Stockholders' Equity Note Disclosure [Text Block] | NOTE 9 – STOCKHOLDERS’ EQUITY (DEFICIT) Preferred Stock Common stock o 80,000 shares of common stock for conversion of 8,000 shares of Series A preferred stock, o 4,350,000 shares of common stock issued for $435,000 in cash, o 1,550,000 shares of common stock issued to the board of directors and executives valued at $310,000, o 1,900,000 shares of common stock in exchange for conversion of notes payable in the amount of $175,000 plus accrued interest of $12,500, o 2,050,923 shares of common stock in a cashless exchange for 2,158,867 warrants, o 305,165 shares of common stock with a value of $96,732 in exchange for conversion of accounts payable, and o 365,000 shares of common stock with a value of $78,913 for services rendered. o 151,126 shares of common stock with a value of $32,520 upon conversion of $30,000 of convertible notes payable along with accrued interest of $2,520, o 23,000 shares of common stock with a value of $13,113 for services rendered, o 441,620 shares of common stock in exchange for 44,162 shares of Series A preferred stock, and o 80,000 shares of common stock with a value of $46,400 for the settlement of accounts payable in the amount of $149,421. We posted a gain on settlement in the amount of $103,021. o 28,000 shares of common stock for a value of $10,383 for services rendered, o 430,000 shares of common stock issued for $85,005 in cash, o 846,382 shares of common stock in exchange for conversion of notes payable in the amount of $67,500 plus accrued interest of $1,720, and o 55,500 shares with a value of $11,100 in exchange for conversion of accounts payable. o 64,700 shares of common stock for a value of $39,556 for services rendered, o 79,293 shares of common stock for a value of $44,250 for services to be performed in the future, and o 6,717 shares of common stock with a value of $4,501 for the settlement of accounts payable. Stock incentive plan Weighted Weighted Average Average Remaining Aggregate Number of Exercise Price Exercise Contractual Term Intrinsic Shares Range Price (Years) Value Outstanding, December 31, 2013 2,352,099 $ 0.38 - $1.00 $ 0.51 7.90 199,505 Exercisable, December 31, 2013 1,810,344 $ 0.38 - $1.00 $ 0.52 7.88 138,707 Granted 624,571 $ 0.40-$0.75 $ 0.52 6.49 - Exercised - - $ - - - Expired/Forfeited 110,200 $ 0.40-$0.50 $ 0.48 9.51 - Outstanding, December 31, 2014 2,866,470 $ 0.30 - $1.00 $ 0.48 8.96 - Exercisable, December 31, 2014 2,321,001 $ 0.38 - $1.00 $ 0.47 9.50 - Granted 30,000 $ 0.20 $ 0.20 5.00 - Exercised - - $ - - - Expired/Forfeited - - $ - - - Outstanding, June 30, 2015 2,896,470 $ .0.20 - $1.00 $ 0.46 11.24 - Exercisable, June 30, 2015 2,613,354 $ 0.20 - $1.00 $ 0.45 11.74 - Number of Exercise shares Price 190,000 $ 0.20 300,000 $ 0.30 55,000 $ 0.38 1,186,670 $ 0.40 10,000 $ 0.45 631,800 $ 0.50 160,000 $ 0.60 15,000 $ 0.62 100,000 $ 0.75 10,000 $ 0.81 200,000 $ 0.85 38,000 $ 1.00 2,896,470 At June 30, 2015, the Company had 1,803,530 unissued shares available under the Plan. Also, at June 30, 2015, the Company had $140,114 of total unrecognized compensation cost related to unvested stock options, which is expected to be recognized over a weighted average period of 11 years. Warrants – Consulting Agreements Date of Issue June 30, 2015 Exercise Price Expiration June-15 302,500 $ 0.125 - $0.15 06/2018 May-15 6,160,000 $ 0.125 - $0.23 05/2018 - 05/2022 April-15 6,160,000 $ 0.01 - $0.15 04/2018 - 04/2027 March-15 140,000 $ 0.10 - $0.75 03/2018 - 03/2022 February-15 - $ 0.00 - January-15 70,000 $ 0.30 - $0.50 01/2020 As of December 2014 7,247,982 $ 0.36 - $10.00 05/2015 - 10/2024 Total 20,080,482 Less: Expired 130,608 Exercised 2,158,867 Total 17,791,007 We use the Black-Scholes option-pricing model to determine the fair value of warrants on the date of grant. In determining the fair value of warrants, we employed the following key assumptions: June 30, 2015 December 31, 2014 Risk-Free interest rate 0.28% - 1.72 % 0.28% - 2.97 % Expected dividend yield 0 % 0 % Volatility 166.10% - 204.66 % 182.81% - 222.30 % Expected life 3 - 7 years 3 - 10 years At June 30, 2015 and December 31, 2014, the weighted-average Black-Scholes value of warrants granted was $0.14 and $0.39, respectively. On May 20 2015, the board of directors agreed to extend the warrants and options of all employees and the board of directors by 5 years from original date and to reduce the exercise price to $0.40, if favorable to holder. We calculated a loss on modification of the warrants and options of $56,543 and have posted this expense during the quarter. In addition, on May 20, 2015, the Company agreed to extend the outstanding options of a consultant for 5 years and reduce their exercise price to $0.20. We have calculated a loss on the modification in the amount of $4,524 and have posted this expense during the quarter. |