7. COMMON STOCK

12 Months Ended

Dec. 31, 2016

STOCKHOLDERS' 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 December 31, 2016 and December 31, 2015, there were 59,731,567 and 57,240,446 common shares issued and outstanding.

During the year ended December 31, 2016, the Company issued 1,445,000 shares of common stock to investors for $70,000 cash and 1,046,121 shares of common stock valued at $37,029 to a related party in payment of accrued preferred stock dividends.

During the year ended December 31, 2015, the Company issued 3,549,403 shares of common stock to investors for $207,500 cash.