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6. COMMON STOCK
6 Months Ended
Dec. 31, 2013
Text Block [Abstract]  
6. COMMON STOCK

The Company has authorized 100,000,000 shares of $0.001 par value per share Common Stock, of which 61,215,239 were issued outstanding as of December 31, 2013.  The activity surrounding the issuances of the Common Stock is as follows: 

 

For the Six Months Ended December 31, 2013

 

The Company issued 5,975,000 common shares for net cash proceeds of $581,565.  The Company paid as offering costs $15,935 in cash offering costs and 46,000 in common stock offering costs. Offering costs paid in cash have been recorded as reductions to additional paid-in capital from common stock proceeds and common stock issued for offering costs have been expensed as compensation expenses. Attached to the Common Shares, the Company issued 196,804 warrants to purchase shares of the Company’s Common Stock. The Company recognized $114,626 in employee stock option expense and for the amortization of warrants issued in prior periods.

 

The Company also issued 510,000 shares of Common Stock as additional incentive for notes of $141,049 to convertible notes payable and recorded $251,000 in beneficial conversion features related to new issuances of debt.

 

As share-based compensation to employees and non-employees, the Company issued 1,970,458 shares of common stock valued at $531,478, based on the market price of the stock on the date of issuance.   As interest expense on outstanding notes payable, the Company issued 1,471,784 shares of common stock valued at $408,441 based on the market price on the date of issuance.

 

For the Six Months Ended December 31, 2012

 

The Company issued 450,800 common shares for net cash proceeds of $106,700. The Company paid as offering costs $3,300 in cash offering costs. Offering costs have been recorded as reductions to additional paid-in capital from common stock proceeds. Attached to the Common Shares, the Company issued 430,000 warrants to purchase shares of the Company’s Common Stock. The Company recognized $9,180 in employee stock option expense and for the amortization of warrants issued in prior periods.

 

 

As share-based compensation to employees and non-employees, the Company issued 1,839,453 shares of common stock valued at $478,480, based on the market price of the stock on the date of issuance. As interest expense on outstanding notes payable, the Company issued 1,006,119 shares of common stock valued at $307,106 based on the market price on the date of issuance.