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Equity
3 Months Ended
Mar. 31, 2018
Equity [Abstract]  
Equity

6. EQUITY

 

Common Stock

 

On January 11, 2018, we issued 29,296,875 shares of common stock to an investor for converting $37,500 in debt from a Convertible Note that was issued in the second quarter of 2017.

 

On January 11, 2018, we issued 14,705,882 shares of common stock to an investor for converting $15,000 in debt from a Convertible Note that was issued in the first quarter of 2017.

 

On March 8, 2018, we issued 18,421,053 shares of common stock to an investor for converting $28,000 in debt from a Convertible Note that was issued in the third quarter of 2017.

 

The Company issued the following shares of common stock during the three months ended March 31, 2018:

 

    Value of Shares     Number of Shares  
Shares issued for conversion of debt   $ 80,500       62,423,810  
Shares issued for services rendered     12,070       4,550,000  
Total shares issued   $ 92,570       66,973,810  

 

Shares issued for services rendered were to various members of management, the Board of Directors, employees and consultants and are expensed as Stock-Based Compensation in the accompanying consolidated statement of operations. Shares issued for conversion of debt relate to conversion of the convertible note discussed in Note 5.

 

Common Stock Warrants

 

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

 

During the first quarter of 2018, 11,150,000 warrants expired, bringing the balance to 28,750,000 on March 31, 2018.

 

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, 2017     0.0125 - 0.03       39,900,000  
Warrants exercised     -       -  
Warrants granted     -       -  
Warrants expired     0.015 - 0.02       (11,150,000
Outstanding and exercisable at March 31, 2018     0.0125 - 0.03       28,750,000  

 

Stock Warrants as of March 31, 2018  
Exercise     Warrants     Remaining     Warrants  
Price     Outstanding     Life (Years)     Exercisable  
$ 0.02       5,000,000       0.81       5,000,000  
$ 0.015       20,100,000       0.91       20,100,000  
$ 0.0125       500,000       1.05       500,000  
$ 0.03       3,150,000       1.26       3,150,000  

 

Common Stock Options

 

Under the Company’s 2008 Equity Compensation Plan (the “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.

 

On January 1, 2018, the company issued 1,250,000 options from the 2008 Plan to various non-management employees for continuity of work and retention. These options will carry a two-year vesting period with an exercise price of $0.01.

 

After adjusting for issuances, expired and estimated pre-vesting forfeitures, options for approximately 985,000 shares were still available for grant under the 2008 Plan as of March 31, 2018.