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WARRANTS | 3 Months Ended
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Mar. 31, 2022
Guarantees and Product Warranties [Abstract] |
WARRANTS | Note 8 WARRANTS On April 1, 2021, the Company entered into a securities purchase agreement with certain investors for an aggregate of 80,000 shares of its preferred stock at a per share purchase price of $2.50. As part of the transaction, the investors received one Class C warrant and one Class D warrant for the subscription of each preferred share. The Class C warrants consist of the right to purchase up to 80,000 shares of the Company’s common stock at an exercise price of $2.50 per share exercisable for 36 months from the date of inception. The Class D warrants consist of the right to purchase up to 80,000 shares of the Company’s common stock at an exercise price of $5.00 per share exercisable for 36 months from the date of inception. The subscription was completed on August 10, 2021. On September 27, 2021, the Company entered into another securities purchase agreement with the same investors, pursuant to which the Company issued in a registered direct offering, an aggregate of 48,000 shares of common stock of the Company at a per share purchase price of $2.50. In addition, the investors also received one Class C warrant and one Class D warrant for the subscription of each preferred share. The Class C warrants consist of the right to purchase up to 80,000 shares of the Company’s common stock at an exercise price of $2.50 per share exercisable for 36 months from the date of inception. The Class D warrants consist of the right to purchase up to 80,000 shares of the Company’s common stock at an exercise price of $5.00 per share exercisable for 36 months from the date of inception.
Schedule Assumption used |  |  |  |  |  |
Appraisal Date (Inception Date) |  | C Warrant August 10, 2021 |  |  | D Warrant August 10, 2021 |
(Unaudited) |  |  |  |  |  |
|  | $ |  |  | $ |
Market price per share (USD/share) |  |  | 1.47 |  |  |  | 0.66 |
Exercise price (USD/price) |  |  | 2.50 |  |  |  | 5.00 |
Risk free rate |  |  | 0.14% |  |  |  | 0.14% |
Dividend yield |  |  | 0.00% |  |  |  | 0.00% |
Expected term/ Contractual life (years) |  |  | 1.39 |  |  |  | 1.39 |
Expected volatility |  |  | 56.36% |  |  |  | 56.36% |
Appraisal Date (Inception Date) |  | C Warrant September 27, 2021 |  |  | D Warrant September 27, 2021 |
(Unaudited) |  |  |  |  |  |
|  | $ |  |  | $ |
Market price per share (USD/share) |  |  | 1.71 |  |  |  | 0.73 |
Exercise price (USD/price) |  |  | 2.50 |  |  |  | 5.00 |
Risk free rate |  |  | 0.15% |  |  |  | 0.15% |
Dividend yield |  |  | 0.00% |  |  |  | 0.00% |
Expected term/ Contractual life (years) |  |  | 1.26 |  |  |  | 1.26 |
Expected volatility |  |  | 52.93% |  |  |  | 52.93% |
The following is a reconciliation of the beginning and ending balances of warrants liability measured at fair value on a recurring basis using Level 3 inputs:
Schedule of Warranty Liability |  |  |  |  |  |
|  | March 31, 2022 |  |  | December 31, 2021 |
|  | $ |  |  | $ |
Balance at the beginning of period |  |  | 312,320 |  |  |  | – |
Warrants issued to investors |  |  | – |  |  |  | 287,520 |
Warrants redeemed |  |  | – |  |  |  | – |
Fair value change of warrants included in earnings |  |  | – |  |  |  | 24,800 |
Total |  |  | 312,320 |  |  |  | 312,320 |
The following is a summary of the warrant activity:
Schedule of warrant activity |  |  |  |  |  |  |  |  |
|  | Number of Warrants |  |  | Average Exercise Price |  |  | Weighted Average Remaining Contractual Term in Years |
Outstanding at January 1, 2022 |  |  | 256,000 |  |  |  | 3.75 |  |  |  | 2.66 |
Exercisable at January 1, 2022 |  |  | 256,000 |  |  |  | 3.75 |  |  |  | 2.66 |
Granted |  |  | – |  |  |  | – |  |  |  | – |
Exercised / surrendered |  |  | – |  |  |  | – |  |  |  | – |
Expired |  |  | – |  |  |  | – |  |  |  | – |
Outstanding at March 31, 2022 |  |  | 256,000 |  |  |  | 3.75 |  |  |  | 2.66 |
Exercisable at March 31, 2022 |  |  | 256,000 |  |  |  | 3.75 |  |  |  | 2.66 |

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- References No definition available. + Details
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- Definition The entire disclosure for each guarantee obligation, or each group of similar guarantee obligations, including (a) the nature of the guarantee, including its term, how it arose, and the events or circumstances that would require the guarantor to perform under the guarantee; (b) the maximum potential amount of future payments (undiscounted) the guarantor could be required to make under the guarantee; (c) the current carrying amount of the liability, if any, for the guarantor's obligations under the guarantee; and (d) the nature of any recourse provisions under the guarantee, and any assets held either as collateral or by third parties, and any relevant related party disclosure. Excludes disclosures about product warranties. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 460 -URI https://asc.fasb.org/topic&trid=2155896 + Details
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