Stock Warrants

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

Stock Warrants

NOTE 4. STOCK WARRANTS

On March 6, 2014 (inception), the Company issued 2,500,000 warrants exercisable into 2,500,000 shares of the Company’s common stock. These warrants were issued per order of the U.S. Bankruptcy Court to the administrative creditors of PSD. These creditors received an aggregate of 2,500,000 warrants issued in the series and exercise prices as set forth below:

Warrant Class	Number Issued		Exercise Price		Expiry Date
A		500,000	$	4.00	August 30, 2016
B		500,000	$	5.00	August 30, 2016
C		500,000	$	6,00	August 30, 2016
D		500,000	$	7.00	August 30, 2016
E		500,000	$	8.00	August 30, 2016

On August 19, 2016, the Company entered into a series of warrant amendment agreements (collectively, the “Warrant Amendments”) in order to extend the expiration date of certain outstanding warrants from August 30, 2016 to August 30, 2017. The Company analyzed the incremental value of the modified warrants as compared to the original warrant value, both valued as of the modification date, The Company determined there was no warrant modification expense as the warrants had nominal value. The warrants subject to the term extension were valued using the Black-Scholes Option Pricing Model and the following weighted average assumptions:

Assumption	Pre-Modification			Post-Modification
Market price per share	$	0.01		$	0.01
Average exercise price per Share	$	6.00		$	6.00
Risk-free interest rate		0.20	%		0.59	%
Remaining contractual term in years		0.03			1.03
Volatility		100.0	%		100.0	%
Dividend rate		0.0	%		0.0	%
Fair value per share	$	0.00		$	0.00

On September 12, 2016, the Company issued 4,165 shares of its common stock upon exercise of 4,165 class C warrants for cash proceeds of $24,990. The following table summarizes the warrants outstanding and the related prices for the shares of the Company’s common stock at December 31, 2016:

	Number of Warrants			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)		Aggregate Intrinsic Value
Balance outstanding December 31, 2014		2,500,000		$	6.00		1.66	$	-
Granted		-			-		-		-
Exercised		-			-		-		-
Cancelled		-			-		-		-
Balance outstanding December 31, 2015		2,500,000		$	6.00		0.66	$	-
Granted		-			-		-		-
Exercised		(4,165	)		6.00		0.63		-
Cancelled		-			-		-		-
Balance outstanding December 31, 2016		2,495,835		$	6.00		0.66	$	-
Exercisable, December 31, 2016		2,495,835		$	6.00		0.66	$	-