|
STOCKHOLDERS' EQUITY
|
12 Months Ended |
|---|---|
|
Dec. 31, 2011
|
|
| Notes to Financial Statements | |
| NOTE 10 - STOCKHOLDERS' EQUITY | The Company has authorized 100,000,000 shares of $0.001 par value per share Common Stock, of which 50,018,625 and 33,000,000 shares were issued outstanding as of December 30, 2011 and 2010. The activity surrounding the issuances of the Common Stock is as follows:
Fiscal Year Ended December 31, 2011
During the fiscal year ended December 31, 2011, the Company issued 2,500,000 shares of common stock for net cash proceeds of $250,000 at $0.10 per share and 360,000 shares of common stock for cash and convertible notes payable of $180,000, of which $50,000 was received from related parties. The Company issued 1,761,000 shares of common stock for services rendered to the Company valued at $513,731, based on the market price of the stock on the date of issuance. The Company issued a total of 10,000,000 shares of common stock valued at $3,100,000 based on the market price of the stock on the date of issuance, and options to purchase 1,000,000 shares of common stock valued at $513,150 to acquire three wholly-owned subsidiaries, one of which was completed on January 6, 2012.
During the fiscal year ended December 31, 2011, the Company issued 2,397,625 shares of common stock issued in advance of services. The value being based on the market price on the date of issuance valued at $431,573. The value of these shares has been capitalized and will be recognized in expenses over the life of the agreements under which they were issued. The Company also received $186,000 in cash for stock subscriptions payable. As of the date of this report, the Company has satisfied its obligations relating to the stock subscriptions payable through the issuance of 744,000 shares of common stock and warrants at $0.25 per share.
Fiscal Year Ended December 31, 2010
During the fiscal year ended December 31, 2010 the Company’s outstanding shareholder loan and related accrued interest, totaling $24,064, was satisfied through the issuance of 2,000,000 shares of the Company’s common stock at $0.0125 per share, valued at $25,000. This transaction resulted in a loss on extinguishment of debt in the amount of $936. Also on May 10, 2010, the Company issued an additional 4,000,000 common shares for $50,000 cash at $0.0125 per share. The value of the shares issued was based on the market price of the stock on the date of issuance. |