NOTE 4 - EQUITY

12 Months Ended

Dec. 31, 2017

Debt Disclosure [Abstract]

NOTE 4 - EQUITY

NOTE 4 - EQUITY 

All common stock numbers and exercise prices in this Note are reflected on a pre reverse split (5 to 1) basis.

During the year ended December 31, 2017 the Company received an additional $292,800 upon the exercise of 24,400,000 warrants to purchase 24,400,000 shares of the Company’s common stock at $0.012 per share.

During the year ended December 31, 2017 the Company issued 750,000 pre reverse split shares of the Company’s common stock as payment for services rendered, an aggregate value of $18,000. The expense was recorded in a prior year and the shares were listed as common stock subscribed but not yet issued until the shares were issued during the year ended December 31, 2017.

During the year ended December 31, 2017, the Company issued 867,183 shares of common stock as payment for an account payable in the amount of $20,187.

During the year ended December 31, 2016, the Company issued 35,000,000 shares of common stock at a price of $0.01 per share raising $350,000. In connection with this raise, the Company issued 35,000,000 warrants with each to purchase one share of common stock at a price of $0.012 in the next five years. During the year ended December 31, 2016, 10,600,000 warrants were exercised.

During the year ended December 31, 2016, the Company issued 54,963,098 shares of common stock by converting $384,159 of the principal of convertible notes payable.

During the year ended December 31, 2017, the Company issued 26,100,000 options to Company officers. 25,000,000 options were issued to Thom Kidrin, the Chief Executive Officer and President of the Company. An additional 1,100,000 options were issued to the Chief Financial Officer of the Company.  The Company recorded an option expense of $1,041,264 equal to the estimated fair value of the options at the date of grants. The fair market value was calculated using the Binomial option price calculation method assuming approximately 1.92% risk-free interest, 0% dividend yield, 402% volatility, an exercise price of $0.03 per share with a current market price of $0.04 and an expected life of 5 years.

During the year ended December 31, 2017, the Company issued 35,000,000 warrants as part of the subscription agreement that included the sale of 35,000,000 shares of common stock. Each warrant entitles the holder to purchase one share of common stock at a price of $0.025. The warrants expire in five years. During the year ended December 31, 2017, the Company issued 4,900,000 warrants to consultants of the Company. The exercise price on the warrants range from $0.01 to $0.06 per share and the expiration dates range from 3 years to five years. The Company recorded a warrant expense of $1,215,240 equal to the estimated fair value of the warrants at the date of issuance. The fair market value was calculated using the Binomial option price calculation method assuming approximately 2.30% risk-free interest, 0% dividend yield, 405% volatility, exercise prices from $0.01 to $0.06 per share with a current market price of $0.028 and an expected life between 3 and 5 years.

No stock options were issued during the year ended December 31, 2016 and no stock options were exercised during the year ended December 31, 2016. The Company issued 35,000,000 warrants as part of the subscription agreement that included the sale of 35,000,000 shares of common stock. Each warrant entitles the holder to purchase one share of common stock at a price of $0.012. The warrants expire in five years. 10,600,000 warrants were exercised for 10,600,000 shares of common stock during the year ended December 31, 2016.

Stock Warrants and Options
Stock warrants/options outstanding and exercisable on a pre reverse split (5 to 1) basis on December 31, 2017 are as follows:
Exercise Price per Share		Shares Under Option/warrant		Remaining Life in Years
Outstanding and Exercisable
$	0.025		35,000,000		3.74
$	0.03		26,100,000		4.75
$	0.03		2,900,000		2.95
$	0.01		1,000,000		4.95
$	0.06		1,000,000		4.95
$	0.155		200,000		1.00
$	0.14		250,000		1.00
$	0.11		300,000		2.50
$	0.13		300,000		2.50