Quarterly report pursuant to Section 13 or 15(d)

Restricted Common Shares and Warrants

v3.5.0.2
Restricted Common Shares and Warrants
 9 Months Ended
Sep. 30, 2016
Restricted Common Shares Options And Warrants [Abstract]  
RESTRICTED COMMON SHARES, OPTIONS 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.

 

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, 2014     -       -                  
Granted     1,760,000     $ 0.17                  
Exercised     -       -                  
Superseded by May 28 Stock Warrants     1,760,000       -                  
Outstanding at December 31, 2015           $           N/A      $              -  
                                 
Granted     -       -                  
Exercised     -       -                  
Forfeited or expired     -       -                  
Outstanding at September 30, 2016     -     $ -       0.33     $ -  
Vested at September 30, 2016     -     $ -       0.33     $ -  

 

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     3.66 years   May 27, 2020
May 28, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.66 years   May 27, 2020
June 16, 2015 (Issued in lieu of restricted common stock)   $ 0.011       2,000,000     3.71 years   June 15, 2020
July 8, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.77 years   July 7, 2020
July 8, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.77 years   July 7, 2020
August 24, 2015 (Issued in lieu of restricted common stock)   $ 0.011       10,000     3.90 years   August 23, 2020
February 1, 2016   $ 0.003       1,750,000     4.34 years   January 31,2021
February 29, 2016   $ 0.004       50,000     4.42 years   February 28, 2021
July 15, 2016   $ 0.03       1,500,000     4.79 years   July 14, 2021
                         
Total warrants at September 30, 2016             8,105,000          

 

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

 

The total 4,245,000 and 3,250,000 share of warrants for nine months ended on September 30, 2015 and 2016 were issued to a related party, 360 Partners. And also total 60,000 shares of warrants were issued to the company’s officers for 9 months ended on September 30, 2015.