v3.26.1
STOCKHOLDERS’ DEFICIT
12 Months Ended
Dec. 31, 2025
Equity [Abstract]  
STOCKHOLDERS’ DEFICIT

NOTE 7 STOCKHOLDERS’ DEFICIT

 

(A) Common Stock Issued for Cash

 

On January 21, 2025, the Company entered into a Standby Equity Purchase Agreement with an investor granting the Company the rights to sell up to $10 Million of common stock. During the years ended December 31, 2025, the Company sold 24,316,741 shares of common stock for total cash proceeds of $1,925,702, and paid stock offering costs of $10,000 and accrued an additional $15,000, which was netted from the total cash proceeds.

 

None issued for the year ended December 31, 2024.

 

(B) Common Stock Issued for Services

 

Shares issued for services as mentioned below were valued at the closing price of the stock on the date of grant.

 

On July 9, 2025, the Company issued 5,000,000 shares of Common Stock to a consultant for services rendered having a fair value of $434,600, based upon the quoted closing price ($0.09/share).

 

On July 16, 2025, the Company issued 5,000,000 shares of Common Stock to a consultant for services rendered having a fair value of $400,000, based upon the quoted closing price ($0.08/share).

 

None issued for the year ended December 31, 2024.

 

 

(C) Common Stock Warrants and Options

 

On March 14, 2025, the Company issued 2,157,710 shares of Common stock in connection with the cashless exercise of 2,181,518 warrants.

 

On July 1, 2025, the Company issued 314,636 shares of Common stock in connection with the cashless exercise of 318,482 warrants.

 

During the years ending December 31, 2025 the Company had 3,625,000 warrants issued to consultants expire. The Company recorded $458,020 as an offset to an expense and additional paid in capital for options expired. The net effect on equity was $0

 

On January 4, 2024, the Company cancelled 1,000,000 warrants issued to a consultant on August 8, 2019. The Company recorded $118,874 as an offset to an expense and additional paid in capital for options cancelled. The net effect on equity was $0.

 

On October 22, 2025, the Company issued a 7-year option to purchase 2,000,000 shares of common stock at an exercise price of $0.091 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $166,880, based upon the Black-Scholes option-pricing model on the date of grant. Options will vest upon certain triggering events as defined by the Company. Options will be exercisable on October 16, 2025. During the year ended December 31, 2025, the Company recorded $ 5,960 as an expense for options issued.

 

  600,000 vests after 6 months
     
  1,400,000 vests after 18 months

 

 

Expected dividends   0%
Expected volatility   126.40%
Expected term   7 years 
Risk free interest rate   3.74%
Expected forfeitures   0%

 

On July 10, 2025, the Company issued a 5-year option to purchase 250,000 shares of common stock at an exercise price of $0.091 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $17,130, based upon the Black-Scholes option-pricing model on the date of grant. Options vest on grant date. Options will be exercisable on July 10, 2025. During the years ended December 31, 2025, the Company recorded $ 17,130 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   122.80%
Expected term   5 years 
Risk free interest rate   3.93%
Expected forfeitures   0%

 

 

On July 10, 2025, the Company issued a 5-year option to purchase 250,000 shares of common stock at an exercise price of $0.091 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $17,130, based upon the Black-Scholes option-pricing model on the date of grant. Options vest on grant date. Options will be exercisable on July 10, 2025. During the years ended December 31, 2025, the Company recorded $ 17,130 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   122.80%
Expected term   5 years 
Risk free interest rate   3.93%
Expected forfeitures   0%

 

On April 1, 2025, the Company issued a 7-year option to purchase 6,000,000 shares of common stock at an exercise price of $.08900 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $465,840, based upon the Black-Scholes option-pricing model on the date of grant. Options will vest upon certain triggering events as defined by the Company in the Employee Stock Option Plan, as long as the employee remains with the Company at vesting date. Options will be exercisable based on the following vesting provisions:

 

  1,500,000 vests after 24 months
     
  2,000,000 vests after 36 months
     
  2,500,000 vests after 48 months

 

