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Subsequent Events
3 Months Ended
Mar. 31, 2016
Subsequent Events [Abstract]  
Subsequent Events

NOTE 8 – Subsequent Events 

Since April 1, 2016, the Company has issued two year warrants to purchase 529,058 shares of common stock at an exercise price of $2.00 per share in exchange for advances in the amount of $400,000 from the Company’s president and principal shareholder in connection with the secured convertible line of credit agreement. The conversion rate of these advances were between $0.36 and $0.40 per share.

 

Since April 1, 2016, the Company has issued 152,319 shares of commons stock to Lincoln Park in exchange for $59,200 in connection with the Purchase Agreement.

 

Since April 1, 2016, the Company has issued 4,167 shares of common stock in exchange for investor relation services valued at $2,000.

 

On April 8, 2016, the Company and its president and principal shareholder entered into the First Amendment to Secured Revolving Convertible Promissory Note Agreement increasing the credit facility from $4 million to $5 million.  Under this agreement, the Company may receive advances only with the prior approval of our president and principal shareholder.

 

In April 2016, the Company issued 296,371 shares of commons stock to its president and principal shareholder upon the conversion of accrued interest in the amount of $148,365 related to the advances under the Secured Revolving Convertible Promissory Note Agreement. No gain or loss will be recognized on the conversion as the conversion price used was the current price of the stock

 

In April 2016, the Company issued ten year options to purchase 30,000 shares of common stock at an exercise price of $0.39 per share to a new director.  The options vest annually over three years, subject to the continued service on the board.  The options were valued using the Black-Scholes option pricing model using a volatility of 103.79% based upon the historical price of the company’s stock, a term of 6.5 years, using the simplified method and a risk free rate of 1.52%.  The calculated fair value, $9,631 will be recognized over the requisite service period.