XML 26 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Equity
12 Months Ended
Dec. 31, 2016
Equity [Abstract]  
Equity

10.       EQUITY

 

Common Stock

 

The Company issued the following shares of common stock for the years ended December 31:

 

    2016     2015  
    Value of Shares     # of shares     Value of Shares     # of shares  
Shares issued for services rendered   $ 296,550       34,050,000     $ 517,203       42,600,000  
Shares issued for accrued salaries and expenses     104,294       10,421,592       233,000       12,562,500  
Shares issued for conversion of debt     422,879       108,464,758       420,232       35,523,226  
Shares issued for financing     16,000       2,000,000       -       125,000  
                                 
Total restricted shares issued   $ 839,723       154,936,350     $ 1,170,435       90,810,726  

 

Shares issued for services rendered were to various members of management, employees and consultants and are generally expensed as Stock-Based Compensation in the accompanying consolidated statement of operations. Also included are shares of common stock issued to our 2016 investors in conjunction with their note and share purchase agreements. Shares issued for accrued salaries and expenses were granted to members of management, Board Members, consultants and employees as payment for portions of amounts owed to them for services rendered in previous periods. Shares issued for conversion of debt relate to conversions of both short and long term debt as discussed in Note 8. Shares issued for financing in 2015 relate to shares granted to investors for their participation in the 2015 financings.

 

Common Stock Warrants

 

Since inception, the Company has issued numerous warrants to purchase shares of the Company’s common stock to shareholders, consultants and employees as compensation for services rendered.

 

On January 27, 2016, 1,250,000 warrants were issued to an accredited investor as part of their Note and Share Purchase Agreement. The warrants expire on February 26, 2018 at an exercise price of $0.015 per share. The fair value of the warrants was $6,101 on the date of grant.

 

On March 16, 2016, 3,000,000 warrants were issued to two accredited investors as part of their Loan Agreements. The warrants expire on March 16, 2019 at an exercise price of $0.0125 per share. The fair value of the warrants was $27,166 on the date of grant.

 

On April 18, 2016, 500,000 warrants were issued to an accredited investor as part of the Note and Share Purchase Agreement. The warrant expires on April 18, 2019 at an exercise price of $0.0125 per share. The fair value of the warrants was $4,128 on the date of grant.

 

On May 6, 2016, 1,250,000 warrants were issued to an accredited investor as part of the Note and Share Purchase Agreement. The warrant expires on December 16, 2018 at an exercise price of $0.015 per share. The fair value of the warrants was $7,328 on the date of grant.

 

On May 16, 2016, 3,300,000 warrants were issued to consultant as part of their Advisory Services Agreement. The warrants expire on May 16, 2019 at an exercise price of $0.015 per share. The fair value of the warrants was $18,835 on the date of grant.

 

On July 1, 2016, 4,200,000 series “A” warrants and 2,100,000 series “B” warrants were issued to an accredited investor as part of the Note and Warrant Purchase Agreement. The series A and B warrants expires on July 1, 2019 at an exercise price of $0.015 per share for the series A and $0.030 per share for the series B warrants. The fair value of the warrants was $34,076 on the date of grant.

 

On July 8, 2016, 2,100,000 series “A” warrants and 1,050,000 series “B” warrants were issued to two accredited investors as part of the Note and Warrant Purchase Agreement. The series A and B warrants expires on July 8, 2019 at an exercise price of $0.015 per share for the series A and $0.030 per share for the series B warrants. The fair value of the warrants was $17,038 on the date of grant.

 

A summary of the Company’s warrant activity and related information is provided below:

 

    Exercise Price $     Number of Warrants  
Outstanding and exercisable at December 31, 2014     0.08 – 0.40       2,000,000  
Warrants exercised     -       -  
Warrants granted       0.015 - 0.02       11,150,000  
Warrants expired     0.02       (2,000,000 )
Outstanding and exercisable at December 31, 2015     0.15 - 0.02       11,150,000  
Warrants exercised     -       -  
Warrants granted       0.0125 - 0.03       18,750,000  
Warrants expired     -       -  
Outstanding and exercisable at December 31, 2016     0.0125 - 0.03       29,900,000  

 

 
Stock Warrants as of December 31, 2016    
Exercise     Warrants     Remaining     Warrants    
Price     Outstanding     Life (Years)     Exercisable    
                       
$ 0.02       9,900,000       1.07       9,900,000    
$ 0.015       13,350,000       2.10       13,350,000    
$ 0.0125       3,500,000       2.25       3,500,000    
$ 0.03       3,150,000       2.52       3,150,000    

 

Common Stock Options

 

Under the Company’s 2008 Plan, we are authorized to grant stock options intended to qualify as Incentive Stock Options, “ISO”, under Section 422 of the Internal Revenue Code of 1986, as amended, non-qualified options, restricted and unrestricted stock awards and stock appreciation rights to purchase up to 7,000,000 shares of common stock to our employees, officers, directors and consultants, with the exception that ISOs may only be granted to employees of the Company and its subsidiaries, as defined in the 2008 Plan.

 

The Company recognizes option expense ratably over the vesting periods. As of December 31, 2012, all options granted were fully vested. Accordingly, no option expense has been recognized during the years ended December 31, 2016 and 2015.

 

No options were granted during 2016 and 2015.

 

The Plan provides for the issuance of a maximum of 7,000,000 shares of which, after adjusting for estimated pre-vesting forfeitures and expired options, approximately 2,235,000 were available for issuance as of December 31, 2016.

 

As of December 31, 2016, after adjusting for estimated pre-vested forfeitures, there was $0 of unrecognized compensation cost related to unvested stock options. The Company intends to issue new shares to satisfy share option exercises.

 

Stock option activity under the Plan for the period from December 31, 2014 to December 31, 2016 is summarized as follows:

 

    Shares     Weighted Average Exercise Price     Weighted Average Remaining Contractual Life (in years)     Grant Date Fair Value  
Outstanding at December 31, 2014     775,133     $ 0.14       1.09     $ 46,901  
Options granted     -       -       -       -  
Options exercised     -       -       -       -  
Options cancelled/forfeited/expired     (322,640 )     -       -       (31,959 )
Outstanding at December 31, 2015     452,493       0.08       0.09       14,942  
Options granted     -       -       -       -  
Options exercised     -       -       -       -  
Options cancelled/forfeited/ expired     452,493       -       -       (14,942 )
Outstanding at December 31, 2016     -       -       -     $ -  
                                 
Exercisable at December 31, 2016     -       -       -     $ -