Quarterly report pursuant to Section 13 or 15(d)

Restricted Common Shares

v3.7.0.1
Restricted Common Shares
 6 Months Ended
Jun. 30, 2017
Restricted Common Shares [Abstract]  
RESTRICTED COMMON SHARES

NOTE 11 – RESTRICTED COMMON SHARES

 

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 June 30,2017: (i) 9,930,044 shares of Company common stock were subject to issuance pursuant to outstanding convertible notes payable, (ii) 17,355,000 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 June 30, 2017.

 

The stock warrants 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     2.91 years   May 27, 2020
May 28, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     2.91 years   May 27, 2020
June 16, 2015 (Issued in lieu of restricted common stock)   $ 0.011       2,000,000     2.96 years   June 15, 2020
July 8, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.02 years   July 7, 2020
July 8, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.02 years   July 7, 2020
August 24, 2015 (Issued in lieu of restricted common stock)   $ 0.011       10,000     3.15 years   August 23, 2020
February 1, 2016   $ 0.008       3,000,000     3.59 years   January 31,2021
February 1, 2016   $ 0.003       1,750,000     3.59 years   January 31,2021
February 29, 2016   $ 0.004       50,000     3.67 years   February 28, 2021
July 15, 2016   $ 0.03       1,500,000     4.04 years   July 14, 2021
January 6, 2017   $ 0.03       1,750,000     4,52 years   January 5, 2022
April 5, 2017   $ 0.048       1,500,000     4.76 years   April 4, 2022
April 5, 2017   $ 0.048       3,000,000     4.76 years   April 4, 2022
                         
Total warrants at June 30, 2017             17,355,000          

 

 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. The initial fair value of the new warrants issued for services in 2nd quarter, 2017 was estimated at an aggregate value of $221,422. All warrants are vested and exercisable immediately.

 

The total 4,750,000 and 4,750,000 shares of warrants for the quarters ended of June 30, 2017 and 2016, respectively, were issued to a related party.

 

The total 3,000,000 and 50,000 shares of warrants for the quarters ended of June 30, 2017 and 2016, respectively, were issued to 3rd party for the service provided or investment brought into the Company.