Note 6. Stockholders' Equity

3 Months Ended

Mar. 31, 2014

Stockholders' Equity Note [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

Note 6. Stockholders’ Equity

Conversion of Convertible Debt into Equity

During the three months ended March 31, 2014, the holders of are convertible debt elected to convert principal and interest into common shares.

Date	Principal & Interest Converted		Common Stock Issued upon Conversion
January 27, 2014	$	20,000		2,000,000
January 27, 2014		20,000		2,000,000
January 30, 2014		20,000		2,000,000
Total	$	60,000		6,000,000

Issuance of Common Stock for Cash

On February 6, 2014, the Company received a stock purchase agreement from Eastern Rim Funds Inc., a significant shareholder of the Company, to purchase 30,000,000 shares of common stock of the Company for $30,000 in cash. The Company also received a cash payment of $30,000. These shares have not yet been approved for issuance by the board of directors of the Company and the shares have not been issued. The par value of the common stock is included in stock payable on the balance sheet as of March 31, 2014

When the shares have been issued, this issuance of shares will result in Eastern Rim Funds Inc. holding a total of 52,056,100 shares of the Company’s common stock. This would represent approximately 53% of the outstanding stock of the Company after the issuance.

The Company recorded stock compensation expense in the amount of $300,000 which represented the difference in the fair market value of the common stock as of February 6, 2014 and the price paid by Eastern Rim Funds Inc.

Imputed Interest

The Company has imputed interest on advances in the amount of $1,537 for the three months ended March 31, 2014. The imputed interest was recorded as an increase in additional paid-in capital.

Net Loss

The company recorded a net loss of $482,070 for the three months ended March 31, 2014. This is reflected in loss accumulated during the development period.