NOTE 3 - EQUITY

3 Months Ended

Mar. 31, 2019

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 on February 9, 2018, the Company had to issue an additional 167 shares due to rounding.

During the three months ended March 31, 2019, the Company recorded an option expense of $19,173 representing the amortization of the value of the options issued in 2018 that have not yet vested.

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 5,500,000 options. 5,000,000 options were issued to Thom Kidrin, the Chief Executive Officer and President of the Company and 500,000 options were issued to Directors of the Company.  The Company recorded an option expense of $368,728 in 2018 and $19,173 in the 1^st quarter of 2019 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.

Stock Warrants and Options
Stock warrants/options outstanding and exercisable on March 31, 2019 are as follows:
Exercise Price per Share		Shares Under Option/warrant		Remaining Life in Years
Outstanding
$	0.325		3,500,000		3.83
$	0.15		5,220,000		3.50
$	0.15		580,000		1.70
$	0.05		200,000		3.70
$	0.30		200,000		3.70
$	0.55		60,000		1.25
$	0.65		60,000		1.25
$	0.25		5,000,000		4.42
$	0.24		800,000		4.42
Exercisable
$	0.325		3,500,000		4.83
$	0.15		5,220,000		3.50
$	0.15		580,000		1.70
$	0.05		200,000		3.70
$	0.30		200,000		3.70
$	0.55		60,000		1.25
$	0.65		60,000		1.25
$	0.25		2,000,000		4.42
$	0.24		800,000		4.42