4. COMMON STOCK

6 Months Ended

Jun. 30, 2018

Equity [Abstract]

COMMON STOCK

4.     COMMON STOCK

At June 30, 2018, the Company's authorized capital stock was 150,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share. As of June 30, 2018, the Company had outstanding 43,670,765 shares of common stock, and no shares of preferred stock.

2018 Transactions: During the six months ended June 30, 2018, the Company issued shares of common stock as follows:

· None.

2017 Transactions: During the six months ended June 30, 2017, the Company issued shares of common stock as follows:

· 25,000 shares of common stock for current services rendered totaling $4,294 or $0.17 per share (average cost).

· 200,000 shares of common stock were issued as a result of the exercise of a warrant with an exercise price of $0.25 for a total of $50,000 in cash proceeds.

Stock, Options and Warrant Grants:

On March 29, 2018, the Company appointed Bruce A. Mina to its board of directors as an independent director. In connection with his appointment, the Company granted Mr. Mina 200,000 shares of restricted common stock which vest over a four-year period from the date of his appointment. The shares have a fair market value of $234,000 or $1.17 per share. The amount vested and expensed of this grant for the three and six months ended June 30, 2018 totaled $14,625 and $14,625, respectively. As of June 30, 2018 none of the shares have been issued.

On April 13, 2018, the Company appointed Quinn Williams to its board of directors as an independent director. In connection with his appointment, the Company granted Mr. Williams 200,000 shares of restricted common stock which vest over a four-year period from the date of his appointment. The shares have a fair market value of $320,000 or $1.60 per share. The amount vested and expensed of this grant for the three and six months ended June 30, 2018 totaled $17,334 and $17,334, respectively. As of June 30, 2018 none of the shares have been issued.

On May 3, 2018, the Company appointed Dennis Triplett to its board of directors as an independent director. In connection with his appointment, the Company granted Mr. Triplett 200,000 shares of restricted common stock which vest over a four-year period from the date of his appointment. The shares have a fair market value of $268,000 or $1.34 per share. The amount vested and expensed of this grant for the three and six months ended June 30, 2018 totaled $11,166 and $11,166, respectively. As of June 30, 2018 none of the shares have been issued.

On May 3, 2018, the Company appointed Dan R. Henry to its board of directors as an independent director. In connection with his appointment, the Company issued Mr. Henry options to purchase 1,500,000 shares common stock exercisable for five years at $1.049 per share, which vest over a four-year period from the date of his appointment. The amount vested and expensed of this grant for the three and six months ended June 30, 2018 totaled $65,563 and $65,563, respectively. As of June 30, 2018 none of the options have vested or been exercised.

In January 2018, the Company granted 1,140,000 shares of restricted common stock to certain employees of the Company with a fair market value of $808,450 with a range of $0.67 to $0.74 per share. The 1,140,000 shares have an annual vesting period of five years with the first vesting period occurring on December 31, 2018. The amount vested and expensed of this grant for the three and six months ended June 30, 2018 totaled $21,448 and $77,884, respectively. As of June 30, 2018, none of the shares have been issued.

In January 2018, the Company granted 300,000 shares of restricted common stock to an employee of the Company with a fair market value of $213,000, or $0.71 per share. The 300,000 shares have an annual vesting period of three years with the first vesting period occurring on December 31, 2018. The amount vested and expensed of this grant for the three and six months ended June 30, 2018 totaled $17,750 and $35,500, respectively. As of June 30, 2018, none of the shares have been issued.

In July 2017 the Company granted 200,000 shares of restricted common stock to an officer of the Company with a total fair value of $84,400 or $0.422 per share which these shares have been issued. Concurrently, the Company also granted the employee four equal tranches of 200,000 restricted common shares, each valued at $84,400 which will vest in equal amounts over a four year period on the last day of each quarter, commencing December 31, 2017. The amount vested and expensed of this grant for the three and six months ended June 30, 2018 totaled $21,100 and $42,200, respectively. None of the shares subject to vesting restrictions have been issued.

In November 2016, the Company granted a total of 5,000,000 shares to certain officers and directors of the Company with a total value of $787,950 or $0.15759 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The 5,000,000 shares have a quarterly vesting period of five years with the first vesting period occurring on December 31, 2016. The approximate value vested for the three and six months ended June 30, 2018 was $39,397 and $78,794 respectively. As of June 30, 2018, none of the shares have been issued.

In November 2016, the Company granted 210,000 shares to a consultant. The shares were valued at $33,094 or $0.15759 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The 210,000 shares have a quarterly vesting period of three years with the first vesting period occurring on December 31, 2016. The approximate value vested for the three and six months ended June 30, 2018 was $2,758 and $5,516, respectively. As of June 30, 2018, none of the shares have been issued.