Stockholders' Equity | Note 10—Stockholders’ Equity At June 30, 2016, the Company is authorized to issue 690,000,000 shares of $0.0001 par value common stock and 10,000,000 of $0.0001 par value preferred stock. In anticipation of the rescission of the exchange agreement with EarthBlock and to prevent dilution to existing shareholders of the Company, on October 15, 2013, the board of directors of the Company approved a stock dividend of three shares for each outstanding share. The stock dividend is being treated as a stock split due to its high volume. All share and per share information has been retroactively adjusted to reflect the stock split. On March 27, 2014, the Company’s shareholders approved a recapitalization of the capital stock in the form of reverse stock split of its common stock in a ratio of 1-for-25. The shareholders also approved an amendment to the Articles of Incorporation to reduce the number of authorized shares of stock to 700,000,000 from 3,000,000,000. Of the 700,000,000 authorized shares, there are 10,000,000 shares of preferred stock and 690,000,000 shares of common stock. As of June 30, 2016, 87,671,007 shares were issued and outstanding. At December 31, 2015, 81,256,574 shares were issued and outstanding. Private Placements of Common Stock From January 1, 2016 to June 30, 2016, the Company issued to investors 570,000 shares of its common stock at the offering price of $0.10 to $0.15 per share for an aggregate amount of $78,000. There were 71,429 shares fully paid that were not yet issued as of June 30, 2016 and were issued on August 19, 2016 Restricted Stock Awards (“RSA”) Issued for Services During the period January 1, 2016 through June 30, 2016, the Company granted 1,087,857 RSAs to various consultants for their services provided to the Company and valued at $160,014. As of June 30, 2016, all RSAs are vested and there was no unrecognized compensation cost related to RSAs. The value of the shares issued was based on the fair value of the stock at the time of it was issued. Common Stock Issued for Acquisition On March 16, 2016, Earth-Eco Agriculture Inc. was formed as a Nevada corporation and 100% owned subsidiary of Earth Gen-Biofuel Inc. Earth Gen-Biofuel Inc. issued 2,500,000 shares of Earth Gen-Biofuel Inc. ‘restricted” common stock for the purchase of the rights to the Agarwood production from a 27-acre Phonehong Tree Farm in the Laos People’s Democratic. The shares were valued at $625,000. Warrants In connection with the 2013 private placements, the Company issued warrants for 6,400,000 shares of Earth Gen Common Stock on August 1, 2013 and 1,600,000 warrants on September 12, 2013. Each of these warrants entitled the holder to purchase one (1) share of Earth Gen common stock at $0.03 per share starting on January 1, 2014 and ending on December 15, 2016. As of December 31, 2014, 1,000,000 warrants have been exercised in exchange for total cash proceeds of $31,250 or $0.03 per share. In connection with the January 2014 private placement, the Company issued warrants to purchase 202,000 shares of Earth Gen common stock on March 20, 2014. Each warrant entitles the holder to purchase one (1) share of Earth Gen common stock at $0.50 per share starting on July 15, 2014 and ending on September 30, 2016. In connection with the April 2015 private placement, the Company issued warrants to purchase 3,000,000 shares of Earth Gen common stock on April 26, 2015. Each warrant entitles the holder to purchase one (1) share of Earth Gen common stock at $0.07 per share starting on May 1, 2015 and ending on December 15, 2015. In connection with the April 2015 private placement, the Company issued warrants to purchase 6,000,000 shares of Earth Gen common stock on April 26, 2015. Each warrant entitles the holder to purchase one (1) share of Earth Gen common stock at $0.07 per share starting on May 1, 2015 and ending on March 31, 2016. In connection with a consulting agreement, the Company issued warrants to purchase 300,000 shares of Earth Gen common stock on December 12, 2015 as compensation to the consultant. Each warrant entitles the holder to purchase one (1) share of Earth Gen common stock at $0.07 per share starting on April 30, 2016 and ending on December 15, 2017. The fair value of warrants granted was calculated using the Black-Scholes model and amortized over the vesting period. At June 30, 2016, $18,518 was fully amortized to stock-based compensation expense. These warrants have standard anti-dilution language to allow for recapitalizations and distributions. The warrants are equity classified and amounts attributable to the warrants are classified within additional paid-in capital. All reference to numbers of shares issued for warrants and per share price is based on a post-stock-dividend and post-reverse-split amount. A summary of the status of the Company’s warrants outstanding as of June 30, 2016 is presented below: Number of Outstanding at December 31, 2015 13,502,000 Expired (6,000,000 ) Outstanding at June 30, 2016 7,502,000 Exercisable at June 30, 2016 7,502,000 The following table summarizes information about warrants outstanding as of June 30, 2016: Options and Warrants Options and Warrants Exercise Prices Number Weighted Weighted Number Weighted $ 0.03 7,000,000 0.46 $ 0.03 7,000,000 $ 0.03 $ 0.50 202,000 0.25 $ 0.50 202,000 $ 0.50 $ 0.07 300,000 1.46 $ 0.07 300,000 $ 0.07 7,502,000 0.49 $ 0.05 7,502,000 $ 0.05 For the six months ended June 30, 2016 and 2015, stock-based compensation expense was $178,820 and $2,548, respectively. |