|3 Months Ended|
Mar. 31, 2022
Note 5 – Stockholders’ Equity
The Company is authorized to issue shares of common stock, $ par value, and shares of preferred stock, $ par value.
The Company owned a majority interest in Krypto Ventures Inc, formerly known as KryptoBank Co. On July 29, 2021, the Company exchanged shares of common stock in Krypto Ventures, Inc. for 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 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 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 287. Following the February Redemption Agreement, the Company owned shares of Descrypto’s Common Stock . shares of Descrypto’s Common Stock owned by the Company for total proceeds of $
On April 1, 2022, the note receivable and interest receivable totalling $27,218 were converted into 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
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.
Summary of Warrants Outstanding
As of March 31, 2022 and March 31, 2021, the warrants had intrinsic value.
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef