The financial
statements and related notes are included as part of this Annual Report.
The accompanying footnotes are an integral part of these
financial statements.
The accompanying footnotes are an integral part of these
financial statements.
The accompanying footnotes are an integral part of these
financial statements.
The accompanying footnotes are an integral part of these
financial statements.
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - NATURE OF OPERATIONS AND BASIS OF PRESENTATION
Innovative Product Opportunities Inc.
(the "Company" or "Innovative") was incorporated on April 3, 2009 in the State of Delaware and established
a fiscal year end of December 31. The Company is a development stage enterprise organized to provide product development. The Company
is currently in the development stage as defined in Financial Accounting Standards Board ("FASB") Accounting Standard
Codification ("ASC") 915.
On March 1, 2012 the company entered
into a license agreement with Szar International, Inc. (dba Cigar & Spirits Magazine) (“Cigar & Spirits”) and
moved offices to our new California address with Cigar and Spirits. The agreement grants Innovative the right to market the products
of Cigar & Spirits including but not limited to the sales, promotion, and advertising vehicles of the Magazine. There are no
specific rent terms included in the license agreement but verbally they have agreed to allow Innovative to use their office on
an on-going basis free of additional charge. On July 8, 2013, Innovative received written notice that Cigar & Spirits will
cancel the license agreement on August 1, 2013.
Our business is a product development
firm creating products designed, prototyped and produced in numerous industries including consumer and household goods, office
products, furniture, and toys.
Restatement:
On February 22, 2012, the company entered
into an $11,250 promissory note with Al Kau for cash received by the Company. This note was non-interest bearing and payable on
demand. From October 10, 2012 to October 18, 2012, the Company issued 140,000,000 shares of common stock valued at $226,600 ($0.0016
per share) based on the quoted price on the day of issue for payment of principal totaling $14,000 on outstanding notes payable.
The payment of principal was originally accounted for as a loss on settlement of debt of $212,600. It was determined that the original
accounting was in error as an amendment to the promissory note dated September 3, 2012 was not considered by the Company.
On September 3, 2012, the Company amended the
promissory note with a carrying value of $11,250 issued to Al Kau on February 22, 2012. Under US GAAP, the modification of the
promissory note should have been accounted for as debt extinguishment and the issuance of a new debt instrument. The amended note
had a fixed conversion price of $0.0001 per share of the Company’s common stock. In addition, as a result of the modification
the face value of the amended note was increased from $11,250 to $14,000 resulting in a finance charge of $2,750. The amended note
bears interest at 20% per annum and allows for the lender to secure a portion of the Company assets up to 200% of the face value
of the note and mature one year from the day of their respective issuance. The amended note resulted in a beneficial conversion
feature of $11,250 since the closing price of common stock on September 3, 2013 exceeded the fixed conversion price. The beneficial
conversion feature of $11,250 is included in additional paid-in capital. From October 10, 2012 to October 18, 2012, the holder
of the amended note converted $14,000 of principal plus accrued interest into 140,000,000 shares of the Company’s common
stock.
A summary of the effect of the restatement
is as follows:
|
|
As Previously Reported
|
|
Restatement
Adjustments
|
|
As Restated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance Sheet - December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable
|
|
$
|
78,417
|
|
|
$
|
2,750
|
|
|
$
|
81,167
|
|
Total liabilities
|
|
$
|
160,253
|
|
|
$
|
2,750
|
|
|
$
|
163,003
|
|
Additional paid-in-capital
|
|
$
|
5,735,800
|
|
|
$
|
(201,350
|
)
|
|
$
|
5,534,450
|
|
Accumulated deficit during development stage
|
|
$
|
(5,928,585
|
)
|
|
$
|
198,600
|
|
|
$
|
(5,729,985
|
)
|
Total Stockholders’ Deficit
|
|
$
|
(157,985
|
)
|
|
$
|
(2,750
|
)
|
|
$
|
(160,735
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Operations- For the Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on settlement of debt
|
|
$
|
212,600
|
|
|
$
|
(212,600
|
)
|
|
$
|
—
|
|
Finance costs
|
|
$
|
—
|
|
|
$
|
14,000
|
|
|
$
|
14,000
|
|
Net loss
|
|
$
|
(525,957
|
)
|
|
$
|
198,600
|
|
|
$
|
(327,357
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Statement of Cash Flows - For the Year Ended December 31, 2012
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(525,957
|
)
|
|
$
|
198,600
|
|
|
$
|
(327,357
|
)
|
Loss on settlement of debt
|
|
$
|
212,600
|
|
|
$
|
(212,600
|
)
|
|
$
|
—
|
|
Accretion of debt discount
|
|
$
|
—
|
|
|
$
|
14,000
|
|
|
$
|
14,000
|
|
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The financial statements present the
balance sheets and statements of operations, stockholders' equity and cash flows of the Company. These financial statements are
presented in United States dollars and have been prepared in accordance with accounting principles generally accepted in the United
States.