During the years ended December 31, 2025, the Company recorded $87,285 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   125.30%
Expected term   5.5 years 
Risk free interest rate   4.03%
Expected forfeitures   0%

 

On October 1, 2024, the Company issued a 7-year option to purchase 461,000 shares of common stock at an exercise price of $0.8685 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $33,533, based upon the Black-Scholes option-pricing model on the date of grant. Options will vest upon certain triggering events as defined by the Company in the Employee Stock Option Plan, as long as the employee remains with the Company at vesting date. Options will be exercisable on August 6, 2031. During the years ended December 31, 2025, the Company recorded $ 16,790 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   127.90%
Expected term   4.5 years 
Risk free interest rate   3.51%
Expected forfeitures   0%

 

 

On August 6, 2024, the Company issued a 7-year option to purchase 2,000,000 shares of common stock at an exercise price of $0.1024 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $190,880, based upon the Black-Scholes option-pricing model on the date of grant. Options will vest upon certain triggering events as defined by the Company in the Employee Stock Option Plan, as long as the employee remains with the Company at vesting date. Options will be exercisable on August 6, 2031. During the years ended December 31, 2025, the Company recorded $27,258 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   133.80%
Expected term   4.5 years 
Risk free interest rate   3.73%
Expected forfeitures   0%

 

On August 6, 2024, the Company issued a 7-year option to purchase 2,000,000 shares of common stock at an exercise price of $0.1024 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $190,880, based upon the Black-Scholes option-pricing model on the date of grant. Options will vest upon certain triggering events as defined by the Company in the Employee Stock Option Plan, as long as the employee remains with the Company at vesting date. Options will be exercisable on August 6, 2031. During the years ended December 31, 2025, the Company recorded $27,258 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   133.80%
Expected term   7 years 
Risk free interest rate   3.76%
Expected forfeitures   0%

 

On August 6, 2024, the Company issued a 7-year option to purchase 2,000,000 shares of common stock at an exercise price of $0.1024 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $190,880, based upon the Black-Scholes option-pricing model on the date of grant. Options will vest upon certain triggering events as defined by the Company in the Employee Stock Option Plan, as long as the employee remains with the Company at vesting date. Options will be exercisable on August 6, 2031. During the years ended December 31, 2025, the Company recorded $27,258 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   133.80%
Expected term   7 years 
Risk free interest rate   3.76%
Expected forfeitures   0%

 

 

On August 6, 2024 the Company issued a 7-year option to purchase 50,000 shares of common stock at an exercise price of $0.1024 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $4,345, based upon the Black-Scholes option-pricing model on the date of grant. Options will vest upon certain triggering events as defined by the Company in the Employee Stock Option Plan, as long as the employee remains with the Company at vesting date. Options will be exercisable on August 6, 2026. During the years ended December 31, 2025, the Company recorded $2,173 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   133.80%
Expected term   4.5 years 
Risk free interest rate   3.73%
Expected forfeitures   0%

 

On April 13, 2024, the Company issued a 8.5-year option to purchase 5,000,000 shares of common stock at an exercise price of $0.08225 per share to a related party for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $339,100, based upon the Black-Scholes option-pricing model on the date of grant. Options vest on grant date. Options are exercisable October 12, 2025, and for a period expiring on October 10, 2032. During the year ended December 31, 2024, the Company recorded $339,100 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   134.80%
Expected term   4.25 years 
Risk free interest rate   4.54%
Expected forfeitures   0%

 

On April 13, 2024, the Company issued a 9.33-year option to purchase 5,000,000 shares of common stock at an exercise price of $0.08225 per share to a related party for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $343,350, based upon the Black-Scholes option-pricing model on the date of grant. Options vest on grant date. Options are exercisable on August 12, 2026, and for a period expiring on August 10, 2033. During the year ended December 31, 2024, the Company recorded $343,350 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   130.50%
Expected term   4.75 years 
Risk free interest rate   4.54%
Expected forfeitures   0%

 

