STOCK WARRANTS

9 Months Ended

Sep. 30, 2018

Notes to Financial Statements

NOTE 10 - STOCK WARRANTS

On April 16, 2018, in connection with and pursuant to the terms of the convertible promissory note dated April 16, 2018, with Auctus Fund, LLC, the Company issued warrants to Auctus Fund to purchase up to 350,000 shares of common stock. The warrants have an exercise price of $0.50 and expire in five years. The aggregate fair value of the warrants, which was allocated against the debt proceeds totaled $80,688 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.50, 2.69% risk free rate, 298.24% volatility and expected life of the warrants of 5 years. The fair value was credited to additional paid in capital and debited to debt discount to be amortized over the term of the loan.

On July 31, 2018, in connection with and pursuant to the terms of the convertible promissory note dated July 31, 2018, with Auctus Fund, LLC, the Company issued warrants to Auctus Fund to purchase up to 500,000 shares of common stock. The warrants have an exercise price of $0.50 and expire in five years. The aggregate fair value of the warrants, which was allocated against the debt proceeds totaled $115,221 based on the Black Scholes Merton pricing model using the following estimates: exercise price of $0.50, 2.85% risk free rate, 282.3% volatility and expected life of the warrants of 5 years. The fair value was credited to additional paid in capital and debited to debt discount to be amortized over the term of the loan.

A summary of the status of the Company’s outstanding stock warrants and changes during the periods is presented below:

	Shares available to purchase with warrants		Weighted Average Price		Weighted Average Fair Value
Outstanding, December 31, 2017		-	$	-	$	-
Issued		850,000	$	0.50	$	0.30
Exercised		-	$	-	$	-
Forfeited		-	$	-	$	-
Expired		-	$	-	$	-
Outstanding, September 30, 2018		850,000	$	0.50	$	0.30
Exercisable, September 30, 2018		850,000	$	0.50	$	0.30

Range of Exercise Prices		Number Outstanding 9/30/2018		Weighted Average Remaining Contractual Life	Weighted Average Exercise Price
$	0.50		850,000	4.72 years	$	0.50