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WARRANTS AND OPTIONS
9 Months Ended
Sep. 30, 2021
Warrants And Options  
WARRANTS AND OPTIONS

NOTE 12 – WARRANTS AND OPTIONS

 

As of September 30, 2021, there were 55,220,633 warrants issued and outstanding. As of December 31, 2020, there were 3,395,000 warrants outstanding to acquire additional shares of common stock.

 

The Company evaluates outstanding warrants as derivative liabilities and will recognize any changes in the fair value through earnings. The Company determined that the Warrants have an immaterial fair value at September 30, 2021. The warrants do not trade in a highly active securities market, and as such, the Company estimated the fair value of these common stock equivalents using Black-Scholes and the following assumptions:

 

Expected volatility was based primarily on historical volatility. Historical volatility was computed using daily pricing observations for recent periods. The Company believes this method produced an estimate that was representative of the Company’s expectations of future volatility over the expected term which due to their maturity period as expiry, it was three years. The Company had no reason to believe future volatility over the expected remaining life of these common stock equivalents was likely to differ materially from historical volatility. Expected life was based on three years due to the expiry of maturity. The risk-free rate was based on the U.S. Treasury rate that corresponded to the expected term of the common stock equivalents.

 

   September 30, 2021
(unaudited)
   December 31, 2020
(audited)
 
         
Stock Price  $.06345   $0.104 
Exercise Price  $.10   $0.26 
Term (expected in years)   3.0    4.73 
Volatility   203.44%   259.2%
Annual Rate of Dividends   0.0%   0.0%
Risk Free Rate   1.55%   0.18%

 

 

Stock Purchase Warrant

 

The following table summarizes all warrant activity for the year ended December 31, 2020, and the nine months ended September 30, 2021.

 

   Shares   Weighted-Average Exercise Price Per Share   Remaining term   Intrinsic value 
                 
Outstanding and Exercisable at December 31, 2019   2,420,000   $0.61    

 

.23 years

    - 
Granted   2,550,000   $0.12    4.23 years    - 
Exercised             -    - 
Expired   (1,575,000)   -    -    - 
Outstanding and Exercisable at December 31, 2020   3,395,000   $0.26    

 

4.00 years

    - 
Granted   51,945,633   $0.10    2.04 years    - 
Exercised   -    -    -    - 
Expired   (120,000)   -    -    - 
Outstanding and Exercisable at September 30, 2021   55,220,633    

 

$0.11

    

 

1.92 years

    -