Quarterly report pursuant to Section 13 or 15(d)

NOTE 8 - STOCKHOLDER EQUITY

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NOTE 8 - STOCKHOLDER EQUITY
3 Months Ended
Mar. 31, 2017
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Note Disclosure [Text Block]
NOTE 8 – STOCKHOLDER EQUITY

Preferred stock

The Company is authorized to issue 1,000,000 shares of $0.001 par value preferred stock. As of March 31, 2017 and December 31, 2016 and 2015, the Company has authorized 200 shares of Series A preferred stock, 600 shares of Series B preferred stock and 4,200 shares of Series C Preferred Stock. As of March 31, 2017 and December 31, 2016, there were 0, 0, and 1,070 outstanding shares of Series A, Series B and Series C preferred stock, respectively.

Common stock

The Company is authorized to issue 200,000,000 shares of $0.001 par value common stock. As of March 31, 2017 and December 31, 2016, the Company had 24,405,863 and 22,588,184 shares issued and outstanding, respectively.

During the three months ended March 31, 2017, the Company issued an aggregate of 325,000 shares of its common stock for services totaling $453,749 ($1.40 per share).

During the three months ended March 31, 2017, the Company entered into securities purchase agreements with investors pursuant to which the Company issued 1,310,071 shares of common stock and 655,037 warrants for aggregate proceeds of $1,799,692, net of $165,415 in expenses.

On February 10, 2017, the Company issued an aggregate of 12,858 shares of its common stock to 2016 investors to re-price the investment to $1.50 per share.

During the three months ended March 31, 2017, the Company issued an aggregate of 45,000 shares of common stock as vested previously issued restricted stock units

During the three months ended March 31, 2017, the Company issued an aggregate of 124,750 shares of its common stock previously accrued as board of director compensation in 2016 ($1.35 per share).

Beginning on October 28, 2016, the Company entered into subscription agreements with certain accredited investors pursuant to which the Company sold to the investors units, which each unit consisting of one share of the Company’s common stock and a warrant to purchase one half of one share of common stock (the “Private Placement”).  In connection with the Private Placement, the Company also entered into a registration rights agreements with the investors, pursuant to which the Company agreed to provide certain registration rights with respect to the common stock and warrants issued under the Private Placement. 

The registration rights agreements require the Company to file a registration statement within 45 calendar days of the final closing under the Private Placement and to be effective 120 calendar days thereafter.  The final closing under the Private Placement occurred on March 31, 2017.  The Company has estimated the liability under the registration rights agreement at $-0- as of March 31, 2017.