v3.25.2
Stockholder's Equity
 6 Months Ended
Jun. 30, 2025
Stockholder's Equity [Abstract]  
STOCKHOLDER’S EQUITY

NOTE 3 - STOCKHOLDER’S EQUITY

 

The Company did not issue common shares for the six months ended June 30, 2025 and year ended December 31, 2024.

 

Convertible Preferred Stock

 

In August 2011, the Board of Directors designated 5,000,000 shares of Preferred Stock as Series A Preferred Stock. Each share of Series A Preferred Stock is convertible into one share of common stock at the option of the preferred holder. The Series A Preferred Stock is not entitled to receive dividends and does not possess redemption rights. The Company is prohibited from effecting the conversion of the Series A Preferred Stock to the extent that, as a result of the conversion, the holder of such shares would beneficially own more than 4.99% (or, if this limitation is waived by the holder upon no less than 61 days prior notice to us, 9.99%) in the aggregate of the issued and outstanding shares of our common stock. The holders of the Company’s Series A Preferred Stock are also entitled to certain liquidation preferences upon the liquidation, dissolution or winding up of the business of the Company.

In October 2012, the Board of Directors designated 5,000,000 shares of Preferred Stock as Series B Preferred Stock. In July 2016, the Board of Directors increased the total Series B Preferred Stock designated to 7,500,000. Each share of Series B Preferred Stock is convertible into one share of common stock at the option of the preferred holder. The Series B Preferred Stock is not entitled to receive dividends and does not possess redemption rights. The Company is prohibited from effecting the conversion of the Series B Preferred Stock to the extent that, as a result of the conversion, the holder of such shares would beneficially own more than 4.99% (which may be increased or waived upon no less than 61 days prior notice) in the aggregate of the issued and outstanding shares of our common stock. For a period of 24 months from the issue date, the holder of Series B Preferred Stock were entitled to price protection as determined in the subscription agreement. The Company has evaluated this embedded lower price issuance feature in accordance with ASC 815 and determined that it is clearly and closely related to the host contract and is therefore accounted for as an equity instrument.

 

As of June 30, 2025 and 2024, there was no Preferred Stock outstanding.

 

Common Stock Options

 

On February 22, 2021, the Company’s Board of Directors approved a new stock option plan (the “Plan”). The aggregate number of shares of common stock of the Company (a “Share”) that may be reserved for issuance pursuant to the Plan shall not exceed 10% of the number of Shares issued and outstanding from time to time. Options granted vest in accordance with terms at the discretion of the Board.

 

On April 16, 2024, the Company granted 2,800,000 options to certain directors, officers and employees. On August 13, 2024, the Company granted 200,000 options to an officer.

 

The Company recognized share-based compensation expense related to stock options of $202,831 and $416,482 for the six months ended June 30, 2025 and 2024, respectively. The options are vested based on years of service, with options vesting between immediately and three years.

 

The Black Scholes option pricing model was used to estimate the aggregate fair value of the options with the following inputs:

 

Options  Exercise
Price		   Expected
Life		   Volatility   Risk
Free
Interest
Rate		 
2,800,000  C$1.11    3.3 years    75.9%   4.8%
200,000  C$1.11    3.5 years    72.4%   3.8%

 

Stock Option Activity

 

A summary of the stock options as of June 30, 2025, and changes during the periods are presented below:

 

           Weighted     
           Average     
       Weighted   Remaining     
       Average   Contractual   Aggregate 
   Number of   Exercise   Life   Intrinsic 
   Options   Price   (Years)   Value 
Balance at December 31, 2023   5,010,002   $1.48    2.43   $0 
Exercised   0    0    0    0 
Issued   3,000,000    C$1.11    0    0 
Canceled   (840,000)   C$1.93    0    0 
Balance at December 31, 2024   7,170,002   $1.12    2.58    0 
Exercised   0    0    0    0 
Issued   0    0    0    0 
Canceled   0    0    0    0 
Balance at June 30, 2025   7,170,002   $1.18    2.08   $426,966 
Options exercisable at June 30, 2025   5,503,335   $1.29    1.55   $199,683 

Warrant Activity

 

Total outstanding warrants of 3,662,573 as of June 30, 2025, were as follows:

 

   Warrants Issued   Total 
Warrants issued (includes expired warrants)   27,433,335    3,777,784    3,362,573    336,257    300,000      
Issued date   10/26/2020    3/4/2021    1/20/2023    1/20/2023    2/26/2024      
Expiration date   10/26/2024    3/4/2024    1/20/2026    1/20/2024    2/26/2029      
Exercise price (Canadian $)  $1.80   $2.80   $2.30   $1.71   $0.62      
                               
Balance at December 31, 2023   27,225,001    3,777,784    3,362,573    336,257    0    34,701,615 
Exercised   0    0    0    0    0    0 
Issued   0    0    0    0    300,000    300,000 
Expired   (27,225,001)   (3,777,784)   0    (336,257)   0    (31,339,042)
Balance at December 31, 2024   0    0    3,362,573    0    300,000    3,662,573 
Exercised   0    0    0    0    0    0 
Issued   0    0    0    0    0    0 
Expired   0    0    0    0    0    0 
Balance at June 30, 2025   0    0    3,362,573    0    300,000    3,662,573