Quarterly report pursuant to Section 13 or 15(d)

Warrants

v3.21.2
Warrants
3 Months Ended
Sep. 30, 2021
Warrants [Abstract]  
Warrants

11. Warrants

 

The following is a summary of the Company’s outstanding common stock purchase warrants. Of the 500,000 warrants shown below at an exercise price of $.15, these warrants were issued as compensation for a four-year advisory agreement. 150,000 warrants vested on July 24, 2018, another 150,000 on July 24, 2019, another 150,000 vested on July 24, 2020, and the remaining 50,000 vested on July 24, 2021. These warrants were all accounted for in Fiscal 2020.

 

  In July, 2020, the Company entered into a warrant agreement with one of the Company’s vendors for 500,000 underlying shares at a strike price of $0.50 having a term of five years. The Company valued these warrants using the Black Scholes model utilizing a 107.93% volatility, a provision for dividends of $0, and a risk-free rate of 0.29%, respectively.

 

  In exchange for the agreement to lock up shares of Nightfood owned by Mr. Folkson, Mr. Folkson received warrants to acquire 400,000 shares of common stock on February 4, 2021, at a strike price of $.30, and with a term of twelve (12) months from the date of that agreement. The warrants include a provision for cashless exercise and will expire if not exercised within the twelve-month term. The Company valued these warrants using the Black Scholes model utilizing a 107.93% volatility, a provision for dividends of $0, and a risk-free rate of 0.50%.

   

During the three months ended September 30, 2021, holders of the Company’s Series B Preferred Stock converted 773 shares of Series B Preferred Stock into 3,865,000 shares of its common stock, along with that 3,865,000 warrants issued to those holders.

 

  The aggregate intrinsic value of the warrants as of September 30, 2021 is $503,000.

 

      Outstanding at
                Outstanding at
 
Exercise Price     June 30,
2021
    Issued in Q1
2022
    Expired     September 30,
2021
 
$ 0.01       1,600,000              
               -
      1,600,000  
$ 0.15       500,000              
-
      500,000  
$ 0.20       2,250,000              
 
      2,250,000  
$ 0.30       2,650,000       3,865,000      
-
      6,515,000  
$ 0.40       150,000              
-
      150,000  
$ 0.50       500,000              
-
      500,000  
$ 0.75       300,000              
-
      300,000  
$ 1.00       100,000              
 
      100,000  
          8,050,000       3,865,000      
-
      11,915,000