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Subsequent Events
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 19 – SUBSEQUENT EVENTS

 

Common stock issued for services

 

On July 19, 2017, pursuant to one-year consulting agreements, the Company issued an aggregate of 120,000 shares of common stock to two consultants ($60,000 shares each) for business development services to be rendered. These shares were valued at $498,000, the fair market value on the grant date using the reported closing share price on the date of grant. On July 19, 2017, in connection with the issuance of these shares, the Company recorded prepaid expenses of $498,000 which to amortized over the one-year service period. Additionally, pursuant to these consulting agreements, the Company will issue an additional 40,000 share of common stock to these consultants (20,000 shares each) in October 2017 unless the agreements are cancelled. The initial fair value of these shares was were valued at $166,000, the fair market value on the contract date using the reported closing share price on the date of grant. The Company will recognize stock-based professional fees over the period during which the services are rendered by such consultant. At the end of each financial reporting period prior to issuance of these shares, the fair value of these shares is remeasured using the then-current fair value of the Company’s common stock.

 

On July 31, 2017, pursuant to engagement letters, the Company issued 23,230 shares of common stock and 8,000 shares of common stock for accounting services and investor relation services to be rendered, respectively. These shares were valued at $127,106, the fair market value on the grant date using the reported closing share price on the date of grant. On July 31, 2017, in connection with the issuance of these shares, the Company recorded prepaid expenses of $127,106 which to amortized over the one-year service period.

 

Transfer agreement

 

On August 4, 2017, the Company’s wholly-owned subsidiary, EC Power (Global) Technology Limited (“EC Power”), entered into a Transfer Agreement (the “Transfer Agreement”) with ECoin Global Limited (“ECoin”) to purchase ECoin Redemption Codes (the “Codes”) produced by ECoin for total consideration of $20,000,000 (the “Transfer Consideration”). In accordance with the Agreement, EC Power will market the Codes, which contain a value that enables subscribers to upload certain number of items onto ECrent’s website for rental. The Codes have a validity period of four (4) years, and will not expire until August 3, 2021 (the “Expiry Date”). The Transfer Consideration will be paid by EC Power to ECoin in installments, with each installment payable not later than thirty days after the end of December 31st in each calendar year. Each installment will represent an amount equal to 50% of the net sale proceeds of the Codes sold during each calendar year. The aggregate of installments shall not exceed the Transfer Consideration. Any balance outstanding of the Transfer Consideration at the Expiry Date will be paid and discharged by the issuance and delivery to ECoin of common stock of the Company in accordance with the terms of the Agreement. The number of shares to be issued or delivered shall be an amount equal to (i) the balance due; divided by (ii) the VWAP of the shares for the period of twenty trading days immediately preceding the Expiry Date, provided always that in no circumstances shall shares be issued or delivered hereunder to the ECoin in excess of 19% of the issued and outstanding ordinary Shares of the Company. In connection with this Transfer Agreement, the Company shall record a liability and a corresponding asset of $20,000,000.