| STOCK WARRANTS |
NOTE 10 – STOCK WARRANTS
The table below summarizes the
grants of stock warrants and includes the assumptions used for valuation under the Black-Scholes option pricing model.
FAIR VALUE
MEASUREMENT INPUTS AND VALUATION TECHNIQUES
| Date |
|
Number of Stock Warrants |
|
|
Stock Price |
|
|
Strike Price |
|
|
Expected Volatility |
|
|
Interest Rate |
|
|
Warrants and Rights Outstanding, Measurement Input |
|
|
Expected Term |
|
|
Fair Value |
|
| |
|
Number of |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expected |
|
|
|
|
| |
|
Stock |
|
|
Stock |
|
|
Strike |
|
|
Expected |
|
|
Interest |
|
|
Dividend |
|
|
Term |
|
|
Fair |
|
| Date |
|
Warrants |
|
|
Price |
|
|
Price |
|
|
Volatility |
|
|
Rate |
|
|
Rate |
|
|
(years) |
|
|
Value |
|
| 10/21/2021 |
|
|
300,000 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
|
75.00 |
% |
|
|
0.77 |
% |
|
|
0.00 |
% |
|
|
1.0 |
|
|
$ |
93,917 |
|
| 9/12/2022 |
|
|
33,150,000 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
|
103.09 |
% |
|
|
3.47 |
% |
|
|
0.00 |
% |
|
|
3.0 |
|
|
$ |
4,088,769 |
|
| 11/1/2022 |
|
|
100,000 |
|
|
$ |
0.20 |
|
|
$ |
0.20 |
|
|
|
102.86 |
% |
|
|
4.27 |
% |
|
|
0.00 |
% |
|
|
1.0 |
|
|
$ |
8,116 |
|
| 11/3/2022 |
|
|
5,000,000 |
|
|
$ |
0.19 |
|
|
$ |
0.19 |
|
|
|
102.84 |
% |
|
|
4.36 |
% |
|
|
0.00 |
% |
|
|
3.0 |
|
|
$ |
618,176 |
|
| 12/29/2022 |
|
|
285,714 |
|
|
$ |
0.20 |
|
|
$ |
0.01 |
|
|
|
103.49 |
% |
|
|
3.94 |
% |
|
|
0.00 |
% |
|
|
1.0 |
|
|
$ |
54,401 |
|
| 3/3/2023 |
|
|
114,286 |
|
|
$ |
0.17 |
|
|
$ |
0.01 |
|
|
|
137.62 |
% |
|
|
4.26 |
% |
|
|
0.00 |
% |
|
|
1.0 |
|
|
$ |
18,710 |
|
| 6/1/2023 |
|
|
150,000 |
|
|
$ |
0.12 |
|
|
$ |
0.19 |
|
|
|
150.24 |
% |
|
|
3.70 |
% |
|
|
0.00 |
% |
|
|
3.0 |
|
|
$ |
14,013 |
|
A summary of the status of the
Company’s outstanding stock warrants and changes during the periods is presented below:
SCHEDULE
OF OUTSTANDING STOCK WARRANTS AND CHANGES
| |
|
Shares available to purchase |
|
|
Weighted Average |
|
|
Weighted Average Remaining Contractual |
|
|
Aggregate |
|
| |
|
with warrants |
|
|
Exercise Price |
|
|
Term (in years) |
|
|
Intrinsic Value |
|
| Outstanding, December 31, 2024 |
|
|
39,100,000 |
|
|
$ |
0.19 |
|
|
|
2.88 |
|
|
$ |
21,000 |
|
| Issued |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Exercised |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Cancelled |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Expired |
|
|
(250,000 |
) |
|
|
0.90 |
|
|
|
- |
|
|
|
- |
|
| Outstanding, March 31, 2025 |
|
|
38,850,000 |
|
|
$ |
0.19 |
|
|
|
2.65 |
|
|
$ |
16,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Exercisable, March 31, 2025 |
|
|
32,220,803 |
|
|
$ |
0.19 |
|
|
|
2.65 |
|
|
$ |
16,000 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding, December 31, 2023 |
|
|
39,350,000 |
|
|
$ |
0.20 |
|
|
|
3.87 |
|
|
$ |
50,800 |
|
| Issued |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Exercised |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Cancelled |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Expired |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Outstanding, March 31, 2024 |
|
|
39,350,000 |
|
|
$ |
0.20 |
|
|
|
3.87 |
|
|
$ |
50,800 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Exercisable, March 31, 2024 |
|
|
17,449,989 |
|
|
$ |
0.20 |
|
|
|
3.41 |
|
|
$ |
50,800 |
|
The fair value of stock warrants
granted and vested during the three months ended March 31, 2025 was zero and $389,179, respectively.
The fair value of stock warrants
granted and vested during the three months ended March 31, 2024 was zero and $241,359, respectively.
The following table summarizes
information about stock warrants to purchase shares of the Company’s Class A common stock outstanding and exercisable as of March
31, 2025:
SCHEDULE
OF EXERCISABLE WARRANTS
| |
|
|
|
|
|
Weighted- |
|
|
Weighted- |
|
|
|
|
| |
|
|
|
|
|
Average |
|
|
Average |
|
|
|
|
| Range of |
|
|
Outstanding |
|
|
Remaining Life |
|
|
Exercise |
|
|
Number |
|
| exercise prices |
|
|
Warrants |
|
|
In Years |
|
|
Price |
|
|
Exercisable |
|
| $ |
0.90 |
|
|
|
50,000 |
|
|
|
0.50 |
|
|
$ |
0.90 |
|
|
|
50,000 |
|
| $ |
0.19 |
|
|
|
38,300,000 |
|
|
|
2.65 |
|
|
$ |
0.19 |
|
|
|
31,670,803 |
|
| $ |
0.20 |
|
|
|
100,000 |
|
|
|
2.59 |
|
|
$ |
0.20 |
|
|
|
100,000 |
|
| $ |
0.01 |
|
|
|
400,000 |
|
|
|
2.80 |
|
|
$ |
0.01 |
|
|
|
400,000 |
|
| |
|
|
|
|
38,850,000 |
|
|
|
2.65 |
|
|
$ |
0.19 |
|
|
|
32,220,803 |
|
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 $389,179 and $390,747 for the three months ended March 31, 2025 and 2024, respectively, and was included in
compensation expense on the statement of operations. As of March 31, 2025, there was $801,414 in future compensation cost related to non-vested
stock warrants.
The aggregate
intrinsic value as of March 31, 2025 is $16,000
for total outstanding and exercisable warrants, which was based on our estimated fair value of the Class A common stock of $0.05,
had all warrant holders exercised their warrants as of that date, net of the aggregate exercise price.
|