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Note 14 - Warrant Liability
9 Months Ended
Dec. 31, 2021
Notes to Financial Statements  
Warrant Liability [Text Block]

NOTE 14 – WARRANT LIABILITY

 

On   July 2, 2021, ADM entered into a consulting agreement. The agreement granted a consultant a warrant to purchase up to 3,500,000 shares of the Company's par value common stock at an exercise price of $0.17 per share for the first twelve months of the agreement and $0.20 per share for the second twelve months of the agreement.

 

The warrants were classified as a liability in the total amount of $287,844 at the inception of the agreement using the Black Scholes option pricing model with the following assumptions: risk free interest rate of 1.58%, volatility of 143%, estimated useful life of 2 years and dividend rate of 0%.

 

In addition, the warrants must be valued every reporting period and adjusted to market with the increase or decrease being adjusted through earnings. As of  December 31, 2021, the fair value of the warrant liability was $182,161.