Stockholders’ Equity (Deficit)

3 Months Ended

Dec. 31, 2023

Note 3. Stockholders’ Equity (Deficit)

The Company’s common stock is quoted under the symbol “VRVR” on the OTC Pink tier operated by OTC Markets Group, Inc. To date, an active trading market for the Company’s common stock has not developed.

Treasury Stock

The Company accounts for treasury stock using the cost method. At December 31, 2023 and September 30, 2023, the Company held 691,250 shares in treasury, at a cost of $45,000.

Common Stock

The Company is authorized to issue 90,000,000 shares of common stock at par value of $0.001. At December 31, 2023 and September 30, 2023, the Company had 8,942,526 shares issued and 8,251,276 shares outstanding, with 691,250 shares held as treasury stock.

Preferred Stock

The Company is authorized to issue 10,000,000 shares each of Series A and B preferred shares at a par value of $0.01. Series A preferred shares are not convertible, whereas Series B preferred shares are convertible into common stock on a one-for-one basis at the option of the holder and there is no redemption feature.

At December 31, 2023 and September 30, 2023, the Company had 270,612, for both periods presented, of Series B convertible preferred stock issued and outstanding.

The Company is authorized to issue 10,000,000 Series C convertible preferred shares at a par value of $0.01. On July 14, 2023 the Company issued 1,200,480 shares of its Series C preferred stock to a private investor for $0.1666 per share, raising an aggregate amount of $200,000. The Series C preferred shares are convertible into common stock on a one-for-one basis at the option of the holder and there is no redemption feature.

Options

In connection with a consulting agreement with the Company’s new Director dated June 5, 2023, the Company issued a ten-year option to purchase 1,000,000 common shares at $0.15 per share. The option to purchase 250,000 shares vested immediately and the option to purchase an additional 250,000 will vest on the anniversary date of the agreement in each of the following three years. On the date of the grant, the Company valued the option at $148,679 using the Black-Scholes option pricing model with the following assumptions: expected life of the options of 10 years, expected volatility of 163.36%, risk-free rate of 3.66% and no dividend yield. The options are being expensed over the vesting period. The Company recognized $9,292 and $0 in expense for the three months ended December 31, 2023 and 2022.

Schedule of Option Activity

	Underlying Shares		Weighted Average Exercise Price		Weighted Average Term (Years)
Options outstanding at September 30, 2023		1,000,000	$	.15		9.44
Granted		-		-		-
Exercised		-		-		-
Forfeited		-		-		-
Options outstanding at December 31, 2023		1,000,000	$	.15		9.44
Options exercisable at December 31, 2023		250,000	$	.15		9.44

The intrinsic value of options outstanding as of December 31, 2023 was $340,000.

- Definition

The entire disclosure for equity.

+ References

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+ Details

VIRTUAL INTERACTIVE TECHNOLOGIES CORP. 10-Q