v2.4.0.6
Stockholders' Equity
 12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
Note E - Stockholders' Equity

Effective April 28, 2010, we implemented the previously approved 500-for-1 reverse stock split. All share amounts included in this report have been retroactively adjusted accordingly.

 

Common Stock

During the year ended December 31, 2011 we issued a total of 1,444,660shares of our common stock valued at $111,888 for the settlement of certain notes payable and interest.

 

Additionally, we issued 24,706 shares of common stock for services at a price of $0.17 per share for total consideration of $4,200.

 

Also during 2011, we issued 3,820,233 shares of common stock upon the conversion of one share of Series C preferred stock (convertible at a ratio 975,493 shares of common stock for each share of Series C preferred) and 568,948 shares of our Series D Preferred Stock (convertible at a ratio of 5 shares of common stock for each share of Series D preferred).

 

During 2010 we issued a total of 5,385,343 shares of our common stock valued at $604,560. This included 151,970 shares of common stock that was issued for services at a price of $.10 per share for a total of $15,197.

 

Additionally during 2010, we issued 4,384,706 shares of common stock to satisfy debt at prices between $.04 and $2.00 per share for a total value of $374,995.

 

We also issued 848,667 common shares upon the conversion of 169,733 shares of our Series D Preferred Stock.

 

Preferred stock

Our Articles of Incorporation provide that we may issue up to 10,000,000 shares of preferred stock. Subject to the requirements of the Colorado Business Corporation Act, the Board of Directors may issue the preferred stock in series with rights and preferences as the Board of Directors may determine appropriate, without shareholder approval. To date, the Board of Directors has authorized the creation of four series of preferred stock as described below.

 

  (i) 3,500,000 shares of our Series A Convertible Preferred Stock have been authorized for issuance, none of which are currently issued or outstanding.
  (ii) 4,500, 000 shares of our Series B Preferred Stock have been authorized for issuance, of which 80,000 are issued and outstanding. These 80,000 Series B shares are in the aggregate convertible into 40,000 common shares.

 

  (iii) one share of Series C Preferred Stock has been authorized and issued, and redeemed. There are no shares of Series C shares outstanding
  (iv) 999,000 shares of Series D Convertible Preferred Stock have been authorized, of which 793,849 shares of Series D Preferred Stock were issued and redeemed. There are no Series D shares outstanding.