CAPITAL STOCK	6 Months Ended
Jun. 30, 2016
Notes to Financial Statements
CAPITAL STOCK	*SERIES A PREFERRED STOCK* The Company is authorized to issue 100,000,000 shares of preferred stock, $0.001 par value per share, of which 3,500,000 shares have been designated Series A Preferred Stock. During the six months ended June 30, 2016, 10,542 shares of Series A Preferred Stock were converted into 25,000 shares of common stock. In addition, the Company issued 130 shares of its common stock in satisfaction of a $46 dividend accrued on the shares of Series A Preferred Stock that were converted. For the six months ended June 30, 2016 and 2015, the Company accrued a preferred stock dividend of $5,943 and issued 7,160 shares of Series A Preferred Stock in satisfaction of such accrued dividends. During the six months ended June 30, 2015, 180,119 shares of Series A Preferred Stock were converted into 320,000 shares of common stock. In addition, the Company issued 9,691 shares of its common stock in satisfaction of a $4,329 dividend accrued on the shares Series A Preferred Stock that were converted. For the six months ended June 30, 2015, the Company accrued a preferred stock dividend of $34,685 and issued 41,790 shares of Series A Preferred Stock in satisfaction of such accrued dividends. *SERIES B PREFERRED STOCK* The Company is authorized to issue 100,000,000 shares of preferred stock, $0.001 par value per share, of which 12,000,000 shares have been designated Series B Preferred Stock. For the six months ended June 30, 2016 and 2015, the Company accrued a Series B Preferred Stock dividend of $259,779 and $248,503, respectively. During the six months ended June 30, 2016 and 2015, there were no voluntary conversions. *COMMON STOCK* The Company has authorized 100,000,000 shares of its common stock, $0.001 par value per share. At June 30, 2016 and December 31, 2015, the Company had issued and outstanding 33,648,780 and 32,908,503 shares of its common stock, respectively. In January 2016, the Company issued an aggregate of 61,159 shares of common stock with fair value of $21,406 in settlement of certain outstanding liabilities to third parties. In December 2015, the Company issued an aggregate of 867,143 shares of common stock, with a total fair value of $337,250, for consulting services and in settlement of certain outstanding liabilities to third parties. As of December 31, 2015, $30,000 of this settlement related to services that were performed in 2016 and is included in prepaid expense in the consolidated balance sheet. In addition, certain settlement agreements included a provision to issue, upon a subsequent financing as defined therein, an amount of warrants equal to fifty percent of the number of shares of common stock issued by the Company in the subsequent financing.

CAPITAL STOCK

6 Months Ended

Jun. 30, 2016

SERIES A PREFERRED STOCK

The Company is authorized to issue 100,000,000 shares of preferred stock, $0.001 par value per share, of which 3,500,000 shares have been designated Series A Preferred Stock.

During the six months ended June 30, 2016, 10,542 shares of Series A Preferred Stock were converted into 25,000 shares of common stock. In addition, the Company issued 130 shares of its common stock in satisfaction of a $46 dividend accrued on the shares of Series A Preferred Stock that were converted.

For the six months ended June 30, 2016 and 2015, the Company accrued a preferred stock dividend of $5,943 and issued 7,160 shares of Series A Preferred Stock in satisfaction of such accrued dividends.

During the six months ended June 30, 2015, 180,119 shares of Series A Preferred Stock were converted into 320,000 shares of common stock. In addition, the Company issued 9,691 shares of its common stock in satisfaction of a $4,329 dividend accrued on the shares Series A Preferred Stock that were converted.

For the six months ended June 30, 2015, the Company accrued a preferred stock dividend of $34,685 and issued 41,790 shares of Series A Preferred Stock in satisfaction of such accrued dividends.

SERIES B PREFERRED STOCK

The Company is authorized to issue 100,000,000 shares of preferred stock, $0.001 par value per share, of which 12,000,000 shares have been designated Series B Preferred Stock.

For the six months ended June 30, 2016 and 2015, the Company accrued a Series B Preferred Stock dividend of $259,779 and $248,503, respectively.

During the six months ended June 30, 2016 and 2015, there were no voluntary conversions.

COMMON STOCK

The Company has authorized 100,000,000 shares of its common stock, $0.001 par value per share. At June 30, 2016 and December 31, 2015, the Company had issued and outstanding 33,648,780 and 32,908,503 shares of its common stock, respectively.

In January 2016, the Company issued an aggregate of 61,159 shares of common stock with fair value of $21,406 in settlement of certain outstanding liabilities to third parties.

In December 2015, the Company issued an aggregate of 867,143 shares of common stock, with a total fair value of $337,250, for consulting services and in settlement of certain outstanding liabilities to third parties. As of December 31, 2015, $30,000 of this settlement related to services that were performed in 2016 and is included in prepaid expense in the consolidated balance sheet. In addition, certain settlement agreements included a provision to issue, upon a subsequent financing as defined therein, an amount of warrants equal to fifty percent of the number of shares of common stock issued by the Company in the subsequent financing.