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STOCKHOLDERS’ EQUITY
 6 Months Ended
Jun. 30, 2022
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS’ EQUITY
10STOCKHOLDERS’ EQUITY

 

a.Common Stock

 

The Company has total authorized Common Stock of 750,000,000  shares with a par value of $0.0001 each. The Company has issued and outstanding 367,901,679 shares of Common Stock as of June 30, 2022 and December 31, 2021, respectively.

 

b.Restricted stock awards

 

A summary of restricted stock activity during the period January 1, 2021 to June 30, 2022 is as follows:

 

   Total
restricted
shares		   Weighted
average
fair market
value per
share		   Total
unvested
restricted
shares		   Weighted
average
fair market
value per
share		   Total vested
restricted
shares		   Weighted
average
fair market
value per share		 
Outstanding January 1, 2021   20,495,000   $0.049    15,371,250   $0.049    5,123,750   $0.049 
Granted   2,500,000    0.050    2,500,000    0.050    
-
    
-
 
Forfeited/Cancelled   (1,500,000)   (0.050)   (1,500,000)   (0.050)   
-
    
-
 
Vested   
-
    
-
    (6,123,750)   (0.049)   6,123,750    0.049 
Outstanding December 31, 2021   21,495,000   $0.049    10,247,500   $0.049    11,247,500   $0.049 
Granted   
-
    
-
    
-
    
-
    
-
    
-
 
Forfeited/Cancelled   
-
    
-
    
-
    
-
    
-
    
-
 
Vested   
-
    
-
    (5,123,750)   (0.049)   5,123,750    0.049 
Outstanding June 30, 2022   21,495,000   $0.049    5,123,750   $0.049    16,371,250   $0.049 

 

The restricted stock granted and exercisable at June 30, 2022 is as follows:

 

    Restricted Stock Granted   Restricted Stock Vested 
Grant date
Price		   Number
Granted		   Weighted
Average
Fair Value
per
Share		   Number
Vested		   Weighted
Average
Fair Value
per
Share		 
$0.049    20,495,000   $0.049    15,371,250   $0.049 
$0.050    1,000,000    0.050    1,000,000    0.050 
      21,495,000   $0.049    16,371,250   $0.049 

 

The Company has recorded an expense of $62,766 and $72,141 for the three months ended June 30, 2022 and 2021, respectively and $125,532 and $194,282 for the six months ended June 30, 2022 and 2021, respectively.

 

Subsequent to June 30, 2022, the Company issued additional restricted stock awards to Richard Rosenblum and Samad Harake. See Note 14 – Subsequent Events for further information. 

 

c.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 June 30, 2022 and December 31, 2021.

 

d.Warrants

  

A summary of warrant activity during the period January 1, 2021 to June 30, 2022 is as follows:

 

   Shares
Underlying
Warrants		   Exercise
price per
share		   Weighted
average
exercise
price		 
Outstanding January 1, 2021   51,188,572   $0.05   $0.05 
Granted   66,302,515       0.05 to 0.24    0.16 
Forfeited/Cancelled   (20,000,000)   0.24    0.24 
Exercised   (60,186,982)   0.05    0.05 
Outstanding December 31, 2021   37,304,105   $ 0.05 – 0.1875   $0.12 
Granted   
-
    -    
-
 
Forfeited/Cancelled   
-
    -    
-
 
Exercised   
-
    -    
-
 
Outstanding June 30, 2022   37,304,105   $ 0.05 – 0.1875   $0.12 

 

The warrants outstanding and exercisable at June 30, 2022 are as follows:

 

    Warrants Outstanding   Warrants Exercisable 
Exercise
Price		   Number
Outstanding		   Weighted
Average
Remaining
Contractual
life in years		   Weighted
Average
Exercise
Price		   Number
Exercisable		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
life in years		 
$0.05    10,823,813    3.28         10,823,813         3.28 
 0.15    24,053,625    3.69         24,053,625         3.69 
 0.1875    2,426,667    3.72         2,426,667         3.72 
      37,304,105    3.57    0.12    37,304,105    0.12    3.57 

 

The warrants outstanding have an intrinsic value of $0 as of June 30, 2022 and December 31, 2021.

 

Subsequent to June 30, 2022, the Company issued warrants to Mario Lopez pursuant to an endorsement agreement. See Note 14 – Subsequent Events for further information.

 

e.Stock options

 

On June 18, 2018, the Company established its 2018 Stock Incentive Plan (the “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 or a committee appointed by the Board, 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 800,000 shares of Common Stock. The maximum number of shares of Common Stock awarded to any individual during any fiscal year may not exceed 100,000 shares of Common Stock.

 

On October 22, 2021, the Company established its 2021 Stock Incentive Plan (“2021 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, advisors and service providers 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 August 2031.

 

The 2021 Plan is administered by the Board or a Compensation Committee appointed by the Board, 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 2021 Plan is 53,000,000 shares of Common Stock.

 

Under the 2021 Plan the company may award the following: (i) non-qualified stock options; (ii)) incentive stock options; (iii) stock appreciation rights; (iv) restricted stock; (v) restricted stock unit; and (vi) other stock-based awards.

  

No options were granted for the six months ended June 30, 2022.

 

A summary of option activity during the period January 1, 2021 to June 30, 2022 is as follows:

 

   Shares
Underlying
options		   Exercise
price per
share		   Weighted
average
exercise
price		 
Outstanding January 1, 2021   100,000    0.40    0.40 
Granted   30,416,666    0.15 – 0.24    0.15 
Forfeited/Cancelled   
-
    -    
-
 
Exercised   
-
    -    
-
 
Outstanding December 31, 2021   30,516,666   $0.15 to 0.40   $0.15 
Granted   
-
    -    
-
 
Forfeited/Cancelled   
-
    -    
-
 
Exercised   
-
    -    
-
 
Outstanding June 30, 2022   30,516,666   $ 0.15 to 0.40   $0.15 

 

The options outstanding and exercisable at June 30, 2022 are as follows:

 

   Options Outstanding   Options Exercisable 
Exercise
Price		  Number
Outstanding		   Weighted
Average
Remaining
Contractual
life in years		   Weighted
Average
Exercise
Price		   Number
Exercisable		   Weighted
Average
Exercise
Price		   Weighted
Average
Remaining
Contractual
life in years		 
0.15   30,208,333    9.14         19,375,000         9.14 
0.24   208,333    8.65         208,333         8.65 
0.40   100,000    6.50         100,000         6.50 
    30,516,666    9.13   $0.15    19,683,333   $0.15    9.12 

 

The options outstanding have an intrinsic value of $0 as of June 30, 2022 and December 31, 2021, respectively.

 

The option expense was $94,462 and $0 for the three months ended June 30, 2022 and 2021, respectively and $188,928 and $91,608 for the six months ended June 30, 2022 and 2021, respectively.

 

Subsequent to June 30, 2022, additional options were granted to William Corbett. See Note 14 – Subsequent Events for further information.