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STOCKHOLDERS' DEFICIT
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9 Months Ended |
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Sep. 30, 2012
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| Equity [Abstract] | |
| STOCKHOLDERS' DEFICIT |
NOTE 11 – STOCKHOLDERS’ DEFICIT
At the time of incorporation, the Company was authorized to issue 1,000,000 shares of common stock with a par value of $0.001 per share.
The Company was incorporated on January 26, 2010 at which time 200,000 shares of common stock were issued to the Company’s two founders. No value was given to the stock issued by the newly formed Corporation. Therefore, the shares were recorded to reflect the $.001 par value and charged to expense.
In February of 2011, Company increased its authorized shares of common stock to 300,000,000 shares at .001 par.
In the twelve months ended December 31, 2011, the Company issued 15,521,150 common shares. The Company issued 5,227,330 shares for services which resulted in an expense of $2,051,850 (fair market value $.3925/share). Fair market value was determined by taking the average share price for each cash-for-stock purchase in the period. The Company issued 9,343,820 shares at par value $.001 to its founding officers which resulted in an expense of $9,344. The shares issued to the officers were valued at par $.001 because the officers started the Company at inception. The Company issued 950,000 shares for $382,000 cash. At December 31, 2011 the company has a stock subscription receivable balance of $147,000, all of which was received in January and February of 2012. The Company canceled 700,000 shares that were issued in March of 2011. The cancelation resulted in a decrease in stock for services expense of $260,167. As of December 31, 2011, the Company has 15,021,150 shares issued and outstanding.
In the first quarter of 2012, the Company issued 80,750 common shares for $30,500 cash.
In the second quarter of 2012, the Company issued 370,000 shares for $120,000 cash and 74,800 shares for services which resulted in an expense of $25,080 (fair market value $0.3353/shares).
In the third quarter of 2012, the Company issued 566,526 shares for $211,000 cash and 25,000 shares for a one year service contract beginning September 5, 2012. With regards to the service contract, the Company recorded a prepaid expense of $8,566 and expensed $630 (fair market value $0.3678/share). |