7. COMMON STOCK

9 Months Ended

Sep. 30, 2016

STOCKHOLDERS' EQUITY (DEFICIT)

COMMON STOCK

In accordance with the Company’s bylaws, the Company has authorized a total of 250,000,000 shares of common stock, par value $0.01 per share. As of September 30, 2016 and December 31, 2015, there were 58,516,364 and 57,240,446 common shares issued and outstanding.

During the nine months ended September 30, 2016, the Company issued a total of 1,250,000 shares of common stock to an investor for $62,500 cash and 25,918 shares of common stock to a company that is controlled by the Company’s CEO in payment of accrued preferred stock dividends.

During the nine months ended September 30, 2015, the Company issued a total of 2,585,119 shares of common stock to investors for $150,000 cash. As more fully described in Note 8, one investor also received options to purchase shares of the Company’s restricted common stock in connection with his investment in the Company.