GOING CONCERN
The Company's financial statements are
prepared in accordance with generally accepted accounting principles applicable to a going concern. This contemplates the realization
of assets and the liquidation of liabilities in the normal course of business. Currently, the Company does not have significant
operations or a source of revenue sufficient to cover its operation costs and allow it to continue as a going concern. The Company
has an accumulated deficit during development stage at December 31, 2013 of $6,132,593. The Company will be dependent upon the
raising of additional capital through placement of its common stock in order to implement its business plan. There can be no assurance
that the Company will be successful in this situation. Accordingly, these factors raise substantial doubt as to the Company's ability
to continue as a going concern. These financial statements do not include any adjustments relating to the recoverability and classification
of recorded asset amounts or amounts and classifications of liabilities that might result from this uncertainty. The Company is
funding its initial operations by way of loans from its Chief Executive Office and others, and the use of equity to pay some operating
expenses. The Company's officers and directors have committed to advancing certain operating costs of the Company.
USE OF ESTIMATES AND ASSUMPTIONS
Preparation of the financial statements
in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates
CASH AND CASH EQUIVALENTS
For purposes of the statement of cash
flows, the Company considers highly liquid financial instruments purchased with a maturity of three months or less to be cash equivalents.
REVENUE RECOGNITION
The Company recognizes revenues and
the related costs when persuasive evidence of an arrangement exists, delivery and acceptance has occurred or service has been rendered,
the price is fixed or determinable, and collection of the resulting receivable is reasonably assured. Amounts invoiced or collected
in advance of product delivery or providing services are recorded as deferred revenue or customer deposits. The company accrues
for sales returns, bad debts, and other allowances based on its historical experience. Net sales under certain long-term contracts
for product design, which may provide for periodic payments, are recognized under the percentage-of-completion method. Estimated
cost-at-completion for these contracts are reviewed on a routine periodic basis, and adjustments are made periodically to the estimated
cost-at-completion, based on actual costs incurred, progress made, and estimates of the costs required to complete the contractual
requirements. When the estimated cost-at-completion exceeds the contract value, the contract is written down to its net realizable
value, and the loss resulting from cost overruns is immediately recognized.
To properly match net sales with costs,
certain contracts may have revenue recognized in excess of billings (unbilled revenues), and other contracts may have billings
in excess of net sales recognized (customer deposits). Under long-term contracts, the prerequisites for billing the customer for
periodic payments generally involve the Company's achievement of contractually specific, objective milestones.
Revenue for services contracts will
be recognized under a proportional performance model if the following criteria are met (i) the arrangement provides for periodic
billings as services are provided (ii) the customer receives value as the services as rendered, not just upon the completion of
the services and (iii) the customer need not re-perform services that it has already received if it terminates the service contract
early and hires another service provider to complete the service deliverable. If these criteria are not met, the Company will recognize
revenue on the service contracts using the completed contract method.
INCOME TAXES
The Company accounts for income taxes
in accordance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("FASB ASC")
740, Income Taxes. Under the assets and liability method of FASB ASC 740, deferred tax assets and liabilities are recognized for
the estimated future tax consequences attributable to differences between the financial statement carrying amounts of existing
assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates
in effect for the year in which those temporary differences are expected to be recovered or settled. The Company provides a valuation
allowance, if necessary, to reduce deferred tax assets to their estimated realizable value.
NET LOSS PER SHARE
Basic net income (loss) per share includes
no dilution and is computed by dividing net income (loss) available to common stockholders by the weighted average number of common
shares outstanding for the period. Diluted earnings per share is computed by dividing earnings available to common shareholders
by the weighted average number of common shares outstanding for the period increased to include the number of additional common
shares that would have been outstanding if potentially dilutive securities had been issued. There were no potentially dilutive
securities outstanding during the periods presented.
