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10. COMMON STOCK
3 Months Ended
Mar. 31, 2017
Equity [Abstract]  
COMMON STOCK

Stock Issued in Cash Sales

 

During the three months ended March 31, 2017 pursuant to a private placement, the Company issued 200,000 shares of common stock for cash with a per share price of $0.15 per share or $30,000 and the Company incurred $2,400 of capital raising fees that were paid in cash and charged to additional paid-in-capital. Additionally, the Company is obligated to issue 10,000 warrants as an offering cost to a third party, each with a 5 year term and a strike price of $0.15 per share, at the close of the private placement offering.  There will be no accounting effect for the issuance of these warrants as their fair value will be charged to additional paid-in-capital as an offering cost and offset by a credit to additional paid-in-capital for their fair value when issuing these warrants.

 

Stock Issued for Services

 

During the three months ended March 31, 2017, as payment for professional services provided, the Company issued 15,000 shares of the Company’s common stock with a per share fair value of $0.15 (based on contemporaneous cash sales prices) or $2,250. These shares were fully earned, and were expensed, upon issuance.

 

Stock Issued in Conversion of Convertible Debt

 

During the three months ended March 31, 2017, and effective as of February 15, 2017, the Company issued 4,698,060 shares of common stock at the contracted conversion price of $0.15 per share, to retire the entirety of a certain convertible note (See Note 6).

 

Director Compensation

 

During the three month period ended March 31, 2017, the Company released 187,500 shares of common stock with a per share fair value of $0.15, or $28,125 (based on the market price at the time of the agreement), to three directors for their service as defined in their respective Restricted Stock Grant Agreements. The payments were expensed at issuance (See Note 12). As of March 31, 2017, there were 2,062,500 unreleased shares of common stock representing $309,375 of unrecognized restricted stock grant expense related to these Restricted Stock Grant Agreements.