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EQUITY
3 Months Ended
Mar. 31, 2015
EQUITY [Abstract]  
EQUITY

NOTE 8 – EQUITY

  

The Company is authorized to issue 305,000,000 shares of capital stock. These shares are divided into two classes, with 300,000,000 shares in common stock at $0.001 par value and 5,000,000 shares in preferred stock at $0.01 par value.

 

On March 31, 2015, the Company issued 33,045 shares of common stock to a related party for $33,045 of advances and payments made on behalf of the Company.

 

During the year ended December 31, 2014, the Company appointed seven new members to its Board of Advisors and granted 10,000 non-qualified stock options (70,000 in aggregate) to each advisor which vest upon one year of service. The stock options were valued using the Black-Scholes option pricing model. Fair value of these options were calculated using the following inputs in the valuation model; 10-year term; $0.10 exercise price; common stock price of $0.10 - $2.15; risk free rate of 2.47%- 3.00% and volatility of 157%-159%. The grant date fair value of these stock options was $74,313. The Company recorded $16,865 of stock-based compensation expense during the three months ended March 31, 2015 in connection with these stock options. The remaining $9,366 of stock compensation expense will be expensed during the remainder of 2015.

 

On December 31, 2014, the Company granted 259,706 stock options to the Company's CFO. The stock options were valued using the Black-Scholes option pricing model. Fair value of these options was calculated using the following inputs in the valuation model; 10-year term; $0.43 exercise price; common stock price of $1.50; risk free rate of 2.17% and volatility of 156%. The grant date fair value of the stock options was $386,724 and will vest in four equal installments quarterly over one year. During the three months ended March 31, 2015, the Company recorded share-based compensation of $96,681 pursuant to these stock options related to 64,927 stock options that vested. The remaining $290,043 of share-based compensation expense for this agreement will be expensed during the remainder of 2015.

 

There were no options issued during the three months ended March 31, 2015.