Stockholders Deficit

6 Months Ended

Jun. 30, 2023

Note 9 - Stockholders’ Deficit

Common Stock

During the six months ended June 30, 2023, pursuant to the Company’s Qualified Regulation A Offering, the Company issued 306,599,998 shares of common stock in exchange for cash of $1,272,000, net of direct fees and commissions. As part of the offering, the Company also issued warrants to certain investors and placement agent to purchase 61,319,999 shares of common stock. The warrants are fully vested, exercisable at an average exercise price of $0.0145 per share and will expire in five years.

Warrants

The table below summarizes the Company’s warrant activities for the six months ended June 30, 2023:

	Number of Warrant Shares		Exercise Price Range Per Share		Weighted Average Exercise Price

Balance, January 1, 2023		362,729,077	$	0.0018-0.75	$	0.006
Granted		243,319,999		0.02		0.02
Canceled/Expired		-		-		-
Exercised		-		-		-
Balance outstanding and exercisable, June 30, 2023		606,049,076	$	0.00018 – 0.75	$	0.009

At June 30, 2023, the warrants had no intrinsic value.

The following table summarizes information concerning outstanding and exercisable warrants as of June 30, 2023:

		Warrants Outstanding and Exercisable
Range of Exercise Prices		Number Outstanding		Average Remaining Contractual Life (in years)		Weighted Average Exercise Price

$	0.0045		346,666,653		4.47	$	0.0045
	0.02		254,339,999		4.90		0.02
	0.05		5,000,000		3.48		0.50
	0.75		42,424		1.68		0.75

$	0.0045 - $0.75		606,049,076		4.43	$	0.009

During the six months ended June 30, 2023, the Company sold 182,000,000 warrants to purchase shares of common stock in exchange for cash of $37,000, net of direct fees and commissions. The warrants are fully vested, exercisable at $0.02 per share, and expire in five years.

At the date of sale of these warrants, the estimated fair value of these warrants sold for cash was $839,000 using a Black Scholes Option Pricing Model. The difference between the fair value of the warrants sold and cash received of $802,000 was recorded as a deemed dividend because the issuance of the warrants was only made available to certain shareholders, and not all the common shareholders.

- Definition

The entire disclosure for equity.

+ References

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+ Details

Zerify, Inc. 10-Q