NOTE 3 - EQUITY

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

NOTE 3 - EQUITY

NOTE 3 - EQUITY

All common stock numbers and exercise prices in this Note are reflected on a post reverse split (5 to 1) basis. As a result of the reverse split, the Company had to issue an additional 167 shares due to rounding.

During the year ended December 31, 2018 the Company received an additional $875,000 upon the exercise of 7,000,000 warrants to purchase 7,000,000 shares of the Company’s common stock at $0.0125 per share.

During the year ended December 31, 2018 the Company issued 460,000 shares of the Company’s common stock as payment for services rendered, an aggregate value of $99,372.

During the year ended December 31, 2018, the Company issued 5,800,000 options. 5,000,000 options were issued to Thom Kidrin, the Chief Executive Officer and President of the Company and 800,000 options were issued to Directors of the Company.  The Company recorded an option expense of $415,383 equal to the estimated fair value of the options at the date of grants. The fair market value was calculated using the Black Scholes method assuming approximately 2.73% risk-free interest, 0% dividend yield, 104% volatility, an exercise price of $0.25 per share for Thom Kidrin’s options and $0.24 per share for the Directors options with a current market price of $0.24 and an expected life of 5 years. Mr. Kidrin’s options vest 2,000,000 on the date of grant, August 28, 2018, 1,500,000 on August 28, 2019 and 1,500,000 on August 28, 2020. The Director’s options vest one year from the date of grant.

During the year ended December 31, 2018, the Company issued 3,400,000 warrants as part of the subscription agreement that included the sale of 7,000,000 shares of common stock. Each warrant entitles the holder to purchase one share of common stock at a price of $0.325. The warrants expire in five years. The warrants can be exercised at any time within those five years.  The Company recorded a warrant expense of $1,211,403 equal to the estimated fair value of the warrants at the date of issuance. The fair market value was calculated using the Black Scholes method assuming approximately 2.52% risk-free interest, 0% dividend yield, 153% volatility, exercise price of $0.325 per share with a current market price of $0.385 and an expected life of 5 years.

During the year ended December 31, 2017 the Company received an additional $292,800 upon the exercise of 4,880,000 warrants to purchase 4,880,000 shares of the Company’s common stock at $0.06 per share.

During the year ended December 31, 2017 the Company issued 150,000 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 173,437 shares of common stock as payment for an account payable in the amount of $20,187. 

During the year ended December 31, 2017, the Company issued 5,220,000 options to Company officers. 5,000,000 options were issued to Thom Kidrin, the Chief Executive Officer and President of the Company. An additional 220,000 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 7,000,000 warrants as part of the subscription agreement that included the sale of 7,000,000 shares of common stock. Each warrant entitles the holder to purchase one share of common stock at a price of $0.125. The warrants expire in five years.

During the year ended December 31, 2017, the Company issued 980,000 warrants to consultants of the Company. The exercise price on the warrants range from $0.05 to $0.30 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 $0.05 to $0.30 per share with a current market price of $0.14 and an expected life between 3 and 5 years.

Stock Warrants and Options
Stock warrants/options outstanding and exercisable on December 31, 2018 are as follows:
Exercise Price per Share		Shares Under Option/warrant		Remaining Life in Years
Outstanding
$	0.325		3,500,000		4.08
$	0.15		5,220,000		3.75
$	0.15		580,000		1.95
$	0.05		200,000		3.95
$	0.30		200,000		3.95
$	0.55		60,000		1.50
$	0.65		60,000		1.50
$	0.25		5,000,000		4.67
$	0.24		800,000		4.67
Exercisable
$	0.325		3,500,000		4.08
$	0.15		5,220,000		3.75
$	0.15		580,000		1.95
$	0.05		200,000		3.95
$	0.30		200,000		3.95
$	0.55		60,000		1.50
$	0.65		60,000		1.50
$	0.25		2,000,000		4.67