Note 6 - Capital Transactions

3 Months Ended

Jun. 30, 2016

Notes

Note 6 - Capital Transactions

Note 6 – Capital Transactions

During the three months ended June 30, 2016, the Company issued an aggregate of 835,967 shares of common stock in settlement and release of certain obligations owed by the Company to various persons and recorded related expenses of $0.3 million, as follows:

·          The Company issued 512,275 shares of its common stock in connection with the conversion of $0.2 million in indebtedness owed by us to various persons at a conversion price of approximately $0.38 per share.

·          The Company issued 323,692 shares of common stock in connection with settlement of payroll liabilities owed by us to our executives at a conversion price of $0.19 per share. The Company recorded approximately $0.1 million of compensation expense.

The Company issued 100,000 shares of common stock to employees and recorded an expense of $0.03 million.

On April 8, 2016, the Company issued 200,000 of its common shares to its former Chief Financial Officer, in exchange for a full dismissal with prejudice of all causes of action pending in the complaint filed against the Company on August 19, 2015.

The Company issued 50,000 shares in exchange for consulting services and recorded a related expense of $0.02 million.

On June 13, 2016 the Company received notice from Pacific Leaf Ventures, LP ("Pacific Leaf") that it had elected to convert $500,000 of the Company's indebtedness to Pacific Leaf Note into common stock of the Company pursuant to the Amended and Restated 6% Senior Secured Convertible Promissory.  Accordingly, the Company has issued 2,000,000 shares of its common stock ($500,000 converted at a price of $0.25 per share) to Pacific Leaf.

During three months ended June 30, 2016, the Company sold 7,425,500 units through a private placement at a price of $0.20 per unit resulting in net proceeds of $1.3 million.  Each unit consisted of one share of common stock and one common stock purchase warrant, expiring in three years, with an exercise price of $0.50.