NOTE 11. STOCKHOLDERS’ EQUITY

Dividends

Dividend charges recorded during the three months ended March 31, 2018 and 2017 are as follows:

Accrued dividends payable included in accrued expenses are as follows:

Subscription Receivable

As of March 31, 2018, 140,229 shares of common stock issued to employees were vested at a fair value of $5,069. As of March 31, 2017, 182,692 shares that were previously issued to employees with a fair value of $3,587 remained unvested. Because these common shares are subject to forfeiture if the employees are no longer employed with the company at the end of their employment agreements, their unvested value is carried in subscriptions receivable in stockholders’ equity.

Shares to be Issued:

During the three months ended March 31, 2018, the Company sold shares of its common stock to individual investors. Net cash proceeds received by the Company was $5,437 and 807,531 shares of its common stock were sold. Stock issuances costs totaled $619. The shares will be issued to the investors during the second quarter of 2018.

Equity Transactions (in whole dollars)

During the three months ended March 31, 2018, the Company issued 281,655 shares of its common stock with a fair value of $5,633,000 to settle debt.

During the three months ended March 31, 2018, the Company issued 135,000 shares of its common stock with a fair value of $2,455,000 pursuant to consulting agreements.

During the three months ended March 31, 2018, the Company issued 26,667 shares of its common stock to individual investors, which resulted in net proceeds to the Company of $200,000.

During the three months ended March 31, 2018, the Company issued 25,750 shares of its common stock with a fair value of $447,000 to members of the Board of Directors.

During the three months ended March 31, 2018, the Company issued 14,277 shares of its common stock with a fair value of $300,000 to settle certain legal matters.