Common Stock Warrants and Options

12 Months Ended

Dec. 31, 2019

Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]

Common Stock Warrants and Options

Common Stock Warrants Granted (2019)

No common stock warrants were granted during the year ended December 31, 2019.

Common stock warrants granted consist of the following at December 31, 2019 and 2018, respectively:

2019				2018
Issuance	Warrant		# of Common	Issuance	Warrant		# of Common
Date	#	Name	Stock Warrants	Date	#	Name	Stock Warrants
				1/5/2018	1029	Lex Seabre	100,000.00
Total			-	1/21/2018	1031	Roger Forsyth	100,000.00
				1/23/2018	1032	Roger Forsyth	100,000.00
				2/9/2018	1033	Lawrence Wesigal	15,000.00
				3/19/2018	1034	Donald Steinberg	150,000.00
				3/15/2018	1035	Donald Harrington	12,500.00
				4/26/2018	1036	Roger Seabre	100,000.00
				4/26/2018	1037	Michael Kirk Wines	100,000.00
				5/7/2018	1038	Donald Steinberg	400,000.00
				5/15/2018	1039	Roger Seabre	200,000.00
				6/13/2018	1040	Blue Ridge Enterprises	450,000.00
				6/26/2018	1041	Dianna Steinberg	200,000.00
				Total			1,927,500.00

A summary of the Company’s outstanding common stock warrants is as follows as of December 31, 2019:

Issuance	Warrant			# of Common	Strike
Date	#	Name	Document	Stock Warrants	Price
12/31/2017				1,973,333
1/2/2018	1009	Exercise - Edward Matkoff	Subscription Agreement	-50,000	$	3.00
1/5/2018	1029	Lex Seabre	Subscription Agreement	100,000	$	5.00
1/21/2018	1031	Roger Forsyth	Subscription Agreement	100,000	$	12.50
1/23/2018	1010	Expired - Sandra Hogan	Subscription Agreement	-2,000	$	3.00
1/23/2018	1032	Roger Forsyth	Subscription Agreement	100,000	$	12.50
2/9/2018	1033	Lawrence Wesigal	Subscription Agreement	15,000	$	12.50
3/19/2018	1034	Donald Steinberg	Subscription Agreement	150,000	$	5.00
3/15/2018	1035	Donald Harrington	Subscription Agreement	12,500	$	5.00
4/20/2017	1015	Expired - Lex Seabre	Subscription Agreement	-375,000	$	3.00
4/20/2017	1020	Expired - Lex Seabre	Subscription Agreement	-125,000	$	3.00
4/26/2018	1036	Roger Seabre	Subscription Agreement	100,000	$	5.00
4/26/2018	1037	Michael Kirk Wines	Subscription Agreement	100,000	$	5.00
5/7/2018	1038	Donald Steinberg	Subscription Agreement	400,000	$	6.00
5/15/2018	1039	Roger Seabre	Subscription Agreement	200,000	$	6.00
6/13/2018	1040	Blue Ridge Enterprises	Subscription Agreement	450,000	$	6.00
6/16/2017	1019	Expired - Black Mountain Equities	Debt Exchange Agreement	-70,000	$	3.00
6/26/2018	1041	Dianna Steinberg	Subscription Agreement	200,000	$	6.00
12/31/2018				3,278,833
1/5/2018	1029	Expired - Lex Seabre	Subscription Agreement	-100,000	$	5.00
2/9/2018	1033	Expired - Lawrence Wesigal	Subscription Agreement	-15,000	$	12.50
3/19/2018	1034	Expired - Donald Steinberg	Subscription Agreement	-150,000	$	5.00
3/15/2018	1035	Expired - Donald Harrington	Subscription Agreement	-12,500	$	5.00
4/26/2018	1036	Expired -Roger Seabre	Subscription Agreement	-100,000	$	5.00
4/26/2018	1037	Expired -Michael Kirk Wines	Subscription Agreement	-100,000	$	5.00
5/7/2018	1038	Expired -Donald Steinberg	Subscription Agreement	-400,000	$	6.00
5/15/2018	1039	Expired -Roger Seabre	Subscription Agreement	-200,000	$	6.00
6/13/2018	1040	Expired -Blue Ridge Enterprises	Subscription Agreement	-450,000	$	6.00
6/26/2018	1041	Expired -Dianna Steinberg	Subscription Agreement	-200,000	$	6.00
5/25/2017	1016	Expired -Russ Karlen	Subscription Agreement	-100,000	$	3.00
5/25/2017	1017	Expired -Eric Karlen	Subscription Agreement	-20,000	$	3.00
5/31/2017	1018	Expired -Matt Turner	Subscription Agreement	-20,000	$	3.00
5/31/2017	1022	Expired -Rodger Seabre	Subscription Agreement	-300,000	$	3.00
7/7/2017	1021	Expired - Rodger Seabre	Subscription Agreement	-200,000	$	3.00
8/2/2017	1026	Expired - Rodger Seabre	Subscription Agreement	-100,000	$	3.00
9/5/2017	1023	Expired - Harry Methewson #1	Subscription Agreement	-40,000	$	3.00
9/24/2017	1024	Expired - Harry Methewson #2	Subscription Agreement	-133,000	$	3.00
9/29/2017	1025	Expired - A2Z Inc.	Subscription Agreement	-300,000	$	3.00
10/24/2017	1027	Expired - Salvatore Rutigliano	Subscription Agreement	-13,3333	$	3.00
11/10/2017	1028	Expired - Roger Seabre	Subscription Agreement	-125,000	$	3.00
12/31/2019				200,000

Common Stock Warrants Expired (2019)

A total of 3,078,833 warrants expired during the year ended December 31, 2019.

Warrants Exercised (2019)

No warrants were exercised during the year ended December 31, 2019.

2018 Common Stock Warrant Activity

Common Stock Warrants Granted (2018)

See Note 10 for details on warrants issued during the year ended December 31, 2018.

Common Stock Warrants Exercised (2018)

On January 12, 2018, a warrant holder exercised warrants to purchase 150,000 shares of common stock at a price of $1.50 in exchange for proceeds of $225,000.

Common Stock Warrants Expired (2018)

A total of 572,000 warrants expired during the year ended December 31, 2018.

Common Stock Options (2018)

On February 1, 2018, in connection with executive employment agreements, the Company granted non-qualified options to purchase an aggregate of 6,000,000 shares of the Company’s common stock at the exercise price of $10.55 per share. The options shall become exercisable at the rate of 1/3 upon the six-month anniversary, 1/3 upon the one-year anniversary and 1/3 upon the second anniversary of the grant. The options expire ten years from the date of grant. The options were valued at $45,753,000 using the Black-Scholes option pricing model. The Company recognized expense of approximately $22,770,662 and $21,201,397 relating to these options during the year ended December 31, 2019 and December 31, 2018, respectively.

The assumptions used in the Black-Scholes model are as follows:

	For the period ended December 31, 2019
Risk-free interest rate	1.75%
Expected dividend yield	0%
Expected lives	10.0 years
Expected volatility	200%

A summary of the Company’s stock option activity and related information is as follows:

	For the Year Ended December 31, 2019 and 2018
	Number of		Average
	Shares		Price
Outstanding at the beginning of period	$	-	$	-
Granted		6,000,000		10.55
Exercised/Expired/Cancelled		-		-
Outstanding at the end of period		6,000,000	$	10.55
Exercisable at the end of period		1,250,000	$	10.55