| Capital stock |
6. Capital
stock
| a) | Authorized
capital stock |
10,000,000,000
shares of common stock with a par value of $0.001 per share.
500,000,000
shares of preferred stock with a par value of $0.001 per share.
b) Issued
capital stock
During
the period ended June 30, 2022:
| i) | On
January 18, 2022, the Company issued a prospectus whereby it distributed 101,025,592 subscription
rights to its shareholders to purchase shares of common stock of the Company at a price of
$0.05 per share. The rights were set to expire on February 18, 2022, subsequently extended
to March 15, 2022. On such case-by-case basis, the Company allowed for the exercise
of any such shares until April 1, 2022. Management may, at its discretion, allocate
unexercised subscription rights to non-shareholders within 150 days (August 12, 2022)
following the expiration date of March 15, 2022. On March 21, 2022, the Company
recognized share subscriptions receivable of $25 pursuant to its registration statement and
issued a total of 500 shares of common stock for gross proceeds of $25. The subscription
rights were cancelled on July 7, 2022 (note 11(a)). |
| ii) | The
Company issued four parties an aggregate 9,250,000 shares of common stock at a fair value
of $0.04 per share for a total of $370,000 in exchange for the retirement of $125,000 of
accounts payable and $245,000 for bonuses issued. |
During
the year ended December 31, 2021:
| iii) | On
January 4, 2021, 1,000 shares of common stock were cancelled by a shareholder; no consideration
was exchanged. |
| iv) | On
April 12, 2021, the Company elected to extend the initial 90-day period (April 22, 2021)
by an additional 100-day period related to the closing of the rights offering. The Company
had until July 31, 2021 to sell the remaining 113,025,592 shares of common stock. The
Company further extended the offering period to October 29, 2021. The Company filed a post-effective
amendment to further extend the rights offering from October 29, 2021 to March 15, 2022.
On such case-by-case basis, the Company allowed for the exercise of any such shares until
April 1, 2022. Management may, at its discretion, allocate unexercised subscription
rights to non-shareholders within 150 days (August 12, 2022) following the expiration date
of March 15, 2022. The subscription rights were cancelled on July 7, 2022 (note 11(a)). |
| v) | The
Company collected subscriptions of $1,124,832 pursuant to its registration statement and
issued a total of 26,496,635 shares of common stock for gross proceeds of $1,324,832; $200,000
of the proceeds had been collected during the year ended December 31, 2020 and recognized
as obligation to issue shares. |
| vi) | The
Company received proceeds of $12,000 pursuant to the exercise of options to acquire 800,000
shares of common stock at a price of $0.015 per share. |
| vii) | The
Company entered into two shares for debt agreements with two creditors to issue an aggregate
4,400,000 shares of common stock at a fair value of $0.057 per share for a purchase price
of $250,800 in exchange for the retirement of $217,186 of liabilities comprised of: |
| · | Accounts
payable - $ 194,186 |
| · | Promissory
notes – Principal - $ 20,000 |
| · | Line
of credit – Accrued interest - $ 3,000 |
The
Company recognized loss on debt settlement of $33,614. The Company also issued commitment letters to two creditors offering them an aggregate
20,000,000 shares of common stock in exchange for the extinguishment of $1,511,377 in promissory notes and interest payable prior to
December 31, 2021 (note 8). These offer letters expired on December 31, 2021 without the parties executing any settlements.
On March 18, 2022, the Company extended the offer letters from December 31, 2021 to December 31, 2022 for the settlement
of $1,541,000 in promissory notes and interest payable. As of the date of these condensed consolidated financial statements, the offer
letters have not been executed.
|