|3 Months Ended|
Mar. 31, 2022
Note 5 - Equity Transactions
In January 2022, the Company offered certain warrant holders the opportunity to receive an additional warrant to purchase the Company’s Common Stock at $0.014 per share, for a period of five (5) years from issuance for the exercise by March 31, 2022 of each existing warrant originally issued in April 2020. As of March 31, 2022, the Company had eleven warrant holders exercise an aggregate of 83,579,296 warrants at $0.014 per share resulting in cash proceeds of approximately $1,170,000 to the Company.
Series A Preferred Stock
During the quarter ended March 31, 2022,shares of Series A Preferred Stock were converted to shares of Common Stock at the request of certain Series A Preferred Shareholders.
Holders of Series A Preferred Stock (“Series A Holders”) have the right to receive notice of any meeting of holders of common stock and to vote upon any matter submitted to a vote of the holders of common stock. Each Series A Holder shall vote on each matter on an as converted basis submitted to them with the holders of common stock.
Series A Preferred Stock converts to common stock at a 1:1 ratio immediately upon request of the Series A Holder.
Series A Preferred Stock does not have preferential treatment over common stock shareholders if the Company liquidates or dissolves.
Share-Based Compensation Plan
The Company utilizes the Black-Scholes valuation method to recognize stock-based compensation expense over the vesting period. The expected life represents the period that the stock-based compensation awards are expected to be outstanding.
Stock Option Activity
On April 1, 2021, the Board of Directors of the Company approved and granted to certain directors and officers of the Company an aggregate of stock options of which were immediately vested on the date of grant. Each option granted has an exercise price of $ per share and an expiration date of ten years from the date of grant. These options are not included in the Company’s current stock option plan as they were granted outside of the plan.
The Board of Directors decided not to renew the former CEO’s (Robert Greif) employment contract; therefore, the unvested shares were forfeited resulting in a reduction of share-based compensation of approximately $ for the period ended September 30, 2021 that was recognized during the period ended June 30, 2021.
At March 31, 2021, all outstanding stock options were fully vested, and related compensation expense recognized. At March 31, 2022, options were outstanding and were vested. For the three months ended March 31, 2022 and 2021, the Company recognized approximately $and $in stock-based compensation expense, respectively, which is included in share based compensation. At March 31, 2022, the Company has approximately $of unrecognized compensation costs related to non-vested stock options, which is expected to be recognized over a weighted average period of approximately years.
SCHEDULE OF ASSUMPTIONS USED TO CALCULATE FAIR VALUE OF STOCK OPTIONS
SUMMARY OF STOCK OPTION ACTIVITY
SUMMARY OF STOCK OPTION ACTIVITY NON-VESTED
Net Loss Per Share
Basic loss per share is computed on the basis of the weighted average number of shares outstanding for the reporting period. Diluted loss per share is computed on the basis of the weighted average number of common shares plus dilutive potential common shares outstanding using the treasury stock and if-converted methods, as applicable. Any potentially dilutive securities are antidilutive due to the Company’s net losses.
SCHEDULE OF ANTI-DILUTIVE SECURITIES OF BASIC AND DILUTED NET LOSS PER SHARE
Excluded from the above table are warrants and stock options for the three months ended March 31, 2022 and ). Inclusion of such would be anti-dilutive. warrants and stock options for the three months ended March 31, 2021 as they are out of the money (exercise price greater than the stock price
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef