SHARES GRANTED AND ISSUED TO EMPLOYEES

3 Months Ended

Mar. 31, 2016

SHARES GRANTED AND ISSUED TO EMPLOYEES [Abstract]

NOTE 15.

SHARES GRANTED AND ISSUED TO EMPLOYEES

On February 10, 2015, the Company determined to grant equity awards of 429,200 shares to 2 part-time consultants and 46 employees for the services rendered. The total fair value of these shares at the date of grant was estimated to be $21,224.

On November 27, 2015, the Company determined to grant equity awards of 75,000 shares to one part-time consultant for the services rendered. The total fair value of these shares at the date of grant was estimated to be $3,709.

The fair value of the shares granted was $0.04945 per share calculated through the application of an income approach technique known as Discounted Cash Flow (“DCF”) method to evaluate the future value of the operation into a present market value. This method eliminates the discrepancy in time value of money by using a discount rate to reflect all business risks including intrinsic and extrinsic uncertainties in relation to the operation.

Major assumptions used for measuring the fair value as follow:

⋅	It is assumed that there will be no material change in the existing political, legal, technological, fiscal or economic condition which may adversely affect the business of the Company;

⋅	The Company will adhere to the terms that bond with the contracts and agreements;

⋅	The Company’s competitive advantages and disadvantages will not change significantly during the period.

China Network Media, Inc. 10-Q