Annual report pursuant to Section 13 and 15(d)

Stock Based Compensation

v3.7.0.1
Stock Based Compensation
 12 Months Ended
Dec. 31, 2016
Stock Based Compensation [Abstract]  
STOCK BASED COMPENSATION

NOTE 10 – STOCK BASED COMPENSATION

 

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.

 

On May 28, 2015, the Company has elected to grant warrants to certain entities and individuals in lieu of restricted common stocks that has not been issued.

 

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               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Superseded by May 28 Stock Warrants     1,760,000       -               -  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 December 31, 2016     -     $ -       N/A     $ -  
Vested at December 31, 2016     -     $ -       N/A     $ -  

 

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     3.41 years   May 27, 2020
May 28, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.41 years   May 27, 2020
June 16, 2015 (Issued in lieu of restricted common stock)   $ 0.011       2,000,000     3.46 years   June 15, 2020
July 8, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.52 years   July 7, 2020
July 8, 2015 (Issued in lieu of restricted common stock)   $ 0.011       25,000     3.52 years   July 7, 2020
August 24, 2015 (Issued in lieu of restricted common stock)   $ 0.011       10,000     3.65 years   August 23, 2020
February 1, 2016   $ 0.003       3,000,000     4.09 years   January 31, 2021
February 1, 2016   $ 0.003       1,750,000     4.09 years   January 31, 2021
February 29, 2016   $ 0.004       50,000     4.16 years   February 28,2021FF
July 15, 2016   $ 0.03       1,500,000     4.54 years   July 14, 2021
                         
Total warrants at December 31, 2016             11,105,000          

 

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 for services in 1st quarter, 2016 was estimated at an aggregate value of $14,442. 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.