Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2016shares | |
Document and Entity Information: | |
Entity Registrant Name | FULLNET COMMUNICATIONS INC |
Document Type | 10-Q |
Document Period End Date | Sep. 30, 2016 |
Trading Symbol | fulo |
Amendment Flag | false |
Entity Central Index Key | 1,092,570 |
Current Fiscal Year End Date | --12-31 |
Entity Common Stock, Shares Outstanding | 9,118,161 |
Entity Filer Category | Smaller Reporting Company |
Entity Current Reporting Status | No |
Entity Voluntary Filers | No |
Entity Well-known Seasoned Issuer | No |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Sep. 30, 2016 | Dec. 31, 2015 | |
ASSETS | |||
Cash | $ 16,314 | $ 16,012 | |
Accounts receivable, net | 8,535 | 6,308 | |
Prepaid expenses and other current assets | 14,963 | 2,505 | |
Total current assets | 39,812 | 24,825 | |
PROPERTY AND EQUIPMENT, net | 83,441 | 96,388 | |
OTHER ASSETS AND INTANGIBLE ASSETS | 5,867 | 7,064 | |
TOTAL ASSETS | 129,120 | 128,277 | |
LIABILITIES | |||
Accounts payable | 190,889 | 201,540 | |
Accrued and other liabilities | 585,062 | 543,316 | |
Convertible notes payable, related party - current portion | 46,811 | 46,811 | |
Deferred revenue | 377,931 | 355,545 | |
Total current liabilities | 1,200,693 | 1,147,212 | |
CONVERTIBLE NOTES PAYABLE, related party - less current portion | 144,565 | 168,025 | |
Total liabilities | 1,345,258 | 1,315,237 | |
STOCKHOLDERS' DEFICIT | |||
Preferred stock | [1] | 580,007 | 544,703 |
Common stock | [2] | 91 | 91 |
Additional paid-in capital | 8,613,917 | 8,640,542 | |
Accumulated deficit | (10,410,153) | (10,372,296) | |
Total stockholders' deficit | (1,216,138) | (1,186,960) | |
TOTAL LIABILITES AND STOCKHOLDERS' DEFICIT | $ 129,120 | $ 128,277 | |
[1] | $.001 par value; authorized, 10,000,000 shares; Series A convertible issued and outstanding, 987,102 shares | ||
[2] | $.00001 par value; authorized, 40,000,000 shares; issued and outstanding, 9,118,161 shares |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Sep. 30, 2016 | Dec. 31, 2015 |
Statement of Financial Position Parenthetical | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock Series A convertible, shares outstanding | 987,102 | 987,102 |
Common stock, par value | $ 0.00001 | $ 0.00001 |
Common stock, shares authorized | 40,000,000 | 40,000,000 |
Common stock, shares outstanding | 9,118,161 | 9,118,161 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
REVENUES | ||||
Access service revenues | $ 14,350 | $ 18,750 | $ 46,151 | $ 58,115 |
Co-location and other revenues | 464,248 | 449,846 | 1,396,626 | 1,327,998 |
Total revenues | 478,598 | 468,596 | 1,442,777 | 1,386,113 |
OPERATING COSTS AND EXPENSES | ||||
Cost of access service revenues | 19,353 | 24,622 | 58,935 | 67,516 |
Cost of co-location and other revenues | 78,872 | 77,976 | 240,171 | 226,974 |
Selling, general and administrative expenses | 374,209 | 370,955 | 1,149,139 | 1,130,403 |
Depreciation and amortization | 6,701 | 5,938 | 20,740 | 25,127 |
Total operating costs and expenses | 479,135 | 479,491 | 1,468,985 | 1,450,020 |
LOSS FROM OPERATIONS | (537) | (10,895) | (26,208) | (63,907) |
INTEREST EXPENSE | (3,732) | (3,876) | (11,649) | (12,028) |
NET LOSS | (4,269) | (14,771) | (37,857) | (75,935) |
Preferred stock dividends | (11,768) | (13,449) | (35,304) | (40,348) |
Net loss available to common stockholders | $ (16,037) | $ (28,220) | $ (73,161) | $ (116,283) |
Net loss per common share - basic and diluted | $ 0 | $ 0 | $ (0.01) | $ (0.01) |
Weighted average common shares outstanding - basic and diluted | 9,118,161 | 9,118,161 | 9,118,161 | 9,118,161 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 9 months ended Sep. 30, 2016 - USD ($) | Common Stock | Preferred Stock | Additional Paid In Capital | Accumulated Deficit | Total |
Stockholders' deficit at Dec. 31, 2015 | $ 91 | $ 544,703 | $ 8,640,542 | $ (10,372,296) | $ (1,186,960) |
Shares outstanding at Dec. 31, 2015 | 9,118,161 | 987,102 | |||
Stock options compensation | 8,679 | 8,679 | |||
Amortization of increasing dividend rate preferred stock discount | $ 35,304 | (35,304) | 35,304 | ||
Net loss | (37,857) | (37,857) | |||
Stockholders' deficit at Sep. 30, 2016 | $ 91 | $ 580,007 | $ 8,613,917 | $ (10,410,153) | $ (1,216,138) |
Shares outstanding at Sep. 30, 2016 | 9,118,161 | 987,102 |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net loss | $ (37,857) | $ (75,935) |
Adjustments to reconcile net loss to net cash provided by operating activities | ||
Depreciation and amortization | 20,740 | 25,127 |
Stock options compensation | 8,679 | 14,496 |
Provision for uncollectible accounts receivable | 2,832 | 8,003 |
