Restricted Stock Grants and Warrants

12 Months Ended

Dec. 31, 2023

Restricted Stock Grants and Warrants [Abstract]

RESTRICTED STOCK GRANTS AND WARRANTS

5. RESTRICTED STOCK GRANTS AND WARRANTS

Restricted Stock Grants to CEO, the Board, Employees and Consultants

Between May 12, 2016, and August 4, 2022, the Company entered into Restricted Stock Grant Agreements (“the RSGAs”) with its Chief Executive Officer, the Board, Employees and Consultants to create management incentives to improve the economic performance of the Company and to increase its value and stock price. All shares issuable under the RSGAs are performance based shares. The RSGAs provide for the issuance of shares of the Company’s common stock provided certain milestones are met in certain stages; a) If the Company’s consolidated gross revenue, calculated in accordance with generally accepted accounting principles, consistently applied, equals or exceeds $15,000,000 for the trailing twelve month period as reported in the Company’s quarterly or annual financial statements, and b) If the Company’s consolidated operating profit (Operating Profit = Operating Revenue - Cost of Goods Sold - Operating Expenses - Depreciation & Amortization), calculated in accordance with generally accepted accounting principles, equals or exceeds $1,500,000 for the trailing twelve month period as reported in the Company’s SEC Reports. The Company has not recognized any costs associated with the milestones, because achievement is not probable.

During the year ended December 31, 2023, upon qualifying under the alternative vesting schedule, the Company issued an aggregate of 11,584,932 shares relating to the RSGAs and recognized an aggregate expense of $120,540 which is reflected on the financial statements as stock-based compensation. 

Warrants

During the year ended December 31, 2023, the Company issued 5,403,600 purchase warrants, associated with preferred stock. A summary of the Company’s warrant activity and related information follows for the years ended December 31, 2023 and 2022:

	2023						2022
	Number of Warrants			Weighted average exercise price			Number of Warrants			Weighted average exercise price
Outstanding - beginning of year		93,344,989		$	0.1217			217,085,783		$	0.0868
Granted		5,403,600		$	0.125			44,750,216		$	0.1236
Exercised		-			-			-			-
Expired		(33,946,000	)	$	(0.0905	)		(168,491,010	)	$	(0.0686	)
Outstanding - end of year		64,802,589		$	0.1383			93,344,989		$	0.1217

At December 31, 2023 and 2022, the weighted average remaining contractual life of warrants outstanding:

		2023						2022
						Weighted Average						Weighted Average
						Remaining						Remaining
Exercisable		Warrants		Warrants		Contractual		Warrants		Warrants		Contractual
Prices		Outstanding		Exercisable		Life (years)		Outstanding		Exercisable		Life (years)
$	0.02		600,000		600,000		2.67		600,000		600,000		3.67
$	0.05		0		0		0		25,200,000		25,200,000		0.16
$	0.10		2,500,000		2,500,000		3.14		5,000,000		5,000,000		0.89 - 4.14
$	0.25		3,760,000		3,760,000		3.0		10,006,000		10,006,000		0.5 - 4.00
$	0.0275		8,727,273		8,727,273		7.41		8,727,273		8,727,273		8.41
$	0.125		47,653,816		47,653,816		3.0 - 5.0		42,250,216		42,250,216		4.0 – 5.0
$	1.00		1,561,500		1,561,500		0.50 - 0.96		1,561,500		1,561,500		1.50 - 1.96
			64,802,589		64,802,589				93,344,989		93,344,989

At December 31, 2023 and 2022, the aggregate intrinsic value of the warrants outstanding was $0.

During the year ended December 31, 2023, the Company sold an aggregate of 1,087,689 3-year cashless warrants with immediate vesting for an aggregate amount of $325,000. The exercise price of these warrants is $1.00 with a fair value of $42,351.