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NOTE 8: EQUITY TRANSACTIONS
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Sep. 30, 2014
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| Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Stockholders' Equity Note Disclosure [Text Block] |
NOTE 8: EQUITY TRANSACTIONS
Common Stock
In April 2014, the Company effected a 35 to 1 reverse stock split. The Company also amended its authorized common shares on the same day to be 45,000,000 common shares. All share and per share amounts herein have been retroactively restated to reflect the split.
During the nine months ended September 30, 2014, the Company issued an aggregate of 8,362,339 common shares for the conversion of convertible debt and accrued interest of $1,430,539.
During the nine months ended September 30, 2014, the Company issued an aggregate of 1,851,428 for services valued at $766,442.
During the nine months ended September 30, 2014, the Company issued an aggregate of 5,132,753 common shares for the conversion of accrued liabilities of $1,539,826.
In September 2014, Mr. Aiden Neary and Mr. Robin Eves returned common shares back to the Company of 247,527 and 269,087 respectively. These shares were returned to the company to facilitate conversions by the convertible note holders and were returned at no cost to the Company.
During the nine months ended September 30, 2014, the company borrowed an aggregate of $29,017 from Officers and Directors and issued 21,429 common shares in connection with the borrowings. The relative fair value of the shares was determined to be $8,319 and was recorded as a discount to the associated note and was fully amortized to interest expense during the nine months ended September 30, 2014.
On November 26, 2013 the Company entered into a two year executive employment agreement with Aiden Neary under which Mr. Neary was granted an aggregate of 285,714 common shares. 142,857 of the shares vest on the date of grant and 142,857 of the shares vest on November 26, 2014. The issuance of the shares is contingent upon the Company completing a reverse split of the common stock of the Company which was effected in April 2014. The fair value of the award was determined to be $300,000 and is it being recognized over the vesting period. During the nine months ended September 30, 2014, the Company recognized $112,192 under this award. $23,424 will be recognized over the remaining vesting period through November 26, 2014. This amount recognized is included as common stock issued for services in the statement of stockholders’ deficit.
Options
Total stock option expense was $19,494 for the nine months ended September 30, 2014. As of September 30, 2014, there was no unamortized options expense.
A summary of stock option activity for the nine months ended September 30, 2014 is as follows:
The range of exercise prices and the weighted average remaining life of the outstanding options as of September 30, 2014 was $1.05 to $12.25 per share and 4.74 years, respectively. The intrinsic value of the exercisable options as of September 30, 2014 was $0.
Warrants
The following table presents the stock warrant activity during the three months ended September 30, 2014:
The exercise prices and the weighted average remaining life of the outstanding warrants as of September 30, 2014 was $0.50 to $1.75 and 4.85 years, respectively. The intrinsic value of the exercisable warrants as of September 30, 2014 was $0.
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