NOTE 5. STOCKHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2016

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

NOTE 5.  STOCKHOLDERS’ EQUITY

Common Stock

During the three and six months ended June 30, 2016, we issued an aggregate of 200,000 and 300,000 shares, valued at $0.30 per share, in connection with a financing agreement with a director of the Company for his assistance in obtaining our line of credit. The 200,000 shares issued during the three months ended June 30, 2016, includes 100,000 shares that vested during the fourth quarter of 2015. Accordingly, the associated expense of $30,000 was expensed during 2015. During the three and six months ended June 30, 2016, we expensed $30,000 and $60,000, respectively, related to the financing agreement. At June 30, 2016, unrecognized expense associated with this agreement totaled $5,000.

During the six months ended June 30, 2016, we issued 25,000 shares, valued at $0.38 per share, in connection with a consulting agreement. The total value of $9,500 was recognized as consulting expense in the accompanying condensed consolidated statements of operations during the first quarter of 2016.

Other

An agreement with a consultant was not renewed.    Under the terms of the agreement, we were to issue a specified amount of shares each quarter upon the completion of certain measures as specified in the agreement. Upon the non-renewal of the agreement, previously recognized prepaid expense and additional paid-in capital totaling $85,000 was reversed.