life of options 2.5 Stock Option Activity during the Fiscal Year Ended September 30, 2021 During the year ended September 30, 2021, the Company’s Board of Directors approved the cancellation of 6,050,000 6,050,000 During the years ended September 30, 2021 and 2020, the Company recorded $ 21,764 263,414 no The total aggregate intrinsic value for option shares outstanding at September 30, 2021 was $ 625 24,722,262 Stock Warrants The table below summarizes the Company’s warrants activities for the year ended September 30, 2021: SCHEDULE OF WARRANT ACTIVITY Number of Warrant Shares Exercise Price Range Per Share Weighted Average Exercise Price Balance, September 30, 2019 66,484,049 $ 0.12 0.40 $ 0.17 Granted 1,150,000 0.07 0.07 Cancelled - - - Exercised - - - Expired - - - Balance, September 30, 2020 67,634,049 0.07 0.40 0.16 Granted - - - Cancelled (16,093,018 ) 0.12 0.18 0.15 Exercised - - - Expired (19,508,956 ) 0.15 0.25 0.18 Balance, September 30, 2021 32,032,075 $ 0.07 0.40 $ 0.16 Vested and exercisable, September 30, 2021 32,032,075 $ 0.07 0.40 $ 0.16 The following table summarizes information concerning outstanding and exercisable warrants as of September 30, 2021: SCHEDULE OF OUTSTANDING AND EXERCISABLE WARRANTS BY EXERCISE PRICE RANGE Warrants Outstanding Warrants Exercisable Range of Exercise Prices Number Outstanding Average Remaining Contractual Life (in years) Weighted Average Exercise Price Number Exercisable Average Remaining Contractual Life (in years) Weighted Average Exercise Price $ 0.12 0.20 31,082,075 1.76 $ 0.16 31,082,075 1.76 $ 0.16 0.21 0.40 950,000 1.67 0.33 950,000 1.67 0.33 $ 0.12 0.40 32,032,075 1.76 $ 0.16 32,032,075 1.76 $ 0.16 During the year ended September 30, 2020, in connection with the conversion of a loan payable, the Company issued a warrant to purchase 1,150,000 0.07 43,815 five years Effective January 1, 2020, the Company’s Board of Directors approved the extension of the Company’s unexpired stock warrants as of December 31, 2019, by an additional one-year period. This change affected approximately 66,000,000 0.12 0.40 507,265 During the year ended September 30, 2021, the Company’s Board of Directors approved the cancellation of 16,093,018 Restricted Stock Grants There was no |