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10. COMMON STOCK
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
COMMON STOCK

Stock Issued in Cash Sales

 

During the six months ended June 30, 2017 pursuant to a private placement, the Company issued 1,633,333 shares of common stock for cash with a per share price of $0.15 per share or $245,000 and the Company incurred $3,600 of capital raising fees that were paid in cash and charged to additional paid-in-capital. Additionally, the Company is obligated to issue 15,000 warrants as an offering cost to a third party, each with a 5 year term and a strike price of $0.15 per share, at the close of the private placement offering.  There will be no accounting effect for the issuance of these warrants as their fair value will be charged to additional paid-in-capital as an offering cost and offset by a credit to additional paid-in-capital for their fair value when issuing these warrants (See Note 11 and 12).

 

Stock Issued for Services

 

During the six months ended June 30, 2017, as payment for professional services provided, the Company issued 15,000 shares of the Company’s common stock with a per share fair value of $0.15 (based on contemporaneous cash sales prices) or $2,250. These shares were fully earned, and were expensed, upon issuance.

 

During the six months ended June 30, 2017, as partial payment for professional services provided by GreenCore, the Company issued 180,000 shares of the Company’s common stock with a per share fair value of $0.15 (based on contemporaneous cash sales prices) or $27,000 and expensed the payment at issuance. Jay Potter, our director, is the managing member of GreenCore and the primary individual performing the services (See Note 12).

 

Stock Issued in Conversion of Convertible Debt

 

During the six months ended June 30, 2017, and effective as of February 15, 2017, the Company issued 4,698,060 shares of common stock at the contracted conversion price of $0.15 per share, to retire the entirety of a certain convertible note (See Note 6).

 

Director Compensation

 

During the six month period ended June 30, 2017, the Company released 375,000 shares of common stock with a per share fair value of $0.15, or $56,250 (based on the market price at the time of the agreement), to three directors for their service as defined in their respective Restricted Stock Grant Agreements. The payments were expensed at issuance (See Note 12). As of June 30, 2017, there were 1,875,000 unreleased shares of common stock representing $281,250 of unrecognized restricted stock grant expense related to these Restricted Stock Grant Agreements.

 

Stock Issued for Loan Guaranty

 

During the six month period ended June 30, 2017 and as of April 29, 2017, the Company issued 234,302 shares of its common stock valued at $0.15 per share, or $35,145, to Keshif Ventures LLC, a related party, pursuant to a stock purchase agreement. The Company recorded a gain on debt settlement of $2,355 related to this transaction. These shares were expensed to interest expense over the term of the Guaranty period (see Notes 5 and 12).