NOTE 12 — SUBSEQUENT EVENTS

Employee options/warrants

On January 3, 2017, the Company granted 100,000 options to an employee as compensation for services rendered. The options are exercisable at $0.159 for five years with 50% vesting on January 3, 2018 and 50% vesting monthly beginning on first year anniversary over the next 24 months. The exercise price was determined using the 10-day average closing price beginning with the closing price on January 3, 2017.

On January 14, 2017, the Company issued 250,000 warrants to a consultant as compensation for services rendered. The warrants are exercisable at $0.12 for three five years, vesting immediately.

On March 10, 2017, the Company granted 100,000 options to an employee as compensation for services rendered. The options are exercisable at $0.145 for five years with 50% vesting on January 16, 2018 and 50% vesting monthly beginning on first year anniversary over the next 24 months. The exercise price was determined using the 10-day average closing price beginning with the closing price on February 24, 2017.

Common stock

In January 2017, the Company issued 41,666 shares of its common stock for consulting services rendered valued at $6,625.

In January 2017, the Company sold 357,143 shares of common stock of the Company and 40,000 warrants to purchase the Company’s common stock to an accredited investor for net proceeds of $50,000. The warrants have a term of five years, an exercise price of $0.25 per share and are subject to anti-dilution protection, as defined.

In February 2017, the Company issued 41,666 shares of its common stock for consulting services rendered valued at $5,333

In March 2017, the Company issued 41,666 shares of its common stock for consulting services rendered valued at $5,917.

Restricted stock units (“RSU”)

In February 23, 2017, the Company granted 402,297 RSUs for accrued and unpaid compensation for the period from December 1, 2016 through March 31, 2017 in the amount of $58,333 The RSUs vest upon the satisfaction of both of the following conditions: (i) Officer remains in service to the Company continuously through and until June 30, 2017, and (ii) the Company undergoes a change of control during the seven-year term of the award.