STOCKHOLDERS’ EQUITY

9 Months Ended

Dec. 31, 2024

(7) STOCKHOLDERS’ EQUITY

Common Stock

Effective December 6, 2018, three existing stockholders have contributed to the Company a portion of their common shares held at a repurchase price to the Company of $0.05 per share. The Company has cancelled the acquired shares, which decreased the common shares outstanding. The total number of common shares canceled/retired was 8,000,000, of which 6,000,000 shares were owned by a related party to the Company. The total liability related to the repurchase of these shares is $400,000, with repayment to the related party stockholders contingent on a major financing event. $300,000 of the $400,000 liability is due to a related party.

On August 15, 2023, the Company issued a private placement memorandum offering to raise up to $1,500,000 through the issuance of restricted shares of the Company’s common stock (par value $0.001) to qualified investors. On September 20, 2023, the Company received subscription agreements from an investor, for 200,000 shares of common stock in conjunction with a purchase of 400,000 warrants to purchase shares of common stock. The proceeds from this transaction were $400,000. On October 4, 2023, the Company received subscription agreements from three separate investors, for 650,000 shares of common stock in conjunction with a purchase of 1,300,000 warrants to purchase shares of common stock. The proceeds from this transaction were $650,000.

Between June 18, 2024, and July 10, 2024, the Company received subscription agreements from seven separate investors, for 805,000 shares of common stock in conjunction with a purchase of 1,610,000 warrants to purchase shares of common stock. The proceeds from these transactions were $805,000.

Warrants to Purchase Common Stock

The Company’s related party lenders consist of: Kraig Higginson, the Chairman of the Board of Directors and a stockholder, Radiant Life, LLC, and Mr. Dickman, a board member and stockholder. These holders of the related party unsecured promissory notes hold agreements that provide each related party with common stock warrants upon the lender’s extension of a maturity due date or upon the loaning of additional monies. The number of warrants issued for an extension is based on the following formula: 10,000 warrants per month the due date is extended plus 1 warrant for every $2 of the principal balance outstanding (not including interest) at the time of the extension (rounded to the nearest whole warrant). Upon the loaning of additional monies, the lender will also require 2 warrants for each dollar loaned. All warrants issued under these terms vested immediately upon issuance, have an exercise price approximately equivalent to the fair value of the Company’s common stock on the date of grant, and expire 5 years from the date of issuance.

During the nine months ended December 31, 2024, the Company issued no new warrants to the Chairman of the Board of Directors, Radiant Life, LLC or Mr. Dickman in conjunction with an extension of the maturity dates during the period per the terms outlined above (see note 8).

Between June 18, 2024, and July 10, 2024, the Company issued 1,610,000 warrants to equity investors, which vested immediately and expire 5 years from the date of issuance, in conjunction with a purchase of 805,000 shares of the Company’s common stock. The exercise price of these warrants was $0.35.

During the nine months ended December 31, 2024, 1,450,000 warrants that had been previously issued expired. Of these warrants, 1,000,000 had an exercise price of $1.00 and were issued in 2021 in association with the unsecured promissory note agreement that the Company has in place with Satco International, and 450,000 had an exercise price of $0.05 and were issued in 2019 in association with the extension of notes payable to Mr. Dickman.

SCHEDULE OF WARRANT OUTSTANDING

	Number of Warrants			Weighted Average Exercise Price ($)
Outstanding at March 31, 2024		14,043,573			0.75
Granted to investors for cash		1,610,000			0.35
Expired		(1,450,000	)		0.71
Outstanding at December 31, 2024		14,203,573			0.71
Exercisable at December 31, 2024		14,203,573			0.71

The following table summarizes the warrants issued and outstanding as of December 31, 2024:

Exercise Price ($)		Warrants Outstanding		Warrants Exercisable		Weighted Average Remaining Contractual Life (Years)		Proceeds to Company if Exercised

	0.05		3,258,754		3,258,754		0.53	$	162,939
	0.35		3,310,000		3,310,000		4.12		1,158,500
	0.41		2,035,029		2,035,029		4.08		1,467,627
	1.05		5,049,790		5,049,790		2.73		5,302,280
	2.00		50,000		50,000		1.59		100,000
	5.00		500,000		500,000		2.07		2,500,000
			14,203,573		14,203,573			$	10,691,346

The shares of common stock issuable upon exercise of the warrants are not registered with the Securities and Exchange Commission and the holders of the warrants do not have registration rights with respect to the warrants or the underlying shares of common stock.

- Definition

The entire disclosure for equity.

+ References

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+ Details

Sundance Strategies, Inc. 10-Q