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2. Stockholders' Deficit
 3 Months Ended
Sep. 30, 2012
Notes  
2. Stockholders' Deficit

2. Stockholders’ Deficit

 

Our authorized preferred stock consists of 10,000,000 share of preferred stock with a par value of $0.001, of which no shares have been issued or outstanding.

Our authorized common stock consists of 100,000,000 shares of common stock with a par value of $0.001.

During the first three months of fiscal 2013, we issued common shares for the following transactions

·         During the first three months of fiscal 2013, we issued 22,893 common shares to an entity controlled by Naser Ahmad, the Chief Technology Officer of Youchange, Inc.  We expensed $30,000 as professional fees and applied $30,000 against an expense accrual for the issuance of these shares.

 

·         During the first three months of fiscal 2013, we issued 2,469 common shares to Richard Papworth, our Chief Financial Officer for services rendered.  We expensed $6,000 as professional fees for the issuance of these shares.

 

·         During the first three months of fiscal 2013, we issued 16,049 common shares to an entity controlled by Derrick Mains, our Executive Vice President of Business Development and Operations, for services rendered.  We expensed $39,000 as professional fees for the issuance of these shares.

 

·         During the first three months of fiscal 2013, we issued 8,025 common shares to Dan Fogel, our Vice President of Strategic Initiatives, for services rendered.  We expensed $19,500 as professional fees for the issuance of these shares.

 

·         During the first three months of fiscal 2013, we also issued 1,079 common shares in exchange for other professional services.  We expensed approximately $2,500 as professional fees for the issuance of these shares.

 

 

·         During the first three months of fiscal 2013, we raised $35,000 through the sale of 28,000 common shares in a private placement transaction with six accredited investors at a sales price of $1.25 per common share. :

 

 Reverse Stock Split – Subsequent to September 30, 2012, the Company effectuated a 1 for 5 reverse split that was effective on October 17, 2012 associated with the reverse merger with Earth911.  As a result of the reverse split, each five (5) shares of the Company’s common stock outstanding at the time of the reverse split was automatically changed into one share of common stock, and the total number of common stock shares outstanding were reduced from approximately 43.4 million shares to approximately 8.6 million shares post split.  The reverse stock split resulted in the same adjustment to the Company’s convertible notes outstanding.  No fractional shares were issued in connection with the reverse stock split.  Fractional shares were rounded up to the next whole share.  All per share amounts and outstanding shares, including all common stock equivalents (convertible securities and stock options) have been restated in the Condensed Consolidated Financial Statements, the Notes to the Condensed Consolidated Financial Statements and the loss per share for all periods presented to reflect the reverse stock split.