| Transaction Type | Quantity Stock |
Valuation | |||||
| Exercise of warrants (1) | 124,500 | $ | 124,500 | ||||
| Conversion of Preferred Series B into common stock | 3,469,500 | 480,179 | |||||
| Services – third parties (2) | 174 | 955 | |||||
| 3,599,174 | $ | 605,634 | |||||
| (1) | ECI issued units containing common stock and warrants for $1.00. The warrants have a $1.00 exercise price and expire on December 31, 2015. Each of the warrants in the units that were included in the exchange were converted to ECHI warrants. The Company has reserved shares to cover the possible exercise of the warrants. There are no embedded features in the warrants that would require treatment as a derivative liability. |
| (2) | Valuation is based upon the average cash price paid by third parties for common stock during the 30-day period preceding the service performance, since the Company was not yet traded publicly; this represented the best evidence of fair value. |