SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

15. SUBSEQUENT EVENTS

On August 8, 2016, the Board of Directors approved a new series of preferred stock called Series D Convertible Preferred Stock. The Company intends to use this series of stock to raise new capital and to convert some of its existing debt to this new offering. 500,000 shares of this stock were authorized at a par value of $25.00 per share. The shares are convertible into Common Stock at 125 shares of Common Stock for each share of Series D Convertible Preferred Stock. Holders of shares of Series D Convertible Preferred Stock are entitled to receive, when, as and if declared by the Board, semi-annual dividends in the amount of $0.75 per share. Holders of shares of Series D Convertible Preferred Stock do not have any voting rights.

On August 8, 2016, the Board of Directors approved the 2016 Employees,’ Directors’ and Consultants Stock Option Plan. The Board authorized 2,500,000 shares of Common Stock as available to be granted under this Plan. 

On August 8, 2016, the Company granted 60,000 options to non-employee directors which were fully vested upon issuance. On the same day, the Company also granted 650,000 options to new employees, 75,000 options to current employees and 110,000 options to consultants. 20% of these options vest immediately and the remainder vest over a four year period. The strike price for all these options is $0.17 per share, which is the fair market value of the Company’s Common Stock at the close of business on August 8, 2016.