Capital Stock and Additional Paid-in Capital
|12 Months Ended|
Dec. 31, 2012
|Notes to Financial Statements|
|Note 9. Capital Stock and Additional Paid-in Capital||
The Company is authorized to issue 5,000,000 shares of preferred stock, par value $.001 per share.
On October 3, 2012, the Company issued 28,092 shares of preferred stock to the Chairman of the Company in exchange for the return the equal amount of shares of common stock, owned by the Chairman, deposited in a brokerage account, to the Company for cancellation. As of April 15, 2013, the Companys transfer agent has still not received the 28,092 shares of common stock for cancellation, although the Chairman has acknowledged his unconditional obligation to return the 28,092 shares of common stock to the Company and has arranged for his brokerage firm to do so. Thus the 28,092 shares of common stock to be cancelled are shown as no longer issued and outstanding as of December 31, 2012, while the 28,092 shares of preferred stock are shown as issued and outstanding. Neither the common stock, nor the preferred shares were assessed any value.
Each share of such Preferred Stock shall have a par value of $0.001 per share.
Each share of Preferred Stock shall entitle the holder thereof to two thousand (2,000) votes on all matters submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time on or after the date that Preferred Stock has been issued (Distribution Date) declare or pay any dividend on Common Stock payable in shares of Common Stock, or effect a subdivision or combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Preferred Stock were entitled immediately prior to such event shall be adjusted by multiplying such number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event.
Each share of Preferred Stock shall be convertible, at the option of the holder thereof, at any time after the date of issuance of such share, at the office of the Corporation or any transfer agent for such stock, into one share of fully paid and non-assessable Common Stock (the Conversion Rate").
On March 20, 2012, the Company issued 45,000 shares of its common stock to its consultants in consideration for consulting services rendered for a fair value of $0.18 per share.
On March 20, 2012, the Company issued 25,000 shares of its common stock to Howard Lee in consideration of salary.
On March 22, 2012, the Company has entered into a six-month loan agreement with a third party for the amount of $79,282 (RMB500,000 equivalents) repayable on September 20, 2012. A total of 879,196 common shares of the Company was issued as collateral that would be returned to the Company upon repayment of the loan. The due date of the loan was extended and was settled on Jan 10, 2013. (See Note 5)
On July 10, 2012, the Company issued 25,000 restricted shares of its common stock to each of Jiyun Ge, Tejesh Srivastav and Townsend Tang in consideration for becoming members of the Board of Directors of the Company at a fair value of $0.08 per share.
On July 10, 2012, the Company authorized and approved the issuance of 277,778 free trading shares of common stock to David Rees for the provision of $30,000 in legal services rendered to the Company, at a fair value of $0.108 per share.
On November 16, 2012, the Company sold 3,205,960 restricted shares of common stock to Viking Investments Group LLC, the parent company of Viking Investments Group, Inc., at fair value of $0.05 per share.
During the year, the Company sold 1,649,665 restricted shares of common stock to third parties at a fair value of $0.10 per share.
On June 29, 2011 and August 29, 2011, the Company issued 1,912,000 and 12,569,420 shares of common stock, par value $0.001 per share respectively, to Viking Nevis, to exchange for common shares 100,000 and 466,813 common shares of China Wood, Inc., which is publicly listed in the United States with the ticker CNWD, (the China Wood Shares) owned by Viking Nevis.
On October 26, 2011, the Company issued 2,812,923 shares of common stock, par value $0.001 per share, to Tom Simeo (2,160,000 shares), Meilong Fu (300,000 shares), Fengying Zhong (203,720 shares), David Rees (60,000 shares), Lily Jin (75,453 shares) and Howard Lee (13,750 shares) respectively for services rendered under their respective consulting agreement. The Company recorded the new issuance of share into Common Stock with the corresponding credit and debit figures to Additional Paid-in Capital and net income respectively.
In year 2011, the Company issued 263,780 shares of common stock, par value $0.001 per share, to Guifang Chang (78,419 shares), Xiaochun Zhang (125,361 shares), Gordon Lin (35,000 shares) and Wei-Wei Zhang (25,000 shares) for their new investment made to the Company. The Company recorded the new issuance of share into Common Stock with the corresponding credit and debit figures to Additional Paid-in Capital and Cash respectively.
The stock warrants granted during 2009 were exercisable immediately, the fair value on the grant date using the Black-Scholes option pricing model was $24,020, and have been recorded as compensation costs for year ended December 31, 2009.
Assumption used to estimate the fair value of stock warrants on the granted date is as follows:
In 2011, the Company cancelled all options and warrants issued in 2009. The Company did not issue any stock options or warrants during 2012.
No definition available.