Annual report pursuant to Section 13 and 15(d)

NOTE 7. EQUITY (Tables)

NOTE 7. EQUITY (Tables)

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

Schedule of Stockholders' Equity Note, Warrants or Rights [Table Text Block]

Summary information regarding common stock warrants issued and outstanding as of December 31, 2016, is as follows:

	Warrants			Weighted Average Exercise Price		Aggregate intrinsic value		Weighted average remaining contractual life (years)
Outstanding at year ended December 31, 2014		4,170,111		$	0.77	$	—		6.1
Granted		7,740,000			0.10		—		2.6
Exercised		—			—		—
Expired		—			—		—
Outstanding at year ended December 31, 2015		11,910,111			0.33		—		3.5
Granted		5,740,416			0.09		—		2.6
Exercised		(825,000	)		—		—
Expired		—			—		—
Outstanding at year ended December 31, 2016		16,825,527		$	0.25	$	—		3.2

Schedule of Warrants Granted [Table Text Block]

	Year Ended December 31,
	2016		2015
Warrants Granted
Board of Director Service		2,500,000		2,000,000
PORRI		150,000
Deferred Salary – CEO, CFO		206,666		40,000
Providing Bond Related Collateral		31,250
Pre-bridge Loans		290,000
Short-term Debt		100,000
Advisory Board		262,500
Deferred loan penalty		10,000
Consulting Agreements		340,000
Rick Wilber Loan		500,000
Signing Bonus – CEO, CFO		550,000
Private Placement Memo (Sept 2015)		800,000		3,500,000
Private Placement Memo (May 2015)				2,200,000
Total		5,740,416		7,740,000

- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

+ References + Details