STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2020

Note 9. STOCKHOLDERS’ EQUITY

Series A Warrants

In the nine months ended September 30, 2020, the Company issued 37.4 billion shares in connection with the cashless exercise of the Series A warrants.

On July 27, 2020, the remaining Company Series A Warrants expired and the balance of outstanding warrants not exercised was 355,661 warrants.

Series C Stock

On September 25, 2020, the Company entered into agreements with certain holders of its Series B Convertible Preferred Stock to exchange all the Series B Stock for 20,150.1153 shares of Series C Stock. Each share of Series C Stock has a stated value equal to $1,000 and is convertible into Common Stock on a fixed basis at a conversion price of $0.0001 per share. As of the end of the third quarter of 2020, the closing of the stock exchange had not occurred.

Stock Options

A summary of Stock-based compensation expense recognized is presented below:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
Stock-based compensation	$	1,875	$	147,570	$	76,154	$	343,824

Income (Loss) Per Share

The following table summarizes the Company’s securities, in common share equivalents, that have been excluded from the calculation of dilutive loss per share as their effect would be anti-dilutive:

	As of September 30,
	2020		2019
Preferred stock		201,501,000,000		201,501,000,000
Stock options		68,062,000,000		91,062,000,000
Warrants		-		41,420,000,000
Total		269,563,000,000		333,983,000,000