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STOCK OPTIONS AND WARRANTS
 3 Months Ended 12 Months Ended
Mar. 31, 2022
Dec. 31, 2021
STOCK OPTIONS AND WARRANTS    
STOCK OPTIONS AND WARRANTS

NOTE 15 - STOCK OPTIONS AND WARRANTS

 

As of March 31, 2022, there were 0 options outstanding and exercisable.

 

A summary of the Company’s option activity during the three months ended March 31, 2022 is presented below:

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

Number of

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

Options

 

Shares

 

 

Price

 

 

Term

 

 

Value

 

Balance outstanding, January 1, 2022

 

 

37,000

 

 

$1.32

 

 

 

0.01

 

 

$75,850

 

Granted

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Expired

 

 

(37,000 )

 

 

-

 

 

 

-

 

 

 

-

 

Balance outstanding, March 31, 2022

 

 

-

 

 

$-

 

 

 

-

 

 

$-

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable, March 31, 2022

 

 

-

 

 

$-

 

 

 

-

 

 

$-

 

 

As of March 31, 2022, there were 2,949,411 warrants outstanding and 2,949,411 warrants exercisable with expiration dates from May 2023 through August 2027.

 

A summary of the Company’s warrant activity during the three months ended March 31, 2022 is presented below:

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

Number of

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

Warrants

 

Shares

 

 

Price

 

 

Term

 

 

Value

 

Balance outstanding, January 1, 2022

 

 

3,698,238

 

 

$2.02

 

 

 

2.03

 

 

$4,992,621

 

Granted

 

 

2,000,000

 

 

 

-

 

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Exercised

 

 

(2,748,797 )

 

 

-

 

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance outstanding, March 31, 2022

 

 

2,949,441

 

 

$2.89

 

 

 

4.24

 

 

$113,933

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable, March 31, 2022

 

 

2,949,411

 

 

$2.89

 

 

 

4.24

 

 

$113,933

 

NOTE 15 - STOCK OPTIONS AND WARRANTS

 

As of December 31, 2021, there were 37,000 options outstanding and 37,000 options exercisable with expiration dates of January 2022.

 

A summary of the Company’s option activity during the years ended December 31, 2021 and 2020 is presented below:

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

Number of

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

Options

 

Shares

 

 

Price

 

 

Term

 

 

Value

 

Balance Outstanding, January 1, 2020

 

 

74,000

 

 

$1.32

 

 

 

1.47

 

 

$64,800

 

Granted

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Forfeited

 

 

(12,000 )

 

 

-

 

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance Outstanding, December 31, 2020

 

 

62,000

 

 

$1.19

 

 

 

0.60

 

 

$242,200

 

Granted

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Expired

 

 

(25,000 )

 

 

-

 

 

 

-

 

 

 

-

 

Balance Outstanding, December 31, 2021

 

 

37,000

 

 

$1.32

 

 

 

0.01

 

 

$75,850

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable, December 31, 2021

 

 

37,000

 

 

$1.32

 

 

 

0.01

 

 

$75,850

 

 

As of December 31, 2021, there were 3,698,238 warrants outstanding and 3,698,238 warrants exercisable with expiration dates from May 2023 through March 2024.

 

Warrant Anti-Dilution Adjustment and Deemed Dividend

 

The Company’s warrants outstanding contain certain anti-dilution adjustments if the Company issues shares of its common stock at a lower price per share than the applicable exercise price of the underlying warrant. If any such dilutive issuance occurs prior to the exercise of such warrant, the exercise price will be adjusted downward to a price equal to the common stock issuance, and the number of warrants that may be purchase upon exercise is increased proportionately so that the aggregate exercise price payable under the warrant shares shall be the same as the aggregate exercise price in effect immediately prior to such adjustment. On December 21, 2021, the Company issued its common stock upon conversion of its convertible debt at an issuance price of $2.02 per share. As a result, the Company issued additional warrants to the Company’s existing warrant holders to purchase 2,533,565 shares of common stock with an exercise price of $2.02 per share. The new warrants were issued with a weighted average contractual term of 2.04 years. The deemed dividend was recorded as an increase to accumulated deficit and additional paid-in capital and reduced net income available to common shareholders by the same amount. The Company valued (a) the fair value of the warrants immediately before the re-pricing in the amount of $1,915,077, (b) the fair value of the warrants immediately after the re-pricing in the amount of $9,548,110, and (c) recorded the difference as deemed dividend in the amount of $7,633,033. The warrants were valued using the Black-Scholes option pricing model using the following terms: a) fair value of common stock of $3.75, b) exercise prices of $5.00, $6.00 and $7.50 before re-pricing, c) exercise price of $2.02 after re-pricing, d) terms of 1.40 years, 1.97 years, 2.20 years and 2.26 years, e) dividend rate of 0%, and f) risk free interest rate of 0.41%.

A summary of the Company’s warrant activity for the years ending December 31, 2021 and 2020 is as follows:

 

 

 

 

 

 

 

 

 

Weighted

 

 

 

 

 

 

 

 

 

Weighted

 

 

Average

 

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

Aggregate

 

 

 

Number of

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

Warrants

 

Shares

 

 

Price

 

 

Term

 

 

Value

 

Balance Outstanding, January 1, 2020

 

 

1,164,673

 

 

$6.41

 

 

 

4.01

 

 

$-

 

Granted

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance Outstanding, December 31, 2020

 

 

1,164,673

 

 

$6.41

 

 

 

3.01

 

 

$5,360

 

Granted

 

 

2,533,565

 

 

 

2.02

 

 

 

2.04

 

 

 

-

 

Forfeited

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Exercised

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Expired

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Balance Outstanding, December 31, 2021

 

 

3,698,238

 

 

$2.02

 

 

 

2.03

 

 

$4,992,621

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable, December 31, 2021

 

 

3,698,238

 

 

$2.02

 

 

 

2.03

 

 

$4,992,621