Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.7.0.1
Subsequent Events
6 Months Ended
Jun. 30, 2017
Subsequent Events [Abstract]  
Subsequent Events

10. SUBSEQUENT EVENTS

 

Subsequent to June 30, 2017, 510,001 shares of common stock that were subject to vesting schedules and previously accounted for were issued.

 

The Company issued 94,620 shares of common stock to vendors subsequent to June 30, 2017, with a fair value of $14,750 for services rendered.

 

Subsequent to June 30, 2017, the Company issued 300,000 non-qualified stock options with an exercise price of $.25 to employees for services to be rendered. The options vest monthly based on consultant achieving quantifiable milestones.

 

Effective August 4, 2017, the Company entered into an extension agreement (the “Extension Agreement”) with Rory J. Cutaia to extend the maturity date of the $343,326 Unsecured Note due on August 4, 2017 to and including December 4, 2018. In consideration for extending the Note the Company issued Mr. Cutaia 1,329,157 warrants at a price of $.15. All other terms of the Note remain unchanged.

 

Effective August 4, 2017, the Company entered into an extension agreement (the “Extension Agreement”) with Rory J. Cutaia to extend the maturity date of the $121,875 Unsecured Note due on August 4, 2017 to and including December 4, 2018. All other terms of the Note remain unchanged.

 

Effective August 4, 2017, the Company entered into an extension agreement (the “Extension Agreement”) with Oceanside to extend the maturity date of the Note to and including April 4, 2018. All other terms of the Note remain unchanged. In consideration for Oceanside’s agreement to extend the maturity date to April 4, 2018, the Company issued Oceanside 1,316,800 warrants at a price of $.15. All other terms of the Note remain unchanged.

 

On July 7, 2017, the Company issued 52,500 shares of Series A Preferred stock for cash proceeds of $50,000. The Series A Preferred stock has the same terms as described in Note 7, except that only one redemption payment shall be due on January 8, 2018, in the amount of $52,500. As a result of this transaction the Company will record liability of $52,500 and a debt discount of $2,500 upon issuance.

 

On July 28, 2017, the Company has agreed to issue 262,500 shares of Series A Preferred stock for cash proceeds of $250,000. $125,000 was paid to the Company on July 28, 2017 and the remaining $125,000 will be paid on or about August 28, 2017, unless the Company is in material, uncured default of the provisions of this Agreement. The Series A Preferred stock has the same terms as described in Note 7. As a result of this transaction, the Company will record liability of $262,500 and debt discount of $12,500 upon issuance.

 

Effective August 4, 2018, the Company issued the CEO 3,750,000 restricted shares of common stock with a fair value of $562,500.