What changed in this filing

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Item 2. Unregistered Sales of Equity Securities

2022-05-11 compared with 2021-11-15 · 48 added, 21 removed, 2 unchanged (97% of the section changed)

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

UNREGISTERED SALES OF EQUITY SECURITIES

AND USE OF PROCEEDS

2022 Convertible Note

On March 28, 2022, the

Company entered into Securities Purchase Agreement with an accredited investor providing for the sale by the Company to the investor of

a Convertible Note in the amount of $4,000,000 (the “2022 Convertible Note”).

In addition to the 2022 Convertible Note, the

investor will also receive a Stock Purchase Warrant (the “2022 Warrant”) to acquire an aggregate of 1,333,333 shares of common

The 2022 Warrants will be exercisable for five years at an exercise price of $1.25.

The financing closed with respect to $2,669,521.60

of the financing on April 15, 2022 and with respect to $659,580.64 of the financing on April 29, 2022.

The Company and the investor expect

to close on the balance of the $4,000,000 in funding no later than May 15, 2022.

As a result of the first closing, the Company issued

the investor a 2022 Convertible Note in the principal amount of $2,669,521.60 and a 2022 Warrant to acquire 889,840 shares of common stock

and as a result of the second closing, the Company issued the investor a 2022 Convertible Note in the principal amount of $659,580.64

and a 2022 Warrant to acquire 219,860 shares of common stock.

The 2022 Convertible

Note bears interest at 1% per annum payable at maturity and matures ten years from issuance.

The investor may elect to convert all or

part of the 2022 Convertible Note, plus accrued interest, at any time into shares of common stock of the Company at a conversion price

equal to 95% of the average of the highest three trading prices for the common stock during the 20-trading day period ending one trading

day prior to the conversion date but in no event will the conversion price be lower than $0.75 per share.

The investor agreed to

restrict its ability to convert the 2022 Convertible Note and exercise the 2022 Warrants and receive shares of common stock such that

the number of shares of common stock held by the investor after such conversion or exercise does not exceed 4.99% of the then issued and

outstanding shares of common stock.

Further, the investor agreed to not sell or transfer any or all of the shares of common stock underlying

the 2022 Convertible Note or the 2022 Warrant for a period of 90 days beginning on the closing date (the “Lock-Up Period”).

Following the expiration of the Lock-Up Period, the investor has agreed to limit its sale or transfer of such shares of common stock to

a maximum monthly amount equal to 20% of the shares of common stock issuable upon conversion of the 2022 Convertible Note.

agreed to use its reasonable best efforts to file a registration statement on Form S-3 (or other appropriate form) providing for the resale

by the investor of the shares of common stock underlying the 2022 Convertible Note and the 2022 Warrant.

Shares Issued for Services

the nine months ended September 30, 2021, the Company issued a total of 1,205,679 shares of its common stock for services rendered and

to be rendered.

These shares were valued at $1,319,487, the fair market values on the grant dates using the reported closing share prices

on the dates of grant, and the Company recorded stock-based compensation expense of $784,800 for the nine months ended September 30,

2021 and reduced accrued liabilities of $276,032 and recorded prepaid expense of $258,655 as of September 30, 2021 which will be amortized

over the rest of corresponding service periods.

October 2021, the Company issued 200,000 shares of its common stock to a consultant for services rendered.

These shares were valued at

$188,000, the fair market value on the grant date using the reported closing share price on the date of grant.

Shares Issued for Settlement of Accrued Professional Fees

June 2021, the Company issued 167,355 shares of its common stock to settle accrued and unpaid professional fees of $202,500.

offers, sales, and issuances of the securities described above were deemed to be exempt from registration under the Securities Act of

1933 in reliance on Section 4(a)(2) of the Securities Act of 1933 or Regulation D promulgated thereunder as transactions by an issuer

not involving a public offering.

The recipients of securities in each of these transactions acquired the securities for investment only

and not with a view to or for sale in connection with any distribution thereof and appropriate legends were affixed to the securities

issued in these transactions.

Each of the recipients of securities in these transactions was an accredited or sophisticated person and

had adequate access, through employment, business or other relationships, to information about us.

DEFAULTS UPON SENIOR SECURITIES

2022, the Company issued a total of 329,592 shares of its common stock for services rendered and to be rendered.

were valued at $290,950, the fair market values on the grant dates using the reported closing share prices on the dates of grant, and

the Company reduced accrued liabilities of $251,590 and recorded prepaid expense of $39,360 which will be amortized over the rest

of corresponding service periods.

The offers, sales, and issuances of the securities

described above were deemed to be exempt from registration under the Securities Act of 1933 in reliance on Section 4(a)(2) of the Securities

Act of 1933 or Regulation D promulgated thereunder as transactions by an issuer not involving a public offering.

The recipients of securities

in each of these transactions acquired the securities for investment only and not with a view to or for sale in connection with any distribution

thereof and appropriate legends were affixed to the securities issued in these transactions.

Each of the recipients of securities in these

transactions was an accredited or sophisticated person and had adequate access, through employment, business or other relationships, to

information about us.

DEFAULTS UPON

SENIOR SECURITIES

MINE SAFETY DISCLOSURES

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Unregistered Sales of Equity Securities