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STOCKHOLDERS' EQUITY
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9 Months Ended |
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Mar. 31, 2012
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| Notes to Financial Statements | |
| NOTE 7 - STOCKHOLDERS' EQUITY |
In July 2011, the Company received $10,790 in advances from investor - related party. In August 2011, the Company obtained proper documentation from that investor and the $84,760 advance from investor previously recorded in current liabilities as of June 30, 2011 and the additional $10,790 advance, totaling $95,550, was exchanged for 63,234 shares of common stock at $1.50 per share.
In November 2011, the Company and a third party consultant agreed to settle certain liabilities which had been paid for by the consultant on behalf of the Company and included in accrued expenses. The total amount due to the consultant on the agreement date was $72,545 of which one-half was to be repaid in cash and the other half was to be paid through the issuance of common stock. The cash payment owed is in accrued expenses as of March 31, 2012 and 24,182 shares were issued at $1.50 per share for a total value of $36,272, during the three months ended December 31, 2011. The share value equaled contemporaneous cash sales prices and therefore, no gain or loss on the conversion was recorded. See note 11 as the share price for the stock settlement was subsequently adjusted.
In February 2012, the Company entered into a contract to issue 100,000 shares of common stock for services to be provided over the one year term of the agreement. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $10,833 related to the transaction representing two months of expense as the shares were unvested as of March 31, 2012.
In February 2012, the Company issued 100,000 shares of common stock for past services to a consultant. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $65,000 related to the transaction.
In March 2012, the Company issued 50,000 shares of common stock for past services to a consultant. The shares were valued at $0.65 based on contemporaneous cash offering prices and accordingly, the Company recognized an expense of $32,500 related to the transaction. |