Net (increase) decrease in Accounts receivable | (5,059) | (8,208) |
Net (increase) decrease in Prepaid expenses and other current assets | (12,458) | 247 |
Net increase (decrease) in Accounts payable | (10,651) | (22,162) |
Net increase (decrease) in Accrued and other liabilities | 41,746 | 82,980 |
Net increase (decrease) in Deferred revenue | 22,386 | 13,667 |
Net cash provided by operating activities | 30,358 | 38,215 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of property and equipment | (6,596) | (15,542) |
Net cash used in investing activities | (6,596) | (15,542) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Principal payments on borrowings under notes payable - related party | (23,460) | (23,079) |
Net cash used in financing activities | (23,460) | (23,079) |
Net increase (decrease) in cash | 302 | (406) |
Cash at beginning of period | 16,012 | 14,614 |
Cash at end of period | 16,314 | 14,208 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest | 11,649 | 12,028 |
NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Amortization of increasing dividend rate preferred stock discount | $ 35,304 | $ 40,348 |
1. Unaudited Interim Financial
1. Unaudited Interim Financial Statements | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
1. Unaudited Interim Financial Statements | 1. UNAUDITED INTERIM FINANCIAL STATEMENTS The unaudited condensed consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto for the year ended December 31, 2015. The information furnished reflects, in the opinion of management, all adjustments, consisting of normal recurring accruals, necessary for a fair presentation of the results of the interim periods presented. Operating results of the interim period are not necessarily indicative of the amounts that will be reported for the year ending December 31, 2016. |
2. Going Concern And Management
2. Going Concern And Management's Plans | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
2. Going Concern And Management's Plans | 2. GOING CONCERN AND MANAGEMENTS PLANS At September 30, 2016, current liabilities exceeded current assets by $1,160,881. The Company does not have a line of credit or credit facility to serve as an additional source of liquidity. Historically the Company has relied on shareholder loans as an additional source of funds. These factors raise substantial doubts about the Companys ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent upon continued operations of the Company that in turn is dependent upon the Companys ability to meet its financing requirements on a continuing basis, to maintain present financing, to achieve the objectives of its business plan and to succeed in its future operations. The financial statements do not include any adjustments relating to the recoverability and classification of recorded asset amounts or amounts and classification of liabilities that might be necessary should the Company be unable to continue in existence. The Companys business plan includes, among other things, expansion through mergers and acquisitions and the development of its co-location and advanced voice and data solutions. Execution of the Companys business plan will require significant capital to fund capital expenditures, working capital needs and debt service. Current cash balances will not be sufficient to fund the Companys current business plan beyond the next few months. As a consequence, the Company is currently focusing on revenue enhancement and cost cutting opportunities as well as working to sell non-core assets and to extend vendor payment terms. The Company continues to seek additional convertible debt or equity financing as well as the placement of a credit facility to fund the Companys liquidity. There can be no assurance that the Company will be able to obtain additional capital on satisfactory terms, or at all, or on terms that will not dilute the shareholders interests. |
3. Convertible Notes Payable Re
3. Convertible Notes Payable Related Party | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
