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Stockholders’ Equity
 6 Months Ended
Jun. 30, 2022
Stockholders' Equity Note [Abstract]  
Stockholders’ Equity

Note 3- Stockholders’ Equity

 

Preferred Stock

 

The Company has authorized the issuance of 10,000,000 shares of $0.0001 par value preferred stock. At June 30, 2022 and December 31, 2021, there were nil shares issued and outstanding.

 

Common Stock

 

The Company has authorized the issuance of 100,000,000 shares of $0.0001 par value common stock. At June 30, 2022 and December 31, 2021, there were 16,809,800 shares issued and outstanding. 

 

During the period from March 11, 2021 (Inception) to June 30, 2021, the Company had the following transactions in its common stock: 

  ● issued 4,995,000 shares to founders of the Company for $100 in cash and stock subscription receivables totaling $400.

 

  ● issued 1,200,000 shares to investors at a price per share of $0.03 for cash proceeds of $6,000 and subscription receivables totaling $30,000.

 

There were no transactions in the Company’s common stock during the six months ended June 30, 2022.

 

Warrants

 

The following is a summary of warrant activity:

 

           Weighted     
       Weighted   Average     
       Average   Remaining   Aggregate 
   Warrants   Exercise   Contractual   Intrinsic 
   Outstanding   Price   Life   Value 
Outstanding, December 31, 2021   1,000,000    1.00    4.79   $
               -
 
Granted   
-
    1.00           
Forfeited   
-
                
Exercised   
-
                
Outstanding, June 30, 2022   1,000,000    1.00    4.29   $
-
 
Exercisable, June 30, 2022   375,000   $1.00    4.29   $
-
 

 

The exercise price for warrants outstanding at June 30, 2022:

 

Outstanding   Exercisable 
Number of   Exercise   Number of   Exercise 
Warrants   Price   Warrants   Price 
 1,000,000   $1.00    375,000   $1.00 
 1,000,000         375,000      

 

On October 21, 2021, the Company issued an aggregate of 1,000,000 warrants to three individuals (“Consultants”) that will advising the Company on developing, establishing, operating, commercializing, marketing, promoting, and expanding the Company’s esports business with an aim to commercialize esports tournaments, esports sponsorships, esports advertising revenues, esports merchandise revenues, esports broadcast revenues, esports video revenues, esports game development and marketing and distribution revenues, and all other manner of esports revenue streams for the benefit of the Company. The warrants have an exercise price of $1.00 share and expire in five years. 250,000 of these warrants vested immediately and the balance of 750,000 warrants have provisions making the vesting contingent on the Consultants’ performance in meeting goals and milestones set quarterly by the Company. Specifically, the Company will consult with the Consultants and reach agreement on the Consultants’ goals and milestones at the beginning of each calendar quarter. Out of the 750,000 unvested warrants, 62,500 warrants will vest at the end of each quarter, beginning with the quarter ending March 31, 2022, provided in the Company’s judgement the Consultants have made satisfactory progress over the course of the quarter in meeting set goals and milestones. Warrants not vested on their designated end of quarter vesting date expire.

 

The fair value of the warrants is being amortized to expense over the vesting period. The Company recorded an expense of approximately $93,000 and $46,000 during the six months and three months ended June 30, 2022. At June 30, 2022, the unamortized warrant expense was approximately $465,000, which will be amortized into expense through December 2024.