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COMMON STOCK
 3 Months Ended
Mar. 31, 2022
COMMON STOCK  
4. Common Stock

4. COMMON STOCK

 

Stock Issuances

 

During the three months ended March 31, 2022 the Company issued 4,722,844 shares of common stock for cash of $350,000.

 

Stock Options

 

Certain employees and executives have been granted options or warrants that are compensatory in nature. A summary of option activity for the three months ended March 31, 2022 are presented below:

 

2022 Options Outstanding

 

Number of

Options

 

 

Weighted

Average

Exercise Price

 

 

Weighted

Average

Remaining

Contractual

Term in

Years

 

 

Aggregate

Intrinsic

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance Outstanding - January 1, 2022

 

 

32,275,000

 

 

$0.12

 

 

 

9.8

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Granted

 

 

300,000

 

 

$0.11

 

 

 

9.8

 

 

 

 

 

Exercised

 

 

-

 

 

 

-

 

 

 

 

 

 

 

 

 

Forfeited

 

 

-

 

 

$-

 

 

 

 

 

 

 

 

 

Balance Outstanding - March 31, 2022

 

 

32,575,000

 

 

$0.12

 

 

 

9.5

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable - March 31, 2022

 

 

1,395,000

 

 

$0.24

 

 

 

6.4

 

 

$-

 

2022 Nonvested Options

 

Number of

Options

 

 

Weighted

Average

Grant

Date

Fair Value

 

 

Weighted

Average

Remaining

Years to

Vest

 

 

 

 

 

 

 

 

 

 

 

Nonvested - January 1, 2022

 

 

30,880,000

 

 

$9.9

 

 

 

2.6

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Granted

 

 

300,000

 

 

$9.8

 

 

 

2.7

 

Vested

 

 

 

 

 

$-

 

 

 

 

 

Forfeited/expired

 

 

-

 

 

 

 

 

 

 

 

 

Nonvested - March 31, 2022

 

 

31,180,000

 

 

$9.6

 

 

 

2.6

 

 

Restricted Stock Compensation

 

On March 29, 2021, the Company’s Board of Directors approved the grant of 1,300,000 restricted shares of common stock to the Chief Executive Officer for bonus related to 2020 service.

 

Warrants

 

The Company typically issues warrants to individual investors and institutions to purchase shares of the Company’s Common Stock in connection with public and private placement fundraising activities. Warrants may also be issued to individuals or companies in exchange for services provided for the Company. The warrants are typically exercisable six months after the issue date, expire in five years, and contain a cash exercise provision and registration rights.

 

During the three months ending March 31, 2022, the Company issued no Common Stock Warrants.

 

As of March 31, 2022, the number of shares issuable upon exercise of the Common Stock Warrants were 10,600,000 shares.

 

Type

 

Issue Date

 

Shares

 

 

Exercise

Price

 

 

Expiration

 

Investors

 

4/19/2021

 

 

1,300,000

 

 

$

0.20

 

 

4/19/2026

 

Investors

 

4/19/2021

 

 

1,300,000

 

 

$

0.25

 

 

4/19/2026

 

Investors

 

4/22/2021

 

 

1,300,000

 

 

$

0.20

 

 

4/22/2026

 

Investors

 

4/22/2021

 

 

1,300,000

 

 

$

0.25

 

 

4/22/2026

 

Investors

 

4/30/2021

 

 

650,000

 

 

$

0.20

 

 

4/30/2026

 

Investors

 

4/30/2021

 

 

650,000

 

 

$

0.25

 

 

4/30/2026

 

Investors

 

5/4/2021

 

 

650,000

 

 

$

0.20

 

 

5/4/2026

 

Investors

 

5/4/2021

 

 

650,000

 

 

$

0.25

 

 

5/4/2026

 

Investors

 

5/19/2021

 

 

650,000

 

 

$

0.20

 

 

5/19/2026

 

Investors

 

5/19/2021

 

 

650,000

 

 

$

0.25

 

 

5/16/2026

 

Investors

 

8/31/2021

 

 

1,500,000

 

 

$

0.25

 

 

8/31/2026

 

Total

 

 

 

 

10,600,000

 

 

 

 

 

 

 

 

2022 Warrants Outstanding

 

Number of

Warrants

 

 

Weighted

Average

Exercise

Price

 

 

Weighted

Average

Remaining

Contractual

Term in

Years

 

 

Aggregate

Intrinsic

Value

 

Outstanding – December 31, 2021

 

 

10,600,000

 

 

$0.23

 

 

 

4.40

 

 

$715,223

 

Granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Forfeited/expired

 

 

-

 

 

$-

 

 

 

 

 

 

 

 

 

Outstanding – March 31, 2022

 

 

10,600,000

 

 

$0.23

 

 

 

4.10

 

 

$715,223

 

 

Equity Line of Credit

 

In January 2021 the Company and one of its Convertible Debt Holders entered into a Purchase Agreement for up to $5,000,000 shares of the Company’s common stock for 24 months. The purchase price of the stock will be at 75% of the lowest individual daily weight average price of the past five (5) trading days with the amount to be drawn down as the lesser of $250,000 or 300% of the average shares traded for the ten (10) days prior to the Closing Request Date with a minimum $25,000 put allowance. As part of the agreement, the Company issued 250,000 shares of common stock as a commitment fee.

 

In January 2022 the Company exercised its equity line of credit of an aggregate amount of $350,000 in exchange for 4,772,844 shares of common stock. The balance available as of March 31, 2022 to draw on the equity line of credit after the draw was $4,650,000 and $5,000,000 as of December 31, 2021.