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6. SHAREHOLDERS EQUITY (DEFICIT)
 3 Months Ended
Dec. 31, 2012
Notes to Financial Statements  
6. SHAREHOLDERS’ EQUITY (DEFICIT)

NOTE 6 - CAPITAL STOCK

 

Share Capital

 

The Company’s capitalization is 500,000,000 shares of common stock with a par value of $0.001 per share.  No preferred shares have been authorized or issued.

 

On October 3, 2012, the Company entered into a Private Placement Subscription for Non U.S. Subscribers with Black Sands Holdings, Inc., to subscribe to and purchase 1,265,823 units valued at $0.079 per unit for an aggregate purchase price of $100,000.  Each unit consists of one share of the Company’s common stock and one warrant.   Each warrant entitles the holder to purchase one additional share of the Company’s common stock at an exercise price of $0.119 for a period of three years.

 

During the quarter ended December 31, 2012, the Company recorded $26,000 for stock-based compensation payable related to 250,000 shares of common stock earned by Mr. Alvaro Valencia, CEO and Director of the Company.  On October 31, 2011, under the Independent Consultant Agreement between the Company and the CEO, 250,000 shares of common stock vested and were valued based on the closing price of our shares of common stock on October 31, 2011.  At September 30, 2012 and December 31, 2012, 166,667 shares of common stock were recorded in stock payable on the balance sheet at an estimated value based on the closing price of our shares of common stock at September 30, 2012 and December 31, 2012, respectively.

 

Warrants

 

The following is a summary of the common stock warrants granted, forfeited or expired and exercised.

 

 

          Weighted Average Exercise  
    Warrants     Price Per Shares  
Outstanding – September 30, 2011   4,282,153     $ 0.70  
Granted   3,333,334     $ 0.14  
Forfeited or expired   0     $ 0.00  
Exercised   0     $ 0.00  
Outstanding – September 30, 2012   7,615,487     $ 0.45  

 

 

Warrants (continued)        
             
Granted   1,265,823     $ 0.12  
Forfeited or expired   0     $ 0.00  
Exercised   0     $ 0.00  
Outstanding – December 31, 2012   8,881,310     $ 0.40  


 

As of December 31, 2012, the Company has the following warrants to purchase common stock outstanding:

 


Number of Warrant Exercise Warrant
Warrants Issued Price Per Share Expiration Date
595,238 $1.26 5-Oct-13
449,438 $1.34 25-Jan-14
510,204 $1.47 23-Feb-14
2,727,273 $0.33 9-Aug-14
1,666,667 $0.18 21-Feb-15
1,666,667 $0.09 20-Sep-15
1,265,823 $0.12 3-Oct-15
8,881,310