3. Convertible Notes Payable Related Party | 3. CONVERTIBLE NOTES PAYABLE RELATED PARTY At December 31, 2015 the Company had a secured convertible promissory note from a shareholder with a balance of $171,799. The interest rate of this note was 6% through December 31, 2014 and is 7% through December 31, 2015, 8% through December 31, 2016, 8.5% through December 31, 2017, and 9% through May 31, 2018, with fixed monthly payments of $3,301 and matures May 31, 2018, at which time the remaining balance of principal and all accrued interest shall be due and payable. This convertible promissory note is secured by all tangible and intangible assets of the Company. The note holder has the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share. During the nine months ended September 30, 2016, the Company made principal and interest payments totaling $29,706. The secured convertible promissory note had a balance of $151,876 at September 30, 2016 of which $39,608 is short-term and $112,268 is long-term. At December 31, 2015 the Company had a secured convertible promissory note from a shareholder with a balance of $43,037. The interest rate of this note is 6%, required monthly installments of interest only through May 31, 2014, then requires monthly installments of $600 including principal and interest and matures May 31, 2023. This convertible promissory note is secured by certain equipment of the Company. The note holder has the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share. During the nine months ended September 30, 2016, the Company made principal and interest payments totaling $5,403. The secured convertible promissory note had a balance of $39,500 at September 30, 2016 of which $7,203 is short-term and $32,297 is long-term. |
4. Stock Based Compensation
4. Stock Based Compensation | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
4. Stock Based Compensation | 4. STOCK BASED COMPENSATION The following table summarizes the Companys employee stock option activity for the nine months ended September 30, 2016: Schedule of Employee Stock Option Activity Options Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate intrinsicvalue Options outstanding, December 31, 2015 3,244,882 $.028 7.40 - Options exercisable, December 31, 2015 2,477,215 $.026 7.26 $ 9,089 Options granted during the period 48,000 .030 - - Options forfeited during the period (18,000) .032 - - Options expired during the period (1,100) 0.090 - - Options outstanding, September 30, 2016 3,273,782 $ .003 6.68 - Options exercisable, September 30, 2016 3,139,782 $ .003 6.60 $ 69,054 During the nine months ended September 30, 2016, 48,000 nonqualified employee stock options were granted with an exercise price of $0.03 and 12,000 of those options were forfeited. The options were valued using Black-Scholes option pricing model on the respective date of issuance and the fair value of the shares was determined to be $1,408 of which $83 was recognized as stock-based compensation expense for the nine months ended September 30, 2016. The remaining 36,000 stock options will vest one-third on each annual anniversary date of the grant and will expire ten years from the date of the grant. During the nine months ended September 30, 2016, 6,000 and 1,100 employee stock options were forfeited and expired, respectively, that were related to options granted in prior years. During the nine months ended September 30, 2016, the exercise price of 2,968,782 employee stock options with exercise prices ranging from $.01 to $.065 was reduced to $.003. The Company performed an analysis under ASC 718-20 stock compensation and recorded an incremental expense of $6,897. Stock-based compensation expense for the three and nine months ended September 30, 2016 was $449 and $8,679, respectively. Stock-based compensation is measured at the grant date, based on the calculated fair value of the option, and is recognized as an expense on a straight-line basis over the requisite employee service period (generally the vesting period of the grant). The Black-Scholes option pricing model was used with the following weighted-average assumptions for options granted during the nine months ended September 30, 2016: 2016 Risk free interest rate 1.25% - 1.29 % Expected lives (in years) 5 Expected volatility 200% - 204 % Dividend yield 0 % |
5. Series A Convertible Preferr
5. Series A Convertible Preferred Stock | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
5. Series A Convertible Preferred Stock | 5. SERIES A CONVERTIBLE PREFERRED STOCK On March 30, 2016 the Companys board of directors made the determination that it was in the best interest of the Company and its stockholders to conserve the Companys working capital at this time and not make the annual dividend payment for the year ending December 31, 2015, on its Series A Convertible Preferred Stock. The Company has never made an annual dividend payment on its Series A convertible preferred stock. The amortization of the increasing dividend rate preferred stock discount for the three and nine months ended September 30, 2016 was $11,768 and $35,304, respectively. |
6. Property and Equipment Discl
6. Property and Equipment Disclosure | 9 Months Ended |
Sep. 30, 2016 | |
Notes | |
