CAPITAL STOCK

12 Months Ended

Dec. 31, 2011

Notes to Financial Statements

NOTE H - CAPITAL STOCK

The Company has authorized 50,000,000 shares of preferred stock, with a par value of $0.001 per share. The Company has authorized 200,000,000 shares of common stock, with a par value of $0.001 per share.  As of December 31, 2011 and 2010, the Company has issued 54,559,987 and 23,312,237 shares of common stock, respectively.

On March 25, 2010, the Company entered into an agreement to repurchase 100,000 common shares for $100,000.  At December 31, 2011 and 2010, the repurchased 100,000 shares of its common stock was classified as treasury stock on the Company’s balance sheet.

During the years ended December 31, 2011 and 2010, the Company issued 12,767,000 and 1,573,624 shares of common stock for services rendered valued at $2,454,190 and $3,377,717, respectively.

The following are private placement common stock transactions which occurred during the year ended December 31, 2011 and 2010:

On December 16, 2010, the Sperlings invested an additional $500,000 in the Company and received 1,300,000 shares for $325,000 of that investment, or $0.25 per share.  The Sperlings received an additional 700,000 shares for the remaining $175,000 of their investment on June 1, 2011.

On June 1, 2011, the Sperlings purchased from the Company an additional 2,700,000 restricted shares of our common stock in a private placement for $337,500.

During the year ended December 31, 2010, the Company completed private placements with eight investors for aggregate gross proceeds of $864,975.  

During the year ended December 31, 2011, the Company completed private placements with 34 investors for aggregate gross proceeds of $1,234,350.  

During the year ended December 31, 2011, the Company purchased the Domain Name Sparkfly.com from Ran Birkins for a cash payment of $5,000, plus 40,000 of the Company’s restricted common shares valued at $20,000.

During the year ended December 31, 2010, the Company issued 25,000 of its common shares, valued at $62,250, to acquire the Domain URL 800.com.

During the year ended December 31, 2011, the Company issued 9,000,000 of the common stock to convert outstanding debt in the amount of $1,858,759.

During the year ended December 31, 2010, the Company issued 35,000 of the common stock for debt repayment in the amount of  $51,000.