Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Deficit

v3.20.1
Stockholders' Deficit
3 Months Ended
Mar. 31, 2020
Stockholders Deficit  
Stockholders' Deficit

NOTE 9 – STOCKHOLDERS’ DEFICIT

 

Preferred stock

 

The Company is authorized to issue 50,000,000 shares of $0.001 par value preferred stock as of March 31, 2020 and December 31, 2019. As of March 31, 2020, and December 31, 2019, the Company has designated and issued 10,000,000 shares of Class A Preferred Stock, and 5,000,000 of Class B Preferred Stock.

 

Each share of Class A Preferred Stock is entitled to 100 votes on all matters submitted to a vote to the stockholders of the Company, does not have conversion, dividend or distribution upon liquidation rights.

Each share of Class "B" Preferred Stock is entitled to 1,000 votes on all matters submitted to a vote to the stockholders of the Company, does not have conversion, dividend or distribution upon liquidation rights.

Common stock

 

The Company is authorized to issue 5,000,000,000 shares of $0.001 par value common stock as of March 31, 2020 and December 31, 2019. As of March 31, 2020, and December 31, 2019, the Company had 126,702,818 and 77,958,081, respectively, common shares issued and outstanding

 

During the three months ended March 31, 2020, the Company issued an aggregate of 8,333 shares of its common stock issued to settle amounts previous accrued with an estimated fair value of $6,700.

 

During the three months ended March 31,2020, the Company issued an aggregate of 8,333 shares of its common stock for services rendered with an estimated fair value of $314.

 

During the three months ended March 31,2020, the Company issued an aggregate of 32,805,286 shares of its common stock in settlement of convertible notes payable, accrued interest and embedded derivative liabilities of $633,700.

 

During the three months ended March 31,2020, the Company issued 12,244,897 shares of its common stock in exchange for exercise of warrants on a cashless basis.

 

During the three months ended March 31, 2020, the Company issued 3,677,889 shares of its common stock in settlement of a legal case with an estimate fair value of $956,251.

 

On January 17, 2020, the Company entered into an amendment of an existing convertible promissory note issued to Paladin Advisors, LLC. The Company authorized the issuance of a cashless warrant to purchase 5,750,000 common shares.

 

Options

 

As of March 31, 2020, the Company has no stock options.

 

The following table summarizes the stock option activity for the three months ended March 31, 2020 and the year ended December 31, 2019:

 

    Shares  

Weighted-Average

Exercise Price

 

Weighted Average

Remaining

Contractual Term

 

Aggregate

Intrinsic Value

Outstanding at December 31, 2019     0 (1)   $ —         —       $ 0
Granted     —         —         —         —  
Cancellations     (1,000,000,000 )(1)     —         —         —  
Forfeitures or expirations     —         —         —         —  
Outstanding at March 31, 2020     —       $ —         —       $ —  
Exercisable at March 31, 2020     —       $ —         —       $ —  

  

(1) On February 27, 2019, Donald Steinberg and Charles Larsen canceled all 1,000,000,000 stock options previously issued to them by the Company.

  

Warrants

 

The following table summarizes the stock warrant activity for the three months ended March 31, 2020:

 

    Shares  

Weighted-Average

Exercise Price

 

Weighted Average

Remaining

Contractual Term

     

Aggregate

Intrinsic Value

  Outstanding at January 1, 2020       4,011,111     $ 2.15       3.60         $ —    
  Granted       —         —         —             —    
  Exercised       (44,444 )     0.90       1.82           —    
  Outstanding at March 31, 2020       3,966,667     $ 2.16       3.37         $ —    
  Exercisable at March 31, 2020       3,966,667     $ 2.16       3.37         $  

 

The aggregate intrinsic value in the preceding tables represents the total pretax intrinsic value, based on options with an exercise price less than the Company’s stock price of $0.0177 as of March 31, 2020, which would have been received by the option holders had those option holders exercised their options as of that date.