6. Property and Equipment Disclosure | 6. PROPERTY AND EQUIPMENT During the nine months ended September 30, 2016, $6,596 was paid for property and equipment. During the three and nine months ended June 30, 2016, $6,302 and $19,543 was recorded as depreciation expense, respectively. |
1. Unaudited Interim Financia13
1. Unaudited Interim Financial Statements: Basis of Accounting, Policy (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Policies | |
Basis of Accounting, Policy | The unaudited condensed consolidated financial statements and related notes have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission. Accordingly, certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been omitted pursuant to such rules and regulations. The accompanying unaudited condensed consolidated financial statements and related notes should be read in conjunction with the audited consolidated financial statements of the Company and notes thereto for the year ended December 31, 2015. |
4. Stock Based Compensation_ Sh
4. Stock Based Compensation: Share-based Compensation, Option and Incentive Plans Policy (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Policies | |
Share-based Compensation, Option and Incentive Plans Policy | Stock-based compensation is measured at the grant date, based on the calculated fair value of the option, and is recognized as an expense on a straight-line basis over the requisite employee service period (generally the vesting period of the grant). |
4. Stock Based Compensation_ Sc
4. Stock Based Compensation: Schedule of Share-based Compensation, Activity (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Activity | Schedule of Employee Stock Option Activity Options Weighted average exercise price Weighted average remaining contractual life (yrs) Aggregate intrinsicvalue Options outstanding, December 31, 2015 3,244,882 $.028 7.40 - Options exercisable, December 31, 2015 2,477,215 $.026 7.26 $ 9,089 Options granted during the period 48,000 .030 - - Options forfeited during the period (18,000) .032 - - Options expired during the period (1,100) 0.090 - - Options outstanding, September 30, 2016 3,273,782 $ .003 6.68 - Options exercisable, September 30, 2016 3,139,782 $ .003 6.60 $ 69,054 |
4. Stock Based Compensation_ 16
4. Stock Based Compensation: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Tables/Schedules | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 2016 Risk free interest rate 1.25% - 1.29 % Expected lives (in years) 5 Expected volatility 200% - 204 % Dividend yield 0 % |
2. Going Concern And Manageme17
2. Going Concern And Management's Plans (Details) | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Details | |
Substantial Doubt about Going Concern, Conditions or Events | At September 30, 2016, current liabilities exceeded current assets by $1,160,881. |
Excess of liabilities over assets | $ 1,160,881 |
Substantial Doubt about Going Concern, Management's Plans, Substantial Doubt Not Alleviated | The Company’s business plan includes, among other things, expansion through mergers and acquisitions and the development of its co-location and advanced voice and data solutions. Execution of the Company’s business plan will require significant capital to fund capital expenditures, working capital needs and debt service. Current cash balances will not be sufficient to fund the Company’s current business plan beyond the next few months. |
Items (Details)
Items (Details) - USD ($) | 9 Months Ended | ||
Sep. 30, 2016 | Dec. 31, 2015 | ||
RelatedPartyNote1Member | |||
Related Party Transaction, Description of Transaction | [1] | Secured convertible promissory note from a shareholder | |
Debt Instrument, Maturity Date | [1] | May 31, 2018 | |
Debt Instrument, Collateral | [1] | secured by all tangible and intangible assets of the Company | |
Related Party Transaction, Due from (to) Related Party | [1] | $ 151,876 | $ 171,799 |
Related Party Notes, Principal and Interest Payment | 19,804 | ||
Related Party Notes, Balance | 151,876 | ||
Related Party Notes, Balance, Short-term | 39,608 | ||
Related Party Notes, Balance, Long-term | $ 112,268 | ||
RelatedPartyNote2Member | |||
Related Party Transaction, Description of Transaction | [2] | Secured convertible promissory note from a shareholder | |
Related Party Transaction, Rate | [2] | 6.00% | |
Debt Instrument, Maturity Date | [2] | May 31, 2023 | |
Debt Instrument, Collateral | [2] | secured by certain equipment of the Company | |
Related Party Transaction, Due from (to) Related Party | [2] | $ 39,500 | $ 43,037 |
Related Party Transaction, Terms and Manner of Settlement | [2] | requires monthly installments of interest only through May 31, 2014, then requires monthly installments of $600 including principal and interest | |
