Quarterly report pursuant to Section 13 or 15(d)

Note 8 - Stockholders' Equity

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Note 8 - Stockholders' Equity
9 Months Ended
Sep. 30, 2018
Notes  
Note 8 - Stockholders' Equity

NOTE 8 - STOCKHOLDERS’ EQUITY                                                                                                                                

 

The Company is authorized to issue 200 million shares of common stock, par value $0.001 per share, and 10 million shares of preferred stock, par value $0.001 per share.  Each share of the Company’s preferred stock was originally convertible into 10 shares of common stock, subject to adjustment, has voting rights equal to its common stock equivalent, 7% cumulative dividend rights, and has liquidation rights that entitle the recipient to the receipt of net assets on a pro-rata basis.  The Company has 91,107,621 and 77,063,171 common shares issued and outstanding and 3,594,610 and 3,639,783 Series A preferred shares issued and outstanding as of September 30, 2018 and December 31, 2017, respectively.  

 

During the nine months ended September 30, 2018, the Company issued an aggregate 1,049,166 shares of the Company’s common stock pursuant to consulting contracts valued at $533,670, or an average of $0.51 per share. 

 

During the nine months ended September 30, 2018, the Company converted an aggregate 45,173 shares of the Company’s Series A preferred stock into 535,565 shares of the Company’s common stock after receiving conversion exercises from multiple preferred stockholders.

 

On March 30, 2018, a contractor rescinded a provision in its contract for common stock payments, and returned 300,000 shares previously issued to it during 2017.  The Company retired the returned shares and recaptured the original $240,000 expensed when the shares were issued.

 

On June 11, 2018, the Company issued 300,000 shares of the Company’s common stock valued at $120,000 as a signing bonus to an employee.

 

On June 13, 2018, the Company converted a $25,000 advance from related party and Director J Allen Kosowsky into 78,125, shares of the Company’s common stock at a price of $0.32 per share (see Note 7 – Related Party Transactions).

 

On September 30, 2018, the Company issued an aggregate 2,935,818 shares of the Company’s common stock to satisfy $1,027,535 in wages payable at the rate of $0.35 per share.  The stock contains a 6 month non-forfeitable vesting restriction.

 

On September 30, 2018, The Company converted notes payable and interest valued at an aggregate $1,161,271 and due to the Company’s Chief Technology Officer and Director, John Hayes, into 4,645,082 shares of the Company’s common stock at a price of $0.25 per share (see Note 7 – Related Party Transactions).

 

On September 30, 2018, The Company converted notes payable and interest valued at $32,639 and due to the Company’s Director, J Allen Kosowsky, into 130,556 shares of the Company’s common stock at a price of $0.25 per share (see Note 7 – Related Party Transactions).