On April 8, 2024, the Company issued a 6.5-year option to purchase 150,000 shares of common stock at an exercise price of $0.0834 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $9,588, based upon the Black-Scholes option-pricing model on the date of grant. Options vest on grant date. Options are exercisable on April 7, 2026, and for a period expiring on October 6, 2030. During the year ended December 31, 2024, the Company recorded $9,588 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   138.60%
Expected term   3.25 years 
Risk free interest rate   4.60%
Expected forfeitures   0%

 

On April 3, 2024, the Company issued a 6.5-year option to purchase 500,000 shares of common stock at an exercise price of $0.082 per share for services rendered. The expected life for awards uses the simplified method for all “plain vanilla” options, as defined in ASC 718-10-S99, and the contractual term for all other employee and non-employee awards. The options had a fair value of $31,970, based upon the Black-Scholes option-pricing model on the date of grant. Options vest on grant date. Options are exercisable on October 2, 2026, and for a period expiring on October 1, 2030. During the year ended December 31, 2024, the Company recorded $31,970 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   138.30%
Expected term   3.25 years 
Risk free interest rate   4.48%
Expected forfeitures   0%

 

 

On December 13, 2023, the Company issued a 5-year option to purchase 6,000,000 shares of common stock at an exercise price of $0.04 per share to a related party for services rendered. The options had a fair value of $162,000, based upon the Black-Scholes option-pricing model on the date of grant. Options vest 20% on the grant date, 20% will vest on the second anniversary, 20% will vest on the third-year anniversary, 20% will vest on the fourth year anniversary as long as the employee remains with the Company at the end of each successive year for four years. Options will be exercisable on December 31, 2023, and for a period of 10 years expiring on December 13, 2033. During the years ended December 31, 2025, the Company recorded $32,400 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   133.30%
Expected term   6.25 years 
Risk free interest rate   4.04%
Expected forfeitures   0%

 

On December 13, 2023, the Company issued a 5-year option to purchase 4,000,000 shares of common stock at an exercise price of $0.04 per share to a related party for services rendered. The options had a fair value of $108,000, based upon the Black-Scholes option-pricing model on the date of grant. Options vest 20% on the grant date, 20% will vest on the second anniversary, 20% will vest on the third-year anniversary, 20% will vest on the fourth year anniversary as long as the employee remains with the Company at the end of each successive year for four years. Options will be exercisable on December 31, 2024, and for a period of 10 years expiring on December 13, 2033. During the years ended December 31, 2025, the Company recorded $21,600 as an expense for options issued.

 

Expected dividends   0%
Expected volatility   133.30%
Expected term   6.25 years 
Risk free interest rate   4.04%
Expected forfeitures   0%

 

Warrant activity as of December 31, 2025 is summarized as follows:

 

Warrants 

Number of

Warrants

  

Weighted

Average

Exercise

Price

  

Weighted

Average

Remaining

Contractual

Term (Years)

  

Aggregate

Intrinsic

Value

 
Outstanding – December 31, 2024   81,035,714   $0.0895    4.32   $1,989,500 
Exercisable – December 31, 2024   81,035,714   $0.10    4.32   $1,989,500 
Granted   500,000   $0.091    4.5     
Exercised   (2,500,000)  $0.001         
Cancelled/Forfeited   (6,750,000)  $0.1633         
Outstanding – December 31, 2025   72,285,714   $0.098    3.81   $1,733,000 
Exercisable – December 31, 2025   72,285,714   $0.098    3.81   $1,733,000 

 

 

As of December 31, 2025, the following warrants were outstanding:

 

Exercise Price

Warrants Outstanding

   Warrants
Exercisable
  

Weighted Average

Remaining

Contractual Life

  

