Quarterly report pursuant to Section 13 or 15(d)

Stock Warrants

v3.23.2
Stock Warrants
3 Months Ended
Mar. 31, 2023
Stock Warrants  
Stock Warrants

Note 8 - Stock Warrants

 

On May 4, 2021, the Company issued 500,000 warrants to M. Botbol, a related party, in connection with conversion of a 10% subordinated convertible debenture in the amount of $25,000 (see Note 7 – “Short-Term and Long-Term Debt”). The warrants entitle the holder to purchase one share of common stock at an exercise price of $0.05 per share at any time on or after the inception date, May 4, 2021, through May 4, 2026, the expiration date. The warrants will not be listed for trading on any national securities exchange.

 

 

On June 11, 2021, the Company issued 6,583,500 warrants to Legacy Tech Partners, LLC (LTP), a related party, in connection with conversion of a 10% subordinated convertible debenture in the amount of $330,000 of outstanding principal (see Note 7 – “Short-Term and Long-Term Debt”). The warrants entitle the holder to purchase one share of common stock at an exercise price of $0.05 per share at any time on or after the inception date, June 11, 2021, through March 8, 2026, the expiration date. The warrants are not listed for trading on any national securities exchange.

 

A summary of the warrant activities for the three months ended March 31, 2023, is as follows:

 

 Schedule of Warrant Activities

    Warrants Outstanding        
    Number of Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Term in Years     Aggregate Intrinsic Value (in 000’s)1  
Balance as of January 1, 2021     -       -       -       -  
Granted     7,083,500     $ 0.05       -       -  
Balance as of December 31, 2022     7,083,500     $ 0.05       4.3       850  
Exercisable as of March 31, 2023     7,083,500     $ 0.05       4.1       991  

 

 

1 The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying warrants and the closing stock price of $ 0.1899 for our common stock on March 31, 2023.