v3.26.1
STOCKHOLDERS’ EQUITY
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 11 – STOCKHOLDERS’ EQUITY

 

Preferred stock

 

The Company is authorized to issue 50,000,000 shares of Preferred Stock. Each share of Preferred Stock has the voting power of ten shares of Common Stock, and can at any time be converted into five (5), shares of Common Stock. The table below sets forth the number of shares of Preferred Stock issued and outstanding during the reporting period(s). There were 43,283,991 Preferred Stock outstanding on June 30, 2026:

 

Issuances of Preferred Stock in the period January 1 and June 30, 2025

 

Date     # Shares     Amount     Price/Share     Type   Notice  
1/01/2025       43,158,248     $ 4,408,582     $ 0.102            
1/10/2025 b     (150,000 )     (750 )     0.005     Stock conversion   affiliate  
3/31/2025       —       214,780       —     Payroll forfeiture*   affiliate  
See Note 12 d     421,391       153,342       0.364     2021 Stock Plan   affiliate  
6/30/2025       43,429,639     $ 4,774,544     $ 0.110            

 

There has been no issuance of Preferred Stock in the period January 1 and June 30, 2026

 

Date     # Shares     Amount     Price/Share     Type   Notice  
6/30/2026       43,283,991     $ 4,748,150     $ 0.110            

 

* The transaction originating from the Company’s Officers forfeiting $578,959 of accrued payroll in the first quarter of 2025.

 

Common stock

 

The Company is authorized to issue 400,000,000 shares of Common Stock. There were 114,695,219 Common Stock outstanding on June 30, 2026:

 

Issuances of Common Stock in the period January 1 and June 30, 2025

 

Date     # Shares     Amount     Price/Share     Type   Notice  
1/01/2025       86,782,908     $ 12,722,039     $ 0.147            
1/10/2025 d     750,000       750       0.001     Stock conversion      
see Note 12 d     1,409,335       106,754       0.073     2021 Stock Plan      
b       88,942,243     $ 12,829,543     $ 0.144            

 

Issuances of Common Stock in the period January 1 and June 30, 2026

 

Date     # Shares     Amount     Price/Share     Type   Notice  
1/01/2026       108,147,731     $ 13,607,433     $ 0.126            
1/23/2026 a *   4,716,000       145,701       0.031     private placement      
1/23/2026 a *   —       95,339       —     warrants      
1/10/2026 c     75,000       5,550       0.074     consulting fees      
2/10/2026 c     239,155       10,723       0.046     consulting fees      
3/10/2026 c     184,000       8,150       0.044     consulting fees      
5/08/2026 a †   1,333,334       45,453       0.040     private placement      
5/08/2026 a †           28,147       —     warrants      
6/30/2026       114,695,220     $ 13,946,496     $ 0.122            

 

Common Shares due, but not yet issued in accordance with service contract at June 30, 2026:

 

Date     # Shares     Amount     Price/Share     Type   Notice  
1/01/2026 a     75,000     $ 4,883     $ 0.065     consulting fees      
5/08/2026 a †   106,667       —       —     commission      
6/30/2026 a     661,770       22,593       0.034     consulting fees      
6/30/2026       843,437     $ 27,476     $ 0.033            

 

* Around January 23, 2026, the Company proposed a private placement offering investors to purchase shares and warrants issued together as a unit; however, each warrant is detachable and separately exercisable to purchase one share of Common Stock. The average price was $0.06 per unit, less a broker (Member FINRA / SIPC) fee consisting of 8% cash commission and 8% bonus shares. The Company raised a total of $241,040 (after $20,960 cash commission) and issued 4,716,000 shares of Common Stock (after 349,333 bonus shares), as well as 4,366,667 5-year warrants exercisable to buy Common Stock at $0.12 per share. The net received by the Company was $0.053 per unit.
† Around May 8, 2026, the Company proposed a private placement offering investors to purchase shares and warrants issued together as a unit; however, each warrant is detachable and separately exercisable to purchase one share of Common Stock. The average price was $0.06 per unit, less a broker (Member FINRA / SIPC) fee consisting of 8% cash commission and 8% bonus shares. The Company raised a total of $73,600 (after $6,400 cash commission) and issued 1,440,001 shares of Common Stock (after 106,667 bonus shares), as well as 1,333,334 5-year warrants exercisable to buy Common Stock at $0.12 per share. The net received by the Company was $0.053 per unit.
a The Company claims an exemption from the registration requirements of the Securities Act for the private placement of these securities pursuant to Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated under the Securities Act.
b The Company claims an exemption from the registration requirements of the Securities Act pursuant to the exchange exemption under Rule 144 of the Securities Act.
c The Company claims an exemption from the registration requirements of the Securities Act pursuant to the exchange exemption in Rule 3(a)(9) of the Securities Act.
d The Company claims an exemption from the registration requirements of the Securities Act for the compensatory benefit plan pursuant to Rule 701 of the Securities Act.

 

 

Common Stock Warrants

 

The fair value of Common Stock warrants granted for the six months ended June 30, 2026, and June 30, 2025 was calculated with the following assumptions:

 

    June 30, 2026     June 30, 2025  
Risk-free interest rate     3.92 – 4.02 %     3.96 – 4.61 %
Expected dividend yield     0 %     0 %
Volatility factor (monthly)     118.17 %     127.02 %
Expected life of warrant     5 years       5 years  

 

For the six months ended June 30, 2026, the Company issued 5,700,001 warrants. For the six months ended June 30, 2025, the Company did not award any warrants.

 

The following table summarizes the Company’s Common Stock warrant activity for the six months ended June 30, 2026, and 2025:

 

    

Number of

Warrants *

  

Weighted Average

Exercise Price

  

Weighted Average

Remaining

Expected Term

 
Outstanding as at January 1, 2025     1,292,030   $0.22    2.6 
Granted     —    —    — 
Exercised     —    —    — 
Forfeited/Cancelled     —    —    — 
Outstanding as at June 30, 2025     1,292,030   $0.22    2.7 
                  
Outstanding as at January 1, 2026     16,675,364   $0.13    4.6 
Granted     5,700,001    0.12    5.0 
Exercised     —    —    — 
Forfeited/Cancelled     —    —    — 
Outstanding as at June 30, 2026     22,375,365   $0.13    4.3 

 

The following table summarizes information about stock warrants that are vested or expected to vest at June 30, 2026, with a market price of $0.045 at June 30, 2026:

 

            Warrants Outstanding and Exercisable        
Exercise Price     Number of Warrants    

Weighted Average

Exercise Price

Per Share

    

Weighted Average

Remaining

Contractual Life

(Years)

    

Aggregate Intrinsic

Value

  
$ 0.12       21,083,335     $ 0.12       4.7     $ —  
  0.20-0.25       1,264,030       0.23       1.7       —  
  0.47       28,000       0.47       1.4       —  
$ 0.12-0.47       22,375,365     $ 0.13       4.3     $ —  

 

The weighted-average remaining contractual life for warrants exercisable at June 30, 2026, is 4.2 years. The aggregate intrinsic value for fully vested, exercisable warrants was $0 at June 30, 2026.