Note 3-Stockholders' Equity | 3 Months Ended |
Mar. 31, 2014 |
Notes | ' |
Note 3-Stockholders' Equity | ' |
Note 3—STOCKHOLDERS’ EQUITY |
|
Common Stock |
|
In January 2014, the Company issued 3,000,000 common shares valued at $63,000 in exchange for consulting services provided. Provided that the consultant performs all tasks within the scope of work, an additional 3,000,000 shares will be due to be issued on or about January 1, 2015 with those shares vesting 1,500,000 shares on July 1, 2015 and the remaining 1,500,000 shares on December 31, 2015. All shares issued are subject to a contractual lock-up provision. |
|
In January 2014, the Company issued 556,250 shares to various consultants for services valued at $11,851. |
|
In March 2014, ICPI converted 170,000 shares of Series A Convertible Preferred Stock into 1,700,000 common shares. |
|
In March 2014 the Company issued an aggregate amount of 1,100,000 common shares. This included shares issued to individuals who are affiliated with the “Pazoo Experts” section of our Company website. In exchange for services rendered, or to be rendered, as expert contributors on our Company website. These shares and the value of the pro-rata shares to be issued of 1,175,000 was $36,140 as of March 31, 2014. |
|
Preferred Stock |
|
In January 2014, the Company issued 800,000 shares of Series A Preferred Stock to ICPI in exchange for $40,000 in accordance with the exercise of warrants. |
|
In March 2014, the Company effectuated a 10 for 1 reverse stock split on the Company’s Series A Convertible Preferred Stock (See Exhibit 99.2 3-17-14 Board Resolution), and the Company amended all of the previous Investment Agreements with ICPI collectively. |
|
In March 2014, the Company entered into a new Investment Agreement (Investment Agreement No. 4) with Integrated Capital Partners, Inc. (“ICPI”). The Investment Agreement provides that in exchange for an investment of up to $500,000 ICPI could acquire up to 500,000 shares of Series A Preferred Stock at the rate of $1.00 per share. |
|
In March 2014, the Company issued 100,000 shares of Series A Preferred Stock to ICPI in exchange for $100,000, in accordance with Investment Agreement No. 4 |
|
On March 31, 2014, we recorded a Series A Preferred dividend in the amount of 11,969 shares. |
|
Warrants |
|
Simultaneous with the issuance of Series A Preferred Stock in the three month period ending March 31, 2014, and under the Investment Agreement No. 4 (March 2014) we issued 100,000 warrants to ICPI which entitles its owner to purchase one share of Series A Preferred Stock for each Series A Preferred Stock at an exercise price of $2.00, subject to the terms of the warrant agreement between the warrant agent and us. The warrants are exercisable five years from the date of issuance. |
|
The following table presents the Series A preferred stock warrant activity during the three months ended March 31, 2014: |
|
| | Warrants | | | Weighted Average Exercise Price | |
| | | | | | | | |
Outstanding - December 31, 2013 | | | 823,226 | | | $ | 2.2 | |
Granted | | | 100,000 | | | | - | |
Forfeited/Canceled | | | - | | | | - | |
Exercised | | | 80,000 | | | | - | |
Outstanding - March 31, 2014 | | | 843,226 | | | | 2.34 | |
Exercisable- March 31, 2014 | | | 843,226 | | | $ | 2.34 | |
|
The weighted average remaining life of the outstanding Series A preferred stock warrants as of March 31, 2014 and December 31, 2013 was 3.78 and 3.92 years, respectively. |
|
The following table presents the common stock warrant activity during the three months ended March 31, 2014: |
|
| | Warrants | | | Weighted Average Exercise Price | |
| | | | | | | | |
Outstanding - December 31, 2013 | | | 5,000,000 | | | $ | 0.05 | |
Granted | | | - | | | | - | |
Forfeited/Canceled | | | - | | | | - | |
Exercised | | | - | | | | - | |
Outstanding - March 31, 2014 | | | 5,000,000 | | | | 0.05 | |
Exercisable- March 31, 2014 | | | 5,000,000 | | | $ | 0.05 | |
|
The weighted average remaining life of the outstanding common stock warrants as of March 31, 2014 and December 31, 2013 was 1.02 and 1.26 years, respectively. |