Capital Structure – Common Stock and Stock Purchase Warrants

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Capital Structure – Common Stock and Stock Purchase Warrants

4. Capital Structure – Common Stock and Stock Purchase Warrants

Each holder of common stock is entitled to vote on all matters and is entitled to one vote for each share held. No holder of shares of stock of any class shall be entitled as a matter of right to subscribe for or purchase or receive any part of any new or additional issue of shares of stock of any class, or of securities convertible into shares of stock or any class, whether now hereafter authorized or whether issued for money, for consideration other than money, or by way of dividend.

Stock Warrants

During the six month period ended June 30, 2023 no common stock warrants were issued, exercised or modified.

On June 29, 2022, the Company’s board of directors approved a resolution to clarify the anti-dilution protection granted to certain note and warrant holders. In connection with this board action, the Company recognized a non-cash charge of $1,011,625 in the Statement of Operations for the three- and six-month periods ended June 30, 2022. The fair value of the re-measured warrants was determined using the Black Scholes model and used the following assumptions:

Expected term (years)	0.63
Risk free rate	2.04	%
Volatility	436	%
Dividend yield	-

The average risk-free interest rate was based on the U.S. Treasury security rate in effect on June 29, 2022. We determined expected volatility using the historical closing stock price. The expected life was determined using the simplified method as we do not believe we had sufficient historical warrant exercise experiences on which to base the expected term.

Warrant holders exercised 12,565,000 common stock warrants during the second quarter of 2022. An additional 31,899 warrants were forfeited or cancelled during the second quarter of 2022.

The following is a summary of outstanding common stock warrants as of June 30, 2023.

Expiration Date	Number of Shares		Exercise Price		Remaining Life (years)
Third Quarter 2023		1,500	$	100		.25
Third Quarter 2028		3,000	$	70		5.25
Second Quarter 2032		28,995	$	10 - 70		9.00
		33,495	$	10 - 100

Following is a summary of stock warrant activity for the six months ended June 30, 2023:

	Number of Shares			Exercise Price		Weighted Average Price
Warrants as of December 31, 2022		38,495		$	10 - 200	$	59.42
Issued		-		$	-	$	-
Expired and forfeited		(5,000	)	$	30 - 200	$	66.00
Exercised		-		$	-	$	-
Warrants as of June 30, 2023		33,495		$	10 - 100	$	58.44