Note 8 - Stockholders' Equity

9 Months Ended

Dec. 31, 2015

Notes

Note 8 - Stockholders' Equity

NOTE 8 - STOCKHOLDERS' EQUITY

Stock Issued for compensation and service

On May 16, 2014, in accordance with the Company's agreement with the independent director, the Company issued 16,667 shares of common stock to one independent director, which were valued at $12,500 based on the quoted price at issuance.

On June 30, 2014, the Company issued 21,000 shares of common stock to non-employee consultants for their service.  The total value of $17,850 was determined based on the quoted price at issuance.

On October 19, 2015, in accordance with the Company's agreement with the independent director, the Company issued 20,000 shares of common stock to one independent director, which were valued at $10,000 based on the quoted price at issuance.

Stock Option Plan 

On July 23, 2015, the Company adopted a stock option plan that was approved by its Board of Directors on June 15, 2015.  This plan is intended to retain and provide incentives for talented employees, officers and directors, and to align stockholder and employee interests.  Under this stock option plan, the participants of the plan include the Company's directors, officers and some employees who were previously determined by the Board of Directors.  On July 23, 2015, the Company signed stock option agreements with each participant and granted options to purchase a total of 2.6 million shares of Common Stock to the participants.  The vesting period of the stock options is ten months from July 23, 2015, the grant date of the stock options.  Immediately following the date when the stock options are vested, the participants will have five consecutive business days to exercise the stock options at an exercise price of $0.40 per share.    Stock options not exercised within the five consecutive business days will expire.  The Company assessed the fair value of the total granted stock options on the grant date using a Black-Scholes Stock Option Pricing Model and recognized the compensation expense based on the fair value of the stock options.  The estimated fair value of the total granted stock options on the grant date was $529,100.  For the three and nine months ended December 31, 2015, the Company amortized $155,819 and $273,968 of stock-based compensation expense based on the fair value of the stock options.

Stock Warrant

On August 1, 2015, the Company executed a warrant in favor of a non-employee holder. The warrant would have been released to the holder of the warrant, had the Company's common stockbeen approved for listing on the NASDAQ Stock Market or such other mutually agreed-upon, United States-registered national securities exchange, on the date that the Company received notice of such approval (the "Notice").The number of shares of common stock issuable upon exercise of the warrant would have equaled six percent (6%) of the total issued and outstanding shares (on a fully diluted basis) of the Company's common stock on the date of the Notice at an exercise price of $0.36 per share. Based on the number of issued and outstanding shares as of August 1, 2015 (on a fully diluted basis), the warrant would have been exercisable for 1,938,041 shares of common stock, which amount would then have been subjected to adjustment should the Company have issued any additional shares of Common Stock or options, rights or warrants to receive common stock, or securities convertible into common stock, prior the date of the Notice.The Company had no obligation to deliver the Warrant to the holder if the Company did not receive the Notice on or before July 13, 2016. If the Warrant had been delivered, the Warrant would have expired on August 1, 2020. The Company would have had to account for the warrant in accordance with ASC paragraph 505-50-S99-1. Pursuant to ASC paragraph 505-50-S99-1, if the Company received the right to receive future services in exchange for unvested, forfeitable equity instruments, those equity instruments would have been treated as unissued for accounting purposes until the future services were received (that is, the instruments were not considered issued until they vested). Consequently, there was no recognition at the measurement date and no entry had been recorded as of December 21, 2015 when the stock warrant was terminated.

Effective December 21, 2015, the Company and the non-employee warrant holder agreed to terminate the Company's engagement of the holder dated July 1, 2015 and the Warrant.The Company has no further obligations to the non-employee holder. The termination of the Warrant has no impact on the Company’s current and future financial statements.