Stock Warrants

3 Months Ended

Mar. 31, 2020

Convertible Debt [Abstract]

Stock Warrants

Note 4. Stock Warrants

At March 31, 2021, our Company had warrants outstanding to purchase 141,365 of our Company’s common stock at $0.02 per share. The warrants were granted in 2014 to two individuals who acquired convertible debentures from the Company in 2014. The warrants are exercisable two years after issuance and expire seven years after issuance. The fair value of the warrants was determined using the Black-Scholes pricing model. The relative fair value of the warrants was recorded as a discount to the notes payable with an offsetting credit to additional paid-in capital since our Company determined that the warrants were an equity instrument in accordance with FASB ASC 815. The debt discount related to the warrant issuances has been accreted through interest expense over the term of the notes payable.

The following table summarizes our Company’s warrant position at March 31, 2021 and December 31, 2020:

					Weighted Average
	Number		Exercise		Exercise
	of Shares		Price		Price
Outstanding warrants -
December 31, 2020		141,365	$	0.02	$	0.02
Outstanding warrants -
March 31, 2021		141,365	$	0.02	$	0.02
Weighted average remaining
contractual life (years)		.27
Exercisable warrants -
March 31, 2021		141,365	$	0.02	$	0.02

The aggregate intrinsic value of warrants outstanding and exercisable as of March 31, 2021 was approximately $19,800. The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $0.16 for our Company’s common stock on March 31, 2021.