4. Stockholders' Equity

9 Months Ended

Sep. 30, 2013

Notes

4. Stockholders' Equity

4. Stockholders’ Equity

As of September 30, 2013, the Company has an obligation to issue approximately 10,000 shares of its restricted common stock to an investor. The accompanying unaudited condensed consolidated financial statements reflect an accrual of approximately $5,000 for these unissued shares as of September 30, 2013

As of September 30, 2013 and December 31, 2012, there were 23,210,914 and 12,872,428 shares of common stock issued and outstanding, respectively.

On January 11, 2013 the Company issued 1,250,000 shares of stock to a shareholder in exchange for conversion of a $50,000 promissory note and $7,500 in accrued interest on that note. However the market rate was $0.05 at the time of the board meeting approving the agreement and issuance, hence the difference of $5,000 was credited to additional paid in capital as a loss on settlement of liability.

On March 29, 2013 the Company issued 2,229,407 shares of stock to a shareholder, in exchange for conversion of $222,941 in interest due Mr Strain on the series of notes and a line of credit he has extended to the company

On March 29, 2013 the Company issued 3,054,541 shares of stock to Mr. Timothy Ruddy, Interim CEO and director, in exchange for conversion of $137,149 in interest due Mr Ruddy on the loan he has extended to the company. However the market rate was $0.10 at the time of the board meeting approving the agreement and issuance, hence the difference of $168,305 was credited to additional paid in capital as a loss on settlement of liability.

On April 17, 2013 the Company amended its Employee Stock Ownership Plan (ESOP), updating the plan and allowing for the issuance of up to 12 million shares of S-8 stock.  This amendment was reported in an 8-K on the same date

On April 22, 2013 the Company filed a Form S-8 with the SEC to complete the registration requirements necessary to issue S-8 stock. On April 27, 2013, the Company issued two blocks of S-8 shares (each 575,000 shares) to consultants who are assisting the Company in getting its shares listed on a European stock exchange  and completing  the European funding.

On June 28, 2013 the Company issued 2,000,000 shares of S-8 stock to two consultants valued at $150,000, involved with the Company’s expansion into the European Waste to Energy markets.

On June 29, 2013 the Company issued 154,538 shares of stock to a shareholder, in exchange for conversion of $16,620 in interest due to the shareholder on the consolidated note he has extended to the Company. The Company recorded gain of $5,030 on conversion of accrued interest.

On September 16, 2013 the Company issued 500,000 shares of S-8 stock to a consultant valued at $26,000 involved with European project development

Reverse Stock Split

On September 27, 2012, the company’s Board of Directors approved a 1:10 reverse split of the Company’s common shares.  The split was declared effective November 21, 2012. All references in the accompanying unaudited condensed consolidated financial statement and notes thereto have been retroactively adjusted to reflect the stock split.