Quarterly report pursuant to Section 13 or 15(d)

Restricted Common Shares and Warrants

v3.7.0.1
Restricted Common Shares and Warrants
3 Months Ended
Mar. 31, 2017
Restricted Common Shares and Warrants [Abstract]  
RESTRICTED COMMON SHARES AND WARRANTS

NOTE 11 – RESTRICTED COMMON SHARES AND WARRANTS

 

In May 20, 2014, the Company approved future issuances of performance based restricted common shares to the following employees and outside consultants. The Company accounts the issuances of restricted common shares, as defined by ASC 718, Compensation—Stock Compensation, in accordance with ASC 718. The restricted common shares will be issued upon completion of certain tasks or deliverables and contain certain exercise price with no expiration period.

 

On May 28, 2015, the Company has elected to grant warrants to certain entities and individuals in lieu of restricted common stock that has been issued.

 

As of March 31,2017: (i) 2,793,651 shares of Company common stock were subject to issuance pursuant to outstanding convertible notes payable, (ii) 12,855,000 shares of Company common stock were subject to issuance pursuant to the existing warrants. There are total 48,588, 557 unissued shares of Company common stocks, which are more than the potential of common stocks if the convertible debt and warrant have been converted at the end of March 31, 2017.

 

a)     A summary of the status of the Company’s restricted common shares is presented below:

 

      Shares       Weighted 
Average
Exercise Price
      Weighted
Average
Remaining
Contractual Life 
(in Years)
      Aggregate
Intrinsic
Value
 
Outstanding at December 31, 2015     -       -               -  
Granted     -       -               -  
Exercised     -       -               -  
Forfeited or expired     -       -               -  
Outstanding at December 31, 2016     -     $ -       N/A      $ -  
                                 
Granted     -       -               -  
Exercised     -       -               -  
Forfeited or expired     -       -               -  
Outstanding at March 31, 2017     -     $ -       N/A     $ -  
Vested at March 31, 2017     -     $ -       N/A     $ -  

 

b)     The stock warrants issued in lieu of restricted common stock granted but not yet issued is presented below:

 

Date Issued   Exercise Price     Number of Shares     Weighted Average Remaining Contractual Life   Expiration date
                     
May 28, 2015 (Issued in lieu of restricted common stock)   $ 0.011       2,720,000     3.16 years   May 27, 2020
May 28, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.16 years   May 27, 2020
June 16, 2015 (Issued in lieu of restricted common stock)   $ 0.011       2,000,000     3.21 years   June 15, 2020
July 8, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.27 years   July 7, 2020
July 8, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.27 years   July 7, 2020
August 24, 2015 (Issued in lieu of restricted common stock)   $ 0.011       10,000     3.40 years   August 23, 2020
February 1, 2016   $ 0.003       3,000,000     3.84 years   January 31,2021
February 1, 2016   $ 0.003       1,750,000     3.84 years   January 31,2021
February 29, 2016   $ 0.004       50,000     3.92 years   February 28, 2021
July 15, 2016   $ 0.03       1,500,000     4.29 years   July 14, 2021
January 6, 2017   $ 0.03       1,750,000     4,77 years   January 5, 2022
                         
Total warrants at September 30, 2016             12,855,000          

 

The initial fair value of the new warrants issued for services in 1st quarter, 2016 was estimated at an aggregate value of $5,449. The initial fair value of the new warrants issued for services in 3rd quarter, 2016 was estimated at an aggregate value of $40,002. The initial fair value of the new warrants issued for services in 1st quarter, 2017 was estimated at an aggregate value of $48,558. All warrants are vested and exercisable immediately.

 

The total 1,750,000 and 4.750,000 share of warrants for three months ended on March 31,2017 and 2016 were issued to a related party, 360 Partners.