NOTE 4 - CAPITAL STOCK
Common Stock - The Company has authorized an unlimited number of shares of no par value common stock and preferred stock.
In May 2008, in connection with its organization, the Company issued 15,000,000 shares of their previously authorized but unissued common stock to one person for $10,000 cash. An additional 500,000 shares were issued to one purchaser for $20,000 on June 30, 2008.
On June 12, 2011, our board of directors approved a 5-for-1 forward split of our common shares. As a result of the forward split, total outstanding common shares were increased from 3,100,000 to 15,500,000 shares. Each holder of one common share received an additional certificate for four shares. All references to common shares in the financial statements and accompanying notes to the condensed financial statements have been retroactively restated to reflect the changes in capital structure resulting from the forward split.
On October 25, 2011, the Board of Directors authorized the issuance of 12,000,000 shares of common stock for services, including 3,000,000 shares to our corporate secretary. The shares were valued at $.0001 per share, or a total of $1,200, based upon estimated market price of the common stock on the date of the issuance. The services included 3,000,000 shares as compensation for acting as such corporate secretary, 3,000,000 shares for web design, and the remainder for marketing assistance.
In October, 2011, the Company issued 532,520,000 shares at $.0001 per share in cancellation of the $53,252 in related party payables outstanding as of June 30, 2011. The shares issued were valued based upon estimated market price of the common stock on the date of the issuance.
In June 2012, an existing majority shareholder transferred a total 535,520,000 shares of common stock it owns, or approximately 96% of the outstanding shares, to an entity controlled by an officer of the Company. The transfer was accounted for as compensation to the officer and the 535,520,000 shares were valued at $.0001 per share, or $53,552, based upon estimated market price of the common stock on the date of the transfer.
By resolution dated November 27, 2012, the Board of Directors authorized the issuance of 36,000,000 restricted shares with a nominal value of $100 and a promissory note in the amount of $20,420 for the assignment of one patent and the related intellectual property from a party which was non-affiliated at the time. In connection with this assignment, the party nominated a new President, Chief Financial Officer and director who is an affiliate of the assignor. The assignment took effect on December 4, 2012. The Company has valued the patent at the predecessor basis in the property exchanged because the assignor gained control of the Company after the acquisition. In connection with the change of control, certain shareholders cancelled 536,020,000 outstanding shares. The cost of license in excess of the historical cost of the shareholders basis of $20,520 has been reflected as a cost of license acquired from a related party in the accompanying Condensed Statements of Operations.