Equity

6 Months Ended

Jun. 30, 2016

Notes to Financial Statements

Note 6 - Equity

Common Stock

On August 19, 2015, the stockholders voted to increase the number of authorized shares of common stock from 100,000,000 shares to 140,000,000 shares.

Common stock issuable on the condensed consolidated balance sheet represents common stock to be issued for either cash received or services performed. As of June 30, 2016 and December 31, 2015, the number of shares of common stock to be issued was 265,412 and 701,018 shares, respectively.

As part of a December 2015 Convertible Note agreement, the Company placed 13,291,667 shares of our common stock in escrow as collateral. Shares in escrow are deemed to be issued and outstanding.

Common stock warrants issued with the sale of our common stock

When the Company sells shares of our common stock the buyer also typically receives fully-vested common stock warrants with a maximum contractual term of 3-5 years. A summary of common stock warrants issued with the sale of our common stock as of June 30, 2016, and changes during the period then ended is presented below:

	Number of Warrants			Weighted-average Exercise Price		Weighted-average Remaining Life (Years)		Aggregate Intrinsic Value
Outstanding, December 31, 2015		20,726,707		$	0.49
Granted		5,130,770			0.24
Forfeited or cancelled		(2,438,194	)		0.40
Outstanding, June 30, 2016		23,419,283			0.46		2.01	$	0
Exercisable, June 30, 2016		23,419,283			0.46		2.01	$	0

Included in the warrants granted and cancelled above are 3,729,164 warrants for which the life was extended by one year, for which the Company recorded expense of $660,000.