Annual report pursuant to Section 13 and 15(d)

EQUITY TRANSACTIONS

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EQUITY TRANSACTIONS
12 Months Ended
Dec. 31, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]

NOTE 6: EQUITY TRANSACTIONS


Common Stock 


2020


During January 2020, in conjunction with the issuance of a convertible note payable to a related party, the Company recognized a $4,150 debt discount to additional paid-in capital.


During April 2020, the Company issued 1,250,000 shares of common stock for the conversion of $100,000 in principal of a convertible note payable due to a related party.


Between May and December 2020, the Company issued a total of 140,734,185 shares of common stock for the conversion of $1,191,144 in principal, $102,354 in accrued interest and $5,050 in conversion fees on eight convertible notes payable.


During July and August 2020, the Company issued 479,123 shares of common stock for services valued at $7,859 and 13,275,153 shares of common stock to officers and directors for bonuses valued at $172,550. Common stock issued for services was valued at the market prices of the Company’s common stock on the date of grant.


During December 2020, in conjunction with the issuance of a convertible note payable to a related party, the Company recognized a $98,000 debt discount to additional paid-in capital.


2019


During the year ended December 31, 2019, the Company issued 636,364 shares of its common stock to consultants for services valued at $0.10 per share, or $63,637.


During the year ended December 31, 2019, the Company issued 4,408,000 shares of its common stock to officers for bonuses at $0.10 per share, or $440,800.


During the year ended December 31, 2019, the Company issued 1,875,000 shares of its common stock for the conversion of $150,000 of related party convertible debt at the stated conversion price of $0.08 per share.


Options


There were no common stock options issued and no unamortized options expense during the years ended and as of December 31, 2020 and 2019.


The following table presents the stock option activity during the years ended December 31, 2020 and 2019:


           

Weighted

   

Weighted

 
           

Average

   

Average

 
   

Options

   

Exercise Price

   

Remaining Term

 

Outstanding - December 31, 2018

    114,285     $ 9.63       0.75  

Granted

    -       -       -  

Expired

    (114,285

)

    9.63       -  

Exercised

    -       -       -  

Outstanding - December 31, 2019

    -     $ -       -  

Granted

    -       -       -  

Expired

    -       -       -  

Exercised

    -       -       -  

Outstanding – December 31, 2020

    -     $ -       -  

Warrants


In November 2013, the Company issued a lender an aggregate of 310,863 common stock warrants in connection with a note payable. The warrants were exercisable immediately at $1.75 per share and expire on November 30, 2018. These warrants contain a subsequent equity sale reset “down round”, which provides that if the Company sells or grants any option to purchase any common stock of the Company at any effective price per share less than the exercise price of the warrants, the exercise price shall be reduced to equal that lower exercise price. During 2017, the exercise price of these warrants was reset to $0.055 per share.  As the warrants were accounted for as derivative liabilities (due to being tainted by the outstanding convertible debt) at the time the reset was triggered, the change in fair value resulting from the reset of $26,060 was recognized as change in fair value of derivative liabilities.


In August 2014, the Company issued a lender an aggregate of 4,180,000 common stock warrants in connection with a note payable. The warrants were exercisable immediately at $0.50 per share and expire on August 31, 2019. These warrants contain a subsequent equity sale reset “down round”, which provides that if the Company sells or grants any option to purchase any common stock of the Company at any effective price per share less than the exercise price of the warrants, the exercise price shall be reduced to equal that lower exercise price. During 2017, the exercise price of these warrants was reset to $0.055 per share. As the warrants were accounted for as derivative liabilities (due to being tainted by the outstanding convertible debt) at the time the reset was triggered, the change in fair value resulting from the reset of $177,959 was recognized as change in fair value of derivative liabilities.


There were no warrants issued during 2020 and 2019.


The following table presents the stock warrant activity during the years ended December 31, 2020 and 2019:


           

Weighted

   

Weighted

 
           

Average

   

Average

 
   

Warrants

   

Exercise Price

   

Remaining Term

 

Outstanding - December 31, 2018

    7,032,329     $ 0.08       1.21  

Granted

    -       -       -  

Forfeited/expired

    (4,180,000

)

    0.06       -  

Exercised

    -       -       -  

Outstanding - December 31, 2019

    2,852,329     $ 0.11       1.00  

Granted

    -       -       -  

Forfeited/expired

    (2,360,457

)

    0.11       -  

Exercised

    -       -       -  

Outstanding – December 31, 2020

    491,872     $ 0.14       0.43  
                         

Exercisable – December 31, 2020

    491,872     $ 0.14       0.43  

The intrinsic value of the exercisable warrants as of December 31, 2020 and 2019 was $0 and $0, respectively.