NOTE 4 – COMMON STOCK TRANSACTIONS

A summary of the Company’s non-vested restricted stock activity and related weighted average grant date fair value information for the three and nine months ended January 31, 2019 and 2018 are as follows:

The Company awarded 6,600,000 shares of common stock to officers as part of their compensation agreements for 2017. These shares vest monthly over a twelve-month period and are subject to them continuing service under the agreements. During the three and nine months ended January 31, 2019, the Company recorded a non-cash compensation expense in the amount of $0 and $0, respectively, and during the three and nine months ended January 31, 2018, the Company recorded non-cash compensation of $114,400 and $457,600, respectively. As of January 31, 2019, there were no unvested shares.

During the nine months ended January 31, 2018, the Company issued 1,750,000 shares of common stock to four directors of the Company’s Board of Directors (“Board”) pursuant to Board compensation agreements. The terms of the agreements are for twelve months. The shares vested upon issuance and the Company recorded a non-cash expense of $0 and $0 for the three and nine months ended January 31, 2019, respectively, and $25,038 and $50,947 for the three and nine months ended January 31, 2018, respectively. As of January 31, 2019, there were no unvested shares.

During the nine months ended January 31, 2018, the Company issued 4,200,000 shares of common stock to three consultants. The terms of two of the agreements are for twelve months and one agreement is for eighteen months. The shares vest monthly over a twelve-month to eighteen-month period and are subject to the consultants providing services under the agreements. The Company recorded a non-cash consulting expense in the amount of $11,200 and $73,800 for the three and nine months ended January 31, 2019, respectively, and $69,840 and $150,630 for the three and nine months ended January 31, 2018, respectively. As of January 31, 2019, there were no unvested shares.

The Company awarded 6,600,000 shares of common stock to officers as part of their compensation agreements for 2018. These shares vest monthly over a twelve-month period and are subject to them continuing service under the agreements. During the three and nine months ended January 31, 2019, the Company recorded a non-cash compensation expense in the amount of $61,380 and $245,520, respectively. As of January 31, 2019, there were no unvested shares.

During the nine months ended January 31, 2019, the Company issued 1,950,000 shares of common stock to two consultants. The terms of two of the agreements are for twelve months. The shares vest monthly over a twelve-month period and are subject to the consultants providing services under the agreements. An additional agreement required 500,000 shares vest upon issuance. The Company recorded a non-cash consulting expense in the amount of $24,230 and $67,084 for the three and nine months ended January 31, 2019, respectively. As of January 31, 2019, there were 562,500 unvested shares.

All shares were issued without registration under the Securities Act in reliance upon the exemption afforded by Section 4(a)(2) of the Securities Act and Regulation D.

During the nine months ended January 31, 2019 and 2018, the Company sold and issued approximately 111.7 million and 62.4 million shares of common stock, respectively, at prices ranging from $0.01 to $0.08 per share pursuant to the Company’s S-3. Net of underwriting discounts, legal, accounting and other offering expenses, the Company received proceeds of approximately $1.9 million and $1.8 million from the sale of these shares for the nine months ended January 31, 2019 and 2018, respectively, and $465,000 and $0 during the three months ended January 31, 2019 and 2018, respectively.

A summary of the Company’s non-vested restricted stock activity and related weighted average grant date fair value information for the nine months ended January 31, 2019 are as follows: