Stockholders’ Equity

3 Months Ended

Mar. 31, 2020

Equity [Abstract]

STOCKHOLDERS’ EQUITY

NOTE 5 – STOCKHOLDERS' EQUITY

At a Board of Director's Meeting on July 30, 2019, the Company authorized a reverse split that resulted in a reduction of the number of outstanding and issued shares of both common and preferred stock so that after the split became effective on August 13, 2019, the shares of both common and preferred stock were reduced to 1 share for each 30 shares currently issued and outstanding. The effect on the Balance Sheet is a transfer of value from stock value at par to Additional Paid-in Capital. As a result of the one (1) for thirty (30) reverse stock split, the Company will continue to be authorized to issue 300,000,000 shares of Common Stock, and 50,000,000 shares of Preferred Stock. The reverse split has been retroactively applied to all periods presented.

Preferred stock

As of March 31, 2020, no preferred shares have been designated nor issued.

Common stock

On January 3, 2020, 100,000 shares of common stock were issued as a result of conversion of accrued interest and principal on the Auctus Note #2 for a total of $12,000.

On February 18, 2020, 250,000 shares of common stock were issued as a result of conversion of accrued interest and principal on the Auctus Note #2 for a total of $22,132.

On March 12, 2020, 750,000 of common stock were issued in exchange for 416,666 warrants with cashless exercise, originating from Auctus Notes #1 and #2.

For the 3 months ending March 31, 2020, 656,000 shares were awarded with an average cost per share of $0.22, under the 2010 Stock Plan for a total value of $150,497. For details, see Shares Awarded and Issued under Note 6.

As of March 31, 2020, the Company has 88,231,673 shares of common stock issued and outstanding. At December 31, 2019 there were 86,475,673 shares of common stock issued and outstanding.

Common Stock Warrants

During the three months ending March 31, 2020 the Company awarded 405,334 warrants, valued at $145,438, and 750,000 warrants were converted in a cashless exercise. During the 3 months ending March 31, 2019 the Company awarded 208,333 warrants valued at $45,361.

The following table summarizes the Company's common stock warrant activity for the 3-months ended March 31, 2020 and March 31, 2019:

				Weighted Average		Weighted- Average Remaining
	Warrants			Exercise Price		Expected Term
Outstanding as of January 1, 2019		208,333		$	0.60		4.6
Granted		208,333			0.60		4.9
Exercised		-			-		-
Forfeited/Canceled		-			-		-
Outstanding as of March 31, 2019		416,666		$	0.60		4.7
Outstanding as of January 1, 2020		616,666		$	1.05		4.0
Granted		405,334			0.36		0.9
Exercised		(750,000	)		-		-
Forfeited/Canceled		-			-		-
Outstanding as of March 31, 2020		272,000		$	2.00		4.7

During the three months ending March 31, 2020, the Company awarded 48,000 options under the 2010 Stock Plan, with a fair market value of $5,004. There were no options awarded during the 3 months ending March 31, 2019.

The following table summarizes the Company's common stock option activity for the 3 months ended at March 31, 2020. There were no stock options issued at March 31, 2019:

			Weighted Average		Weighted- Average Remaining
	Number of Options		Exercise Price		Expected Term
Outstanding as of January 1, 2020		341,000	$	0.96		2.4
Granted		48,000		0.16		2.8
Exercised		-		-		-
Forfeited/Canceled		-		-		-
Outstanding as of March 31, 2020		389,000	$	0.86		2.5