Capital Stock | Note 8 - Capital Stock The Company is authorized to issue 3,000,000,000 shares of it $0.001 par value common stock. On September 30, 2009, the Company effected a 60-for-1 forward stock split of its $0.001 par value common stock. All share and per share amounts have been retroactively restated to reflect the splits discussed above. Common Stock On April 12, 2016, the Company issued 700,000 common shares for gross proceeds of $17,500. On May 11, 2016 the Company issued 100,000 common shares for gross proceeds of $2,500 pursuant to the exercise of stock options. On May 24, 2016, the Company issued 2,400,000 common shares for gross proceeds of $33,100. On May 31, 2016, the Company issued 276,000 common shares for gross proceeds of $6,900. On June 9, 2016 the Company issued 100,000 common shares for gross proceeds of $2,500 pursuant to the exercise of stock options. On August 9, 2016, the Company issued 666,667 common shares in relation to a services agreement dated April 1, 2016. These shares were valued at $22,666, being the fair market value at the date of issuance. On August 25, 2016, the Company issued 100,000 common shares for gross proceeds of $5,000 pursuant to the exercise of warrants. On February 10, 2017, the Company issued and removed from stock payable 333,333 common shares in relation to a services agreement dated April 1, 2016. These shares were valued at $11,334, being the fair market value at the date of contract. On February 10, 2017, the Company issued 1,353,904 common shares for gross proceeds of $63,800 pursuant to the exercise of warrants. On March 16, 2017, 1,076,000 shares were cancelled and returned to treasury. On March 27, 2017, the Company issued 2,400,000 common shares for gross proceeds of $120,000. On July 31, 2017, the Company issued 1,900,000 common shares for gross proceeds of $95,000. On September 5, 2017, the Company issued 1,000,000 shares as consideration for the Yeehaw and Melissa Properties (see Note 6). There were 86,615,312 shares of common stock issued and outstanding as of September 30, 2017. Warrants On April 12, 2016, as part of the issuance of common stock, the Company issued 700,000 warrants exercisable at $0.05 for the first 12 months after closing and $0.075 for the following 12 months after closing. The fair value of the warrants has been measured at $10,000. The warrants vested six months after being granted. On May 24, 2016, as part of the issuance of common stock, the Company issued 2,400,000 warrants exercisable at $0.05 for the first 12 months after closing and $0.075 for the following 12 months after closing. The fair value of the warrants has been measured at $33,100. The warrants vested six months after being granted. On May 31, 2016, as part of the issuance of common stock, the Company issued 276,000 warrants exercisable at $0.05 for the first 12 months after closing and $0.075 for the following 12 months after closing. The fair value of the warrants has been measured at $6,900. The warrants vested six months after being granted. On March 27, 2017, as part of the issuance of common stock, the Company issued 2,400,000 warrants exercisable at $0.05 for the first 12 months after closing and $0.075 for the following 12 months after closing. The fair value of the warrants has been measured at $86,180. The warrants vested six months after being granted. On July 31, 2017, as part of the issuance of common stock, the Company issued 1,900,000 warrants exercisable at $0.075 for 24 months after closing. The fair value of the warrants has been measured at $69,489. The warrants vested six months after being granted. The table below outlines the change in warrants during the year-ended September 30, 2017: Number Balance, December 31, 2015 2,700,000 Granted 3,376,000 Exercised (100,000 ) Balance, December 31, 2016 5,976,000 Granted 4,300,000 Exercised (1,436,000 ) Cancelled (1,076,000 ) Balance, September 30, 2017 7,764,000 The table below outlines details of warrants outstanding as at September 30, 2017: Grant Date Number Exercise Price Expiry Date October 15, 2015 2,000,000 $ 0.075 October 15, 2017 April 12, 2016 140,000 $ 0.075 April 12, 2018 May 24, 2016 1,324,000 $ 0.075 May 24, 2018 March 27, 2017 2,400,000 $ 0.050 March 27, 2019 July 31, 2017 1,900,000 $ 0.075 July 31, 2019 Total 7,764,000 Stock Based Compensation During the year ended December 31, 2010, the Company granted 500,000 consultants options at an exercise price of $0.28 and 400,000 options at an exercise price of $0.24 to consultants in exchange for various professional services. On May 31, 2012, the options granted with exercise prices of $0.28 and $0.24 were modified to exercise prices at $0.07. The modification resulted in stock based compensation of $11,524. Also on May 31, 2012, the Company granted an additional 400,000 options to consultants for management services with an exercise price of $0.07. These options were vested on the date of grant and resulted in stock-based compensation of $23,891. On September 30, 2014, 250,000 options expired unexercised as a result of a director resigning from the Company. On March 15, 2013, all pre-existing options were modified to exercise prices of $0.045. The modification resulted in stock-based compensation of $8,848. Also on March 15, 2013, the Company issued an additional 200,000 options at an exercise price of $0.045 to consultants for management services. These options were vested on the date of grant and resulted in stock-based compensation of $7,794. The Company uses the Black-Scholes option valuation model to value stock options. The Black-Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. The model requires management to make estimates, which are subjective and may not be representative of actual results. Assumptions used to determine the fair value of the remaining stock options are as follows: Modification New Options Risk free interest rate 0.35% 0.67% Expected dividend yield 0% 0% Expected stock price volatility 129% 129% Expected life of options 3 years 5 years On November 12, 2014, the Company granted 700,000 options at an exercise price of $0.045 in exchange for various professional and managerial services. The fair value of these options was $38,723. The Company uses the Black-Scholes option valuation model to value stock options. The Black-Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. The model requires management to make estimates, which are subjective and may not be representative of actual results. Assumptions used to determine the fair value of the remaining stock options are as follows: Risk free interest rate 1.65% Expected dividend yield 0% Expected stock price volatility 150% Expected life of options 5 years On February 10, 2016, the Company granted 850,000 options at an exercise price of $0.025 in exchange for various professional and managerial services (See Note 10). The fair value of these options was $27,412. The Company uses the Black-Scholes option valuation model to value stock options. The Black-Scholes model was developed for use in estimating the fair value of traded options that have no vesting restrictions and are fully transferable. The model requires management to make estimates, which are subjective and may not be representative of actual results. Assumptions used to determine the fair value of the remaining stock options are as follows: Risk free interest rate 1.15% Expected dividend yield 0% Expected stock price volatility 163% Expected life of options 4.90 years The following table summarizes the stock options outstanding at September 30, 2017: Issue Date Number Price Expiry Date Outstanding at September 30, 2017 March 15, 2013 200,000 $0.045 March 15, 2018 200,000 November 12, 2014 700,000 $0.045 November 12, 2019 700,000 February 10, 2016 650,000 $0.025 January 8, 2022 650,000 |