Quarterly report pursuant to Section 13 or 15(d)

Changes in Stockholders' Equity

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Changes in Stockholders' Equity
 3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
Changes in Stockholders' Equity

Note 13 – Changes in Stockholders’ Equity

 

Common Stock

 

The Company is authorized to issue an aggregate of 300,000,000 shares of common stock with a par value of $0.001. As of March 31, 2021, there were 57,335,305 shares of common stock issued and outstanding.

 

Common Stock Issued on Subscriptions Payable

 

On March 1, 2021, the Company issued 750,000 shares of common stock on a Subscriptions Payable for the November 27, 2020 sale of common stock at $0.10 per share for proceeds of $75,000.

 

Common Stock Issued as a Promissory Note Commitment

 

As disclosed in Note 11, above, pursuant to the Purchase Agreement with AJB Capital, the Company paid a commitment fee to the Investor in the form of 2,000,000 shares of the Company’s common stock. During the six month period following the six month anniversary of the closing date (the “Adjustment Period”), the Investor shall be entitled to be issued additional shares of common stock of the Company to the extent the Investor’s sale of the Commitment Fee Shares has resulted in net proceeds in an amount less than the $200,000 Commitment Fee. If the Company repays the Note on or prior to the Maturity Date, the Company may redeem 1,000,000 of the Commitment Fee Shares for a nominal redemption price of $1.00. The Commitment Fee Shares resulted in a debt discount of $268,250 that is being amortized over the life of the loan, resulting in $73,927 of finance expense during the three months ended March 31, 2021.

 

Amortization of Stock-Based Compensation

 

A total of $428,090 of stock-based compensation expense was recognized from the amortization of options to purchase common stock over their vesting period during the three months ended March 31, 2021.