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. 

 

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			1,760,000			$	0.17				N/A			$	246,400
Granted			-				-
Exercised			-				-
Superseded by May 28 Stock Warrants			1,760,000				-
Outstanding at December 31, 2015			-			$	-				N/A			$	-
Granted			-				-
Exercised			-				-
Forfeited or expired			-				-
Outstanding at June 30, 2016			-			$	-				N/A			$	-
Vested at June 30, 2016			-			$	-				N/A			$	-

 

The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value, based upon the Company’s closing stock price of $0.017 as of June 30, 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				Weighted Average Remaining Contractual Life		Expiration date
May 28, 2015 (Issued in lieu of restricted common stock)		$	0.11				2,720,000			4.66 years	May 27, 2020
May 28, 2015 (Issued in lieu of restricted common stock)		$	0.11				25,000			4.66 years	May 27, 2020
June 16, 2015 (Issued in lieu of restricted common stock)		$	0.11				2,000,000			4.72 years	June 15, 2020
July 8, 2015 (Issued in lieu of restricted common stock)		$	0.11				25,000			4.77 years	July 7, 2020
July 8, 2015 (Issued in lieu of restricted common stock)		$	0.11				25,000			4.77 years	July 7, 2020
August 24, 2015 (Issued in lieu of restricted common stock)		$	0.11				10,000			4.90 years	August 23, 2020
February 1, 2016		$	0.003				10,000			4.92 years	January 31, 2021
February 9, 2016		$	0.004				10,000			4.92 years	February 28, 2021
Total warrants at June 30, 2016							4,825,000

 

The initial fair value of the new warrants issued on for services in 3rd quarter, 2015 was estimated at an aggregate value of $635. The initial fair value of the new warrants issued on for services in 1^st quarter, 2016 was estimated at an aggregate value of $5,449. All warrants are vested and exercisable immediately.