Stockholders' Deficit

3 Months Ended

Jun. 30, 2017

Note 12 – Stockholders’ Deficit

Issuance of Common Stock for Services to Consultants

During the three months ended June 30, 2017, the Company issued 229,165 shares of its common stock valued at $382,705 to various consultants. The Company valued these shares at a price of $1.67 per share, the most recent price of the sale of its common stock near the date of grant.

Issuance of Common Stock for Services to Employees

During the three months ended June 30, 2017, the Company issued 700,000 shares of its common stock valued at $1,169,000 to certain employees. The Company valued these shares at a price of $1.67 per share, the most recent price of the sale of its common stock near the date of grant.

During the three months ended June 30, 2017, the Company recorded $107,292 of expense related to the vested portion of its restricted stock, and the remaining $1,061,708 is expected to be recorded over the next two years.

Additional details of the Company’s restricted common stock are as follows:

	Number of Shares			Weighted Average Grant Date Fair Value Per Share
Non-vested March 31, 2017		-		$	-
Issued		700,000			1.67
Vested		(37,500	)		1.67
Forfeited		-			-
Non-vested, June 30, 2017		662,500		$	1.67

Warrants

During the quarter ended June 30, 2017, the Company issued warrants along with a series of convertible notes to acquire 872,500 shares of Company’s common stock valued at $791,576 at an exercise price of $0.01.

During the quarter ended June 30, 2017, 1,022,500 warrants were exercised into 1,022,500 shares of common stock for net proceeds of $10,226.

The table below summarizes the Company’s warrant activities:

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)
Balance outstanding, March 31, 2017		150,000		$	0.010		2.99
Granted		872,500			0.010		3.07
Exercised		(1,022,500	)		0.010		3.06
Forfeited/expired		-			-		-
Balance outstanding, June 30, 2017		-		$	-		-
Exercisable, June 30, 2017		-		$	-		-