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STOCKHOLDERS’ EQUITY (DEFICIT)
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
STOCKHOLDERS’ EQUITY (DEFICIT)

NOTE 8 — STOCKHOLDERS’ EQUITY (DEFICIT)

 

Issuance of Common Stock

 

During the three months and nine months ended September 30, 2021, the Company issued an aggregate of 13,550 and 151,426 shares of common stock to various investors for cash proceeds of $67,750 and $671,407.

 

During the three months and nine months ended September 30, 2021, the Company issued an aggregate of 81,461 and 635,357 shares of common stock with a fair value of $5.00 and $5.00 per share to various consultants for services rendered in lieu of cash for a compensation charge of $1,494,803 and $4,358,033.

 

During the three months and nine months ended September 30, 2021, the company issued an aggregate of 0 and 10,507 shares of common stock to various note holders for the conversion of debt.

 

During the three months and nine months ended September 30, 2021, the company issued an aggregate of 0 and 8,492 shares of common stock to various investors for the conversion of warrants.

 

During the three months and nine months ended September 30, 2022, the Company issued 2,315,000 and 2,315,850 shares of common stock to investors for net proceeds of $8,540,171 and $8,545,171.

 

During the three months ended September 30, 2022, the Company issued 59,798 shares of common stock for services in lieu of cash of which 24,600 was to outside consultants, 17,699 to U.S. Asian (a related party) and 17,499 shares to the members of the Board of Directors for their services as Board Members. The amount expensed during the three months ended September 30, 2022 in the unaudited condensed consolidated statement of operations was $184,291 which included $60,000 related to shares not yet issued.

 

During the nine months ended September 30, 2022, the Company issued 84,188 shares of common stock for services in lieu of cash of which 48,990 was to outside consultants, 17,699 to U.S. Asian (a related party) and 17,499 shares to the members of the Board of Directors for their services as Board Members. The amount expensed during the nine months ended September 30, 2022 in the unaudited condensed consolidated statement of operations was $453,391 which included $120,000 related to shares not yet issued.

 

Warrants

 

The issuance of warrants to purchase shares of the Company’s common stock are summarized as follows:

 

          
   Number of
Warrants		   Weighted Average
Exercise Price		 
Outstanding, December 31, 2021   21,600   $10.00 
Issued   2,482,250    4.15 
Exercised   -    - 
Expired or cancelled   -    - 
Outstanding September 30, 2022   2,503,850   $4.20 

 

The following table summarizes information about warrants to purchase shares of the Company’s common stock outstanding and exercisable at September 30, 2022:

 

                      
Exercise Price   Outstanding
Number of
Warrants		   Weighted Average
Remaining Life In Years		   Weighted Average
Exercise Price		   Exercisable
Number of
Warrants		 
$10.00    21,600    0.08   $10.00    21,600 
$4.15    2,135,000    3.00    4.15    2,135,000 
$4.15    347,250    3.00    4.15    347,250 
      2,503,850    3.00   $4.15    2,503,850 

 

The compensation expense attributed to the issuance of the warrants, if required to be recognized on the nature of the transaction, was recognized as they vested/earned. These warrants are exercisable up to one year from the date of grant. All are currently exercisable.

 

Shares To Be Issued

 

During December 2021, the Company entered into one-year agreements with three individuals to serve on the Company’s Board of Advisors. Each agreement may be extended for an additional one-year term upon agreement of both parties. As consideration, the Company is to issue an aggregate of $240,000 in shares of the Company’s common stock. During the nine months ended September 30, 2022, an aggregate of $180,000 of stock-based compensation was recorded in the unaudited condensed consolidated statement of operations. As of September 30, 2022, the shares were not issued.