Shareholders' Equity

9 Months Ended

Sep. 30, 2014

Shareholders' Equity [Abstract]

SHAREHOLDERS' EQUITY

5. SHAREHOLDERS’ EQUITY

Following the April 30, 2014 merger between MacroSolve, Inc. and Drone Aviation Holding Corp. and the resulting share consolidation, the Company had approximately 3,920,700 shares of common stock issued and outstanding. On June 3, 2014, the Company entered into a Share Exchange Agreement with Drone Aviation Corp. (DAC) and issued 8,050,000 shares of common stock and 36,050,000 shares of Series D Preferred Stock to DAC shareholders, to exchange for the 34,100,000 DAC common shares outstanding, which were originally issued for cash amount of $653,327. The Company issued a total of 18,957,414 common shares in the period from June 3, 2014 to September 30, 2014, described further as follows:

The Company issued 3,810,000 shares of common stock between June 3 and June 30, 2014 pursuant to conversions of 38,100 shares of Series A Preferred Stock.

The Company issued 9,865,000 shares of common stock during the third quarter pursuant to conversions of 98,650 shares of Series A Preferred Stock.

On July 1, 2014, the Company entered into a consulting agreement for twelve months investor relations, marketing and public relations services. The agreement includes stock compensation of 250,000 shares immediately deliverable and an additional 250,000 shares deliverable after six months if the agreement is still in force. The 250,000 shares delivered in July were valued at $215,000.

On July 21, 2014, the Company issued a total of 1,700,000 shares of common stock to two consulting firms which held warrants issued on May 19, 2014 for services which were exercised for cash at a $.01 strike price or a total of $17,000.

The Company issued 960,000 shares of common stock on August 25, 2014 pursuant to the conversion of 9,600 shares of Series C Preferred Stock.

On August 26, 2014, the Company issued an aggregate of 372,414 shares of restricted common stock to seven investors pursuant to the cashless exercise of 100% of the warrants associated with Series E Preferred Stock.

On August 27, 2014, the Company issued 2,000,000 shares of restricted common stock with monthly vesting to two members of its newly-formed Strategic Advisory Board for twelve months services. The advisors can earn a pro rata portion of the shares, calculated based on the twelve-month vesting period, in the event the service agreements are terminated prior to the expiration date as described in the agreements. The Company recognized a total of $133,334 expense for the pro rata portion of shares earned by the two advisors during the nine months ended September 30, 2014.