Related Party Notes, Principal and Interest Payment | $ 3,602 | ||
Related Party Notes, Balance | 39,500 | ||
Related Party Notes, Balance, Short-term | 7,203 | ||
Related Party Notes, Balance, Long-term | $ 32,297 | ||
[1] | The note holder has the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share. During the nine months ended September 30, 2016, the Company made principal and interest payments totaling $19,804. The secured convertible promissory note had a balance of $151,876 at September 30, 2016 of which $39,608 is short-term and $112,268 is long-term. | ||
[2] | The note holder has the right to convert the note, in its entirety or in part, into common stock of the Company at the rate of $1.00 per share. During the nine months ended September 30, 2016, the Company made principal and interest payments totaling $3,602. The secured convertible promissory note had a balance of $39,500 at September 30, 2016 of which $7,203 is short-term and $32,297 is long-term. This secured convertible promissory note is secured by certain equipment of the Company. Upon payment of the balance due on this secured convertible promissory note title of the equipment will be transferred to the Company free and clear of all liens and encumbrances. |
4. Stock Based Compensation_ 19
4. Stock Based Compensation: Schedule of Share-based Compensation, Activity (Details) | 9 Months Ended |
Sep. 30, 2015USD ($)$ / sharesshares | |
Details | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Beginning Balance | shares | 3,244,882 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Beginning Balance | $ / shares | $ 0.028 |
Options Outstanding, Weighted Average Remaining Contractual Life in Years | 7.40 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 2,477,215 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.026 |
Options Exercisable, Weighted Average Remaining Contractual Life in Years | 7.26 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 9,089 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | shares | 48,000 |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ / shares | $ 0.030 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested Options Forfeited, Number of Shares | shares | (18,000) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares | $ 0.032 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | shares | (1,100) |
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ / shares | $ 0.090 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number, Ending Balance | shares | 3,273,782 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price, Ending Balance | $ / shares | $ 0.003 |
Options Outstanding, Weighted Average Remaining Contractual Life in Years | 6.68 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | shares | 3,139,782 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ / shares | $ 0.003 |
Options Exercisable, Weighted Average Remaining Contractual Life in Years | 6.60 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ | $ 69,054 |
4. Stock Based Compensation (De
4. Stock Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended |
Sep. 30, 2016 | Sep. 30, 2016 | |
Details | ||
Allocated Share-based Compensation Expense | $ 449 | $ 8,679 |
4. Stock Based Compensation_ 21
4. Stock Based Compensation: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Assumptions, Expected Term | 5 years |
Fair Value Assumptions, Expected Dividend Rate | 0.00% |
Minimum | |
Fair Value Assumptions, Risk Free Interest Rate | 1.25% |
Fair Value Assumptions, Expected Volatility Rate | 200.00% |
Maximum | |
Fair Value Assumptions, Risk Free Interest Rate | 1.29% |
Fair Value Assumptions, Expected Volatility Rate | 204.00% |
5. Series A Convertible Prefe22
5. Series A Convertible Preferred Stock (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Details | |||
Convertible Preferred Stock, Terms of Conversion | On March 30, 2016 the Company’s board of directors made the determination that it was in the best interest of the Company and its stockholders to conserve the Company’s working capital at this time and not make the annual dividend payment for the year ending December 31, 2015, on its Series A Convertible Preferred Stock. The Company has never made an annual dividend payment on its Series A convertible preferred stock. | ||
Amortization of increasing dividend rate preferred stock discount | $ 11,768 | $ 35,304 | $ 40,348 |
6. Property and Equipment Dis23
6. Property and Equipment Disclosure (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | |
Details | |||
Purchases of property and equipment | $ 6,596 | $ 15,542 | |
Depreciation | $ 6,302 | $ 19,543 |