Quarterly report pursuant to Section 13 or 15(d)

3. STOCKHOLDERS' EQUITY

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3. STOCKHOLDERS' EQUITY
6 Months Ended
Jun. 30, 2016
Notes to Financial Statements  
NOTE 3 - STOCKHOLDERS' EQUITY

The Company is authorized to issue up to 5,000,000 shares of its $0.001 par value preferred stock and up to 200,000,000 shares of its $0.001 par value common stock. During the year ended December 31, 2013, the Company amended its certificate of incorporation to increase the number of common shares from 100,000,000 to 200,000,000.  The amendment went into effect on September 7, 2013. On November 2, 2015, the Company's Board of Directors voted to approve an increase in authorized common stock shares from 200,000,000 shares to 400,000,000 shares of the Company's common stock.  This increase is subject to shareholder approval.

 

Common Stock

 

In April 2016, the Company issued a total of 5,000,000 shares of its common stock with a fair value of $350,000 to two parties in exchange for investment advisory services.

 

During the three months ended March 31, 2015, the Company issued 40,500 shares of its common stock with a fair value of $12,105 in exchange for consulting services rendered during those periods in connection with two consulting agreements.

 

In May 2015, the Company's Board of Directors approved up to 2,000,000 shares of the Company's common stock to be available to the Company to satisfy vendor and consultant payments.  In June 2015, the Company issued 158,428 shares of its common stock to two vendors in exchange for services previously recorded. The fair value of these shares was $22,179.

 

In June 2015, the Company issued 10,500 shares of its common stock with a fair value of $1,575 in exchange for consulting services rendered during the three months ended June 30, 2015 in connection with one consulting agreement.

 

Common Stock Warrants

 

The Company accounts for warrants as either equity instruments or liabilities depending on the specific terms of the warrant agreement.  As of June 30, 2016, the Company had 12,424,669 warrants outstanding which are all classified as equity instruments and are fully exercisable.

 

The following table summarizes the Company's common stock warrant activity during the six months ended June 30, 2016:

 

    Warrants    

Weighted Average

Exercise Price

 
Outstanding as of December 31, 2015     12,424,669     $ 0.53  
      Granted     -       -  
      Exercised     -       -  
      Forfeited/cancelled     -       -  
Outstanding as of June 30, 2016     12,424,669     $ 0.53