Quarterly report pursuant to Section 13 or 15(d)

11. Subsequent Events

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11. Subsequent Events
6 Months Ended
Jun. 30, 2016
Subsequent Events [Abstract]  
Subsequent Events

Increase in Outstanding Shares

 

From July 1, 2016 through August 5, 2016, the Company issued convertible notes in the amount of $511,500 in exchange for cash of $465,000. These notes are unsecured, convertible into 5,115,000 shares in common stock of the Company at a conversion price of $0.10 per share and mature in one year. In connection with this note, the Company also issued warrants to purchase 2,557,500 shares of common stock of the Company at an exercise price of $0.10 per share and expiring one year from the date of issuance. As a result, the Company will record a note discount of $511,500 to account for the relative fair value of the warrants, the notes’ beneficial conversion feature and original issue discount, which will be amortized as interest expense over the life of the notes.

 

From July 1, 2016 through August 5, 2016, the Company issued 1,540,000 shares of common stock upon conversion of previously issued convertible notes in aggregate value of $154,000.