Subsequent Events

6 Months Ended

Jun. 30, 2015

Subsequent Events [Abstract]

Subsequent Events

NOTE 16 – SUBSEQUENT EVENTS

On July 9, 2015, the Company hired a Chief Operating Officer (“COO”). The COO will receive 375,000 (31,875,000 pre reverse split) options to purchase shares of common stock of the Company, with an exercise price of $0.85 ($0.01 pre reverse split) and valued at $1,502,219. The options will vest quarterly over three years. The fair value of the options was valued using the Black-Scholes option pricing model with the following assumptions: no dividend yield, expected volatility of 180.1%, risk free interest rate of 1.58% and expected life of 5 years. In addition, the COO will receive 225,000 (19,125,000 pre reverse split) shares of restricted stock, vesting over a three-year period, with one-third vesting the first year and 1/12 vesting ratably on a quarterly basis thereafter. The restricted stock was valued at fair value of $918,000 based on the closing stock price of $4.08 on July 9, 2015.

On July 23, 2015, the Company completed a 1-for-85 reverse stock split of its outstanding common and preferred stock, as further described in Note 1 above.

On August 10, 2015, the Company agreed to issue the Chief Financial Officer 20,000 Restricted Stock Units (“RSU’s”) vesting over 6 months, 100,000 RSU’s vesting annually over 3 years, and 200,000 stock options vesting annually over 3 years. The RSU’s were valued at a fair value of $727,020 based on the closing stock price of $5.77 per share on August 10, 2015. The options were valued at fair value of $1,107,857, using the Black-Scholes option pricing model with the following assumptions: no dividend yield, expected volatility of 182.2%, risk free rate interest rate of 1.62% and expected life of 5 years.