Quarterly report pursuant to Section 13 or 15(d)

NOTE 7: EQUITY TRANSACTIONS

NOTE 7: EQUITY TRANSACTIONS

9 Months Ended

Sep. 30, 2017

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 7: EQUITY TRANSACTIONS

Common Stock and Additional Paid-in Capital

During the nine months ended September 30, 2017, the Company issued a total of 29,403,968 shares of common stock for the conversion of $1,936,687 in convertible note principal and accrued interest.

During the nine months ended September 30, 2017, the Company issued 1,000,000 shares of common stock for a debt transfer expense valued at $127,400.

During the nine months ended September 30, 2017, the Company issued 1,000,000 shares of common stock for conversion of $99,970 in related party short-term notes payable and recognized $27,430 loss on settlement of related party note payable.

During the nine months ended September 30, 2017, the Company issued a total of 8,000,000 shares of common stock for a total of $1,000,000 in accrued wages to two officers and directors.

During the nine months ended September 30, 2017, the Company issued a total of 1,500,000 shares of common stock for a signing bonus to two officers and directors valued at $194,700.

During the nine months ended September 30, 2017, the Company issued three convertible notes payable, convertible at $0.06 per share, which was a discount to the market price on the date of issuance. As such, a total of $445,083 was recognized as a beneficial conversion feature, with the offsetting entry to additional paid-in capital.

Common Stock Options

A summary of common stock option activity for the nine months ended September 30, 2017 is as follows:

			Weighted		Weighted
			Average		Average
	Options		Exercise Price		Remaining Term
Outstanding - December 31, 2016		685,713	$	4.52		2.62
Granted		-		-		-
Expired		-		-		-
Exercised		-		-		-
Outstanding – September 30, 2017		685,713	$	4.52		1.04

Exercisable – September 30, 2017		685,713	$	4.52		1.04

The intrinsic value of the exercisable options as of September 30, 2017 was $0.

Common Stock Warrants

The following table presents the common stock warrant activity during the nine months ended September 30, 2017:

				Weighted		Weighted
				Average		Average
	Warrants			Exercise Price		Remaining Term
Outstanding - December 31, 2016		7,314,423		$	0.41		3.12
Granted		72,497			0.15		4.99
Forfeited/expired		(38,571	)		1.75		-
Exercised		-			-		-
Outstanding – September 30, 2017		7,348,349		$	0.40		2.41

Exercisable – September 30, 2017		7,348,349		$	0.40		2.41

The intrinsic value of the exercisable warrants as of September 30, 2017 was $0.