OPTIONS AND WARRANTS

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

OPTIONS AND WARRANTS

NOTE 11 – OPTIONS AND WARRANTS

Stock Options:

The following table provides the activity in options for the respective periods:

	Total Options Outstanding			Weighted Average Exercise Price			Aggregate Intrinsic Value
Balance at January 1, 2020		5,042,500		$	0.40		$	—
Cancelled		(500,000	)		(0.25	)
Balance at December 31, 2020		4,542,500		$	0.41		$	—
Issued		1,277,778			0.27
Cancelled		(1,592,500	)		0.53
Balance at December 31, 2021		4,227,778		$	0.33		$	19,500

Options exercisable and outstanding at December 31, 2021 are as follows:

		Weighted Average
Range of		Remaining	Weighted Average	Aggregate
Exercise Prices	Number Outstanding	Contractual Life (Years)	Exercise Price	Intrinsic Value
$0.01 - $0.50	3,227,778	2.20	$0.26	$19,500
$0.51 - $1.00	1,000,000	0.25	$0.55	—
	4,227,778			$19,500

Stock Warrants:

The following table provides the activity in warrants for the respective periods:

	Total Warrants			Weighted Average Exercise Price		Aggregate Intrinsic Value
Balance at January 1, 2020		29,849,761		$	0.23	$	1,956,750
Granted		17,180,957			0.31
Exercised		(7,110,340	)		0.09
Cancelled		(1,000,000	)		0.40
Balance at December 31, 2020		38,920,378		$	0.27	$	2,973,660
Granted		100,271,288			0.29
Exercised		(1,000,000	)		0.12
Balance at December 31, 2021		138,191,666		$	0.29	$	3,824,750

Warrants exercisable and outstanding at December 31, 2021 are as follows:

		Weighted Average
Range of		Remaining	Weighted Average	Aggregate
Exercise Prices	Number Outstanding	Contractual Life (Years)	Exercise Price	Intrinsic Value
$0.01 - $0.50	135,701,123	4.01	$0.28	$3,824,750
$0.51 - $1.00	2,490,543	1.10	$0.60	—
	138,191,666			$3,824,750

During the year ended December 31, 2020, the Company offered current warrant holders an exercise price discount of 50%. The inducement resulted in the exercise of 6,610,340 common stock warrants in exchange for $636,734 in cash. The exercise of the warrants at a discount resulted in a deemed dividend of $663,501.

On February 12, 2021, the Company issued 15,000,000 five year common stock warrants with an exercise price of $0.20 per share and a grant date fair value of $3,686,136 to noteholders pursuant to a debt extinguishment and restructure agreement. On May 12, 2021, the Company issued an additional 7,500,000 five year common stock warrants with an exercise price of $0.35 per share and a grant date fair value of $1,874,705 to the noteholders for an extension of the debt. The total grant date fair value of the warrants of $5,560,828 was recorded as a loss on extinguishment of debt during the year ended December 31, 2021. See note 6.

On August 17, 2021, the Company conducted a private placement of the Company’s units at a price of $0.275 per unit, with each unit consisting of: (i) one  share of the Company’s common stock, (ii) a five-year, immediately exercisable warrant (“Warrant A”) to purchase one share of common stock at an exercise price of $0.33 per share and (iii) an additional five-year, immediately exercisable warrant to purchase one  share of common stock at an exercise price of $0.33 per share. A total of 38,796,288 warrants were issued pursuant to the private placement. See note 10.

On December 10, 2021, the Company issued a warrant to purchase 40,000,000 shares of Common Stock (20,000,000 shares of which had not vested as of December 31, 2021) with an exercise price of $0.33 per share and a grant date fair value of $3,907,973 to a USS, a related party product distributor. See note 9.