Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Equity [Abstract]

STOCKHOLDERS EQUITY

Note 10. Stockholders' Equity

Common Stock

Common Stock Issuances

During 2016, the Company issued 942,527 common shares in satisfaction of $5,577 of principal obligations plus accrued interest to lenders on convertible debt.

Warrants

The company still has the following immaterial warrants outstanding from prior to our reverse merger on June 23, 2016.

As of December 31, 2016, the aggregate intrinsic value of the stock options outstanding and exercisable was $0. 

	2015							2016
	Shares			Weighted average exercise price		Weighted average remaining life-Years		Shares			Weighted average exercise price		Weighted average remaining life-Years
Outstanding: beginning of the year		545,294		$	1.13		5.9		1,217,941		$	0.35		4.9
Granted during the year		675,000		$	0.07				2,450,000			0.05		6.0
Cancelled or forfeited		(2,353	)	$	102.00				(2,450,000	)	$	0.05		-
Warrants outstanding: end of year		1,217,941		$	0.35		4.9		1,217,941		$	0.35		3.9
Warrants exercisable: end of year		1,217,941		$	0.35		4.9		1,217,941		$	0.35		3.9

Preferred Stock Series E

The Series E Convertible Preferred Stock is convertible into 95% of the Company’s common stock and votes on an as-converted basis.  The Series E designation limits the holders’ rights to convert its Convertible Preferred Stock, and the aggregate voting powers, to no more than 4.99% of the votes attributable to the total outstanding common shares.

There are currently 28,500 shares of Series E Preferred stock with a face value of $35. Dividends of $26,099 have been accrued since issuance

The Series E Preferred stock has a liquidation preference of $1,023,599 as follows:

Shares  outstanding		28,500
Face value per share	$	35
Total face value		997,500
Accrued dividends		26,099
Liquidation preference at December 31, 2016	$	1,023,599

Preferred Stock Cancellations

As a part of the Forbearance Agreement, 5,000 shares of Series B Preferred stock and 100 shares of Series D Preferred stock were also cancelled.

Incentive Stock Plans

Under the Company’s 2005 Incentive Stock Plan (the “2005 Plan”), the Amended and Restated 2007 Incentive Stock Plan (the “2007 Plan”), the 2008 Incentive Stock Plan (the”2008 Plan”), the 2009 Stock Incentive Plan (the “2009 Plan”), the 2011 Stock Incentive Plan (the “2011 Plan”) and the 2012 Stock Incentive Plan (the “2012 Plan”), officers, employees, directors and consultants may be granted options to purchase the Company’s common stock at fair market value as of the date of grant. Options become exercisable over varying vesting periods commencing from the date of grant and have terms of five to ten years. The plans also provide for the granting of performance-based and restricted stock awards.  The shares of Common Stock underlying the plans are reserved by the Company from its authorized, but not issued Common Stock. Such shares are issued by the Company upon exercise by any option holder pursuant to any grant of such shares. The Plans are authorized to grant awards as follows: the 2005 Plan is authorized to grant up to 823,529 share unit awards, the 2007 Plan is authorized to grant up to 1,000,000 share unit awards, and the 2008 Plan is authorized to grant up to 47,058,824 unit share awards. The 2009 Plan is authorized to grant up to 1,176,471 share unit awards. The 2011 Plan is authorized to grant up to 1,470,588 share unit awards. The 2012 Plan is authorized to grant up to 1,764,706 share unit awards.

Employee stock compensation expense was $0 for the years ended December 31, 2016 and 2015. No option grants were made in 2016 or 2015.

A summary of the status of outstanding incentive stock plans is presented below:

	2016							2015
	Shares			Weighted Average Exercise Price		Weighted Average Remaining Life-years		Shares			Weighted Average Exercise Price		Weighted Average Remaining Life-years
Outstanding beginning of year		1,099		$	2.008		2.53		2,363		$	2.008		3.53
Granted during the year		-							-
Cancelled or forfeited		(	)	$					(1,264	)
Options outstanding end of year		1,099		$	2.008		1.53		1,099		$	1,070		2.53
Options exercisable end of year		1,099		$	2.008		1.05		1,099		$	1,070		2.53

As of December 31, 2016, the aggregate intrinsic value of the stock options outstanding and exercisable was $0.