Equity Transactions | 7. EQUITY TRANSACTIONS The Company was authorized to issue 1,500,000,000 shares of common stock with a par value of $0.001 per share. These shares have full voting rights. There were 1,287,155,296 shares issued and outstanding as of September 30, 2015 with 40,000,000 shares pending to be issued as of September 30, 2015. On September 2, 2015, the Company increased the number of authorized shares of common stock from 1,500,000,000 to 3,000,000,000. The Company is also authorized to issue 100,000,000 shares of common stock, Class A with a par value of $0.001 per share. These shares have 10 votes per share. There were no shares issued and outstanding as of September 30, 2015. The Company is also authorized to issue 1,000,000 shares of Series A preferred stock, with a par value of $0.001 per share. These shares have full voting rights of 1,000 votes per share. There were 1,000,000 shares issued and outstanding as of September 30, 2015. During the nine months ended September 30, 2015, the Company issued 154,203,310 shares of common stock for service under various executive and consulting agreements. On January 15, 2015, the Company issued 15,000,000 shares of Rule 144 restricted common stock with a fair market value of $997,500 for settlement of $150,000 in liabilities for loss on settlement of $847,500. On January 15, 2015, the Company sold 10,000,000 shares of Rule 144 restricted common stock with a fair market value of $250,000. On February 20, 2015, the Company issued 30,828,080 common shares for settlement of $30,828 of stockholder debt with Intrinsic Capital Corp., for a loss on settlement of $1,510,576, from the stockholder notes payable originating on July 23, 2013 ($18,328), August 15, 2013 ($1,250), August 30, 2013 ($1,250), and September 9, 2013 ($10,000). On March 27, 2015, the Companys CFO, Robert Kane, loaned Michigan Green Technologies LLC $52,500 secured by a non-interest bearing promissory note due within 30 days of MGT liquidating shares in Cannabis Science, Inc. to repay the debt. As of February 20, 2015, the Company closed on its acquisition and now owns a majority 50.1% interest in MGT. On April 29, 2015, the Company issued 40,000,000 common shares for settlement of $40,000 of stockholder debt with Intrinsic Capital Corp., for a loss on settlement of $1,360,000, from the stockholder notes payable originating on December 31, 2013. On May 21, 2015, the Company issued 5,000,000shares of Rule 144 restricted common stock to IGX Bio, Inc. pursuant to the joint development agreement with the Company. On July 16, 2015, the Company issued 10,000,000 shares of Rule 144 restricted common stock for the acquisition of EquiPharm. On September 2, 2015, the Company approved dividend paid in the form of common stocks and warrants. The fair value of the dividends paid were $473,527. The company approved issuance of 17,500,000 shares of common stocks as consulting fee to be issued at a later date. The company approved issuance of 25,000,000 shares of common stocks as settlement of $25,000 of debt for a loss on settlement of $770,000 to be issued at a later date. The company approved issuance of 61,500,000 shares of common stocks as stock option exercise to be issued at a later date. Stock Options: A summary of the status of the Companys option grants as of September 30, 2015 and the changes during the period then ended is presented below: Weighted-Average Shares Exercise Price Outstanding December 31, 2014 1,700,000 $ 0.41 Granted 61,500,000 0.01 Exercised (61,500,000 ) (0.01 ) Expired Outstanding September 30, 2015 1,700,000 $ 0.41 Options exercisable at September 30, 2015 1,700,000 $ 0.41 These options expire on the date of termination of the management agreement and services thereunder with the consultants. The weighted average fair value at date of grant for options during nine months ended September 30, 2015 was estimated using the Black-Scholes option valuation model with the following: Average expected life in years 0 Average risk-free interest rate 2 % Average volatility 106 % Dividend yield 0 % The option holders exercised its options in September 2015 through cashless exercise. These exercise resulted in a receivable from the option holders of $615,000 |