FOREIGN CURRENCY TRANSLATION
The financial statements are presented
in the Company’s functional currency which is the United States dollars. In accordance with FASB ASC 830, Foreign Currency
Matters, foreign denominated monetary assets and liabilities are translated to their United States dollar equivalents using foreign
exchange rates which prevailed at the balance sheet date. Non-monetary assets and liabilities are translated at exchange rates
prevailing at the transaction date. Revenue and expenses are translated at average rates of exchange during the periods presented.
Related translation adjustments are reported as a separate component of stockholders' equity (deficit), whereas gains or losses
resulting from foreign currency transactions are included in results of operations.
STOCK-BASED COMPENSATION
The Company measures stock-based compensation
at the grant date based on the fair value of the award and recognizes stock-based compensation expense over the requisite service
period.
The Company also grants awards to non-employees
and determines the fair value of such stock-based compensation awards granted as either the fair value of the consideration received
or the fair value of the equity instruments issued, whichever is more reliably measurable. If the fair value of the equity instruments
issued is used, it is measured using the stock price and other measurement assumptions as of the earlier of (1) the date at which
a commitment for performance by the counterparty to earn the equity instruments is reached, or (2) the date at which the counterparty's
performance is completed.
The Company has not adopted a stock option plan and has not
granted any stock options.
COMPREHENSIVE INCOME (LOSS)
The Company has adopted ASC Topic 220
- Comprehensive Income, which establishes standards for reporting and the display of comprehensive income, its components and accumulated
balances. Comprehensive income is defined to include all changes in equity except those resulting from investments by owners or
distributions to owners. Among other disclosures, Topic 220 requires that all items that are required to be recognized under the
current accounting standards as a component of comprehensive income be reported in a financial statement that is displayed with
the same prominence as other financial statements. Comprehensive income is displayed in the statement of stockholders' deficit
and in the balance sheet as a component of stockholders' deficit.
FAIR VALUE OF FINANCIAL INSTRUMENTS
In accordance with the requirements
of FASB ASC 820, Fair Value Measurements and Disclosures, and FASB ASC 825, Financial Instruments, the Company has determined the
estimated fair value of financial instruments using available market information and appropriate valuation methodologies. FASB
ASC 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability (exit price) in
an orderly transaction between market participants at the measurement date. The statement establishes market or observable inputs
as the preferred sources of values, followed by assumptions based on hypothetical transactions in the absence of market inputs.
The statement requires fair value measurements be classified and disclosed in one of the following categories:
Level 1 – Quoted prices in active
markets for identical assets and liabilities.
Level 2 – Quoted prices in active
markets for similar assets and liabilities, quoted prices for identical or similar instruments in markets that are not active and
model-derived valuations whose inputs are observable or whose significant value drivers are observable.
Level 3 – Significant inputs to
the valuation model are unobservable.
Financial assets and liabilities are
classified based on the lowest level of input that is significant to the fair value measurement.
RECENT ACCOUNTING PRONOUNCEMENTS
There have been no recent accounting
pronouncements or changes in accounting pronouncements that impacted the fiscal year 2013, or which are expected to impact future
periods that were not already adopted and disclosed in prior periods.
NOTE 3 - CUSTOMER DEPOSITS
During the year ended December 31, 2013,
the company invoiced and received cash in the amount of $65,000 for a new product design project on behalf of two customers. In
accordance with the revenue recognition policy of the Company, all revenue has been deferred since the Company recognize revenue
under this service contract using the completed contract method.
The customer deposits were received
from two customers who are shareholders and note holders of the Company. One customer, Al Kau, paid invoices totaling $32,500 in
cash, holds notes payable of $40,250 and a convertible note of $2,567 (net of debt discount of $7,500) in the Company at December
31, 2013 and is a 7.7% shareholder at December 31, 2013. The second customer, Aaron Shrira, also paid invoices totaling $32,500
in cash, holds notes payable of $42,917 in the Company at September 30, 2013 and is a 0% shareholder at December 31, 2013.
NOTE 4 – CONVERTIBLE NOTES
On September 3, 2012, the Company amended the
promissory note with a carrying value of $11,250 issued to Al Kau on February 22, 2012. The modification of the promissory note
should have been accounted for as debt extinguishment and the issuance of a new debt instrument. The amended note had a fixed conversion
price of $0.0001 per share of the Company’s common stock. In additional, as a result of the modification the face value of
the amended note was increased from $11,250 to $14,000 resulting in a finance charge of $2,750. The amended note bears interest
at 20% per annum and allows for the lender to secure a portion of the Company assets up to 200% of the face value of the note and
mature one year from the day of their respective issuance. The amended note resulted in a beneficial conversion feature of $11,250
since the closing price of common stock on September 3, 2013 exceeded the fixed conversion price. The beneficial conversion feature
of $11,250 is included in additional paid-in capital. From October 10, 2012 to October 18, 2012, the holder of the amended note
converted $14,000 of principal plus accrued interest into 140,000,000 shares of the Company’s common stock.
