Capital Stock

9 Months Ended

Sep. 30, 2019

Stockholders' Equity Note [Abstract]

Capital Stock

6.

 Capital Stock

a)

Common Stock

For the nine month September 30, 2019, the Company issued no shares of common stock.

Stock To Be Issued

For the nine months ended September 30, 2019, 1,500,000 shares became issuable to directors and officers of the Company for services rendered. These transactions have been recorded as stock-based compensation having a total value of $75,000 within shares to be issued.

As at September 30, 2019, a further 11,814,316 have yet to be issued for services at the transaction price ranging from $0.05 to $0.15 per share for a total of $1,868,530.

b)

Preferred Stock

The Company has authorized Class A preferred stock available to be issued for $1.00 per share, are non-participating and non-voting and accrue cumulative dividends at the rate of 10% per annum. The Company may retract the stock at any time upon the payment of $1.00 per share plus any unpaid dividends. In the event of any wind-up of the Company, the Class A preferred stock has a priority distribution of $1.00 per share plus any unpaid dividends before any distribution to the common stockholders.

c)

Dividends

As at September 30, 2019, the Company was in arrears in dividends on preferred shares. The balance of dividends payable of $328,228 (2018 - $305,329) includes dividends of $206,400 (2018 - $206,400) and accrued interest of $121,828 (2018 - $98,929), accrued at 10.0% interest compounded annually.

Preferred dividends for the nine months ended September 30, 2019 had an effect of $nil on loss per share available to common stockholders.

d)

Warrants

The Company has no warrants outstanding as of September 30, 2019.

e)

Stock-Based Compensation

The Company incurred stock-based compensation expense in connection with its compensation agreements for its directors and officers. Under these agreements, common stock may be issued as a signing bonus or at certain benchmark dates within an individual’s period of service. Stock-based compensation is calculated as the fair value of the stock issued or to be issued to an individual at the time the employment contract was signed and is recorded at the time becomes owing to the individual. Stock issued to a director, manager, or employee may be deferred in the event that their contract requires the individual to remain employed with the Company for a specified time period after issuance.

For the nine months ended September 30, 2019, the Company’s 1,500,000 shares became issuable in connection with stock-based compensation arrangements.

These shares were valued at $0.05 per share and resulted in compensation expense of $75,000. These fees were recorded as a component of consulting fees in the amount of $75,000 on the unaudited condensed interim statements of operations and comprehensive loss.