CAPITAL STOCK | 12 Months Ended |
Dec. 31, 2013 |
CAPITAL STOCK | ' |
CAPITAL STOCK | ' |
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NOTE 5 - CAPITAL STOCK |
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The Company is authorized to issue 300,000,000 shares of it $0.001 par value |
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common stock. On September 30, 2009, the Company effected a 60-for-1 forward |
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stock split of its $0.001 par value common stock. |
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All share and per share amounts were retroactively restated to reflect the |
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splits discussed above. |
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Common Stock |
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On January 30, 2007, the Company issued 240,000,000 shares of its common stock |
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to founders for proceeds of $20,000. |
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During the year-ended December 31, 2008, the Company issued 28,200,000 shares of |
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its common stock for total proceeds of $47,000. |
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On October 9, 2009, the Company cancelled 220,000,000 shares of its common |
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stock. Also on October 9, 2009, the Company issued 12,350,000 shares of its |
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common stock for 100 percent of the issued and outstanding stock of Nevada |
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Lithium Corp. |
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On January 10, 2010, the Company issued 53,484 shares of its common stock as |
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part of the Fish Lake Property acquisition. On April 30, 2010, the Company |
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issued 38,068 shares of its common stock as part of the Fish Lake Property |
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acquisition. On July 10, 2010, the Company issued 104,168 shares of its common |
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stock as part of the Fish Lake Property acquisition. On October 10, 2010, the |
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Company issued 171,568 of its common stock as part of the Fish Lake Property |
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acquisition. The total shares issued for the Fish Lake property during the year |
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ended December 31, 2010 was 367,288 valued at $175,000. |
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On March 24, 2010, the Company issued 2,000,000 units in a private placement, |
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raising gross proceeds of $2,000,000, or $1.00 per unit. Each unit consists of |
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one common share in the capital of our company and one non-transferable common |
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share purchase warrant. Each whole common share purchase warrant |
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non-transferable entitles the holder thereof to purchase one share of common |
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stock in the capital of our company, for a period of twelve months commencing |
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the closing, at a purchase price of $1.20 per warrant share and at a purchase |
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price of $1.35 per warrant share for a period of twenty-four months thereafter. |
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During the year ended December 31, 2012, these warrants expired and the value |
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was reclassified to additional paid-in capital. |
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On January 10, 2011, the Company issued 163,856 shares of its common stock as |
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part of the Fish Lake Property acquisition. On April 10, 2011, the Company |
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issued 230,264 shares of its common stock as part of the Fish Lake Property |
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acquisition. The total shares issued for the Fish Lake property during the year |
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ended December 31, 2011 was 394,120 valued at $87,500. |
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On April 28, 2011, the Company issued 150,000 shares of its common stock as part |
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of a stock option exercise. On May 5, 2011, the Company issued 200,000 shares of |
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its common stock as part of a stock option exercise. The Company received |
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proceeds totaling $84,000 for the exercise of the 350,000 stock options. |
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On November 19, 2012, the Company issued 11,000,000 shares of its common stock |
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and stock warrants as part of private placement for total proceeds of $550,000. |
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On July 10, 2013, the Company issued 250,000 shares of its common stock as |
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payment for the initial BC Sugar claim. The deemed value of this transaction was |
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$8,500. On January 17, 2014, the Company purchased these shares back for $2,500. |
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See Note 9: Subsequent Events. |
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There were 74,911,408 shares of common stock issued and outstanding as of |
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December 31, 2013. |
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Stock Warrants |
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Outstanding at |
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Issue Date Number Price Expiry Date December 31, 2013 |
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---------- ------ ----- ----------- ----------------- |
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November 19, 2012 11,000,000 $0.15 November 18, 2014 11,000,000 |
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The Company issued 11,000,000 warrants in connections with a private placement |
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during the year ended December 31, 2012. The warrants were valued using the |
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Black-Scholes option pricing model using the following assumptions: term of 5 |
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years, dividend yield of 0%, risk free interest rates of 0.67% and volatility of |
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129%. The fair value of the warrants was adjusted against additional paid in |
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capital. |
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Stock-Based Compensation |
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During the year ended December 31, 2010, the company granted 500,000 consultants |
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options at an exercise price of $0.28 and 400,000 options at an exercise price |
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of $0.24 to consultants in exchange for various professional services. On May |
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31, 2012, the options granted with exercise prices of $0.28 and $0.24 were |
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modified to exercise prices at $0.07. The modification resulted in stock based |
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compensation of $11,524. Also on May 31, 2012, the Company granted an additional |
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400,000 options to consultants for management services with an exercise price of |
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$0.07. These options were vested on the date of grant and resulted in |
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stock-based compensation of $23,891. |
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On March 15, 2013, all pre-existing options were modified to exercise prices of |
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$0.045. The modification resulted in stock-based compensation of $8,848. Also on |
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March 15, 2013, the Company issued an additional 200,000 options at an exercise |
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price of $0.045 to consultants for management services. These options were |
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vested on the date of grant and resulted in stock-based compensation of $7,794. |
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The Company uses the Black-Scholes option valuation model to value stock |
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options. The Black-Scholes model was developed for use in estimating the fair |
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value of traded options that have no vesting restrictions and are fully |
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transferable. The model requires management to make estimates, which are |
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subjective and may not be representative of actual results. Assumptions used to |
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determine the fair value of the remaining stock options are as follows: |
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Modifications New options |
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------------- ----------- |
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Risk-free interest rate 0.84/0.33% 0.84% |
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Expected dividend yield 0% 0% |
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Expected stock price volatility 115% 115% |
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Expected life of options 2.5/4.25 years 5 years |
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Weighted |
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Average Weighted |
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Total Remaining Average |
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Exercise Options Life Exercise Options |
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Prices Outstanding (Years) Price Exercisable |
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------ ----------- ------- ----- ----------- |
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$0.045 800,000 3.45 $0.045 800,000 |
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Total stock-based compensation for the years ended December 31, 2013 and 2012 |
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was $16,642 and $35,415, respectively. |
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Options that are granted to consultants expire three months after the last day |
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the consultant works with the Company, regardless of the original expected life |
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of the options granted. |
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The following table summarizes the stock options outstanding at December 31, |
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2013:00:00 |
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Outstanding at |
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Issue Date Number Price Expiry Date December 31, 2013 |
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---------- ------ ----- ----------- ----------------- |
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September 23, 2010 500,000 $0.045 September 23, 2015 500,000 |
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May 31, 2012 100,000 $0.045 May 31, 2017 100,000 |
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March 15, 2013 200,000 $0.045 March 15, 2018 200,000 |
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------- ------- |
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Total 800,000 800,000 |
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