CAPITAL TRANSACTIONS

3 Months Ended

Mar. 31, 2021

Stock Activity

During the three months ended March 31, 2021, the Company had not issued common stock.

Options

On March 22, 2021, the Company entered into a settlement with a third party, which the Company granted 15,000,000 shares of common stock options to purchase 15,000,000 shares of common stock at an exercise price of $0.0154. The options price was based on the closing market price of common stock on October 1, 2020. The Settlement is for the Employment Agreement with a third party, dated January 12, 2015 to which the Company agreed to issued common shares.

At March 31, 2021, the 32,500,000 outstanding options had an aggregate intrinsic value of $1,595,000. A summary of the Company’s stock option activity and related information is as follows:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Life		Number of Options Exercisable		Aggregate Intrinsic Value
Outstanding as of December 31, 2020		18,500,000		$	0.07		2.84		18,500,000	$	1,295,000
Granted		15,000,000			0.02		9.30		15,000,000		300,000
Exercised		-			-		-		-
Expired		(1,000,000	)		0.06		-		-
Outstanding as of March 31, 2021		32,500,000		$	0.07		5.87		32,500,000	$	1,595,000

Exercise prices and weighted-average contractual lives of 32,500,000 stock options outstanding as of March 31, 2021 are as follows:

				Options Outstanding				Options Exercisable
Exercise Price		Number Outstanding		Weighted Average Remaining Contractual Life		Weighted Average Exercise Price		Number Exercisable		Weighted Average Exercise Price
$	0.05		3,000,000		4.25	$	0.05		3,000,000	$	0.05
$	0.06		5,000,000		4.35	$	0.06		5,000,000	$	0.06
$	0.07		6,000,000		0.35	$	0.07		6,000,000	$	0.07
$	0.14		3,000,000		3.25	$	0.14		3,000,000	$	0.14
$	0.02		15,500,000		9.30	$	0.02		15,500,000	$	0.02

The fair value for options granted were determined using the Black-Scholes option-pricing model.

The Company did not recognize compensation expense During the three months ended March 31, 2021.