NOTE 6 – WARRANTS

In April 2019, the Company issued a convertible note for $110,000. Pursuant to the terms of the note agreement, the Company issued warrants to the holder for the purchase of 440,000 shares of the Company’s common stock. The warrants were exercisable at $0.25 per share for a term of 5 years. The $132,953 fair value of the warrants was calculated using the Black-Scholes pricing model with the following assumptions: stock price $0.38; strike price $0.25; volatility 98%; risk free rate 2.25% and term of 5 years. The Company recognized a warrant expense of $132,593 at the time of grant of the warrants. At December 31, 2023, the intrinsic value of the outstanding warrants was $0, as the trading price of the Company’s common stock at that date was less than the underlying exercise price of the warrants. The shares issued for exercise of the 100,000 warrants in 2023 were adjusted to an exercise price of $0.00062 per share pursuant to the antidilution protection provisions of the warrant agreement, and the warrant holder received 56,788,923 shares of common stock under a cashless exercise.

A summary of warrant activity during the years ended December 31, 2023 and 2024, adjusted to reflect the antidilution protection provisions of the warrant agreement, is presented below: