STOCKHOLDERS' EQUITY

12 Months Ended

Jan. 31, 2014

Stockholders Equity

Note 5. STOCKHOLDERS' EQUITY

Preferred stock

Preferred stock totals 50,000,000 shares authorized at a par value of $0.001, of which none are issued or outstanding.

Common stock

On February 2, 2005, the Company issued 100,000 shares, at $0.001 per share and totaling $200, to its President in exchange for incorporation expenses paid on behalf of the Company.

On June 30, 2006, the Company issued 275,000 shares, at $0.01 per share and totaling $2,750, to its President in exchange for general and administrative expenses paid on behalf of the Company.

On August 15, 2006, the Company issued 1,250,000 shares, at $0.01 per share and totaling $12,500, to its President in exchange for general and administrative expenses paid on behalf of the Company.

On November 1, 2007, the Company issued 19,300,000 shares, at $0.01 per share and totaling $193,000, as compensation to an officer of the Company.

On November 1, 2007, the Company issued 700,000 shares at $0.01 per share, and totaling $7,000, to a related party in exchange for services rendered.

On January 2, 2009, the Company issued 1,125,000 shares, at $0.16 per share and totaling $180,000, as compensation to an officer of the Company.

On February 5, 2010, the Company issued 4,000,000 shares, at $0.16 per share and totaling $640,000, as compensation to an officer of the Company.

On June 30, 2011, the Company issued 5,000,000 shares, at $0.10 per share and totaling $500,000 as compensation to an officer of the Company.

Stock options

On July 30, 2011, the Company issued an option to purchase 8,000,000 common shares to an officer of the Company in consideration for services at $0.10 per share valued at nil on the date of grant as compensation.

The fair value of the option grant estimated on the date of grant uses the Black-Scholes option-pricing model with the following weighted-average assumptions:

	July 30, 2011
Expected option life (year)		8
Expected volatility		58.62%	*
Expected dividends		0.00%
Risk-free rate(s)		2.32%

* As a thinly traded public entity, it is not practicable for it to estimate the expected volatility of its share price. The Company selected two (2) comparable companies to calculate the expected volatility.  The Company calculated two (2) comparable companies’ historical volatility over the expect life of the share options of eight (8) years and averaged the two (2) comparable companies’ historical volatility as its expected volatility.

The fair value of the stock options issued on July 30, 2011 using the Black-Scholes Option Pricing Model was $504,024 at the date of grant. For the year ended January 31, 2014 and 2013, $62,892 and $63,132, respectively, was recognized as compensation cost for stock options issued.

The table below summarizes the Company’s stock option activities through January 31, 2014:

	Number of Option Shares		Exercise Price Range Per Share		Weighted Average Exercise Price		Fair Value at Date of Grant		Aggregate Intrinsic Value
Balance, February 1, 2013		8,000,000	$	0.10	$	0.10	$	504,024	$	-
Granted		-		-		-				-
Canceled		-		-		-				-
Exercised		-		-		-				-
Expired		-		-		-				-
Balance, January 31, 2014		8,000,000	$	0.10	$	0.10	$	504,024	$	-
Vested and exercisable, January 31, 2014		2,000,000	$	0.10	$	0.10		-	$	-
Unvested, January 31, 2014		6,000,000	$	0.10	$	0.10		-	$	-