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Subsequent Events
6 Months Ended
Jun. 30, 2012
Subsequent Events  
Subsequent Events

Note 14 - Subsequent Events

 

The Company has evaluated all events that occurred after the balance sheet date through the date when the financial statements were issued.  The Management of the Company determined that there were certain reportable subsequent events to be disclosed as follows:

 

Convertible Notes Payable

 

In July 2012, the Company executed a securities purchase agreement and convertible note for $42,500, bearing interest at 8% per annum, maturing on April 30, 2013, per a term sheet executed in July 2012 with an investor firm. A closing fee of $2,500 was deducted from the tranche and the note included a tiered prepayment penalty. The investor firm may process conversions after six months from the date of the closing. Conversions will include a 42% discount to the average closing bid price of the Company’s common stock for the previous ten days of a conversion notice, using the average of the three lowest trading prices (see Note 10).

 

Issuance of Common Stock for Services

 

In July 2012, the Company issued 7,500 shares of common stock, valued at $47, to an attorney related to a retainer agreement executed in December 2009 (see Note 11).

 

In July 2012, the Company issued 62,500 shares of common stock, valued at $500, to a consultant related to a public relations agreement executed in May 2012 (see Notes 10 and 11).

 

Sale of Shares of Common Stock

 

In July 2012, the Company sold subscriptions to two individual for certain units containing common stock and warrants. The Company issued 10,570,824 shares of its common stock at $0.00473 per share and 3,921,569 shares of its common stock at $0.006375 per share. The Company also issued warrants to purchase a total of 7,246,197 shares of the Company’s common stock, exercisable at $0.02 per share that expire in July 2015.

 

Issuance of Warrants for Services

 

In July 2012, Company amended a consulting agreement entered into in January 2012 to extend the agreement for an additional month and to increase the monthly fee to $5,500 and the issuance of warrants to purchase 165,000 shares of the Company’s common stock, exercisable at $0.02 per share, with a three year term. The Company issued warrants to purchase 150,000 shares of the Company’s common stock, exercisable at $0.02 per share, to the consultant. The warrants have a three year term