Stockholders' Equity

9 Months Ended

Sep. 30, 2016

Equity [Abstract]

Stockholders' Equity

NOTE 8: STOCKHOLDERS’ EQUITY

Common Stock Issued for Cash and the Exercise of Options and Warrants

As of December 31, 2015 there was an insufficient amount of the Company’s authorized common stock to satisfy the potential number of shares that would be required to satisfy the outstanding options, warrants and convertible debt into common stock. As a result the Company recorded a liability in the amount of $852,091, offset by $852,091 of equity for the period ending December 31, 2015. During the nine months ended September 30, 2016, although the effective date was October 2015, the Company filed a Certificate of Amendment to perform a 1:100 reverse stock split which eliminated the shortage of sufficient authorized common shares.

In April 2016, the Company issued 30,644 shares of common stock for cashless warrants exercise.

Preferred Stock Issued for Cash and the Exercise of Warrants

In March 2016, the Company issued 50,000 restricted shares of its Series A preferred stock in exchange for the cancellation of the warrants attached to the convertible notes received in July 2012.

In June 2016, the Company issued 250,000 restricted shares of its Series A preferred stock, pursuant to a warrant exercise.

In August 2016, the Company issued 12,854 restricted shares of its Series A preferred stock in exchange for the cancellation of the warrants attached to the convertible notes received in July 2015.

In August and September 2016, the Company issued 46,666 shares of Series A preferred stock in exchange for $70,000 cash.

Preferred Stock Issued for Loan Fees on Convertible Debt

During the nine months ending September 30, 2016 the Company issued 47,840 shares of its Series A preferred stock as loan fees on convertible promissory notes totaling $623,000.

During the nine months ending September 30, 2016 the Company issued 35,106 shares of its Series A preferred stock as loan fees on convertible promissory notes totaling $438,828 to a major shareholder and Director of the Company.

During the nine months ending September 30, 2016 the Company issued 2,800 shares of its Series A preferred stock as loan fees on convertible promissory notes totaling $35,000 to the CEO of the Company.

During the nine months ending September 30, 2016 the Company issued 30,000 shares of its Series A preferred stock as finder’s fees.

Preferred Stock Issued for Debt Converted

During the nine months ending September 30, 2016 the Company issued 654,791 Series A preferred stock in exchange for $1,636,779 of convertible debt received from a major shareholder and Director of the Company.

During the nine months ending September 30, 2016 the Company issued 1,223,000 Series A preferred stock in exchange for $1,296,000 of convertible debt.

During the nine months ending September 30, 2016 the Company issued 35,000 Series A preferred stock in exchange for $35,000 of convertible debt, to the CEO of the Company.

Preferred Stock Issued for Debt Settled

During the nine months ending September 30, 2016 the Company issued 185,600 Series A preferred stock in exchange for $184,762 of convertible debt, plus $50,711 of accrued interest.

Preferred Stock Issued for Services and Wages

During the nine months ending September 30, 2016 the Company issued 68,000 Series A preferred stock in exchange for $357,403 of services and $64,982 of wages.

During the nine months ending September 30, 2016 the Company issued 10,000 Series A preferred stock to the CFO of the Company.