STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Attributable to Parent [Abstract]

STOCKHOLDERS' EQUITY

8 STOCKHOLDERS’ EQUITY

a) Common Stock

On November 1, 2019, the Company effected a 10 for 1 reverse stock split. The reverse stock split has been applied on a retrospective basis and all per share amounts and earnings per share calculations have been updated to reflect the reverse stock split.

The Company has authorized 500,000,000 common shares with a par value of $0.0001 each. The Company has issued and outstanding 31,047,897 and 8,883,952 shares of common stock as of September 30, 2019 and December 31, 2018, after giving effect to the 10 for 1 reverse stock split.

In terms of various debt conversion notices received between January 16, 2019 and September 11, 2019, the Company issued an aggregate of 22,081,374 shares of common stock in settlement of $1,022,612 of convertible notes, resulting in a net loss on conversion of $1,037,822.

The Company did not repay a convertible note issued to Labrys Fund, LP prior to the maturity date, which resulted in the returnable commitment shares being retained by Labrys Fund, LP. The 82,572 shares of common stock was expensed as a commitment fee, valued at $165,254 on April 25, 2019.

b) Preferred Stock

The Company has authorized 25,000,000 shares of preferred stock with a par value of $0.0001 authorized, no preferred stock is issued and outstanding as of September 30, 2019.

c) Warrants

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

		Warrants outstanding						Warrants exercisable
Exercise price*		No. of shares*		Weighted average remaining years		Weighted average exercise price*		No. of shares*		Weighted average exercise  Price*
$	6.25		621,920		1.00				621,920
$	2.00		230,855		0.75				230,855
			852,775		0.94	$	5.10		852,775	$	5.10

* After giving effect to the 10 for reverse stock split on November 1, 2019.

The warrants outstanding have an intrinsic value of $0 and $0 as of September 30, 2019 and December 31, 2018, respectively.

d) Stock options

On June 18, 2018, the Company established its 2018 Stock Incentive Plan. The purpose of the plan is to promote the interests of the Company and the stockholders of the Company by providing directors, officers, employees and consultants of the Company with appropriate incentives and rewards to encourage them to enter into and continue in the employ or service of the Company, to acquire a proprietary interest in the long-term success of the Company and to reward the performance of individuals in fulfilling long-term corporate objectives. The plan terminates after a period of ten years in June 2028.

The Plan is administered by the Board of Directors or a Committee appointed by the Board of Directors who have the authority to administer the Plan and to exercise all the powers and authorities specifically granted to it under the Plan.

The maximum number of securities available under the plan is 8,000,000 shares of common stock. The maximum number of shares of common stock awarded to any individual during any fiscal year may not exceed 1,000,000 shares of common stock.

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

		Options outstanding						Options exercisable
Exercise price*		No. of shares*		Weighted average remaining years		Weighted average exercise price*		No. of shares*		Weighted average exercise  Price*
$	0.40		200,000		9.25	$	0.40		200,000	$	0.40

* After giving effect to the 10 for reverse stock split on November 1, 2019.

The options outstanding have an intrinsic value of $0 and $0 as of September 30, 2019 and December 31, 2018, respectively.