NOTE 11 – RESTRICTED COMMON SHARES

 

On 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.

 

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, 2014			-				-
Granted			1,760,000			$	0.17							$	246,400
Exercised			-				-
Forfeited or expired			-				-
Outstanding at December 31, 2015			1,760,000			$	0.17				-			$	246,400
Granted			-				-
Exercised			-				-
Forfeited or expired			-				-
Outstanding at March 31, 2016			1,760,000			$	0.17				-			$	79,200
Vested at March 31, 2016			1,760,000			$	0.17				-			$	79,200

 

The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based upon the Company’s closing stock price of $0.045 as of March 31, 2016, which would have been received by the share option award holders had all share option award holders exercised their share option awards as of that date.

  

The stock warrants issued is presented below: 

 

 

Date Issued		Exercise Price				Number of Shares				Expiration Date
February 9, 2016		$	0.004				50,000			February 28, 2021
February 1, 2016		$	0.003				1,750,000			January 31, 2021
Total warrants at March 31, 2016							4,745,000			4.92 years

 

As of March 31, 2016, the weighted average contractual life of the stock warrants is 4.92 years. The initial fair value of the new warrants issued on for services was estimated at an aggregate value of $5,449. All warrants are vested and exercisable immediately.