10. Stockholders' deficit

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

10. Stockholders' deficit

10. Stockholders’ deficit

a)       Common shares

Authorized, issued and outstanding

The Company has authorized 500,000,000 shares with a par value of $0.01 per share. The company has issued and outstanding 48,738,755 and 47,738,755 shares of common stock on December 31, 2016 and 2015, respectively.

On June 7, 2016, the Company issued 1,000,000 common shares to an investor relations firm, in terms of an agreement.

b)       Preferred shares

Authorized, issued and outstanding

The Company has authorized 13,000,000 preferred shares with a par value of $0.01 per share, designated as 3,000,000 series A convertible preferred shares and 10,000,000 series B convertible preferred shares. The Company has no preferred shares issued and outstanding.

c) Warrants

In terms of the shortterm convertible loan agreement entered into with JMJ Financial, disclosed in note 7 above, on April 13, 2016, the Company awarded fiveyear warrants exercisable for 3,703,700 shares of common stock at an exercise price of $0.03 per share.

In terms of the shortterm Series L Convertible short term notes entered into with 8 parties, as disclosed in note 7 above, the Company awarded threeyear warrants exercisable over 15,633,709 shares of common stock, at an exercise price of $0.03 per share.

The fair value of Warrants awarded during the year ended December 31, 2016 were valued at $311,955 using the BlackScholes pricing model and the following weighted average assumptions were used:

	Year ended December 31, 2016
Calculated stock price	$0.02 to $0.03
Risk free interest rate	1.22% to 1.47%
Expected life of warrants (years)	3 to 5 years
expected voliatility of underlying stock	224.3% to 396.4%
Expected dividend rate	0%

The volatility of the common stock is estimated using historical data of the Company’s common stock. The riskfree interest rate used in the Black Scholes pricing model is determined by reference to historical U.S. Treasury constant maturity rates with maturities approximate to the life of the warrants granted. An expected dividend yield of zero is used in the valuation model, because the Company does not expect to pay any cash dividends in the foreseeable future. As of December 31, 2016, the Company does not anticipate any awards will be forfeited in the valuation of the warrants.

During the current year, warrants exercisable for 6,000,000 shares expired.

A summary of all of the Company’s warrant activity during the period January 1, 2015 to December 31, 2016 is as follows:

	No. of shares	Exercise price per share	Weighted average exercise price
Outstanding January 1, 2015	6,300,000	$0.0033 to $0.15	$0.1400
Granted	-	-	-
Forfeited/cancelled	-	-	-
Exercised	-	-	-
Outstanding December 31, 2015	6,300,000	$0.00	0.0033
Granted	19,337,409	$               0.03	0.0300
Forfeited/cancelled	(6,000,000)	0.15	0.1500
Exercised	-	-	-
Outstanding December 31, 2016	19,637,409	$0.033 to $0.03	$0.0300

The following table summarizes warrants outstanding and exercisable as of December 31, 2016:

	Warrants outstanding			Warrants exercisable
Exercise price	No. of shares	Weighted average remaining years	Weighted average exercise price	No. of shares	Weighted average exercise price
$0.0033	300,000	*		300,000
$0.03	3,703,700	4.28		3,703,700
$0.03	15,633,709	3.00		15,633,709
	19,637,409	3.19	$               0.03	19,637,409	$                 0.03

* In terms of an agreement entered into with an investor relations company, 300,000 warrants were to be issued as part of the Investor Relations Agreement. These warrants have not been issued as yet, therefore the warrant terms are uncertain.

All of the warrants outstanding as of December 31, 2016 are vested. The warrants outstanding as of December 31, 2016 have an intrinsic value of $5,001.

d) Stock options

Our board of directors adopted the Greenestone Healthcare Corporation 2013 Stock Option Plan (the “Plan”) to promote our longterm growth and profitability by (i) providing our key directors, officers and employees with incentives to improve stockholder value and contribute to our growth and financial success and (ii) enable us to attract, retain and reward the best available persons for positions of substantial responsibility. A total of 10,000,000 shares of our common stock have been reserved for issuance upon exercise of options granted pursuant to the Plan. The Plan allows us to grant options to our employees, officers and directors and those of our subsidiaries; provided that only our employees and those of our subsidiaries may receive incentive stock options under the Plan. We have granted a total of 480,000 options as of December 31, 2016 under the Plan.

No options were issued, exercised or cancelled during the year ended December 31, 2016.

A summary of all of the Company’s option activity during the period January 1, 2015 to December 31, 2016 is as follows:

	No. of shares	Exercise price per share	Weighted average exercise price
Outstanding January 1, 2015	480,000	$0.12	$                0.12
Granted	-	-	-
Forfeited/cancelled	-	-	-
Exercised	-	-	-
Outstanding December 31, 2015	480,000	$0.12	0.12
Granted - non plan options	-	-	-
Forfeited/cancelled	-	-	-
Exercised	-	-	-
Outstanding December 31, 2016	480,000	$0.12	$                0.12

The following table summarizes options outstanding and exercisable as of December 31, 2016:

	Options outstanding			Options exercisable
Exercise price	No. of shares	Weighted average remaining years	Weighted average exercise price	No. of shares	Weighted average exercise price
$0.12	480,000	2.83		480,000
	480,000	2.83	$               0.12	480,000	$                0.12

The Company agreed to issue Stock options to a former officer vesting over a 24-month period commencing on November 1, 2014 expiring on October 31, 2019, a formal option agreement has not been issued as yet, as such the terms of these options are uncertain.

As of December 31, 2016 there was no unrecognized compensation costs related to these options and the intrinsic value of the options as of December 31, 2016 is $0.