v3.26.1
STOCKHOLDERS’ EQUITY
 3 Months Ended
Mar. 31, 2026
Equity [Abstract]  
STOCKHOLDERS’ EQUITY

NOTE 11 – STOCKHOLDERS’ EQUITY

 

Preferred stock

 

The Company is authorized to issue 50,000,000 shares of Preferred Stock. Each share of Preferred Stock has the voting power of ten shares of Common Stock, and can at any time be converted into five (5), shares of Common Stock. The table below sets forth the number of shares of Preferred Stock issued and outstanding during the reporting period(s). There were 43,283,991 Preferred Stock outstanding on March 31, 2026:

 

Issuances of Preferred Stock in the period January 1 and March 31, 2025

 

Date   # Shares   Amount   Price/Share   Type  Notice 
1/01/2025    43,158,248   $4,408,582   $0.102        
1/10/2025 b  (150,000)   (750)   0.005   Stock conversion  affiliate 
3/31/2025    —    214,780    —   Payroll forfeiture*  affiliate 
See Note 11 d  390,140    131,076    0.342   2021 Stock Plan  affiliate 
3/31/2025    43,398,388   $4,753,688   $0.110        

 

There has been no issuance of Preferred Stock in the period January 1 and March 31, 2026

 

Date  # Shares   Amount   Price/Share   Type  Notice
3/31/2026   43,283,991   $4,748,150   $0.110       

 

* The transaction originating from the Company’s Officers forfeiting $578,959 of accrued payroll in the first quarter of 2025.

 

Common stock

 

The Company is authorized to issue 400,000,000 shares of Common Stock. There were 113,361,886 Common Stock outstanding on March 31, 2026:

 

Issuances of Common Stock in the period January 1 and March 31, 2025

 

Date   # Shares   Amount   Price/Share   Type  Notice 
1/01/2025    86,782,908   $12,722,039   $0.147        
1/10/2025 b  750,000    750    0.001   Stock conversion    
see Note 11 d  1,348,951    91,300    0.077   2021 Stock Plan    
3/31/2025    88,881,859   $12,814,089   $0.144        

 

 

Issuances of Common Stock in the period January 1 and March 31, 2026

 

Date     # Shares   Amount   Price/Share   Type  Notice 
1/01/2026      108,147,731   $13,607,433   $0.126        
1/23/2026 a *  4,716,000   145,701   0.031   private placement   
1/23/2026 a *  —    95,339    —   warrants   
1/10/2026 c    75,000    5,550    0.074   consulting fees   
2/10/2026 c    239,155    10,723    0.046   consulting fees    
3/10/2026 c    184,000    8,150    0.044   consulting fees    
3/31/2026      113,361,886   $13,872,896   $0.122        

  

Common Shares due, but not yet issued in accordance with service contract at March 31, 2026:

 

Date    # Shares   Amount   Price/Share   Type  Notice  
3/31/2026 a   75,000   $4,883   $0.065   consulting fees   

 

*

Around January 23, 2026, the Company proposed a private placement offering investors to purchase shares and warrants issued together as a unit; however, each warrant is detachable and separately exercisable to purchase one share of Common Stock. The average price was $0.06 per unit, less a broker (Member FINRA / SIPC) fee consisting of 8% cash commission and 8% bonus shares. The Company raised a total of $241,040 (after $20,960 cash commission) and issued 4,716,000 shares of Common Stock (after 349,333 bonus shares), as well as 4,366,667 5-year warrants exercisable to buy Common Stock at $0.12 per share. The net received by the Company was $0.053 per unit.

   
a The Company claims an exemption from the registration requirements of the Securities Act for the private placement of these securities pursuant to Section 4(a)(2) of the Securities Act and/or Rule 506 of Regulation D promulgated under the Securities Act.
b The Company claims an exemption from the registration requirements of the Securities Act pursuant to the exchange exemption under Rule 144 of the Securities Act.
c The Company claims an exemption from the registration requirements of the Securities Act pursuant to the exchange exemption in Rule 3(a)(9) of the Securities Act.
d The Company claims an exemption from the registration requirements of the Securities Act for the compensatory benefit plan pursuant to Rule 701 of the Securities Act.

 

Common Stock Warrants

 

The fair value of Common Stock warrants granted for the three months ended March 31, 2026, and March 31, 2025 was calculated with the following assumptions:

 

   March 31, 2026   March 31, 2025 
Risk-free interest rate   3.92%   3.96 – 4.61%
Expected dividend yield   0%   0%
Volatility factor (monthly)   119.99%   127.02%
Expected life of warrant   5 years    5 years 

 

For the three months ended March 31, 2026, the Company issued 4,366,667 warrants. For the three months ended March 31, 2025, the Company did not award any warrants.

 

The following table summarizes the Company’s Common Stock warrant activity for the three months ended March 31, 2026, and 2025:

 

   

Number of

Warrants *

  

Weighted Average

Exercise Price

  

Weighted Average

Remaining

Expected Term

 
Outstanding as at January 1, 2025    1,292,030   $0.22    2.6 
Granted    —    —    — 
Exercised    —    —    — 
Forfeited/Cancelled    —    —    — 
Outstanding as at March 31, 2025    1,292,030   $0.22    2.7 
                 
Outstanding as at January 1, 2026    16,675,364   $0.13    4.6 
Granted    4,366,667    0.12    5.0 
Exercised    —    —    — 
Forfeited/Cancelled    —    —    — 
Outstanding as at March 31, 2026    21,042,031   $0.13    4.2 

 

 

The following table summarizes information about stock warrants that are vested or expected to vest at March 31, 2026, with a market price of $0.045 at March 31, 2026:

 

        Warrants Outstanding and Exercisable     
Exercise Price   Number of Warrants  

Weighted Average

Exercise Price

Per Share

  

Weighted Average

Remaining

Contractual Life

(Years)

  

Aggregate Intrinsic

Value

 
$0.12    19,750,001   $0.12    4.7   $— 
 0.20-0.25    1,264,030    0.23    1.7    — 
 0.47    28,000    0.47    1.4    — 
$0.12-0.47    21,042,031   $0.13    4.2   $— 

 

The weighted-average remaining contractual life for warrants exercisable at March 31, 2026, is 4.2 years. The aggregate intrinsic value for fully vested, exercisable warrants was $0 at March 31, 2026.