WARRANTS

9 Months Ended

Sep. 30, 2021

NOTE 7 – WARRANTS

A summary of activity regarding warrants issued as follows:

	Warrants Outstanding
	Shares			Weighted Average Exercise Price		Contractual life (in years)

Outstanding, December 31, 2020		245,232,491		$	0.0069		4.35
Granted		-			-		-
Reset feature		-			-		-
Exercised		(5,077,060	)		0.0079		-
Forfeited/canceled		-			-		-
Outstanding, September 30, 2021		240,155,431		$	0.0070		3.64

Exercisable warrant at September 30, 2021		240,155,431		$	0.0070		3.64

The Company determined that the warrants qualify for derivative accounting due to the reset feature of warrants, which led to no explicit limit to the number of shares to be delivered upon future settlement of the exercised warrants.

Aggregate intrinsic value is the sum of the amounts by which the quoted market price of the Company’s stock exceeded the exercise price of the warrants at September 30, 2021 for those warrants for which the quoted market price was in excess of the exercise price (“in-the-money” warrants). The intrinsic value of the warrants as of September 30, 2021 is $10,695,033.

Phoenix Rising Companies 10-Q