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Warrants

9 Months Ended

Sep. 30, 2019

NOTE 12 – WARRANTS

During the nine months ended September 30, 2019, the Company received $172,950 from cash exercises of warrants to purchase 1,555,160 shares of common stock. During the same period, the Company issued 3,997,661 shares of common stock upon the cashless exercise of warrants to purchase 12,686,249 shares of common stock.

On July 2, 2019 and July 11, 2019, the Company entered into exchange agreements with certain stockholders pursuant to which it exchanged warrants issued in July 2018 to purchase an aggregate of 26,000,000 shares of the Company's common stock for an aggregate of 6,000 shares of Series A Preferred Stock.

During the nine months ended September 30, 2019, the Company issued 12,900,000 warrants to purchase shares of common stock at $0.075 per share pursuant to the Series B Convertible Preferred Stock offering.

During the nine months ended September 30, 2019, as a result of the Company's Series B Convertible Preferred Stock offering, the ratchet provisions in certain warrants were triggered, causing the exercise price to be reset to $0.00224 per share. Warrants to purchase 35,879,998 shares of common stock at an exercise price of $0.075 outstanding as of December 31, 2018 were repriced to a $0.00224 per share exercise price as of September 30, 2019. Warrants to purchase an additional 2,841,222,285 shares of common stock at $0.00224 per share were issued as a result of this ratchet provision.

The Company recorded a $27,935,469 deemed dividend as a result of the triggering of these ratchet provisions.

Warrants outstanding and exercisable at September 30, 2019 are as follows:

Exercise Price	Warrants Outstanding		Weighted Avg. Remaining Life		Warrants Exercisable
$0.001 – 0.25		2,514,568,356		3.24		2,514,568,356
0.26 – 0.50		565,002		1.67		565,002
0.51 – 0.75		50,000		0.52		50,000
0.76 – 1.00		1,869,000		0.17		1,869,000
		2,517,052,358				2,517,052,358

A summary of the warrant activity for the nine months ended September 30, 2019 is as follows:

	Shares			Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term		Aggregate Intrinsic Value
Outstanding at December 31, 2018		74,910,002		$	0.14		3.49	$	-
Grants		2,494,122,285			0.00252		4.25		3,691,301
Exercised		(15,367,659	)		0.05		3.75		-
Forfeited/Cancelled		(36,612,270	)		1.00		-		-
Vested and expected to vest at September 30, 2019		2,517,052,358		$	0.00363		3.24	$	931,309
Exercisable at September 30, 2019		2,517,052,358		$	0.00363		3.24	$	931,309

The aggregate intrinsic value outstanding stock warrants was $931,309, based on warrants with an exercise price less than the Company's stock price of $0.004 as of September 30, 2019, which would have been received by the warrant holders had those holders exercised the warrants as of that date.