Common and Preferred Stock Transactions

3 Months Ended

Mar. 31, 2017

Equity [Abstract]

Common and Preferred Stock Transactions

Note 5. Common and Preferred Stock Transactions

During the three months ended March 31, 2017, the Company granted 3,000,000 VCSY common shares pursuant to a stock award to an employee of the Company and its subsidiaries (at a fair market value of $72,000).

During the three months ended March 31, 2017, $10,109 of principal, interest and legal fees under a convertible note issued in the principal amount of $80,000 was converted into 723,089 common shares.

During the three months ended March 31, 2017, 550,000 VCSY common shares vested under restricted stock agreements to employees and a consultant of the Company.

During the three months ended March 31, 2017, 200,001 shares of the common stock of Ploinks, Inc. issued under restricted stock agreements to consultants and employees of the Company vested.

Stock compensation expense for the amortization of restricted stock awards was $35,167 for the three months ended March 31, 2017. As of March 31, 2017, there were 11,575,000 shares of unvested stock compensation awards to employees and 16,000,000 shares of unvested stock compensation awards to non-employees.

Stock compensation expense for the amortization of subsidiary’s restricted stock awards was $46,342 for the three months ended March 31, 2017. 

We have evaluated our convertible cumulative preferred stock under the guidance set out in FASB ASC 470-20 and accordingly classified these shares as temporary equity in the consolidated balance sheets.

For additional transactions after March 31, 2017 concerning stock transactions, please see “Subsequent Events” in Note 9.