Beneficial conversion feature

3 Months Ended

Mar. 31, 2016

Preferred Stock Deposit

Beneficial conversion feature

15. Beneficial conversion feature

The Company evaluated the convertible note and determined that a portion of the note should be allocated to additional paid-in capital as a beneficial conversion feature, since the conversion price on the note as of March 10, 2016 was now set at a discount to the fair market value of the underlying stock. As a result, a discount of $148,077 was attributed to the beneficial conversion feature of the note, which amount was then amortized fully during the three months ended March 31, 2016.