Stockholders' Equity | 9 Months Ended |
Sep. 30, 2013 |
Stockholders' Equity [Abstract] | ' |
Stockholders' Equity | ' |
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8 |
Stockholders' Equity |
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a) |
Upon incorporation in November 2006, the company undertook a private offering of 853,000 (post 5:1 forward split and 1:100 reverse split) shares of its common stock for $17,050 in cash. Also in November 2006, the company issued 2,200 (post 5:1 forward split and 1:100 reverse split) shares of its common stock for $44,000 in cash. |
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b) |
The Company approved a 5:1 forward split of the Company’s common stock October 15, 2008, such that each shareholder of record as of the effective date received five new shares for each one old share. |
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c) |
The Company approved a 1:100 reverse split of the Company’s common stock May 18, 2009, such that each shareholder of record as of the effective date received one new share for one hundred old shares. All references to issued and outstanding shares in these financial statements are shown as post forward and reverse splits as if the splits had been effective at the beginning of the first period presented. |
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d) |
During the twelve months ended December 31, 2012, the company issued the following shares under the Securities Act of 1933 exemption Rule 144: |
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On June 28, 2012 the company issued 50,000 restricted common shares at a fair value of $0.32 per share and a total recorded value of $16,000 to a related party for services rendered to the company. The gain of $27,024 on this settlement was recognized in the consolidated statement of operations during the twelve months ended December 31, 2012. |
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On June 29, 2012 the company issued a total of 550,000 restricted common shares for which the company received a total of $192,500 in subscriptions for shares at a price of $0.35 per share as part of the exercising of warrants. |
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On August 17, 2012 the company issued a total of 333,000 restricted common shares for which the company received a total of $116,667 in subscriptions for shares at a price of $0.35 per share as part of the exercising of warrants. |
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e) |
During the nine months ended September 30, 2013, the company issued the following shares under the Securities Act of 1933 exemption Rule 144: |
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On March 26, 2013, the company issued a total of 444,000 restricted common shares for which the company received a total of $40,000 in subscriptions for shares at a price of $0.09 per share as part of the exercising of stock options. |
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On April 1, 2013, the company issued a total of 1,731,734 restricted common shares for the acquisition of 2,078,080 common shares of Gogiro (Note 3) |
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On June 4, 2013, the company issued a total of 650,000 restricted common shares (with fair value of $58,500 or $0.09/share) to various consultants for their services provided. |
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f) |
Common share purchase warrants: |
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During the year ended December 31, 2011, the Company issued 91,667 units pursuant to a private placement at a price of $0.60 per unit for gross proceeds of $55,000. Each unit consists of one common share and one share purchase warrant. Each warrant entitles the holder to purchase one additional share of common stock at a price of $0.35 for one year. The Company allocated $41,078 to the common shares and $13,922 to the share purchase warrants based on the relative fair values. |
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During the year ended December 31, 2011, the Company issued 1,499,999 units pursuant to a private placement at a price of $0.30 per unit for gross proceeds of $450,000. Each unit consists of one common share and one share purchase warrant, with each warrant entitling the holder to purchase one share at an exercise price of $0.35 per share for one year. The Company allocated $304,415 to the common shares and $145,585 to the share purchase warrants based on the relative fair values. |
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During the year ended December 31, 2012, the Company issued a total of 883,333 restricted common shares at a price of $0.35 per share pursuant to exercising of warrants issued in 2011. The remaining 708,333 warrants expired unexercised during the year ended December 31, 2012. As of December 31, 2012, the Company had no warrants outstanding. |
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During the nine month period ended September 30, 2013 the Company did not issue any new share purchase warrants and as of September 30, 2013 the Company had no warrants outstanding. |
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g) |
Stock Options |
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On March 25, 2013 via Board of Directors Consent Resolution the Company ratified and adopted a Stock Option Plan, created an option pool of 4,000,000 options. The Company granted 1,475,000 options to three directors of the Company, consistent with employment agreements signed in 2011, and granted a further 185,000 options to employees and consultants of the Company (totaling 1,660,000 options). Each stock option entitles the option holder to purchase one common share of the Company on or before March 31, 2018 at an exercise price of $0.09. Among these 1,660,000 options, 1,085,000 were vested immediately on March 25, 2013. The remaining 325,000 options and 250,000 options will be vested on September 1 and November 1, 2013 respectively. |
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On April 17, 2013, the Company granted 75,000 stock options to two consultants at an exercise price of $0.07/share. These 75,000 options were vested immediately on April 17, 2013 and will expire on March 31, 2018. |
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On July 31, 2013, the Company granted 350,000 stock options to three consultants at an exercise price of $0.09/share. These 350,000 options were vested immediately on July 31, 2013 and will expire on March 31, 2018. |
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The fair values of stock options granted are amortized over the vesting period where applicable. During the nine months ended September 30, 2013, the Company recorded $143,851 (Nine Months Ended September 30, 2012 - $nil) stock-based compensation in connection with the vesting of options granted. The Company uses the Black-Scholes option pricing model to establish the fair value of options granted and vested during 9 months ended September 30, 2013 with the use of the following assumptions: |
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an expected dividend yield of nil %, |
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volatility of 194% to 197%, |
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risk free interest rate of 0.76% to 0.85% |
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Expected option life of 5 years |
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On March 26, 2013, Neil Chan, Director and CEO of the Company, exercised his option to purchase 444,444 shares of the company at the strike price of $0.09 per share for a total consideration of $40,000. |
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The following table summarizes information about stock options outstanding and exercisable at September 30, 2013: |
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| Number of Options | Weighted average |
$ | exercise price |
| $ |
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Options outstanding – December 31, 2012 | - | - |
Granted (March 25, 2013) | 1,660,000 | 0.09 |
Exercised (March 26, 2013) | -444,444 | 0.09 |
Granted (April 17, 2013) | 75,000 | 0.07 |
Granted (July 31, 2013) | 350,000 | 0.09 |
Options outstanding – September 30, 2013 | 1,640,556* | 0.09 |
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*Number of options exercisable as at September 30, 2013 – 1,390,556 |