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7. COMMON STOCK
 12 Months Ended
Dec. 31, 2012
Equity [Abstract]  
COMMON STOCK

At December 31, 2012, the Company's authorized capital stock was 150,000,000 shares of common stock, par value $0.001 per share, and 10,000,000 shares of preferred stock, par value $0.001 per share. On that date, the Company had outstanding 38,911,606 shares of common stock, and no shares of preferred stock.

 

2012 Transactions: During the year ended December 31, 2012, the Company issued shares of common stock in the following transactions:

 

  — 3,335,500 shares of common stock and warrants for 3,335,500 shares of common stock for extinguishment of debts totaling $1,667,750 (see Note 6 for further discussions). The shares were valued at the market price of our common stock on the date of issuance and warrants valued using the Black-Scholes options pricing model (see Note 8) whereby both shares and warrants collectively were valued at $531,695.  
     
  — 200,000 shares of common stock for an employee signing bonus valued at .09 per share.  

 

  — 75,000 shares of common stock for consulting services and a warrant for 75,000 shares of common stock with a total value of $15,000 for services to be rendered over a three year period.
     
  — 715 shares of common stock for a share exchange of Wow Technologies, Inc., valued at $.30 share.
     
  — 50,000 shares of common stock for extinguishment of debts totaling $27,000. The shares were valued at $0.27 per share.

 

2011 Transactions: During the year ended December 31, 2011, the Company issued shares of common stock in the following transactions:

  — 5,322 shares of common stock to various shareholders of Wow Technologies, Inc. valued at $0.07 to $0.22 per share.

 

All shares issued (or cancelled) for services or in exchange for Wow Technologies, Inc. common stock are valued on the market price on the date issuance.

 

Warrants:

 

The Company issued the following warrants at the corresponding weighted average exercise price. As of December 31, 2012, there are no warrants outstanding.

 

Date of Issuance  Number of Warrants   Exercise Price  Contractual Life  Number of Shares Exercisable 
May 31, 2012   1,834,525   0.50   3 years   1,834,525 
May 31, 2012   1,500,975   0.50   3 years   1,500,975 
July 30, 2012   75,000   0.50   3 years   75,000 
October 30, 2012   50,000   0.50   3 years   50,000 
                 
    3,460,500          3,460,500 

 

Stock Grants:

 

In August 2012, the Company granted a total of 5,000,000 shares of common stock to various officers and directors of the Company with a total value of $680,000 or $0.14 per share (including a 15% discount of fair market value due to these shares being restricted and lacking market liquidity). The 5,000,000 shares granted have a vesting period of 5 years of which four months have vested with an approximate value of $52,000 for the year ended December 31, 2012 and which a payable has been recorded for the same vested amount as of December 31, 2012. As of December 31, 2012, none of the 5,000,000 shares granted have been issued.