6. Changes in Stockholders' Equity (Deficit)

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Changes in Stockholders' Equity (Deficit)

In October 2012, the Company granted employees options to purchase 3,000,000 shares of common stock exercisable at $0.01 per share with a three year vesting schedule and expiration dates four years from the grant date. In August 2015, one of the employees resigned from the Company and forfeited his 1,000,000 stock options. For the nine month periods ended September 30, 2016 and 2015, the stock-based compensation related to these option grants was $-0- and $1,500, respectively.

In April 2014, the Company granted 10,000,000 stock options to purchase 10,000,000 shares of its common stock to the Company’s chief executive officer, exercisable at $0.025 per share with a three year vesting schedule and an expiration date of April 17, 2019. For the nine month periods ended September 30, 2016 and 2015, the stock-based compensation related to these option grants was $25,500 and $25,500, respectively.

In September 2014, the Company granted options to purchase a total of 1,500,000 shares of common stock exercisable at $0.02 per share with a three year vesting schedule and an expiration date of September 1, 2018 to two employees. In July 2015, one of the employees was terminated from the Company and forfeited his 750,000 stock options prior to the first vesting milestone. For the nine month periods ended September 30, 2016 and 2015, the stock-based compensation related to these option grants was $1,875 and $3,125, respectively.

In May 2015, the Company granted 750,000 options to one employee to purchase 750,000 shares of common stock, exercisable at $0.02 per share with a three year vesting schedule and an expiration date of May 14, 2019. For the nine month periods ended September 30, 2016 and 2015, the stock-based compensation related to these option grants was $3,000 and $2,000, respectively.

During the nine months ending September 30, 2016, the Company issued 39,000 shares of Wytec common stock for $48,750, 1,358,786 shares of Wytec Series B Preferred Stock and 1,358,786 common stock purchase warrants for $3,971,358 in cash and 1,035,000 shares of Wytec Series B Preferred Stock and 1,035,000 common stock purchase warrants in exchange for 117 registered link obligations that were included in deferred revenue and two registered link obligations and related equipment for which all obligations to the customer had already been met.

During the nine months ending September 30, 2016, the Company refunded $37,500 that had been received for the purpose of issuing 12,500 shares of Wytec Series B Preferred Stock to an investor. The Wytec Preferred Stock Series B shares were never issued to the investor, and the funds were returned.