SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2017

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 14.   SUBSEQUENT EVENTS

Subsequent to December 31, 2017, and up to the date of this filing, 6,900,000 and 507,221 shares, respectively, of our common stock were issued upon the exercise of warrants and stock options for consideration of $3,725,860 and $443,322, respectively, in cash.  In January 2018, we exercised our option to call the 12% Warrants and Fall 2017 Warrants. All holders exercised their warrants, thus we will not be required to buy them back.

In January 2018, we paid off the outstanding balance of the 12% Notes of $1,621,250.  In February 2018, we paid off the outstanding balance of the Infinity Note of $1,370,126.

In January 2018, we entered into a limited liability company operating agreement with DNFC LLC (“DNFC”), pursuant to the formation of Desert Created Company LLC (“Desert Created Company”).  Each party owns a 50% interest in Desert Created Company, the successor company to DB Arizona.  In connection with the formation of Desert Created Company, we contributed 75,000 shares of our common stock and warrants to purchase 75,000 shares of our common stock, at an exercise price of $2.00 per share, to members of DNFC.  This agreement was initially discussed and priced in November 2017, however, the transaction did not close until January 2018.  In the interim, our stock price increased substantially.  We anticipate recording a loss during the quarter ending March 31, 2018, due to the change in stock price between initial discussions and closing, as it relates to the value of our 50% interest in Desert Created Company.

In January 2018, we issued 154,500 shares of our common stock related to warrants exercised in late December 2017.

In February 2018, we issued 104,359 shares of our common stock related to the acquisition of MHPS.