WARRANTS

9 Months Ended

Sep. 30, 2019

Guarantees and Product Warranties [Abstract]

WARRANTS

NOTE 10 – WARRANTS

As described in Note 6, from February 14 through September 11, 2019, the Company issued 487,500 warrants subject to an exercise price of $0.20 per share for 5 years and 300,000 warrants subject to an exercise price of $0.10 per share for 5 years. If the Company issues any common stock or common stock equivalents at an effective price per share less than the warrant’s exercise price the exercise price of the warrants will be reduced to the lower price. In addition, the number of common shares issuable upon conversion of the warrants is increased so that the number of shares issuable multiplied by the exercise price equals the aggregate exercise price of the warrants immediately prior to the exercise reduction. During period, convertible notes were exercised at a price less than the original exercise price of these warrants, resulting in an adjustment to the number of warrants and exercise price.

The Company concluded that it only has sufficient shares to satisfy the conversion of some but not all of the outstanding convertible instruments. The initial fair value of the warrants issued during the period was calculated using the Binomial Model as described in Note 7.

The following table summarizes the continuity of share purchase warrants:

	Number of warrants			Weighted average exercise price $
Balance, December 31, 2018		650,000			0.09233
Adjustment to warrants outstanding		431,007,738			0.00041
Granted		787,500			0.00131
Settled		(12,130,881	)		0.00117
Balance, September 30, 2019		420,314,357			0.00053

As at September 30, 2019, the following share purchase warrants were outstanding:

Date		Number			Number			Exercise			Weighted Average Remaining Contractual		Expiration		Proceeds to Company if
Issued		Outstanding			Exercisable			Price $			Life (Years)		Date		Exercised
	11/28/2018		142,857,143	*		142,857,143	*		0.00035	*		2.16		11/28/2021	$	50,000
	12/3/2018		500,000			500,000			0.10			4.18		12/3/2023		50,000
	2/14/2019		159,397,690	*		159,397,690	*		0.00035	*		4.38		2/14/2024		55,789
	3/13/2019		107,142,857	*		107,142,857	*		0.00035	*		4.45		3/13/2024		37,500
	9/11/2019		10,416,667	*		10,416,667	*		0.00288	*		4.95		9/11/2024		30,000
			420,314,357			420,314,357									$	223,289

*The number of warrants outstanding and exercisable is variable based on adjustments to the exercise price of the warrant due to dilutive issuances.

The intrinsic value of warrants outstanding at September 30, 2019 was $2,513,523.