Quarterly report pursuant to Section 13 or 15(d)

Common Stock Transactions

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Common Stock Transactions
3 Months Ended
Mar. 31, 2016
Equity [Abstract]  
Common Stock Transactions

NOTE 5 – COMMON STOCK TRANSACTIONS

 

During the three months ended March 31, 2016, the Company issued an aggregate of 1,325,000 shares of common stock to employees with a total fair value of $199,512 for services rendered. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $199,512 upon issuance. The shares issued were valued at the date of the respective agreements.

 

During the three months ended March 31, 2016, the Company issued an aggregate of 350,000 shares of restricted common stock to consultants with a total fair value of $52,500 for services rendered. The shares issued are non-refundable and deemed earned upon issuance. As a result, the Company expensed the entire $52,500 upon issuance. The shares issued were valued at the date of the respective agreements.

 

Common Stock with Vesting Terms:

 

In August 2015, the Company granted and issued 100,000 shares of its restricted common stock to an employee pursuant to an employment agreement. The 100,000 shares vest over a period of one year with a fair value of $37,000 at the date of grant.

 

In February 2015, the Company granted and issued 500,000 shares of its restricted common stock to a consultant pursuant to a consulting agreement. The 500,000 shares are forfeitable and are deemed earned upon completion of service over a period of twenty four months. The Company recognizes the fair value of these shares as they vest.

 

During the three months ended March 31, 2016, 87,500 of these shares vested and as a result, the Company recognized compensation cost of $5,709. As of March 31, 2016, total unvested shares totaled 241,667 shares with unearned compensation costs of $42,542 which will be recognized in fiscal years 2016 and 2017.

 

The following table summarizes common stock with vesting terms activity:

 

          Weighted
          Average
    Number of     Grant Date
    Shares     Fair Value
Non-vested, December 31, 2015 329,167    $ 0.48
  Granted -     -
  Vested (87,500)     0.46
  Forfeited -     -
Non-vested, March 31, 2016 241,667    $ 0.48