STOCK WARRANTS

3 Months Ended

Mar. 31, 2022

STOCK WARRANTS

Stock warrants

NOTE 10 - STOCK WARRANTS

Legal Matter

On September 14th, 2021, a Company subsidiary received a demand for arbitration through the American Arbitration Association pursuant to a manufacturing services agreement with Cypress Holdings Ltd d/b/a Cypress Industries alleging Breach of Contract for non-payment of invoices. The Company believes the claim is without merit and has filed a defense and counter claim. After Cypress Industries failed to cure many Breaches of its manufacturing services agreement, including failure to deliver a single Trutankless unit, the Company cancelled its purchase order with Cypress Industries. The Company is seeking substantial relief, including lost profit, due to the Breach of Contract, Fraudulent Inducement, Misrepresentation, Unjust Enrichment, and Negligence of Cypress Industries. The Company subsequently settled this matter on February 28, 2022.

On July 6, 2020, we received a letter from the staff of the Division of Enforcement of the Securities and Exchange Commission (the “Staff”) that indicated the Company may have violated certain rules and regulations regarding a late filing notification filed by the Company and that the Staff is conducting an informal inquiry into the matter. On April 29, 2021, the Company agreed to pay civil penalties of $25,000 to the Securities and Exchange Commission in settlement of the matter. Payment shall be made in the following four installments: (1) $5,000 within 14 days of entry of the order; (2) $7,500 within 180 days of entry of the order; (3) $6,250 within 270 days of entry of the order; and (4) $6,250 within 360 days of entry of the order. As of March 31, 2022, $5,000 was paid and $20,000 remained due.

The following is a summary of stock warrants activity during the period ended March 31, 2022

	Number of Shares		Weighted Average Exercise Price
Balance, December 31, 2021		2,510,485	$	1.85
Warrants granted and assumed		-		-
Warrants expired		-		-
Warrants canceled		-		-
Warrants exercised		-		-
Balance outstanding and exercisable, March 31, 2022		2,510,485	$	1.85

The following is a summary of stock warrants activity during the period ended December 31, 2021.

	Number of Shares			Weighted Average Exercise Price
Balance, December 31, 2020		1,848,985		$	2.16
Warrants granted and assumed		1,144,000		$	1.00
Warrants expired		-			-
Warrants canceled		-			-
Warrants exercised		(482,500	)	$	1.00
Balance outstanding and exercisable, December 31, 2021		2,510,485		$	1.85