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13. SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2017
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

Subsequent to March 31, 2017, pursuant to a private placement, the Company issued to one shareholder a total of 100,000 shares of common stock for cash at $0.15 per share or $15,000. The Company incurred $1,200 of capital raising fees that were paid in cash and charged to additional paid-in capital. Related to these sales, the Company is further obligated to issue 5,000 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.

 

Related to the Guaranty issued by Keshif whereas Keshif guaranteed the Company’s obligations under the LSA with Silicon Valley Bank, as of April 30, 2017, the Company issued 234,302 shares of its common stock with a contractual value of $37,500. The value of this share issuance is being expensed over the current Measurement Period of the Guaranty currently maturing on April 29, 2017 (See Note 5 and Note 9). The Company will record a gain on conversion of $2,355 related to this transaction.