STOCKHOLDERS' DEFICIT

6 Months Ended

Jun. 30, 2017

Notes to Financial Statements

NOTE 7 - STOCKHOLDERS' DEFICIT

Stock Issuances

The Company is authorized to issue up to 2,000,000,000 shares of its $0.00001 par value common stock, and up to 10,000,000 shares of its $.001 par value preferred stock.

As of June 30, 2017 and December 31, 2016, the Company had common stock payable of $16,800 resulting from a technology transfer agreement with an unrelated party that obligated the Company to issue a total of 96,000 shares of its common stock, payable in 8 quarterly installments of 12,000 shares.

During the six months ended June 30, 2017, the Company issued a total of 439,903,163 shares of its common stock to an accredited investor in conversion of $18,405 principal and $5,203 accrued interest payable at a conversion price of $0.00045 per share and settled $40,545 of derivative liabilities. As a result of the debt conversion and derivative settlement, common stock was increased by $4,399 and additional paid-in capital was increased by $59,754.

2006 Stock Option Plan

The Company’s 2006 Stock Option Plan adopted by our Board of Directors in March of 2006 terminated in the year ended December 31, 2016. As of June 30, 2017, there were 560,000 stock options outstanding under the 2006 Stock Option Plan.

The Company did not grant any stock options or warrants during the six months ended June 30, 2017, and did not record any stock-based compensation expense during the three months or six months ended June 30, 2017 and 2016.

A summary of the status of the options and warrants issued by the Company as of June 30, 2017, and changes during the six months then ended is presented below:

			Weighted Average
	Shares		Exercise Price
Outstanding, December 31, 2016		560,000	$	0.10
Granted		-		-
Canceled / Expired		-		-
Exercised		-		-
Outstanding, June 30, 2017		560,000	$	0.10

The outstanding options expire on various dates beginning May 2020 through August 2020.