Stockholders' Equity

9 Months Ended

Sep. 30, 2019

Equity [Abstract]

Stockholders' Equity

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 33,384,036 and 16,712,819 shares were issued and outstanding at September 30, 2019 and December 31, 2018 respectively.

Nine Months Ended September 30, 2019:

The Company issued 16,309,679 shares of common stock for conversion of $130,904 in convertible debt and $6,025 in related accrued interest at conversion rates between $.002 and $.025 pursuant to underlying promissory note (Note E).

The Company issued 361,538 shares of common stock at their $.38 per share fair market value for total value of $137,384. These shares represent a commitment fee to a noteholder and are returnable to the Company if certain conditions are met. These returnable shares reported as a prepaid expense at September 30, 2019 (Note C).

Nine Months Ended September 30, 2018:

The Company issued 110,955 shares of common stock at $.55 per share fair market value for cash to independent investors.

The Company issued 1,166,469 shares of common stock for conversion of $427,775 in convertible debt at various conversion rates pursuant to underlying promissory notes (Note E). The Company also issued 35,781 shares of common stock for conversion of $13,835 in related accrued interest.

The Company issued 389,370 shares of common stock at $.275 per share for settlement of related party debt and related accrued interest totaling $107,077.

The Company issued 95,890 shares of common stock for payment of accrued officer wages totaling $38,500, along with 17,273 shares of common stock for payment of accrued expenses totaling $13,818.

The Company issued 20,000 shares of common stock valued at $15,000 to secure a line of credit.

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 expired 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, September 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 September 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.

Other

During the nine months ended September 30, 2019 and 2018, the Company recorded in additional paid-in capital a premium on convertible debt of $3,366,586 and $1,142,215, respectively, as well as accretion of the premium of $2,390,971 and $582,841, respectively (Note E).

During the nine months ended September 30, 2018, the Company recorded in additional paid-in capital $14,236 of deferred offering costs, as well as $6,022 of related party debt forgiveness.