| 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 |
|
|
25,000 |
|
|
$ |
0.90 |
|
|
$ |
0.90 |
|
|
|
75.00 |
% |
|
|
0.77 |
% |
|
|
0.00 |
% |
|
|
1.0 |
|
|
$ |
7,826 |
|
| 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 |
|
|
(458,336 |
) |
|
|
0.19 |
|
|
|
- |
|
|
|
- |
|
| Expired |
|
|
(300,000 |
) |
|
|
0.90 |
|
|
|
- |
|
|
|
- |
|
| Outstanding, September 30, 2025 |
|
|
38,341,664 |
|
|
$ |
0.19 |
|
|
|
2.16 |
|
|
$ |
7,800 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Exercisable, September 30, 2025 |
|
|
37,776,386 |
|
|
$ |
0.19 |
|
|
|
2.15 |
|
|
$ |
7,800 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Outstanding, December 31, 2023 |
|
|
39,350,000 |
|
|
$ |
0.20 |
|
|
|
3.87 |
|
|
$ |
50,800 |
|
| Issued |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Exercised |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Cancelled |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Expired |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
| Outstanding, September 30, 2024 |
|
|
39,350,000 |
|
|
$ |
0.20 |
|
|
|
3.12 |
|
|
$ |
31,040 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Exercisable, September 30, 2024 |
|
|
26,656,923 |
|
|
$ |
0.20 |
|
|
|
3.11 |
|
|
$ |
31,040 |
|
The
fair value of stock warrants granted during the three and nine months ended September 30, 2025 was zero and zero, respectively; the fair
value of stock warrants granted during the three and nine months ended September 30, 2024 was zero and zero, 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 September 30, 2025:
SCHEDULE OF EXERCISABLE WARRANTS
| |
|
|
|
|
|
Weighted- |
|
|
Weighted- |
|
|
|
|
| |
|
|
|
|
|
Average |
|
|
Average |
|
|
|
|
| Range of |
|
|
Outstanding |
|
|
Remaining Life |
|
|
Exercise |
|
|
Number |
|
| exercise prices |
|
|
Warrants |
|
|
In Years |
|
|
Price |
|
|
Exercisable |
|
| $ |
0.19 |
|
|
|
37,841,664 |
|
|
|
2.15 |
|
|
$ |
0.19 |
|
|
|
37,276,386 |
|
| $ |
0.20 |
|
|
|
100,000 |
|
|
|
2.09 |
|
|
$ |
0.20 |
|
|
|
100,000 |
|
| $ |
0.01 |
|
|
|
400,000 |
|
|
|
2.30 |
|
|
$ |
0.01 |
|
|
|
400,000 |
|
| |
|
|
|
|
38,341,664 |
|
|
|
2.16 |
|
|
$ |
0.19 |
|
|
|
37,776,386 |
|
The
compensation expense attributed to the issuance of the stock warrants is recognized as they vest.
Total
compensation expense related to the stock warrants was $287,331 and $1,065,689 for the three and nine months ended September 30, 2025,
respectively; total compensation expense related to the stock warrants was $390,006 and $1,175,171 for the three and nine months ended
September 30, 2024, respectively, and was included in compensation expense on the statement of operations. As of September 30, 2025,
there was $77,950 in future compensation cost related to non-vested stock warrants.
The
aggregate intrinsic value as of September 30, 2025 is $7,800 for total outstanding and exercisable warrants, which was based on our estimated
fair value of the Class A common stock of $0.03, had all warrant holders exercised their warrants as of that date, net of the aggregate
exercise price.
|