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, 2015

-

-

-

Granted

-

-

-

Exercised

-

-

-

Forfeited or expired

-

-

-

Outstanding at December 31, 2016

-

$

-

N/A

$

-

Granted

-

-

-

Exercised

-

-

-

Forfeited or expired

-

-

-

Outstanding at March 31, 2017

-

$

-

N/A

$

-

Vested at March 31, 2017

-

$

-

N/A

$

-

 

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			3.16 years		May 27, 2020
May 28, 2015 (Issued in lieu of restricted common stock)		$	0.011				25,000			3.16 years		May 27, 2020
June 16, 2015 (Issued in lieu of restricted common stock)		$	0.011				2,000,000			3.21 years		June 15, 2020
July 8, 2015 (Issued in lieu of restricted common stock)		$	0.011				25,000			3.27 years		July 7, 2020
July 8, 2015 (Issued in lieu of restricted common stock)		$	0.011				25,000			3.27 years		July 7, 2020
August 24, 2015 (Issued in lieu of restricted common stock)		$	0.011				10,000			3.40 years		August 23, 2020
February 1, 2016		$	0.003				3,000,000			3.84 years		January 31,2021
February 1, 2016		$	0.003				1,750,000			3.84 years		January 31,2021
February 29, 2016		$	0.004				50,000			3.92 years		February 28, 2021
July 15, 2016		$	0.03				1,500,000			4.29 years		July 14, 2021
January 6, 2017		$	0.03				1,750,000			4,77 years		January 5, 2022
Total warrants at March 31, 2017							12,855,000

 

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

 

The total 1,750,000 and 4.750,000 share of warrants for three months ended on March 31,2017 and 2016 were issued to a related party, 360 Partners.