Stockholders' Deficit

6 Months Ended

Jun. 30, 2019

NOTE 7 – STOCKHOLDERS' DEFICIT

Common stock issued for services

On February 1, 2019 the Company entered into a three-month consulting agreement for investor relations services. In connection with the consulting agreement, the Company agreed to issued 20,000 shares of its common stock on the first of each month for the next three months. The shares were valued at their fair value of $56,500 which was the fair value on the date of grant based on the closing quoted share price on the date of grant.

Common stock issued for note conversion

During the six months ended June 30, 2019 a lender converted $11,700 in principal into 151,327 shares of the Company's common stock.

Stock options

Stock option activities for the six months ended June 30, 2019 is summarized as follows:

	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balance Outstanding December 31, 2018		300,000		1.00		4.76
Granted		-		-		-
Balance Outstanding June 30, 2019		300,000	$	1.00		3.51	$	-
Exercisable, June 30, 2019		100,000	$	1.00		3.51	$	-

Warrants

The Company applied fair value accounting for all share-based payments awards. The fair value of each warrant granted is estimated on the date of grant using the Black-Scholes option-pricing model.

The assumptions used for warrants granted during the six months ended June 30, 2019 are as follows:

	June 30, 2019
Exercise price	$	2.00
Expected dividends		-	%
Expected volatility		100	%
Risk free interest rate		2.31 – 2.47	%
Expected life of warrant		3 years

Warrant activities for the six months ended June 30, 2019 are summarized as follows:

	Number of Warrants		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Average Intrinsic Value
Balance Outstanding December 31, 2018		1,363,999		2.36		4.10
Granted in connection with debt		31,910		2.00		3.00
Balance Outstanding June 30, 2019		1,395,909		2.35		3.59	$	34,500
Exercisable, June 30, 2019		1,395,909		2.35		3.59	$	34,500

Arista Financial Corp. 10-Q