7. Stockholders' Equity

12 Months Ended

Dec. 31, 2016

Notes

7. Stockholders' Equity

7.     Stockholders’ Equity

The Company’s common stock has a par value of $0.001 with 200,000,000 shares authorized. The Company also has 5,000,000 authorized shares of preferred stock with a par value of $0.0001.

During the year ended December 31, 2015, the Company sold 4,000,000 shares at $0.05 per share for total proceeds of $200,000.   No warrants were issued with the shares.

In January 2016, the Company sold 5,700,000 shares of common stock at a rate of $0.05 for $285,000.  In addition, Mr. Jones and Mr. Collord exchanged $50,000 of their notes outstanding (see Note 5) into 1,000,000 shares of common stock at the same rate of $0.05 per share.  There were no warrants issued with the shares.

On May 12, 2016, the Company extended the expiration 4,365,000 outstanding warrants issued during 2014 for an additional six months to November 24, 2016.  The Company also reduced the exercise price from $0.15 to $0.10.

In 2016, warrant holders exercised 3,590,000 warrants for shares of common stock at a price of $0.10 per share for proceeds of $359,000.  In addition, warrants for 203,030 shares of common stock were exercised at $0.10 in exchange for accounts payable balances totaling $20,434.  As disclosed in Note 5, Jim Collard exercised warrants for 20,000 shares of common stock in exchange for a $2,000 payment towards his note payable balance.

The following is a summary of the Company’s outstanding warrants:

	Shares	Weighted Average Exercise Price
Outstanding at December 31, 2014	5,015,000	$       0.15
Warrants Expired June 2015	(650,000)
Outstanding at December 31, 2015	4,365,000	0.15
Exercised for cash	(3,590,000)
Exercised in exchange for accounts payable	(203,030)
Exercised in exchange for relate party notes payable	(20,000)
Warrants expired on November 24, 2016	(551,970)
Outstanding at December 31, 2016	0	$       -