Annual report pursuant to Section 13 and 15(d)

Stockholders’ Equity

v3.3.1.900
Stockholders’ Equity
 12 Months Ended
Dec. 31, 2015
Stockholders’ Deficit  
Stockholders' Equity

Note 4 – Stockholders’ Equity

 

Authorized Capital

 

The Company is authorized to issue 500,000,000 shares of common stock, $0.0001 par value, and 50,000,000 shares of preferred stock, $0.0001 par value.

 

Common Stock

 

On June 5, 2014, the Company issued 12,000,000 and 8,000,000 shares of common stock as “founder shares” to two entities controlled by the Company’s Board Chairman for services rendered in forming the Company. The shares had a fair value of $2,000.

 

On January 15, 2015, the Company’s Board of Directors approved the issuance of 250,000 and 150,000 shares of the Company’s common stock to the Company’s then-Chief Executive Officer, plus the Secretary, respectively. The common stock had a fair value of $40.

 

Common Stock and Warrant Offering

 

On September 17, 2015, the Company issued an aggregate of 220,000 shares of common stock at $0.50 per unit to investors for aggregate gross proceeds of $110,000. In connection with the purchases, the Company issued three-year warrants to purchase an aggregate of 220,000 shares of common stock at an exercise price of $2.00 per share. The warrants expire September 17, 2018. 

 

Warrants

 

During 2015, the Company issued 100,000 warrants as part of a convertible note offering (See Note 8). The fair value of the warrants was $19,965. The warrants expire December 23, 2020. The following table includes the assumptions used in calculating the fair value of the Warrant as of December 31, 2015:

 

    2015  
Risk-free interest rate     1.76 %
Expected dividend yield     -  
Expected term (in years)     5.00  
Expected volatility     95.87 %

 

Warrants

 

The following table summarizes all warrant grants for the period from June 5, 2014 (inception) to December 31, 2015, and the related changes during the periods are presented below.

 

    Number of Warrants     Weighted Average Exercise Price  
Warrants                
Balance at June 5, 2014     -       -  
                 
Granted     -       -  
Exercised     -       -  
Forfeited     -       -  
Balance at December 31, 2014     -       -  
                 
Granted     320,000     $ 0.50  
Exercised     -       -  
Forfeited     -       -  
                 
Warrants exercisable at December 31, 2015     320,000     $ 0.50