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Note 6 - Stockholders' Equity
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9 Months Ended |
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May 31, 2012
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| Stockholders' Equity Note Disclosure [Text Block] |
Note
6 – 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.
Preferred
stock
On
August 15, 2009, the Company issued a total of 2,000,000
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 $0.0025 per share.
On
October 12, 2010, a preferred stock shareholder elected to
convert 1,000,000 shares of preferred stock in exchange for
3,000,000 shares of common stock.
Common
stock
As
noted above, on October 12, 2010, a preferred stock
shareholder elected to convert 1,000,000 shares of preferred
stock in exchange for 3,000,000 shares of common
stock.
On
August 20, 2009, the Company issued 8,980,000 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 25,340,000
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 6,320,000 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 25,000,000 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 3,000,000 shares of its $.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 $0.001 per share to a total of nineteen individual
investors. Due to a lack of operations, management believes
the purchase price of $0.001 per share is representative of
fair value.
On
January 10, 2001 the Company issued 1,200,000 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.
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