14. Stockholders' Equity

12 Months Ended

Dec. 31, 2018

Equity [Abstract]

Stockholders' Equity

14. STOCKHOLDERS’ EQUITY

Preferred Stock

The Company is authorized to issue 25,000,000 shares of Preferred Stock at a par value of $0.001. No shares of Preferred Stock were issued and outstanding as of December 31, 2018 or December 31, 2017.

Common stock

The Company is authorized to issue 200,000,000 shares of common stock at a par value of $0.001 and had 138,553,655 and 124,273,548 shares of common stock issued and outstanding as of December 31, 2018 and December 31, 2017, respectively.

Common Stock Issued in Private Placements

During the year ended December 31, 2018, the Company issued 3,854,869 shares and realized proceeds of $608,718.

During the year ended December 31, 2017, the Company did not issue any shares of stock in private placements.

Common Stock Issued in Connection with the Exercise of Warrants

During the year ended December 31, 2018, the Company issued 256,455 shares of common stock for proceeds of 61,500 under a series of stock warrant exercises with a share price of approximately $0.24 per share.

During the year ended December 31, 2017, the Company issued 6,530,220 shares of common stock for proceeds of $1,566,000 under a series of stock warrant exercises with a share price of approximately $0.24 per share.

Common Stock Issued in Exchange for Consulting, Professional and Other Services

During the year ended December 31, 2018 the Company issued 1,200,321 shares of common stock with a fair market value of $458,918 to employees in lieu of cash payment. Additionally, the Company issued 2,385,505 shares of common stock with a fair value of $825,170 to consultants and other professionals in lieu of cash payments.

During the year ended December 31, 2017, the Company issued 1,156,931 shares of common stock with a fair market value of $835,225 to employees, officers and directors in lieu of cash payment. Additionally, the Company issued 3,264,965 shares of common stock with a fair value of $1,892,735 to consultants and other professionals in lieu of cash payments.

Each share issuance made in exchange for services was valued based upon the private placement offering price of the Company’s common stock in place on its respective date of award.

Common Stock Issued In lieu of Cash for Loans Payable and Other Accrued Obligations

During the year ended December 31, 2018, the Company issued 3,995,304 shares of common stock with a fair market value of $1,321,376 to satisfy loans payable and other accrued obligations.

During the year ended December 31, 2017, the Company issued 1,045,870 shares of common stock with a fair market value of $533,000 to satisfy loans payable and other accrued obligations.

Common Stock Issued in Connection with the Amendment of Terms of a Promissory Note

During the year ended December 31, 2018, the Company issued 805,000 shares of common stock valued at $482,250 to amend the terms of a promissory note.

Common Stock Issued in Connection with the Issuance of Convertible Debentures

During the year ended December 31, 2018 the Company issued 1,432,653 shares of common stock valued at $523,601 in connection with the issuance of convertible notes.

Common Stock Issued in the Acquisition of a Business

During the year ended December 31, 2018 the Company issued 150,000 shares of common stock valued at $52,500 in connection with the acquisition of a business.

Conversion of Convertible Debentures and Accrued Interest into Common stock

During the year ended December 31, 2018, the Company issued 200,000 shares of common stock valued at $30,000 in connection with the conversion of convertible debentures and accrued interest into common stock.

Common Stock Issued in Connection with Secured convertible OID notes

In 2017, we issued $601,223 of secured convertible OID Notes at an interest rate of 10%. In connection with the issuance of these Notes and as an inducement to enter into these Notes we issued 150,305 shares valued at $78,321.

Stock Purchase Warrants

The stock purchase warrants have been accounted for as equity in accordance with FASB ASC 480, Accounting for Derivative Financial Instruments Indexed to, and potentially settled in, a company’s own stock, distinguishing liabilities from equity.

The following table reflects all outstanding and exercisable warrants at December 31, 2018 and December 31, 2017. All stock warrants are exercisable for a period of approximately five years from the date of issuance.

	Number of Warrants Outstanding			Weighted Avg. Exercise Price		Weighted Avg. Contractual Life (Yrs.)
Balance January 1, 2017		7,608,154		$	0.26		0.75
Warrants issued		567,166		$	1.50		2.25
Less: Warrants exercised		(7,107,765	)	$	0.24
Warrants forfeited		(29,190	)	$	0.24
December 31, 2017		1,038,365		$	1.36		2.38
Warrants issued		–			–
Warrants exercised		(256,455	)		–
Balance 31, 2018		781,910		$	1.36		1.38

Stock Options

The following table represents all outstanding and exercisable stock options as of December 31, 2018.

	Options Issued		Options Forfeited		Options Outstanding		Vested Options		Strike Price		Weighted Average Remaining Life (Yrs.)
		7,735,350		–		7,735,350		7,735,350	$	0.24	4.27
		9,695,250		417,000		9,278,250		9,278,250	$	0.36	0.44
		13,135,500		3,544,500		9,591,000		9,591,000	$	0.72	1.25
		5,481,000		1,042,500		4,438,500		4,011,019	$	0.78	2.20
Total		36,047,100		5,004,000		31,043,100		30,615,619	$	0.50	1.90

The Company did not issue any stock options in 2018. The remaining stock-based compensation to be recorded on the above issuance was zero as of December 31, 2018.

During the years ended December 31, 2018 and 2017, the Company recorded $2,300 and $1,823,408 in stock-based compensation expense related to these stock options.