8. WARRANTS

On August 20, 2021, for value received in connection with the August 2021 Note, the Company issued 1,000,000 warrants to the lender with an exercise price of $1.50 per share with a five-year exercise period. On February 9, 2023, the Company entered into a letter agreement in connection with the August 2021 Note, whereby the exercise price of the warrants issued on the August 2021 Note was reduced to $0.20 per share. On December 29, 2023, in connection with the letter agreement discussed above, the life of this warrant was extended by two years.

On February 16, 2022, for value received in connection with the February 2022 Note, the Company issued 500,000 warrants to the lender with an exercise price of $1.50 per share with a five-year exercise period. On February 9, 2023, the Company entered into a letter agreement in connection with the August 2021 Note, whereby the exercise price of the warrants issued on the August 2021 Note was reduced to $0.20 per share. On December 29, 2023, in connection with the letter agreement discussed above, the life of this warrant was extended by two years.

Per guidance in ASC 260, the Company determined that the repricing of warrants discussed above, was an exchange of the existing 1,500,000 warrants and the difference between the fair value of the warrants immediately prior to modification of terms and immediately after the adjustment was as a deemed dividend. The difference between the fair value of the warrants immediately prior to modification of terms and immediately after the adjustment was calculated as $44,241, using a Black Scholes model based on the following significant inputs: On February 9, 2023:

On May 10, 2022, for value received in connection with the issuance of the May 2022 Note, the Company issued 1,000,000 warrants to the lender with an exercise price of $0.01 per share with a five-year exercise period. On December 29, 2023, in connection with the letter agreement discussed above, the life of this warrant was extended by two years.

On February 9, 2023, for value received in connection with the issuance of the February 2023 Note and extending the payment terms on previously issued notes, the Company issued 1,000,000 warrants to the lender with an exercise price of $0.20 per share with a five-year exercise period. The fair value of the warrant issued in relation to the letter agreement issued in February 2023, was recorded as stock compensation expense amounting to $148,500. On December 29, 2023, in connection with the letter agreement discussed above, the life of this warrant was extended by two years.

In connection with a letter agreement on June 8, 2023, to extend the due date of the February 2022 Note, the May 2022 Note and the February 2023 letter agreement until June 30, 2023, the Company issued common stock purchase warrants at $0.20 a share with a five-year term. 1,000,000 warrants were issued on June 8, 2023, 500,000 warrants were issued on June 15, 2023, and 500,000 warrants were issued on June 30, 2023. The fair value of the warrant issued in relation to the letter agreement issued on June 2023, was recorded as expense amounting to $238,412. On December 29, 2023, in connection with the letter agreement discussed above, the life of this warrant was extended by two years.

On June 19, 2023, for value received in connection with the issuance of the June 20, 2023, letter agreement, the Company issued a warrant to purchase 750,000 shares of common stock for $0.0001 a share with a seven-year term.

On August 9, 2023, in connection with the extension of the due date of the February 2022 loan, the May 2022 loan, the February 2023 letter agreement and the June 2023 letter agreement, the Company issued 2,000,000 common stock warrants at $0.20 per share with a five-year term. The fair value of this warrant was recorded as an expense of $177,086. This agreement also amended the terms of the previous warrant agreements from cash to cashless exercise. On December 29, 2023, in connection with the letter agreement discussed above, the life of this warrant was extended by two years.

The Company valued the impact of the two-year extension of the term on all of the above warrants using the Black-Scholes model based on the following significant inputs and recorded an expense of $29,000.

On May 13, 2024, in connection with the May 13, 2024 Note, the Company issued 10,000,000 common stock warrants exercisable at $0.0001 per share with a five-year term. The fair value of this warrant was recorded as warrant expense of $64,665, based on a Black Scholes model based on the following significant inputs:

On September 18, 2024, in connection with the September 18, 2024 Note, the Company issued 2,000,000 common stock warrants exercisable at $0.0001 per share with a five-year term. The fair value of this warrant was recorded as warrant expense of $19,999, based on a Black Scholes model based on the following significant inputs:

On September 30, 2024, the fair value of the derivative liability of the warrants was $154,692 and was $728,991 as of September 30, 2023.

For the purpose of determining the fair market value of the derivative liability for the embedded conversion, the Company used the Binomial lattice valuation model. The significant assumptions used in the Binomial lattice valuation of the derivatives are as follows: