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STOCKHOLDERS’ EQUITY (Deficit)
 9 Months Ended
Sep. 30, 2023
Equity [Abstract]  
STOCKHOLDERS’ EQUITY (Deficit)

NOTE 7 — STOCKHOLDERS’ EQUITY (Deficit)

 

Issuance of Common Stock

 

During the three 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 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 and comprehensive loss was $453,391 which included $120,000 related to shares not yet issued.

 

During the three months ended September 30, 2023, the Company issued 150,000 shares of common stock to Wider pursuant to the service agreement resulting in $750,000 of stock-based compensation expense. Under the service agreement the Company has an obligation to issue an additional 150,000 shares to Wider resulting in an additional $750,000 of stock-based compensation. Due to the nature of the payment the amount was classified in research and development expense.

 

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, 2022   2,662,250   $4.15 
Issued   -    - 
Exercised   -    - 
Expired or cancelled   -    - 
Outstanding September 30, 2023   2,662,250   $4.15 

 

The following table summarizes information about warrants to purchase shares of the Company’s common stock outstanding and exercisable at September 30 2023:

 

                      
Exercise Price   Outstanding
Number of
Warrants		   Weighted Average
Remaining Life
In Years		   Weighted Average
Exercise Price		   Exercisable
Number of
Warrants		 
$4.15    2,315,000    2   $4.15    2,135,000 
$4.15    347,250    2    4.15    347,250 
      2,662,250    2   $4.15    2,662,250 

 

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 three years from the date of grant. All are currently exercisable.