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Note 5 - Stockholders' Equity
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12 Months Ended |
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Aug. 31, 2012
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| Stockholders' Equity Note Disclosure [Text Block] |
Note
5 – Stockholders’ Equity
On
June 7, 2010, the shareholders of the Company voted to
increase the authorized common shares of the
Company’s common stock from 90,000,000 authorized
shares of common stock to 480,000,000 authorized shares of
common stock. Additionally, the shareholders voted to
increase the authorized shares of the Company’s
preferred stock from 10,000,000 authorized shares to
20,000,000 authorized shares of preferred stock. As a
result of this vote, the Company filed an amendment to its
Articles of Incorporation to reflect this change.
On
October 31, 2012 the shareholders of the Company voted to
increase the authorized common shares of the
Company’s common stock from 480,000,000 authorized
shares of common stock to 580,000,000 authorized shares
of common stock. As a result of this vote, the
Company filed an amendment to its Articles of
Incorporation to reflect this change.
On
November 23, 2012, we effected a 1,000 for 1 reverse
stock split, decreasing the issued and outstanding shares
common shares from 60,200,000 to 60,200 shares and
decreasing the issued and outstanding preferred shares
from 1,000,000 to 1,000. All share amounts
throughout this report have been retroactively adjusted
for all periods to reflect this stock split.
Preferred
stock
On
August 15, 2009, the Company issued a total of 2,000
(post-reverse split) shares of preferred stock to two
individual investors in a private placement under Rule
506 of the Securities Act of 1933 for $5,000 in cash,
or $2.50 (post-reverse split) per share.
On
October 12, 2010, a preferred stock shareholder elected
to convert 1,000 (post-reverse split) shares of
preferred stock in exchange for 3,000 (post-reverse
split) shares of common stock.
The
Company is authorized to issue 20,000,000 shares of
$0.001 par value preferred stock as of August 31, 2012
and 2011. The Company has 1,000
(post-reverse split) shares of preferred stock issued
and outstanding as of August 31, 2012 and
2011.
Common
stock
As
noted above, on October 12, 2010, a preferred stock
shareholder elected to convert 1,000 (post-reverse split)
shares of preferred stock in exchange for 3,000
(post-split) shares of common stock.
On
August 20, 2009, the Company issued 8,980 (post-reverse
split) founder’s shares of common stock in exchange
for a subscription receivable of $8,980. The Company
received proceeds of $8,980 at various dates between
September 15, 2009 and May 13, 2010.
On
August 20, 2009, the Company issued 25,340 (post-reverse
split) founder’s shares of common stock in exchange
for contributed equipment with a cost basis of $25,340.
The cost basis approximated the fair market value of the
equipment.
On
August 20, 2009, the Company cancelled and returned to
treasury 6,320 (post-reverse split) shares of common stock
previously issued to founders. No consideration was
provided and the total par value of $6,320 was recorded as
additional paid-in capital.
On
February 10, 2002, the Company issued 25,000 (post-reverse
split) shares to the Company President for professional
services rendered. The fair value of those shares was
$125,000 on the grant date.
The
Company issued a total of 3,000 (post-reverse split) shares
of its $0.001 par value common stock during May 2001 in a
private placement under Rule 506 of the Securities Act of
1933 for $15,000 in cash, or $5 (post-reverse split) per
share to a total of nineteen individual investors. Due to a
lack of operations, management believes the purchase price
of $5 (post-reverse split) per share is representative of
fair value.
On
January 10, 2001 the Company issued 1,200 (post-reverse
split) shares of common stock to the founder of the Company
in exchange for proceeds of $500. Since the par value of
the Company’s common stock is the legal minimum
value, management recorded compensation for the difference
between the amount paid of $500 and the minimum value of
$1,200, or $700 in the accompanying statement of
operations.
The
Company is authorized to issue 580,000,000 shares of $0.001
par value common stock as of August 31, 2012 and
2011. The Company has 60,200 (post-reverse
split) shares of common stock issued and outstanding as of
August 31, 2012 and 2011.
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