Attached files

file filename
EXCEL - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.Financial_Report.xls
10-Q/A - Panache Beverage, Inc.panache10qa.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R9.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R3.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R4.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R7.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R6.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R2.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R5.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R1.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R8.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R13.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R16.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R20.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R14.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R19.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R12.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R18.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R21.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R17.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R10.htm
XML - IDEA: XBRL DOCUMENT - Panache Beverage, Inc.R11.htm
EX-32.1 - Panache Beverage, Inc.ex32_1.htm
EX-31.2 - Panache Beverage, Inc.ex31_2.htm
EX-31.1 - Panache Beverage, Inc.ex31_1.htm
EX-32.2 - Panache Beverage, Inc.ex32_2.htm
v2.4.0.6
NOTE 10 - STOCKHOLDERS’ DEFICIT
3 Months Ended
Mar. 31, 2012
Equity [Abstract]  
NOTE 10 - STOCKHOLDERS’ DEFICIT

 

NOTE 10 - STOCKHOLDERS’ DEFICIT

 

In the first quarter of 2012, the Company issued 280,000 shares of commons stock and 280,000 stock warrants for cash proceeds of $320,000. The Company used the Black Scholes model to bifurcate the value of the stock warrants from the common stock. The following weighted average assumptions were used in the Black Scholes calculation:

 

Risk free rate                0.2%
Expected dividend yield                0.0%
Expected volatility                76%
Expected life of options                1.16 years
Exercise price                $1.79
Stock price on issuance date                $1.53

 

Based on this calculation, the Company determined the value of the common stock was $253,074 and the value of the stock warrants was $66,926 at issuance.

On March 1, 2012, the Company modified 845,000 existing warrants to extend the expiration date. The Company used the Black Scholes model to determine the increase in value of the warrants caused by this modification. Based on this calculation, the Company determined that the modification increased the value of the warrants by $148,395 and therefore increased Common Stock – Warrants and decreased Additional Paid in Capital by $148,395.

The following table shows the warrant activity for the three months ended March 31, 2012:

Warrants  Number of
Warrants
  Weighted
Average
Exercise
Price
  Weighted
Average
Remaining
Term
  Aggregate
Intrinsic
Value
  Outstanding as of January 1, 2012    1,373,500   $1.35           
   Issued    280,000    1.79           
   Exercised    (200,000)   1.50           
   Expired    (58,500)   1.32           
   Outstanding of March 31, 2012    1,395,000   $1.42           0.9 years   $254,250 
                       

As noted above in Note 7 - Long Term Debt, the Company engaged an individual on January 1, 2012 to provide business advisory services through June 30, 2012 in exchange for 100,000 shares of common stock. The Company valued the common stock at $100,000, which is the value of the services provided. The Company recognized $50,000 of professional fee expense during the three months ended March 31, 2012. Prepaid expenses relating to this agreement were $50,000 as of March 31, 2012.

On January 1, 2012, the Company engaged a marketing firm to provide business advisory services from January 1, 2012 to June 30, 2012 in exchange for 100,000 shares of common stock. The Company valued the common stock at $100,000, which was the value of the services provided. The Company recognized $50,000 of professional fee expense during the three months ended March 31, 2012. Prepaid expenses relating to this agreement were $50,000 as of March 31, 2012. 

The Company also issued 20,000 shares of common stock to an accounting firm to provide accounting and advisory services. The Company valued the common stock at $20,000, which was the value of the accounting services provided. The Company used these services in the first quarter of 2012 and accordingly recognized $20,000 of professional fee expense for the three months ended March 31, 2012.

The Company recognized $49,250 of compensation expense for the three months ended March 31, 2012 in relation to the grants of 30,000 shares of common stock to employees as stock-based compensation. The shares immediately vested and the fair value of this stock issuance was determined by the closing price of the common stock on the grant date.