Stockholder’ Equity (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Schedule of stock option activity

	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Life (Years)
Options outstanding and exercisable at December 31, 2020		12,180,500			0.20	$	4,750,395		4.63
Issued		2,467,000			1.06		—		—
Exercised		(225,500	)		0.19		—		—
Expired/forfeit		(1,850,000	)		0.64		—		—
Options outstanding and exercisable at June 30, 2021		12,572,000			0.30	$	3,815,590		5.96

Schedule of stock option assumptions

	June 30, 2021
Dividend yield		0.00%
Expected life		5.52 - 6.25 Years
Expected volatility		38.39—38.46%
Risk-free interest rate		0.99 - 1.07%

Stock Warrants

In April 2021, pursuant to the binding Memorandum of Understanding dated as of March 30, 2021, between 374Water and MB Holding Inc. (the “MOU”), a warrant for the purchase of 3,783,333 shares of common stock at an exercise price of $.30 per share were issued to MB Holding Inc. as consideration for executing the MOU and was considered fully vested upon the execution of the MOU. These warrants expire in March 2022. Those warrants were estimated to have a grant-date fair value of $0.37 per warrant or aggregate fair value of $1,399,833 which has been presented as product development expense on the condensed statements of operations.

During the period ended June 30, 2021, 950,000 warrants were exercised resulting in the issuance of 950,000 shares of common stock and proceeds of $107,500.

The fair value of those warrants granted were estimated on the date of grant, using the Black-Scholes option-pricing model with the following assumptions:

	June 30, 2021
Dividend yield		0.00%
Expected life		1 Year
Expected volatility		42.39%
Risk-free interest rate		0.06%

Schedule of warrant activity

	Shares			Weighted Average Exercise Price		Aggregate Intrinsic Value		Weighted Average Remaining Contractual Life (Years)
Balance at December 31, 2020		950,000			0.11	$	690,500		0.44
Issued		3,783,333			0.30		—
Exercised		(950,000	)		0.11
Balance at June 30, 2021		3,783,333			0.30	$	8,134,167		0.75