Capital Stock

3 Months Ended

Mar. 31, 2022

Stockholders' Equity Note [Abstract]

Capital Stock

6.

 Capital Stock

Common Stock

During the three months ended March 31, 2022, the Company issued no shares of common stock to directors and employees of the Company for services rendered.

Stock To Be Issued

For the three months ended March 31, 2022, 500,000 (2021 - 500,000) shares became issuable to directors and officers of the Company for services rendered. These transactions have been recorded as stock-based compensation having a fair value of $7,500 within shares to be issued (2020 - $55,000).

As of March 31, 2022, the Company has yet to issue 10,021,577 shares of common stock. Of these, 6,076,534 shares of common stock are issuable to directors for services. An additional 3,945,043 shares of common stock are yet to be issued for debt settlements from prior years.

Preferred Stock

The Company has authorized Class A preferred stock available to be issued for $1.00 per share, are non-participating and non-voting and accrue cumulative dividends at the rate of 10% per annum. The Company may retract the stock at any time upon the payment of $1.00 per share plus any unpaid dividends. In the event of any wind-up of the Company, the Class A preferred stock has a priority distribution of $1.00 per share plus any unpaid dividends before any distribution to the common stockholders.

Dividends

As at March 31, 2022, the Company was in arrears in dividends on preferred shares. The balance of dividends payable of $502,790 (December 31, 2021 - $486,202) includes dividends of $284,861 (December 31, 2021 - $278,769) and accrued interest of $217,929, (December 31, 2021 - $207,433), accrued at 10.0% interest compounded annually.

Preferred dividends for the three-month periods ended March 31, 2022 and 2021 had an effect of $nil on loss per share available to common stockholders.

Warrants

As at March 31, 2022 the Company had 1,950,000 warrants outstanding due to expire December 13, 2024 resulting from the debt settlement describe in note 6 a). The warrants were valued at $0.004 each for a total of $7,860 based on the following  assumptions:

1.	Exercise price of each warrant	$0.20
2.	Expected life in years	3
3.	Annualized Volatility	100%
4.	Annual rate of quarterly dividends	0%
5.	Discount rate – Bond Equivalent yield	0.95%

Stock-Based Compensation

The Company incurred stock-based compensation expense in connection with its compensation agreements for its directors and officers. Under these agreements, common stock may be issued as a signing bonus or at certain benchmark dates within an individual’s period of service. Stock-based compensation is calculated as the fair value of the stock issued or to be issued to an individual at the time the employment contract was signed and is recorded at the time becomes owing to the individual. Stock issued to a director, manager, or employee may be deferred in the event that their contract requires the individual to remain employed with the Company for a specified time period after issuance.

For the three-month period ended March 31, 2022, the Company’s 500,000 shares (March 31, 2021 - 500,000) became issuable in connection with stock-based compensation arrangements. As at March 31, 2022 the shares remain to be issued.

These shares were valued at $0.015 per share and resulted in compensation expense of $7,500. These fees were recorded as a component of consulting fees in the amount of $7,500 (March 31, 2021 - $55,000) on the unaudited condensed interim statements of operations and comprehensive loss.