During the nine months ended September 30, 2020 and year ended December 31, 2019, in conjunction with the issuance of convertible notes, the Company issued warrants to purchase 206,666,666 and 824,833,333 shares of common stock, exercisable for five years from issuance at weighted average exercise price of $0.0002 per share.

The below table summarizes the activity of warrants exercisable for shares of common stock during the nine months ended September 30, 2020 and the year ended December 31, 2019:

	Number of Shares		Weighted- Average Exercise Price
Balances as of December 31, 2018		145,000,000	$	0.0003
Granted		824,833,333		0.0002
Exercised		-		-
Forfeited		-		-
Balances as of December 31, 2019		969,833,333	$	0.0002
Granted		206,666,666		0.0003
Exercised		-		-
Forfeited		-		-
Balances as of September 30, 2020		1,176,499,999	$	0.0002

The fair value of each warrant on the date of grant is estimated using the Black-Scholes option valuation model. The following weighted-average assumptions were used for options granted during the nine months ended September 30, 2020 and 2019:

	Nine Months ended
	September 30,
	2020		2019
Exercise price	$	0.0002	$	0.0003
Expected term	3.89 years		5 years
Expected average volatility	343% - 367%		288% - 310%
Expected dividend yield		-		-
Risk-free interest rate	0.16% - 0.34%		2.23% - 2.24%

The following table summarizes information relating to outstanding and exercisable warrants as of September 30, 2020:

Warrants Outstanding

Warrants Exercisable

Weighted Average

Number

Remaining Contractual

Weighted Average

Number

Weighted Average

of Shares

life (in years)

Exercise Price

of Shares

Exercise Price

1,176,499,999

3.89

0.0002

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at September 30, 2020 for those warrants for which the quoted market price was in excess of the exercise price (“in-the-money” warrants). As of September 30, 2020, the aggregate intrinsic value of warrants outstanding was approximately $nil based on the closing market price of $0.0001 on September 30, 2020.

The Company determined that the warrants qualify for derivative accounting as a result of the related issuance of the convertible note during the nine months ended September 30, 2020. As of September 30, 2020 and December 31, 2019, the Company valued the fair value on the 1,176,499,999 units of common stock purchase warrants granted at $117,556 and $96,956 based on Black-Scholes option valuation model, respectively.