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WARRANTS

3 Months Ended

Mar. 31, 2022

Guarantees and Product Warranties [Abstract]

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:

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