Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

v3.22.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 2022
Equity [Abstract]  
Stockholders’ Equity

Note 5 – Stockholders’ Equity

 

Authorized Capital

 

The Company is authorized to issue 500,000,000 shares of common stock, $0.0001 par value, and 50,000,000 shares of preferred stock, $0.0001 par value.

 

Non-Controlling Interest

 

The Company owned a majority interest in Krypto Ventures Inc, formerly known as KryptoBank Co. On July 29, 2021, the Company exchanged 52,500,000 shares of common stock in Krypto Ventures, Inc. for 119,584,736 shares of common stock in Descrypto Holdings, Inc. (“Descrypto”) (formerly W Technologies Inc.), an unrelated party in a Share Exchange Agreement. As a result, Krypto Ventures, Inc was deconsolidated and is no longer our subsidiary.

 

On November 18, 2021, the Company entered into a redemption agreement (the “November Redemption Agreement”) pursuant to which the Company agreed to sell, and Descrypto agreed to purchase, an aggregate of 83,709,315 shares of Descrypto’s Common Stock owned by the Company for $84. The Company has not received the proceed from this redemption. Following the November Redemption Agreement, the Company owned 35,875,421 shares of Descrypto’s Common Stock.

 

On February 18, 2022, the Company entered into a redemption agreement (the “February Redemption Agreement”) pursuant to which the Company agreed to sell, and Descrypto agreed to purchase, an aggregate of 28,700,337 shares of Descrypto’s Common Stock owned by the Company for total proceeds of $287. Following the February Redemption Agreement, the Company owned 7,175,084 shares of Descrypto’s Common Stock .

 

On April 1, 2022, the note receivable and interest receivable totalling $27,218 were converted into 68,045 shares of common stock of Descrypto Holdings, Inc. common stock (See Note 10).

 

 

BALANCE LABS, INC. and Subsidiaries

Notes to Condensed Consolidated Financial Statements

As of March 31, 2022

(Unaudited)

 

Warrants

 

During 2016, Balance Group LLC loaned the Company $120,000. In addition to paying interest at 10%, the Company issued 600,000 warrants at an exercise price of $1.00 per share, which expired on September 30, 2021.

 

On October 3, 2019, the Company received $40,000 from The Sammy Farkas Foundation in exchange for a promissory note which bears 12% interest per annum and matured on October 10, 2020 or upon the Company raising $500,000 from outside investors, whichever occurs first. In conjunction with The Sammy Farkas Foundation agreement the Company issued warrants to purchase 40,000 shares of the Company’s common stock at an exercise price of $1.00 per share expiring on October 10, 2022.

 

The following tables summarize warrants outstanding as of March 31, 2022 and 2021 and the related changes during the years are presented below.

 

 

Number of Warrants   Weighted Average Exercise Price  
             
Balance at December 31, 2021     40,000     $ 1.00  
Granted     -       -  
Exercised     -       -  
Expired     -       -  
Balance at March 31, 2022 (Unaudited)     40,000     $ 1.00  

 

Number of Warrants   Weighted Average Exercise Price  
             
Balance at December 31, 2020     640,000     $ 1.00  
Granted     -       -  
Exercised     -       -  
Expired     -       -  
Balance at March 31, 2021 (Unaudited)     640,000     $ 1.00  

 

As of March 31, 2022 and March 31, 2021, the warrants had no intrinsic value.