Quarterly report pursuant to Section 13 or 15(d)

NOTE 7: EQUITY TRANSACTIONS

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NOTE 7: EQUITY TRANSACTIONS
 9 Months Ended
Sep. 30, 2015
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
NOTE 7: EQUITY TRANSACTIONS

Common Stock

In January 2015, the Company increased its authorized share capital from 45,000,000 to 150,000,000 common shares.

During the nine months ended September 30, 2015, the Company issued an aggregate of 1,270,325 common shares for the conversion of convertible debt of $50,000.

During the nine months ended September 30, 2015, the Company granted an aggregate of 17,981,867 common shares to various employees, directors and third parties for services rendered. The aggregate fair value of these awards was determined to be $2,872,156 and it was recognized as stock compensation during the nine months ended September 30, 2015.

During the nine months ended September 30, 2015, the Company issued a total of 550,000 common shares were issued in connection with the borrowing of $250,000 under a convertible note. The relative fair value of these shares was determined to be $97,375 and was recognized as a discount to the note.

Options

A summary of stock option activity for the nine months ended September 30, 2015 is as follows:

         
Weighted
 
         
Average
 
   
Options
   
Exercise Price
 
Outstanding - December 31, 2014
   
714,286
   
$
4.68
 
Granted
   
-
     
-
 
Forfeited/canceled
   
-
     
-
 
Exercised
   
-
     
-
 
Outstanding – September 30, 2015
   
714,286
   
$
4.68
 
                 
Exercisable – September 30, 2015
   
714,286
   
$
4.68
 

The range of exercise prices and the weighted average remaining life of the outstanding options as of September 30, 2015 was $1.05 to $12.25 per share and 3.74 years, respectively. The intrinsic value of the exercisable options as of September 30, 2015 was $0.

Warrants

The following table presents the stock warrant activity during the nine months ended September 30, 2015:

         
Weighted
 
         
Average
 
   
Warrants
   
Exercise Price
 
Outstanding - December 31, 2014
   
4,529,434
   
$
0.60
 
Granted
      -         -  
Forfeited/canceled
      -      
-
 
Exercised
   
-
     
-
 
Outstanding – September 30, 2015
   
4,529,434
   
$
0.60
 
                 
Exercisable – September 30, 2015
   
4,529,434
   
$
0.60
 

The range of exercise prices and the weighted average remaining life of the outstanding warrants as of September 30, 2015 was $0.50 to $1.75 and 3.85 years, respectively. The intrinsic value of the exercisable warrants as of September 30, 2015 was $1,149,500.