Note 5 - Stockholders' Equity

12 Months Ended

Dec. 31, 2010

Note 5 - Stockholders' Equity:

Note 5 - Stockholders' Equity

NOTE 5 - STOCKHOLDERS' EQUITY

Common Stock – The Company is authorized to issue 250,000,000 shares of no par value common stock. The holders of the Company's common stock are entitled to one vote for each share held of record on all matters to be voted on by those stockholders.

Common Stock Subscriptions – During the year ended June 30, 2010, the Company received $13,457 from an unrelated third party in exchange for the issuance of common stock at a future date.  At June 30, 2010, the Company recorded the amount as a stock subscription payable in the Company’s consolidated financial statements.  On September 10, 2011 the Company received an additional $43,457 from said third party, and on the same date the Company satisfied the receipt of the aggregate amount of $56,716 received from the investor through the authorization and issuance of 1,800,000 shares of common stock.

Common Stock Issuances – During the year ended June 30, 2011, the Company issued 12,714,540 shares of common stock for services at an average of $0.055 per share for a total expense of $704,827.  In addition, the Company issued 17,433,167 shares of common stock for cash at an average of $0.05 per share, yielding total cash proceeds of $909,951.

During the year ended June 30, 2012, the Company issued 6,674,802 shares of common stock for services at an average of $0.45 per share for a total cost of $3,027,074.  In addition, the Company issued 9,126,300 shares of common stock for cash at an average of $0.17 per share, yielding total cash proceeds of $1,555,044 for the year.

Preferred Stock – The Company is authorized to issue 10,000,000 shares of preferred stock. The authorized preferred shares are non-voting and the Board of Directors has not designated any liquidation value or dividend rates. During the financial years ended June 30, 2011 and 2012 no shares of preferred stock were issued or outstanding.

Stock Options – From time to time, the Company may issue stock options pursuant to various agreements and other contemporary agreements. At June 30, 2012 and 2011, and during the years ended June 30, 2012 and 2011, no options were issued or outstanding.

Treasury Stock – During the year ended June 30, 2012, the Company repurchased 53,756 shares of its common stock for cash. The treasury stock is valued using the Treasury Stock Method at $19,387.