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8. COMMON STOCK
 9 Months Ended
Sep. 30, 2013
Common Stock  
NOTE 8. COMMON STOCK

Stock Issued in Cash Sales

 

During the six months ended June 30, 2013 pursuant to private placements, the Company issued 12,901,333 shares of common stock for cash with a per share price of $0.15 per share or $1,935,200, and the Company incurred $154,816 of capital raising fees that were paid in cash and charged to additional paid-in capital.

 

Stock Issued for Services

 

In March 2013, the Company issued 250,000 shares of common stock with a per share value of $0.15 (based on contemporaneous cash sales prices) or $37,500, for professional services to be rendered.  The shares were recorded as a prepaid asset and were expensed over the term of the agreement.

 

In September 2013, the Company issued 304,000 shares of common stock with a per share value of $0.18 (based on market price at the time of the transaction) or $54,720, for professional services.  $6,480 was expensed for services previously rendered while $48,240 was recorded as a prepaid asset and is being expensed over the remaining term of the agreement.

 

Stock Issued in Settlement of Note Payable

 

In September 2013, the Company issued 150,000 shares of common stock with a per share value of $0.19 (based on market price at the time of the transaction) or $28,500 as a partial payment of outstanding debt.  The Company recorded a reduction of notes payable of $23,967, a reduction of accrued interest of $6,033 and a gain on debt settlement of $1,500 related to this transaction. (See note 6)