NOTE 8 - EQUITY
|9 Months Ended|
Sep. 30, 2017
|Stockholders' Equity Note [Abstract]|
|Stockholders' Equity Note Disclosure [Text Block]||
NOTE 8 – EQUITY
On January 11, 2016, the Company announced the payment of a $0.06 special cash dividend per share of Common Stock. The dividends were paid on January 20, 2016 totaling $264,699, which reduced additional paid in capital.
On July 28, 2016 (the “Effective Date”), the Company entered into a Series B Preferred Stock Purchase Agreement (the “Preferred Stock Purchase Agreement”) with the Company’s Chief Executive Officer, Mr. Mark Meller, pursuant to which Mr. Meller was issued the only share of the Company’s authorized but unissued Series B Preferred Stock. Mr. Meller was issued one (1) share of Series B Preferred Stock for (i) $100 in cash and (ii) as partial consideration for Mr. Meller’s personal guarantee of the Revolving Demand Note. Each one (1) share of the Series B Preferred Stock shall have voting rights equal to (x) the total issued and outstanding Common Stock eligible to vote at the time of the respective vote divided by (y) forty-nine one-hundredths (0.49) minus (z) the total issued and outstanding Common Stock eligible to vote at the time of the respective vote. For example, if the total issued and outstanding Common Stock eligible to vote at the time of the respective vote is 5,000,000, the voting rights of the Series B Preferred Stock shall be equal to 5,204,082 (e.g. (5,000,000 / 0.49) – 5,000,000 = 5,204,082). The Series B Preferred Stock has the rights, privileges, preferences and restrictions set for in the Certificate of Designation (the “Certificate of Designation”) filed by the Corporation with the Secretary of State of the State of Delaware (“Delaware Secretary of State”) on September 23, 2011.
On January 23, 2017, the Company announced the payment of a $0.02 special cash dividend per share of Common Stock. The dividends were paid out on January 31, 2017 totaling $89,566, which reduced additional paid in capital.
On January 27, 2017, the Company issued 100 shares of stock each to 125 non-executive employees of SWK.
On April 24, 2017, the Company announced the payment of a $0.02 special cash dividend per share of Common Stock. The dividends were paid out on May 10, 2017 totaling $89,816, which reduced additional paid in capital.
A summary of the status of the Company’s stock option plans for the fiscal years ended December 31, 2016 and the nine months ending September 30, 2017 and changes during the years are presented below (in number of options):
As of September 30, 2017 the unamortized compensation expense for stock options was $78,968. Unamortized compensation expense is expected to be recognized over a weighted-average period of three years.
On March 27, 2017, the Company granted 4,988 warrants with a fair value of approximately $19,923, which immediately vested, to John Schachtel as part of his compensation for agreeing to join the Board of Directors. The estimated fair value of the warrant has been calculated based on a Black-Scholes pricing model using the following assumptions: a) fair market value of stock of $4.00; b) exercise price of $4.01; c) Dividend yield of 0%; d) Risk free interest rate of 1.42%; e) expected volatility of 284.28%; f) Expected life of 5 years.
The following table summarizes the warrants transactions:
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://www.xbrl.org/2003/role/presentationRef