On June 18, 2013, the Company amended an unsecured,
non-interest bearing promissory note payable on demand with a carrying value $1,750 issued to the Cellular Connection Ltd. The
modification of the Note has been accounted for as debt extinguishment and the issuance of a new debt instrument. Under the terms
of the Side Letter Agreement, the Note has a fixed conversion price of $0.0001 per share of the Company’s common stock. In
additional, as a result of the modification the face value of the Note was increased from $1,750 to $3,500 resulting in a finance
charge of $1,750. The note bears interest at 20% per annum and allows for the lender to secure a portion of the Company assets
up to 200% of the face value of the note and mature one year from the day of their respective issuance. The amendment of the terms
of Promissory Note resulted in a beneficial conversion feature of $3,500 since the closing price of common stock on June 18, 2013
exceeded the fixed conversion price. The beneficial conversion feature of $3,500 is included in additional paid-in capital. On
June 18, 2013 the holder of the note converted $3,500 of principal plus accrued interest into 35,000,000 shares of the Company's
common stock.
On July 2, 2013, the Company agreed to amend
the term of an unsecured, non-interest bearing promissory note payable on demand with a carrying value $12,500 issued to the Al
Kau, Al Kau is a consultant, investor and customer of the Company. Under the terms of the Side Letter Agreement, the issue price
of the Note is $12,500 with a face value of $18,000 and the terms of the Note include a fixed conversion price of $0.0001 per share
of Company’s common stock and a maturity date of May 10, 2014. The amendment of the terms of the Note resulted in a beneficial
conversion feature of $12,500 since the closing price of common stock on July 2, 2013 exceeded the fixed conversion price. The
beneficial conversion feature of $12,500 is included in additional paid-in capital. The Note allows for the lender to secure a
portion of the Company assets up to 200% of the face value of the note. On July 11, 15 and 16, 2013 the holder of the note converted
$8,900 of principal plus accrued interest into 89,000,000 shares of the Company's common stock. Accreted interest expense of $10,500
as result of the amortization of the debt discount is included in interest expense in the statement of operations for the year
ended December 31, 2013.
NOTE 5 - NOTES PAYABLE
On February 22, 2012, the company issued
two promissory notes in the value of $11,250 each for value received. These notes bear no interest and are payable on demand by
the note holders. A promissory note of $11,250 issued to Al Kau was amended on September 3, 2012. See Note 4.
On March 6, 2012, the company issued
two promissory notes in the value of $2,500 each for value received. These notes bear no interest and are payable on demand by
the note holders.
On May 1, 2012, the company issued a
promissory note in the value of $12,500 for value received. These notes bear no interest and are payable on demand by the note
holder.
On May 10, 2012, the company issued
a promissory note in the value of $12,500 for value received. These notes bear no interest and are payable on demand by the note
holder.
On May 31, 2012, the company issued
a promissory note in the value of $32,000 for value received. In May 2012, a total of $15,000 was paid back. These notes bear no
interest and are payable on demand by the note holder.
On July 31, 2012, the company issued
a promissory note in the value of $1,750 for value received. These notes bear no interest and are payable on demand by the note
holder. The promissory note was amended on June 18, 2013. See Note 4.
On November 5, 2012 the company issues
a promissory note in the value of $16,667 for value received. These notes bear no interest and are payable on demand by the note
holder.
On December 3, 2012 the company issues
a promissory note in the value of $4,500 for value received. These notes bear no interest and are payable on demand by the note
holder.
On September 3, 2012, the Company amended
the promissory note with a carrying value of $11,250 issued to the Al Kau on February 22, 2012. The promissory note was amended
on July 2, 2013. See Note 4 and Note 1 restatement.
On January 8, 2013, the Company issued
a promissory note in the amount of $6,000 from Al Kau. This note is unsecured, bears no interest and is payable on demand by the
note holder.
On February 2, 2013, the Company issued
a promissory note in the amount of $6,000 to Al Kau. This note is unsecured, bears no interest and is payable on demand by the
note holder.
On February 22, 2013, the Company issued
a promissory note in the amount of $6,000 to The Cellular Connection Limited. This note is unsecured, bears no interest and is
payable on demand by the note holder.
