Note 12 - Common Stock

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Note Disclosure [Text Block]

Note 12—Common Stock

The Company issued 901,321 shares, 811,016 shares and 784,240 shares of common stock in connection with the exercises of stock options during the years ended December 31, 2012, 2011 and 2010, respectively (see Note 13). During the year ended December 31, 2011, the Company issued 165,000 common shares in connections with the exercises of warrants (see Note 14).

On March 2, 2011, the Company shares issued 348,723 common shares to XtFt’s owners (currently known as Quepasa Games) in connection with the acquisition of all of the outstanding equity interests of XtFt (see Note 2). The Company issued 336,927 shares of common in connection with the conversion of preferred stock on May 12, 2011 (see Note 11).  On November 9, 2011, our shareholders approved an increase in the Company’s authorized common stock from 50 million to 100 million shares. On November 10, 2011, the Company issued 1,479,949 common shares upon the conversion of the Series A preferred stock (see Note 11).  On November 10, 2011, the Company issued 16,999,943 shares of common stock to the owners of Insider Guides, Inc. in connection with the closing of the Merger (see Note 2).  On November 10, 2011 and November 15, 2011, in connection with the closing of the Merger, the Company sold 436,134 and 280,112, respectively, shares of common stock to four shareholders for $2,557,000.

On December 21, 2010, we sold 1,753,329 shares of common stock in a private placement at $7.50 per share for $13,149,968 in gross proceeds.  We registered all of the shares in an S-1 filed with the Securities and Exchange Commission (“SEC”) on December 29, 2010.  In connection with this private placement, we paid Merriman Capital, Inc. a fee of $434,999 for acting as placement agent.  Also, we paid $10,000 to Merriman for reimbursement of legal fees and other expenses.  Other offering costs of $72,612 for legal and filing fees have been incurred as of December 31, 2010, resulting in net proceeds of $12,632,357. We are using the proceeds from the private placement to support our growth and for general corporate purposes, including working capital, capital expenditures and acquisition consideration.