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Note 5 - Stockholders' Equity
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6 Months Ended |
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Feb. 28, 2013
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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 February 28, 2013 and August
31, 2012. The Company has 1,000 (post-reverse
split) shares of preferred stock issued and outstanding as of
February 28, 2013 and August 31, 2012.
Common
stock
During
the three months ended February 28, 2013 the Company issued
an aggregate of 203 shares of common stock to shareholders
for fractional shares from the November 23, 2011 reverse
stock-split noted above.
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 February 28, 2013 and August 31,
2012. The Company has 60,403 and 60,200
(post-reverse split) shares of common stock issued and
outstanding as of February 28, 2013 and August 31,
2012.
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