Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY

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STOCKHOLDERS' EQUITY
6 Months Ended
Jun. 30, 2017
Equity [Abstract]  
STOCKHOLDERS' EQUITY

6. STOCKHOLDERS’ EQUITY

 

The Company is authorized to issue up to 5,000,000 shares of its $0.001 par value preferred stock and up to 200,000,000 shares of its $0.001 par value common stock. During the year ended December 31, 2013, the Company amended its certificate of incorporation to increase the number of common shares from 100,000,000 to 200,000,000. The amendment went into effect on September 7, 2013. On November 2, 2015, the Company’s Board of Directors voted to approve an increase in authorized common stock shares outstanding from 200,000,000 shares to 400,000,000 shares of the Company’s common stock. This increase is subject to shareholder approval.

 

Common Stock

 

On April 11, 2017, the Company issued a total of 1,038,301 shares of its common stock in conjunction with the conversion of one of the 6% Convertible Debentures plus accrued interest (See Note 5). Of the total amount of shares issued, 1,000,000 were for the conversion of a Note for $75,000 and 38,301 shares were issued for the conversion of accrued interest of $2,873.

 

Common Stock Warrants

 

The Company accounts for warrants as either equity instruments or liabilities depending on the specific terms of the warrant agreement. As of June 30, 2017, the Company had 30,404,669 warrants outstanding which are all classified as equity instruments and are fully exercisable as of June 30, 2017.

 

The following table summarizes the Company’s common stock warrant activity during the six months ended June 30, 2017:

 

    Warrants     Weighted Average
Exercise Price
 
Outstanding as of December 31, 2016     28,424,669     $ 0.29  
 Granted     2,000,000       0.10  
 Exercised            
 Forfeited/cancelled     (20,000 )     1.15  
Outstanding as of June 30, 2017     30,404,669     $ 0.28