Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Deficit

v3.7.0.1
Stockholders' Deficit
6 Months Ended
Jun. 30, 2017
Stockholders' Deficit [Abstract]  
STOCKHOLDERS' DEFICIT

11. STOCKHOLDERS’ DEFICIT

 

Common Stock:

 

Purchase of treasury shares

 

During January 2017, the Company repurchased 81,668 shares at par value of $0.0001 per share from employees who terminated employment.

 

During April 2017, the Company repurchased 10,384 shares at par value of $0.0001 per share from employees who terminated employment.

 

Cancellation of shares

 

During March 2017, 1,694,373 shares issued to Dominion Capital LLC during 2016 were cancelled.

 

Issuance of shares of common stock to non-employees for services

 

During January 2017, the Company issued 125,000 shares of its common stock to an investor relations firm for services provided to the Company. The shares were valued at fair value at $0.10 per share and were immediately vested. The Company recorded $12 to salaries and wages expense on the unaudited condensed consolidated statement of operations for the three months ended March 31, 2017.

 

Issuance of shares of common stock to employees and directors for services

 

During January 2017, the Company issued 1,300,000 shares of its common stock to employees and directors for services performed. The shares were valued at fair value of $0.07 per share and vest on varying schedules through January 26, 2020. The Company recorded $1 to salaries and wages expense on the unaudited condensed consolidated statement of operations for the three months ended March 31, 2017.

 

Issuance of shares pursuant to Dominion Capital LLC promissory notes

 

During January 2017, the Company issued an aggregate of 5,627,593 shares of common stock to Dominion Capital LLC upon the conversion of $333 of principal and accrued interest of a note outstanding. The shares were issued at $0.06 per share, per the terms of the notes payable.

 

During February 2017, the Company issued an aggregate of 6,750,181 shares of common stock to Dominion Capital LLC upon the conversion of $357 of principal and accrued interest of a note outstanding. The shares were issued at $0.05 per share, per the terms of the notes payable.

 

During March 2017, the Company issued an aggregate of 13,332,254 shares of common stock to Dominion Capital LLC upon the conversion of $528 of principal and accrued interest of a note outstanding. The shares were issued at $0.04 per share, per the terms of the notes payable.

 

Issuance of shares pursuant to Forward Investments, LLC promissory notes

 

During January 2017, the Company issued 7,848,973 shares of its common stock to Forward Investments, LLC upon conversion of $582 principal amount of promissory notes outstanding. The shares were issued at $0.07 per share, per the terms of the notes payable.

 

During February 2017, the Company issued 11,881,352 shares of its common stock to Forward Investments, LLC upon conversion of $867 principal amount of promissory notes outstanding. The shares were issued at $0.07 per share, per the terms of the notes payable.

 

During March 2017, the Company issued 20,759,848 shares of its common stock to Forward Investments, LLC upon conversion of $1,112 principal amount and $254 accrued interest of promissory notes outstanding. The shares were issued at $0.07 per share, per the terms of the notes payable.

 

Issuance of shares pursuant to JGB Concord senior secured convertible debenture

 

During January 2017, the Company issued 4,286,262 shares of common stock to JGB Concord pursuant to conversion of $290 principal amount and $1 of accrued interest related to the outstanding February 2016 senior secured convertible debenture. The shares were issued at $0.07 per share, per the terms of the note payable.

 

During February 2017, the Company issued 779,634 shares of common stock to JGB Concord pursuant to conversion of $45 principal amount and $1 of accrued interest related to the outstanding February 2016 senior secured convertible debenture. The shares were issued at $0.06 per share, per the terms of the note payable.

 

During March 2017, the Company issued 16,366,216 shares of common stock to JGB Concord pursuant to conversion of $615 principal amount and $1 of accrued interest related to the outstanding February 2016 senior secured convertible debenture. The shares were issued at $0.04 per share, per the terms of the note payable.

 

Issuance of shares pursuant to Smithline senior convertible promissory note

 

During February 2017, the Company issued 457,615 shares of its common stock to Smithline upon the conversion of $23 of principal of a note outstanding. The shares were issued at $0.05 per share, per the terms of the note payable.

 

During March 2017, the Company issued 5,395,111 shares of its common stock to Smithline upon the conversion of $223 of principal of a note outstanding. The shares were issued at $0.04 per share, per the terms of the note payable.

 

Issuance of shares pursuant to MEF I, L.P. convertible promissory note

 

During March 2017, the Company issued 500,000 shares of its common stock to MEF I, L.P. upon the conversion of $18 principal amount and $1 of accrued interest of a note outstanding. The shares were issued at $0.04 per share, per the terms of the note payable.