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Stockholders' Equity
9 Months Ended
Sep. 30, 2017
Stockholders' Equity [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 13 – STOCKHOLDERS’ EQUITY

 

Common stock issued for services

 

On May 8, 2017, the Company issued 15,000 shares of common stock pursuant to its 2016 long-term incentive plan for legal services. The shares were valued at $50,400, the fair market value on the grant date using the reported closing share price on the date of grant. In connection with this issuance, the Company reduced accounts payable by $28,400 and recorded stock-based professional fees of $22,000 during the nine months ended September 30, 2017.

 

On May 18, 2017, pursuant to a seven month consulting agreement, the Company issued 25,000 shares of its common stock to a consultant for business development services provided and to be provided through December 31, 2017. These shares were valued at $84,000, the fair market value on the grant date using the reported closing share price on the date of grant. Pursuant to this consulting agreement, on September 30, 2017, the Company issued an additional 25,000 share of common stock to this consultant. These shares were valued at $81,500, the fair market value on the grant date using the reported closing share price on the date of grant. For the nine months ended September 30, 2017, in connection with these issuances, the Company recorded stock-based professional fees of $100,300 and prepaid expenses of $65,200 which is amortized over the remaining service period.

 

On June 22, 2017, pursuant to a one-year consulting agreement effective May 16, 2017, the Company issued 65,200 shares of common stock to a consultant for business development services rendered and to be rendered. These shares were valued at $283,620, or $4.35 per share, the fair market value on the grant date using the reported closing share price on the date of grant. For the nine months ended September 30, 2017, in connection with the issuance of these shares, the Company recorded stock-based professional fees of $106,357 and prepaid expenses of $141,811 which is amortized over the remaining service period. Additionally, pursuant to this consulting agreement, the Company will issue an additional 20,000 share of common stock to this consultant before November 1, 2017. The initial fair value of these shares were valued at 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. For the nine months ended September 30, 2017, the Company recorded stock-based professional fees of $25,200 related to these issuable shares and as of September 30, 2017, there was $42,000 of unamortized stock-based professional fees to be recognized through May 2018.

 

On July 19, 2017, pursuant to one-year consulting agreements effective July 19, 2017, 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, or $4.15 per share, the fair market value on the grant date using the reported closing share price on the date of grant. For the nine months ended September 30, 2017, in connection with the issuance of these shares, the Company recorded stock-based professional fees of $103,750 and prepaid expenses of $394,250 which is amortized over the remaining 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) before November 1, 2017. The initial fair value of these shares were valued at 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. For the nine months ended September 30, 2017, the Company recorded stock-based professional fees of $28.000 related to these issuable shares and as of September 30, 2017, there was $106,400 of unamortized stock-based professional fees to be recognized through July 2018.

 

On July 31, 2017, pursuant to a one-year consulting agreements effective July 1, 2017, the Company issued 8,000 shares of common stock to a consultant for investor relations services to be rendered. These shares were valued at $32,560, or $4.07 per share, the fair market value on the grant date using the reported closing share price on the date of grant. For the nine months ended September 30, 2017, in connection with the issuance of these shares, the Company recorded stock-based professional fees of $8,140 and prepaid expenses of $24,420 which is amortized over the remaining service period.

 

On July 31, 2017, pursuant to a one-year consulting agreements effective July 1, 2017, the Company issued 23,230 shares of common stock to a consultant for accounting services rendered and to be rendered. These shares were valued at $85,111, or $4.07 per share, the fair market value on the grant date using the reported closing share price on the date of grant. For the nine months ended September 30, 2017, in connection with the issuance of these shares, the Company recorded stock-based professional fees of $30,713 and prepaid expenses of $54,398 which is amortized over the remaining service period.

  

On August 21, 2017, pursuant to one-year consulting agreements effective August 21, 2017, the Company issued an aggregate of 125,000 shares of common stock to two consultants (65,000 and 60,000 shares, respectively) for business development services to be rendered. These shares were valued at $403,750, or $3.23 per share, the fair market value on the grant date using the reported closing share price on the date of grant. For the nine months ended September 30, 2017, in connection with the issuance of these shares, the Company recorded stock-based professional fees of $44,749 and prepaid expenses of $359,001 which is amortized over the remaining service period. Additionally, pursuant to these consulting agreements, the Company will issue an additional 35,000 share of common stock to these consultants (17,000 and 18,000, respectively) before November 21, 2017. The initial fair value of these shares was were valued at 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. For the nine months ended September 30, 2017, the Company recorded stock-based professional fees of $13,034 related to these issuable shares and as of September 30, 2017, there was $104,566 of unamortized stock-based professional fees to be recognized through July 2018.

 

Common stock sold for cash

 

In June 2017, pursuant to stock purchase agreements, the Company sold an aggregate of 290,000 shares of common stock to three investors at a purchase price of $3.00 per share for net cash proceeds a total of $860,000. The Company did not engage a placement agent with respect to these sales.