v3.22.2.2
Equity
 3 Months Ended
Sep. 30, 2022
Equity [Abstract]  
Equity

Note 7 – Equity

 

All share amounts have been adjusted to reflect a 1:200 reverse split effective March 7, 2022. 

 

For the three months ended September 30, 2022:

During the three months ended September 30, 2022, the Company issued 1,070,922 shares of common stock for professional consulting services. The shares were valued at $188,128 upon issuance.

During the three months ended September 30, 2022, the Company issued 800,000 shares of common stock for commitment fees under a note payable. These shares were valued at $144,800 upon issuance.

During the three months ended September 30, 2022, the Company issued 350,000 shares of common stock as a charitable donation. The shares were valued at $52,500 upon issuance.

During the three months ended September 30, 2022, the Company received 36,500 shares of common stock from a former investor. The shares can be re-issued.

 

For the three months ended September 30, 2021:

 

During the three months ended September 30, 2021, the Company issued 12,500 shares of common stock for professional consulting services. The shares were valued at $32,750 upon issuance.

During the three months ended September 30, 2021, the Company issued 450,000 shares of common stock in exchange for proceeds under the Equity Purchase Agreement. These shares were valued at $1,091,000 upon issuance.

 

See the capital structure section in Note 1 for disclosure of the equity components included in the Company's consolidated financial statements.

 

Warrants

 

Warrants are granted with an exercise price no less than the fair market value of the warrant on the date of the grant and vest immediately. A June 2022 warrant is entitled to convert into one common share at an exercise price of $0.50. An August 2022 warrant is entitled to convert into one common share at an exercise price of $0.01. Both warrant exercise prices are subject to adjustment. The Company granted 600,000 warrants on June 21, 2022 and 1,000,000 warrants on August 31, 2022 to an investor, pursuant to two notes payable (Note 4). The fair value of the August 2022 warrants was $150,000 at September 30, 2022. There are no unvested warrants.

The fair value of each equity-based award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table at September 30, 2022:

 

Stock price volatility

 

175%

Expected term

 

5 years

Discount rate

 

3.30%

Expected dividends

 

0%

 

The fair value of each equity-based award is estimated on the date of grant using the Black-Scholes option pricing model that uses the assumptions noted in the following table at June 30, 2022:

 

Stock price volatility

 

190%

Expected term

 

1 year

Risk-free interest rate

 

3.21%

Expected dividends

 

0%

A summary of the warrant status at September 31, 2022 and June 30, 2022 and changes during the three months ended is presented below. There were no warrants outstanding during the three months ended September 30, 2021.

 

  

 

 

Warrants

 

Weighted Average Exercise Price

 

Outstanding, June 30, 2022

600,000

 

 $0.50

 

Granted

1,000,000

 

0.01

 

Forfeited

-

 

-

 

Outstanding, September 30, 2022

 1,600,000

 

$0.048

     

 

Exercisable, end of period

$600,000

 

$0.50

 

A further summary of warrants outstanding at September 30, 2022 is as follows:

 

  

Exercise

Number

Number

Weighted Average

Intrinsic

Warrants

 

Price

Exercisable

Outstanding

Remaining Life

Value

600,000

 

$ 0.50

600,000

600,000

 

4.75 years

 

$ 0

1,000,000

 

$ 0.01

-

1,000,000

 

5 years

 

$ 150,000