| Stockholders' Equity | Note 11 - Stockholders Equity On June 3, 2016, the Company
and investors from a private placement as of April 20, 2015 (the Subscription Agreement) entered into an amendment
agreement (the Amendment Agreement). Pursuant to the Amendment
Agreement, the Company agreed to pay, on a pro-rata basis to all subscribers that purchased Units in the Offering, and in proportion
to the respective Units purchased by each subscriber, pursuant to the Subscription Agreement, an aggregate $250,000 (Payment)
upon the occurrence of the following events and in the amounts and on payment dates set forth in connection with such events: (i)
in the event of a closing of any one or more equity or debt financing resulting in aggregate gross proceeds from the date of this
Amendment of $350,000 or less, a payment towards the then-remaining Payment equal to ten-percent (10%) of such gross proceeds shall
be made within three (3) business days of the closing of any such equity or debt financing; (ii) in the event of a closing of any
one or more equity or debt financing resulting in aggregate gross proceeds from the date of this Amendment of $350,000 or more
but less than $1,000,000, a payment towards the then-remaining Payment equal to twenty-percent (20%) of such gross proceeds shall
be made within three (3) business days of the closing of any such equity or debt financing; (iii) at any of the Companys
fiscal-year-ends payment will be made in the amount of available cash prior to any payments of bonuses payable to Mr. Allen, the
Companys CEO, CFO and Chairman, and Mr. Handerhan, the Companys COO, Secretary and Director; and (iv) upon closing
of any one or more equity or debt financing resulting in aggregate gross proceeds from the date of this Amendment of $1,000,000
or more, a payment of all then-remaining Payment within three (3) business days of the closing of any such equity or debt financing. In consideration for the
Payment, the Subscribers agreed to limit any remedies currently due, if any, or to which they may be entitled in the future, under
the Favored Nations Provision of the Subscription Agreement, to the additional issuance of Common Stock of the Company
and warrants (Warrants) to purchase Common Stock up to the Common Stock and Warrants that would not result in each
respective Subscriber beneficially owning over 4.99% of the Companys issued and outstanding Common Stock. On June 8, 2016, the Company
and an investor (the Investor) holding a warrant dated January 19, 2015 (the Warrant) to purchase 2,325,000
shares (the Warrant Shares) of the Companys Common Stock entered into a warrant exercise agreement (the Exercise
Agreement). Pursuant to the Exercise
Agreement, the Company agreed to accept as full payment for 500,000 of the Warrant Shares, an aggregate exercise price equal to
$27,500 (the Exercise Price) and the Investor irrevocably agreed to exercise the Warrant and deliver the Exercise
Price within 2 days of the Exercise Agreement. Over the course of June
8, 2016 through June 28, 2016, the Company issued 4,125,000 shares of Common Stock for the cash exercise of warrants resulting
in aggregate proceeds of $91,765 to the Company; this includes the $27,500 received in connection with the Exercise Agreement mentioned
above. Over the course of July
1, 2016 through August 1, 2016, the Company issued a total of 728,809,426 shares of the Companys Common Stock for: i) the
conversion of $439,251 of principal and accrued interest on the Senior Notes, and ii) the cashless exercise of warrants. The issuances
were exempt from registration pursuant to Rule 506 under Regulation D, the investors are sophisticated and familiar with our operations,
and there was no solicitation in connection with the issuances. None of the securities
were sold through an underwriter and accordingly, there were no underwriting discounts or commissions involved. No registration
rights were granted to any of the purchasers. Following these issuances, there were 965,756,004 shares of our Common Stock issued
and outstanding which includes 13,000,000 shares of treasury stock, excluding shares held in treasury there are 952,756,004 shares
of our Common Stock issued and outstanding. As a result of the Senior
Note conversions, the Company became obligated to issue, subject to certain limitations, the following additional securities:
(i) 6,524,866,433 shares of Common Stock pursuant to favored nations provisions in certain common stockholder subscription
agreements which includes those anti-dilution shares of Common Stock previously disclosed; (ii) warrants to purchase 10,280,964,322
shares of Common Stock pursuant to favored nations provisions in certain common stockholder subscription agreements
which includes those anti-dilution warrants previously disclosed, and (iii) warrants to purchase 5,845,414,589 shares of Common
Stock pursuant to the terms of the warrants issued on December 16, 2016 which includes those anti-dilution warrants previously
disclosed. The Company also lowered the conversion price of the Companys outstanding Senior Notes and Junior Notes to $0.00042. |