Aggregate

Intrinsic Value

 
$0.001    6,000,000    0.41   $534,000 
$0.04    2,300,000    0.75   $115,000 
$0.2299    2,000,000    0.60   $ 
$0.25    8,000,000    0.23   $ 
$0.12    12,500,000    1.04   $ 
$0.14    4,285,714    1.04   $ 
$0.04    4,000,000    6.96   $200,000 
$0.04    6,000,000    6.96   $300,000 
$0.04    10,000,000    6.96   $500,000 
$0.0825    5,000,000    6.78   $38,750 
$0.0825    5,000,000    7.61   $38,750 
$0.08    150,000    4.76   $1,500 
$0.08    500,000    4.75   $5,000 
$0.1024    2,000,000    5.61   $ 
$0.1024    2,000,000    5.61   $ 
$0.1024    2,000,000    5.61   $ 
$0.1024    50,000    5.61   $ 
$0.0910    250,000    4.50   $- 
$0.0910    250,000    4.50   $- 
$      72,285,714        $1,733,000 

 

As of December 31, 2024, the following warrants were outstanding:

 

Exercise Price

Warrants Outstanding

   Warrants
Exercisable
  

Weighted Average

Remaining

Contractual Life

  

Aggregate

Intrinsic Value

 
$0.001    8,500,000    1.39   $756,500 
$0.04    2,300,000    2.00   $115,000 
$0.056    1,000,000    0.77   $34,000 
$0.2299    4,125,000    1.34   $ 
$0.16    3,125,000    1.20   $ 
$0.25    8,000,000    1.48   $ 
$0.1160    500,000    0.77   $ 
$0.12    12,500,000    2.29   $ 
$0.14    4,285,714    2.29   $ 
$0.04    4,000,000    8.21   $200,000 
$0.04    6,000,000    8.21   $300,000 
$0.04    10,000,000    8.21   $500,000 
$0.0825    5,000,000    8.03   $38,750 
$0.0825    5,000,000    8.87   $38,750 
$0.08    150,000    6.01   $1,500 
$0.08    500,000    6.01   $5,000 
$0.1024    2,000,000    6.86   $ 
$0.1024    2,000,000    6.86   $ 
$0.1024    2,000,000    6.86   $ 
$0.1024    50,000    6.86   $ 
      81,035,714        $1,989,500 

 

 

Options activity as of December 31, 2024 is summarized as follows:

 

Options 

Number of

Options

  

Weighted

Average

Exercise

Price

  

Weighted

Average

Remaining

Contractual

Term (Years)

  

Aggregate

Intrinsic

Value

 
Outstanding – December 31, 2024   26,981,000   $0.114    16.10   $ 
Exercisable – December 31, 2024   26,981,000   $0.114    16.10   $ 
Granted   8,000,000   $.089    6.39     
Exercised      $         
Cancelled/Forfeited      $         
Outstanding – December 31, 2025   34,981,000   $0.114    13.11   $ 
Exercisable – December 31, 2025   34,981,000   $0.114    13.11   $ 

 

For the years ended December 31, 2025, the following options were outstanding:

 

Exercise Price   Options Outstanding   Options Exercisable  

Weighted Average

Remaining Contractual

Life (in Years)

 
              
$0.114    34,981,000    26,750,500    13.11 

 

For the year ended December 31, 2024, the following options were outstanding:

 

Exercise Price   Options Outstanding   Options Exercisable  

Weighted Average

Remaining Contractual

Life (in Years)

 
              
$0.114    26,981,000    26,520,000    16.10 

 

(C) Amendment to Articles of Incorporation

 

On February 16, 2009, the Company amended its articles of incorporation to amend the number and class of shares the Company is authorized to issue as follows:

 

Common stock Class A, unlimited number of shares authorized, no par value
Common stock Class B, unlimited number of shares authorized, no par value
Preferred stock, unlimited number of shares authorized, no par value

 

Effective December 17, 2013, the Company amended its articles of incorporation to designate a Series A no par value preferred stock. Two shares of Series A Preferred stock have been authorized.

 

On March 26, 2024, the Company increased the total authorized Series A preferred stock to four shares as approved by the board of directors.

 

On March 26, 2024, the Company issued one share of Series A preferred stock to Mr. Thompson, our CEO and founder. In consideration for the share of Series A preferred stock, Mr. Thompson paid twenty thousand dollars ($20,000), in the form of debt cancellation.