9. OPTIONS

On June 2, 2020, the Company issued 2,000,000,000 options to purchase common stock. These options will be exercisable on a cashless basis for a period of ten years from the effective date of the Stock Split at an exercise price of $0.00001 per share on a pre-Stock Split basis. The number of options on the post Stock Split basis is 2,000,000, and the exercise price of $0.01 per share. The purpose of the options is to compensate our directors for serving on the board without compensation in fiscal 2019. It is difficult to assess the value of the options given the highly limited trading in our Common Stock, the fact that the options shares have not been and are not expected to be registered for resale and will be restricted, and the speculative nature of the Company’s future business plans. However, we estimated the value of the services provided by each of our directors during 2019 and believe that the value of the options to be issued to each of our resigning directors approximates that amount.

A summary of the Company’s options activity and related information follows for fiscal year ended September 30, 2020:

	September 30, 2020
			Weighted
	Number		average
	of		exercise
	Options		price
Outstanding - beginning of period		-	$	-
Granted		2,000,000	$	.01
Exercised		-	$	-
Forfeited		-	$	-
Outstanding - end of period		2,000,000	$	.01

At September 30, 2020, the weighted average remaining contractual life of options outstanding:

September 30, 2020

Weighted

Average

Remaining

Exercisable

Options

Contractual

Prices

Outstanding

Exercisable

Life (years)

.01

2,000,000

9.67

For purpose of determining the fair market value of the options, the Company used the Black Scholes valuation model. The significant assumptions used in the Black Scholes valuation model for the warrants are as follows:

Risk Free Interest Rate	0.32	%
Stock Volatility Factor	146.0	%
Weighted Average Expected Option Life	5 Years
Expected Dividend Yield	None

The stock-based compensation expense recognized in the statement of operations during fiscal year ended September 30, 2020 related to the granting of these warrants was $399,260.