v3.24.3
COMMON STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS
 9 Months Ended
Sep. 30, 2024
Equity [Abstract]  
COMMON STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS

NOTE 4: COMMON STOCK OPTIONS, WARRANTS AND RESTRICTED STOCK UNITS

 

Common Stock Options

 

The Company recognizes in the financial statements compensation related to all stock-based awards, including stock options and warrants, based on their estimated grant-date fair value. The Company has estimated expected forfeitures and is recognizing compensation expense only for those awards expected to vest. All compensation is recognized by the time the award vests.

 

The following schedule summarizes the changes in the Company’s stock options:

 

   Options Outstanding   Weighted Average
Remaining		       Weighted Average 
  

Number Of

Shares

   Exercise Price
Per Share		   Contractual
Life		   Aggregate
Intrinsic Value		   Exercise Price
Per Share		 
Nine Months Ended September 30, 2024                         
                          
Outstanding at January 1, 2024   2,252,809   $0.024-0.04     5.70 years   $78,886   $0.04 
Granted   -   $-    -        $- 
Exercised   -   $-    -        $- 
Expired/canceled   -   $-    -        $- 
Outstanding at September 30, 2024   2,252,809   $0.024-0.04     4.95 years    $284,567   $0.04 
Exercisable at September 30, 2024   2,252,809   $0.024-0.04     4.95 years    $284,567   $0.04 
                          
Nine Months Ended September 30, 2023                         
                          
Outstanding at January 1, 2023   2,252,809   $0.024-0.04    6.70 years    $16,032   $0.04 
Granted   -   $-    -        $- 
Exercised   -   $-    -        $- 
Expired/canceled   -   $-    -        $- 
Outstanding at September 30, 2023   2,252,809   $0.024-0.04    5.95 years   $65,819   $0.04 
Exercisable at September 30, 2023   2,252,809   $0.024-0.04    5.95 years   $65,819   $0.04 

 

During the three and nine months ended September 30, 2024 and the three and nine months ended September 30, 2023, the Company recognized $0 of stock-based compensation expense related to the vesting of stock options.

 

 

Common Stock Warrants

 

The following schedule summarizes the changes in the Company’s stock warrants:

   Warrants Outstanding   Weighted Average
Remaining		       Weighted Average 
   Number Of
Shares		  

Exercise Price

Per Share

   Contractual
Life		   Aggregate
Intrinsic Value		   Exercise Price
Per Share		 
Nine Months Ended September 30, 2024                         
                          
Outstanding at January 1, 2024   26,134,000   $0.06-0.10    3.54 years   $-   $0.0827 
Granted   7,000,000   $0.075    -   $-   $- 
Exercised   (25,034,000)  $-    -   $-   $- 
Redeemed   (500,000)  $-    -   $-   $- 
Expired/cancelled   -   $-    -   $-   $- 
Outstanding at September 30, 2024   8,100,000   $0.075    3.25 years   $717,660   $0.075 
Exercisable at September 30, 2024   8,100,000   $0.075    3.25 years   $717,660   $0.075 
                          
Nine Months Ended September 30, 2023                         
                          
Outstanding at January 1, 2023   26,737,500   $0.06-0.10    1.52 years   $-   $0.09 
Granted   10,665,000   $0.0775    -   $-   $- 
Redeemed   (500,000)  $-    -   $-   $- 
Expired/cancelled   (11,237,500)  $-    -   $-   $- 
Outstanding at September 30, 2023   25,665,000   $0.06-0.10    1.91 years   $150,573   $0.079 
Exercisable at September 30, 2023   25,665,000   $0.06-0.10    1.91 years   $150,573   $0.079 

 

Changes to these inputs could produce a significantly higher or lower fair value measurement. The fair value of each option/warrant is estimated using the Black-Scholes valuation model. The following assumptions were used for the periods as follows:

 

      Nine Months Ended       Nine Months Ended  
      September 30, 2024       September 30, 2023  
Expected term     -       -  
Expected volatility     - %     - %
Expected dividend yield     -       -  
Risk-free interest rate     - %     - %

 

The Company granted 10,665,000 warrants in their Reg A+ funding in April 2023, with an exercise price of $0.0775 and a three-year term.

 

The Company granted 2,000,000 warrants in their Regulation A+ Offering in January 2024, with an exercise price of $0.075 and a three-year term and 5,000,000 warrants with the same terms on April 1, 2024.

 

The Company issued 16,919,918 shares of Common Stock in the cashless exercise of 25,034,000 warrants.

 

Restricted Stock Units

 

The following schedule summarizes the changes in the Company’s restricted stock units:

 

   Number Of Shares   Weighted Average
Grant Date Fair Value		 
Nine Months Ended September 30, 2024          
           
Outstanding at January 1, 2024   1,450,000   $0.09 
Granted   21,050,000   $0.077 
Vested   (10,500,000)  $- 
Forfeited   -   $- 
Outstanding at September 30, 2024   12,000,000   $0.08 
           
Nine Months Ended September 30, 2023          
           
Outstanding at January 1, 2023   10,262,500   $0.08 
Granted   2,900,000   $0.091 
Vested   (10,725,000)  $- 
Forfeited   (262,500)  $- 
Outstanding at September 30, 2023   2,175,000   $0.09 

 

 

During the nine months ended September 30, 2024 and 2023, the Company recognized $809,250 and $965,975 in expense related to the vesting of its restricted stock units. As of September 30, 2024, the Company had $951,595 worth of expense yet to be recognized for restricted stock units not yet vested.

 

On January 1, 2024, the Company granted 20,000,000 restricted stock units to its Chief Executive Officer as part of his new employment agreement that vest in four equal installments over a two-year period beginning February 1, 2024. During the nine months ended September 30, 2024, 10,500,000 of these restricted stock units vested. In May 2024, the Company granted 1,050,000 restricted stock units to consultants that vest through December 31, 2025.