NOTE 8 – STOCK WARRANTS

On October 20, 2021, the Company entered into an agreement with Evan Greene for services to be performed. As consideration therefor, the Company granted Mr. Greene stock warrants to purchase 250,000 shares of common stock. The warrants vest over a two-year term. The warrants were valued using the Black-Scholes option pricing model under the following assumptions as found in the table below.

On October 21, 2021, the Company entered into an agreement with Robert Floyd for services to be performed. As consideration therefor, the Company granted Mr. Floyd stock warrants to purchase 300,000 shares of common stock. The warrants vest over a three-year term. The warrants were valued using the Black-Scholes option pricing model under the following assumptions as found in the table below.

On September 12, 2022, the Company entered into agreements with members of the Board and consultants for services to be performed. As consideration therefor, the Company granted those individuals stock warrants to purchase an aggregate of 33,150,000 shares of common stock. The warrants vest over a three-year term and expire five years from the vesting date. The warrants were valued using the Black-Scholes option pricing model under the following assumptions as found in the table below.

A summary of the status of the Company’s outstanding stock warrants and changes during the periods is presented below:

The Company granted stock warrants to purchase an aggregate of 33,150,000 and no shares of common stock during the nine months ended September 30, 2022 and 2021, respectively.

The weighted average grant date fair value of stock warrants granted and vested during the nine months ended September 30, 2022, was $4,088,769 and $37,686 respectively. The Company did not grant any stock warrants or have any stock warrants vest during the nine months ended September 30, 2021. The weighted average non-vested grant date fair value of non-vested stock warrants was $4,093,771 at September 30, 2022.

The following table summarizes information about stock warrants to purchase shares of the Company’s common stock outstanding and exercisable as of September 30, 2022: 

The compensation expense attributed to the issuance of the stock warrants is recognized as they are vested.

Total compensation expense related to the stock warrants was $136,940 and $38,099 for the nine months ended September 30, 2022 and 2021, respectively. Total compensation expense related to the stock warrants was $60,600 and $38,099 for the three months ended September 30, 2022 and 2021, respectively. As of September 30, 2022, there was $4,096,315 in future compensation cost related to non-vested stock warrants.

The aggregate intrinsic value is zero for total outstanding and exercisable warrants, which was based on our estimated fair value of the common stock of $0.17 as of September 30, 2022, which is the aggregate fair value of the common stock that would have been received by the warrant holders had all warrant holders exercised their warrants as of that date, net of the aggregate exercise price.