On June 6, 2013, the Company issued
a promissory note in the amount of $4,728 to The Cellular Connection Limited. This note is unsecured, bears no interest and is
payable on demand by the note holder.
On December 16, 2013, the Company issued
a promissory note in the amount of $1,889 to The Cellular Connection Limited. This note is unsecured, bears no interest and is
payable on demand by the note holder.
As of December 31, 2013 and December
31, 2012 notes payable totaling $91,534 and $81,167, respectively, were outstanding. The balances are non-interest bearing, unsecured
and have no specified terms of repayment.
NOTE 6 – DUE TO RELATED PARTY
As of December 31, 2013 and 2012 advances
of $76,895 and $73,602, respectively, were due to the Company's Chief Executive Officer. The balances are non-interest bearing,
unsecured and have no specified terms of repayment.
NOTE 7 - INCOME TAXES
|
|
2013
|
|
2012
|
Net loss before taxes
|
|
$
|
(402,608
|
)
|
|
$
|
(327,357
|
)
|
|
|
|
|
|
|
|
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
A reconciliation of the expected income tax expense, computed by
applying a 35% U.S. Federal corporate income tax rate to income before taxes to income tax expense is as follows:
|
|
2013
|
|
2012
|
Expected income tax expense (recovery)
|
|
$
|
(141,000
|
)
|
|
$
|
(115,000
|
)
|
Share-based payments
|
|
|
96,000
|
|
|
|
69,000
|
|
Interest
|
|
|
5,100
|
|
|
|
5,000
|
|
Change in valuation allowance
|
|
|
39,900
|
|
|
|
41,000
|
|
|
|
$
|
—
|
|
|
$
|
—
|
|
At December 31, 2013 and 2012, the Company
had available a net-operating loss carry-forward for Federal tax purposes of approximately $318,000 and $204,000, respectively,
which may be applied against future taxable income, if any, at various times through 2033. Certain significant changes in ownership
of the Company may restrict the future utilization of these tax loss carry-forwards. At December 31, 2013, the Company has a deferred
tax asset of $111,900 representing the benefit of its net operating loss carry-forward. The Company has not recognized the tax
benefit because realization of the tax benefit is uncertain and thus a valuation allowance has been fully provided against the
deferred tax asset.
The Company recognizes interest and
penalties, if any, related to uncertain tax positions in general and administrative expenses. No interest and penalties related
to uncertain tax positions were accrued at December 31, 2013 and 2012.
The tax years 2013, 2012, 2011, 2010
and 2009 remain open to examination by the major taxing jurisdictions in which the Company operates. The Company expects no material
changes to unrecognized tax positions within the next twelve months.
NOTE 8 - STOCKHOLDERS' EQUITY
The Company is authorized to issue an
aggregate of 3,000,000,000 common shares with a par value of $0.0001 per share and 1,000,000 shares of preferred stock with a par
value of $0.001 per share. No preferred shares have been issued.
On April 16, 2012, the Company issued
60,000,000 shares of common stock valued at $143,000 expensed during the year ended December 31, 2012 as stock-based compensation
for business development, consulting, design and technical services. The services are valued based on the closing price of the
Company's common stock on the date of the agreement exchanged for the services.
On June 21, 2012, the Company issued
30,000,000 shares of common stock valued at $54,000 as stock-based compensation for business development and consulting services.
The services are valued based on the closing price of the Company's common stock on the date of the agreement exchanged for the
services.
From October 10, 2012 to October 18,
2012, Al Kau, consultant, investor and customer of the Company, the holder of a convertible note converted $14,000 of principal
plus accrued interest into 140,000,000 shares of the Company's common stock.
On April 30, 2013, the Company received
for no consideration 12,000,000 shares of its common stock for cancellation, the effect of the cancellation of shares was immaterial
thus no retroactive treatment was applied.
On May 8, 2013, the Company issued 40,000,000
shares of common stock to Stuart Turk and Lincoln Salazar valued at $76,000 as stock-based compensation for business development
and consulting services. On the statement of operations for the fiscal year ended December 31, 2013, $4,000 has been allocated
to stock-based compensation expense and $72,000 to loss on issuance of stock-based compensation.
On June 18, 2013, The Cellular Connection
Limited converted $3,500 of principal and interest of a convertible note into 35,000,000 shares of the Company’s common stock
at a fixed conversion price of $0.0001 per share.
