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Note 11 - Consulting Agreements
12 Months Ended
Dec. 31, 2015
Notes  
Note 11 - Consulting Agreements

Note 11 – Consulting Agreements

 

We have entered into various consulting agreements for financial and business development services to the Company. Certain of these consulting agreements provide for cash compensation to the consultants; however, several are based on issuances of shares of our common stock in exchange for services (see Note 9).

 

Under the consulting agreements that provide for share issuances, shares were generally issued at the inception of the agreements for services provided. There generally are no specified performance requirements and no provision in the agreements for return of the shares. Compensation expense is calculated based on the market price of the stock on the effective date of agreement and amortized over the period over which the services are provided to the Company. During the years ended December 31, 2015 and 2014, total amortization of prepaid consulting services included in selling, general and administrative expense was $93,442 and $2,363,263, respectively. As of December 31, 2015, the unamortized compensation paid in common shares was $22,500, reported as a current asset, prepaid consulting services, in our consolidated balance sheet.