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Stockholders' Equity
9 Months Ended
Sep. 30, 2019
Stockholders' Equity Note [Abstract]  
STOCKHOLDERS' EQUITY

NOTE 12 – STOCKHOLDERS' EQUITY

 

Common stock issued for cash

 

In March 2019, pursuant to a stock purchase agreement, the Company sold 690,000 shares of common stock to an investor at a purchase price of $0.29 per share for net cash proceed a total of $200,100. The Company did not engage a placement agent with respect to these sales.

 

Common stock issued for services and common stock surrendered

 

During the nine months ended September 30, 2019, pursuant to consulting and service agreements, the Company issued an aggregate of 1,349,347 shares of common stock to twenty four consultants and vendors for the services rendered and to be rendered. These shares were valued at the fair market value on the grant date using the reported closing share price on the date of grant. At the end of each financial reporting period prior to issuance of these shares, the fair value of these shares is measured using the fair value of the Company's common stock at reporting date. During the nine months ended September 30, 2019, the fair value of the above mentioned shares issued and the change in value of the shares to be issued was $288,969. The Company recognizes stock-based professional fees over the period during which the services are rendered by such consultant or vendor. For the nine months ended September 30, 2019, the Company recorded stock-based consulting and service fees to service provider and employees of $2,710,195. In connection with the issuance/future issuance of shares to consultants and vendors, the Company recorded prepaid expenses of $1,026,124 which will be amortized over the remaining service period.

 

During the nine months ended September 30, 2019, the Company terminated the consulting agreements of eleven consultants. The consultants surrendered an aggregate of 562,501 shares issued in prior periods. In addition, the Company also mutually agreed or terminated the consulting and service agreements of three consultants and vendors. Both parties forgo their respective rights as stated in the agreements; and the Company has no obligation to issue in aggregate of 223,135 shares in effect. As a result of the above mentioned transactions, the Company reversed the fair value of $947,948 recognized in stockholders' equity in prior periods.

 

Common stock issued for debt conversion

 

In January 2019, the Company issued 266,667 shares of its common stock upon conversion of debt (note 10).

 

Shares issued for donation

 

In February 2019, the Company issued 85,470 shares as donation to Hong Kong Baptist University ("HKBU"). The Foundation would use the funds raised from the donation to support the delivery of education, operation, facilities enhancement and study of the Academy of Film of HKBU. These shares were valued at $259,598, or $3.04 per share. In connection with this donation, during the nine months ended September 30, 2019, the Company recorded donation expense of $259,598, which is included in operating expenses.