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NOTE 11 - STOCKHOLDERS' DEFICIT
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3 Months Ended |
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Mar. 31, 2015
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| Note 11 - Stockholders Deficit | |
| NOTE 11 - STOCKHOLDERS' DEFICIT |
NOTE 11 – STOCKHOLDERS’ DEFICIT
Common stock issued for services and settlements
On February 20, 2015, the Company issued 25,000 shares of common stock valued at the quoted trading price of $1.20 per share to a financial services company in exchange for services or $30,000, related to assistance with the Company’s regulatory filings.
On March 1, 2015, the Company entered into an agreement with its Investor Relation firm to exchange $57,000 worth of outstanding invoices for 71,250 shares at $0.80 per share which was also the fair market value of the common stock based on the quoted trading price. The agreement calls for a further $33,000 of services that will be invoiced and become due in the second quarter of 2015 to also be exchanged for shares at the same terms and conditions.
On March 12, 2015, the Company entered into an agreement with its regulatory filing services firm to exchange $25,000 worth of services related to assisting with the merger and filing requirements for 100,000 shares of common stock. The shares were valued at the quoted trading price of $0.70 and thus the Company recorded an expense of $70,000.
On March 31, 2015 the Company’s Board of Directors approved the issuance of 170,000 vested shares with a value of $136,000 based on the quoted trading price to be issued to two officers and three board members as compensation for services provided. The expense was recognized immediately.
On March 31, 2015 the Company’s Board of Directors approved the issuance of 82,966 shares in exchange for the surrender of certain warrants and a further 14,750 shares in exchange for the surrender of all options. Since the value of the warrants and options exceeded the value of the shares issued, there was no further compensation or other expense resulting from the exchange.
Common stock – Convertible Note
On February 18, 2015, a settlement agreement was reached to convert $46,892 of a $66,000 convertible note plus default penalty and interest of $26,933 which was expensed, into 87,125 shares of common stock. The shares were valued at $1.20 per share based on the quoted trading price on the settlement date resulting in a value of $104,550. This resulted in a loss on conversion of $30,725. The Company also committed to pay the remaining balance of $19,108 after the merger of Duos Technologies. The conversion occurred at $0.85 per share. (See Note 6). |