Stockholders' Equity

9 Months Ended

Sep. 30, 2016

Stockholders' Equity [Abstract]

STOCKHOLDERS' EQUITY

NOTE 12 – STOCKHOLDERS’ EQUITY

Common stock issued for services

On March 1, 2016, the Board of Directors approved and authorized the Company to issue 160,000 shares of common stock pursuant to its amended 2010 long-term incentive plan, including 75,000 shares to its former chief financial officer. The shares were valued at $209,600, the fair market value on the grant date using the reported closing share price on the date of grant, and the Company reduced accrued liabilities of $54,000 and recorded stock-based compensation and fees of $130,400 for the nine months ended September 30, 2016 and recorded prepaid expenses of $25,200 which will be amortized over the balance of the corresponding service periods.

On March 1, 2016, the Board of Directors approved and authorized the Company to issue a total of 300,000 shares of common stock to two companies which performed services relating to preparing and implementing a new business plan for the Company with the objective of improving the Company’s long-term growth. Of these shares, 100,000 shares were issued pursuant to an agreement with one consultant and 200,000 shares were issued pursuant to an agreement with a second consultant. The agreements provide for the issuance of an additional 100,000 shares to one consultant and 200,000 to the second consultant if the agreement is in effect in July 2016. On July 1, 2016, the Company issued an additional 100,000 shares of its common stock to the first consultant pursuant to the agreement. A consulting agreement with the second consultant was terminated, and no additional shares of common stock were issued or are issuable pursuant to the consulting agreement with the second consultant. The shares were valued at fair market value using the reported closing share price on the date of grant, and the Company recorded stock-based compensation and fees of $441,990 for the nine months ended September 30, 2016 and recorded prepaid expenses of $48,990 which will be amortized over the balance of the corresponding service periods.

On June 30, 2016, the Board of Directors approved and authorized the Company to issue 12,500 shares of common stock pursuant to its amended 2010 long-term incentive plan to a consultant. The shares were valued at $12,500, the fair market value on the grant date using the reported closing share price on the date of grant, and the Company recorded stock-based compensation and fees of $10,350 for the nine months ended September 30, 2016 and recorded prepaid expenses of $2,150, which will be amortized over the rest of service periods.

The Company recorded stock-based compensation and fess of $94,240 for the three months ended September 30, 2016.

Common stock sold for cash

The Company sold a total of 720,000 shares of common stock to an investor during June and July 2016 pursuant to stock purchase agreements. On June 6, 2016, the Company sold 230,000 shares of common stock at a purchase price of $1.00 per share, from which the Company received net proceeds of $230,000. On June 24, 2016, the Company sold 230,000 shares of common stock at a purchase price of $1.10 per share, from which it received net proceeds of $253,000. On July 18, 2016, the Company sold 260,000 shares of common stock at a purchase price of $1.04 per share, from which it received gross proceeds of $270,400. The Company did not engage a placement agent with respect to these sales.