Other Current Liabilities

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

7. Other Current Liabilities

As of June 30, 2016 and December 31, 2015, included in other current liabilities are four outstanding notes to various individuals aggregating approximately $186,518 and $177,370, respectively, in principal and accrued interest. Interest accrues at the rate of 9% - 14% per annum. These loans are currently in default.

The Company has recognized a "Liability for unissued shares" for shares granted to employees and consultants, but unissued as of the balance sheet date. The granted shares are recorded at the fair market value of the shares to be issued at the grant date and a corresponding current liability is recorded for these unissued shares. The activity in this account and balances, classified as Liabilities for unissued shares, as of June 30, 2016 and December 31, 2015 was as follows:

	June 30, 2016		December 31, 2015
Balance, beginning	$	145,543	$	567,043
Stock based compensation recognized		-		-
Issuance of shares in satisfaction of liability		-		(421,500	)
Balance, ending	$	145,543	$	145,543

The total number of shares unissued was 1,579,044 shares as of June 30, 2016 and 1,579,044 shares as of December 31, 2015