Note F - Stockholders' Equity

6 Months Ended

Jun. 30, 2019

STOCKHOLDERS' EQUITY (DEFICIT)

Note F - Stockholders' Equity

Common Stock

We are authorized to issue 2,000,000,000 shares of our $.0001 par value common stock, of which 17,393,374 and 16,712,819 shares were issued and outstanding at June 30, 2019 and December 31, 2018 respectively.

Common stock issued during the three months ended June 30, 2019;

On April 3, 2019 the holder of convertible note (c) converted $25,000 in principal and $1,480 of accrued interest into 126,092 shares of common stock at a price of $.21 per share. On June 28, 2019, the same investor converted $15,000 in principal and $1,205 in accrued interest into 192,925 shares of common stock at a price of $.084 per share.

The Company issued 361,538 shares of common stock (“Returnable Shares) to the holder of convertible note (u) (see Note C) as a commitment fee at a price of $.38 per share. The Returnable Shares must be returned to the Company if the note is fully repaid and satisfied prior to 180 days from the issue date.

All other issuance of common stock have been previously disclosed.

Warrants

During August and September 2016, we sold 33,058 shares of our common stock, with warrants to purchase an additional 545,454 shares of our common stock, to a group of private investors for $100,000. The warrants were issued prior to the reverse merger (Note A) and were subsequently still deemed issued and outstanding. The Series A and B warrants have expired, while the Series C warrants expire on June 30, 2019. The warrants were originally exercisable at prices between $0.55 and $2.20 share at any time between June 30, 2017 and June 30, 2019. Each series of warrants was valued using the Black-Scholes Options Pricing Model resulting in total warrant value of $85,833. The remaining proceeds of $14,167 were allocated to the common stock. Black-Scholes data inputs used to value the warrants are as follows:

Warrants		Stock Price				Exercise Price				Expected Life (Yrs)				Risk-Free Rate				Warrant Value				Number of Warrants				Extended Value
Series A (expired)		$	.275			$	.55				.75				.54	%		$	.1168				181,818			$	21,249
Series B (expired)		$	.275			$	.1.10				1.75				.69	%		$	.1639				181,818			$	29,817
Series C (expired)		$	.275			$	2.20				1.75				.85	%		$	.1912				181,818			$	34,767
Total																										$	85,833

During May and June 2018, various Series B warrant holders elected to exercise their warrants prior to their June 30, 2018 expiration. As such, the Company issued 19,636 shares of common stock at $1.10 per share for $21,600. The Series C warrants expired on June 30, 2019. There are currently no outstanding warrants.

The following table represents the warrant activity for the periods presented;

		Number of Warrants

Balance, December 31, 2017			545,454
Granted			(19,636	)
(Exercised)			(162,182	)
(Forfeited/expired)			(181,818	)
Balance, December 31, 2018			181,818
Granted			-
(Exercised)			-
(Forfeited/expired)			(181,818	)
Balance, June 30, 2019			-

Preferred Stock

Our Articles of Incorporation provide that we may issue up to 10,000,000 shares of various series of preferred stock. Subject to the requirements of the Colorado Business Corporation Act, the Board of Directors may issue the preferred stock in series with rights and preferences as the Board of Directors may determine appropriate, without shareholder approval. As of June 30, 2019, and December 31, 2018, 4,500,000 Series B Preferred shares had been authorized for issuance, and 240,000 Series B preferred shares were issued and outstanding. These 240,000 Series B shares are convertible into 10,909 common shares.