Note 7 - Stockholders' Deficit

3 Months Ended

Mar. 31, 2016

Note 7 - Stockholders' Deficit

Note 7 - Stockholders' Deficit

Note 7 – Stockholders’ Deficit

Sale of Common Stock – During the quarter ended March 31, 2016, the Company raised gross proceeds of $60,000 through the sale of 120,000 shares of common stock to accredited investors in private placement transactions at a price of $0.50 per share. The Company incurred $6,000 of securities issuance costs representing commissions paid to broker-dealers who assisted with these transactions.

Shares for Consulting Services and Board Members – During the quarter ended March 31, 2016, in connection with services rendered, the Company issued 300,000 restricted shares of the Company’s common stock at a value of $1.45 and $0.90 per share in exchange for financial consulting services conducted on behalf of the Company. In addition, in connection with services rendered for board members, the Company issued 200,000 restricted shares of the Company’s common stock at a value of $1.45 per share in exchange for their services conducted on behalf of the Company.

Shares issued for convertible note payable – As discussed in Note 6, during the quarter ended March 31, 2016, in connection with conversion of a six-month convertible promissory note, the Company issued 15,000 shares of the Company’s common stock with a fair value of $16,363 that was allocated based on the relative fair value of the note and associated shares.

Debt beneficial conversion feature for convertible note payable – During the quarter ended March 31, 2016, the Company raised gross proceeds of $60,000 pursuant to a Convertible Note Payable (“Note”) that allocated the face value of the Note to the shares and debt based on their relative fair values and, resulted in the recording of beneficial conversion features totaling $16,364 as a discount against the Notes, with an offsetting entry to additional paid-in capital. The discount is being amortized into interest expense over the term of the Note.