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10-Q - LAREDO OIL, INC. 11/30/2012 10-Q - Laredo Oil, Inc.laredo_10q-113012.htm
EX-31.1 - CERTIFICATION OF THE CHIEF EXECUTIVE OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - Laredo Oil, Inc.exhibit_31-1.htm
EX-31.2 - CERTIFICATION OF THE CHIEF FINANCIAL OFFICER PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002 - Laredo Oil, Inc.exhibit_31-2.htm
EX-32.1 - CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350 SIGNED BY THE CHIEF EXECUTIVE OFFICER - Laredo Oil, Inc.exhibit_32-1.htm
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EX-32.1 - CERTIFICATE PURSUANT TO 18 U.S.C. SECTION 1350 SIGNED BY THE CHIEF FINANCIAL OFFICER - Laredo Oil, Inc.exhibit_32-2.htm
v2.4.0.6
6. STOCKHOLDERS' DEFICIT
6 Months Ended
Nov. 30, 2012
Equity [Abstract]  
6. STOCKHOLDERS' DEFICIT

 

NOTE 6- STOCKHOLDERS' DEFICIT

 

Share Based Compensation

 

The Black-Scholes option pricing model is used to estimate the fair value of options granted under our stock incentive plan.

 

The following table summarizes share-based compensation:

 

    Six Months Ended  
    November 30, 2012     November 30, 2011  
Share-based compensation:            
General, selling and administrative expenses   $ 191,646     $ -  
Consulting and professional services     20,556       -  
      212,202       -  
Share-based compensation by type of award:                
Stock options     191,646       -  
Restricted stock     20,556       -  
    $ 212,202     $ -  

 

Stock Options

 

No stock options were issued during the six months ending November 30, 2012.   On November 29, 2011, the Company granted 2.6 million stock options to employees with an exercise price of $0.20 per share, the fair market value on the date of grant.

 

Restricted Stock

 

In August 2012, Laredo Oil granted 500,000 shares of restricted stock to its new independent board member. The shares vest in equal increments annually over three years.

 

The fair value of the restricted stock granted is the intrinsic value as of the respective grant date since the restricted stock is granted at no cost to the directors. The grant date fair values of restricted stock granted during the first quarter of fiscal year 2013 was $0.13.   No restricted stock was granted during the first six months in fiscal year 2012.

 

Warrants

 

No warrants have been issued during the first six months of fiscal year 2013.

 

During the first six months of fiscal year 2012, the Company issued warrants for 5,374,501 shares of common stock with a weighted average exercise price of $0.70 to an investment bank for its role in enabling the transactions with SORC.  These warrants were valued at $4,931,873 under the Black Scholes valuation method with the following assumptions:  risk free interest rate of 1.7%, volatility of 157%, expected term of 5 years and dividend rate of 0%.  In addition, the warrants previously issued to the convertible debt holders were repriced from $2.00 per share to $0.25 per share during June 2011.  A $179,515 expense was recorded in gain on revaluation of warrant liability as a result of repricing revaluation on June 14, 2011.  All outstanding warrants are currently exercisable through July 2015.

 

On June 14, 2011, as a result of the Agreements disclosed in Note 1, the warrants issued with the convertible notes were reclassified on the balance sheet to equity due to an amendment to the warrant agreement that removed the price protection on the warrants.  The warrants were revalued on June 14, 2011 and $651,153 in warrant liability was reclassified to additional paid in capital.

 

 

Contributions

 

As discussed in Note 1, $418,088 was recorded as contributions from SORC for proceeds used to pay in full certain debt obligations and accrued interest.