Shareholders’ Equity
 6 Months Ended
Jun. 30, 2023
Shareholders’ Equity [Abstract]  
Shareholders’ Equity

Note 11 – Shareholders’ Equity

 

Common Stock

 

During the six months ended June 30, 2023, the Company issued:

 

●1,500,000 shares of common stock to its Directors and President, valued at $175,500; and

 

●800,000 shares of common stock valued at $120,000 in satisfaction of convertible debt and interest; and

 

●1,180,000 shares of common stock to consultants for services rendered valued at $139,890. The fair value was determined based on the Company’s stock price on the grant date; and

 

●771,845 and 517,391 shares of common stock in a cashless exercise of 1,500,000 and 1,000,000 warrants, respectively.

 

During the six months ended June 30, 2022, the Company issued:

 

●625,000 shares of common stock valued at $151,250 in relation to the debt that was obtained;

 

●435,805 shares of common stock to consultants for services rendered valued at $80,245. The fair value was determined based on the Company’s stock price on the grant date.

 

Warrants

 

The following table summarizes the activity related to warrants:

 

           Weighted     
       Weighted   Average     
       Average   Remaining   Aggregate 
   Warrants   Exercise   Contractual   Intrinsic 
   Outstanding   Price   Life   Value 
Outstanding, December 31, 2022   2,500,000   $0.11    2.32   $
     -
 
Granted   
-
    
-
    
-
      
Forfeited   
-
                
Exercised   2,500,000   $0.13           
Outstanding, June 30, 2023   
-
   $
-
    
-
   $
-
 
Exercisable, June 30, 2023   
-
   $
-
    
-
   $
-
 

 

The above warrants contain a down-round provision that requires the exercise price to be adjusted if the Company sells shares of common stock below the current exercise price. During the six months ended June 30, 2023, the Company issued shares of common stock for $0.11 therefore, the exercise price of the warrants outstanding were adjusted from $0.14 to $0.11.  The change in fair value between the value of the warrants using the new exercise price versus the old exercise price was calculated to be $2,013 and this amount was recorded as a deemed dividend in the accompanying consolidated financial statements during the six months ended June 30, 2023. During the three months ended June 30, 2023, 1,500,000 and 1,000,000 warrants were exercised in a cashless exercise resulting in 771,845 and 517,391 common shares issued, respectively. The number of warrant shares were determined in the following manner:

 

X = Y(A-B)
 A		 where: X= the number of warrant shares to be issued (771,845 and 517,391)
         
    Y= the number of warrant shares the holder elects to purchase (1,500,000 and 1,000,000)
         
    A= the Market Price ($0.309 and $0.23)
         
    B= Exercise Price ($0.15 and $0.111)