ACCRUED STOCK PAYABLE

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

ACCRUED STOCK PAYABLE

NOTE 5.  ACCRUED STOCK PAYABLE

The following tables summarize the changes in accrued common stock payable during the nine months ended September 30, 2015:

December 31, 2014	$	524,042
Stock issued for services, accrued in 2014		(114,693)
IPG acquisition		1,054,000
Chiefton acquisition		69,400
Infinity Capital		640,294
NBC employment agreements		158,158
Management consulting services		22,216
September 30, 2015	$	2,353,417

On May 13, 2015, the Company hired two individuals from the Next Big Crop (“NBC”), an unaffiliated entity serving the cannabis industry to service the Company’s new and existing clients. The Company did not purchase any existing client base from NBC and upon execution of employment agreements, granted these persons a total of 100,000 shares of the Company’s common stock with a vesting date of January 1, 2016. On the date of grant, the 100,000 shares had an initial fair value of $311,000, based on a closing price per share of the Company of $3.11 on May 13, 2015. Due to restrictions in the ability to trade the Company’s shares, a discount of fifteen percent (15%) was applied to the fair value of the shares. After taking into consideration the illiquidity of the shares, the fair value was determined to be $264,350.

On July 15, 2015, the Company entered into an agreement with an individual to provide management consulting services in exchange for 50,000 shares of common stock to be delivered on December 31, 2015.  The fair value of the common stock is determined at the end of each reporting period and the pro rata amount earned is recognized as accrued stock payable over the term of the agreement.