On July 11, 15 and 16, 2013 Al Kau,
consultant, investor and customer of the Company, the holder of a convertible note converted $8,900 of principal plus accrued interest
into 89,000,000 shares of the Company's common stock.
On November 4, 2013, the Company issued
49,000,000 shares of common stock valued at $9,800 to Tony Diveronica as stock-based compensation for development, implementation
and maintenance of sound business strategies including identification of suitable merger and acquisition candidates. The services
are valued based on the closing price of the Company's common stock on the date of the agreement exchanged for the services. On
the statement of operations for the fiscal year ended December 31, 2013, $4,900 has been allocated to stock-based compensation
expense and $4,900 to loss on issuance of stock-based compensation.
On November 4, 2013, the Company issued
49,000,000 shares of common stock valued at $9,800 to Steve Roy as stock-based compensation for development, implementation and
maintenance of sound business strategies including website development. The services are valued based on the closing price of the
Company's common stock on the date of the agreement exchanged for the services. On the statement of operations for the fiscal year
ended December 31, 2013, $4,900 has been allocated to stock-based compensation expense and $4,900 to loss on issuance of stock-based
compensation.
On November 6, 2013, the Company issued
50,000,000 shares of common stock valued at $15,000 to Al Kau, consultant, investor and customer of the Company, as stock-based
compensation for development, implementation and maintenance of sound business strategies including identification of suitable
merger and acquisition candidates. The services are valued based on the closing price of the Company's common stock on the date
of the agreement exchanged for the services. On the statement of operations for the fiscal year ended December 31, 2013, $5,000
has been allocated to stock-based compensation expense and $10,000 to loss on issuance of stock-based compensation.
On November 6, 2013, the Company issued
50,000,000 shares of common stock valued at $15,000 to Aaron Shrira as stock-based compensation for development, implementation
and maintenance of sound business strategies including identification of suitable merger and acquisition candidates. The services
are valued based on the closing price of the Company's common stock on the date of the agreement exchanged for the services. On
the statement of operations for the fiscal year ended December 31, 2013, $5,000 has been allocated to stock-based compensation
expense and $10,000 to loss on issuance of stock-based compensation.
On November 7, 2013, the Company issued
65,000,000 shares of common stock valued at $26,000 to Robert McLean, the Chief Financial Officer of the Company, as stock-based
compensation. The services are valued based on the closing price of the Company's common stock on the date of the agreement exchanged
for the services. On the statement of operations for the fiscal year ended December 31, 2013, $6,500 has been allocated to stock-based
compensation expense and $19,500 to loss on issuance of stock-based compensation.
On November 7, 2013, the Company issued
65,000,000 shares of common stock valued at $26,000 to Grant Stummer, a director of the Company, as stock-based compensation. The
services are valued based on the closing price of the Company's common stock on the date of the agreement exchanged for the services.
On the statement of operations for the fiscal year ended December 31, 2013, $6,500 has been allocated to stock-based compensation
expense and $19,500 to loss on issuance of stock-based compensation.
On November 7, 2013, the Company issued
68,000,000 shares of common stock valued at $27,200 to William Reil as stock-based compensation for development, implementation
and maintenance of sound business strategies including identification of suitable merger and acquisition candidates. The services
are valued based on the closing price of the Company's common stock on the date of the agreement exchanged for the services. On
the statement of operations for the fiscal year ended December 31, 2013, $6,800 has been allocated to stock-based compensation
expense and $20,400 to loss on issuance of stock-based compensation.
On November 8, 2013, the Company issued
89,000,000 shares of common stock valued at $71,200 to Stuart Turk as stock-based compensation development, implementation and
maintenance of sound business strategies including identification of suitable merger and acquisition candidates. The services are
valued based on the closing price of the Company's common stock on the date of the agreement exchanged for the services. On the
statement of operations for the fiscal year ended December 31, 2013, $8,900 has been allocated to stock-based compensation expense
and $62,300 to loss on issuance of stock-based compensation.
NOTE 9 - SUBSEQUENT EVENTS
On January 31, 2014, the Company issued
210,000,000 shares of common stock valued at $84,000 to Doug Clark, the Chief Executive Officer of the Company, as stock-based
compensation. The services are valued based on the closing price of the Company's common stock on the date of the agreement exchanged
for the services.
On January 31, 2014, the Company issued
265,000,000 shares of common stock valued at $106,000 to Nadav Elituv as stock-based compensation for software development services
related to interactive displays. The services are valued based on the closing price of the Company's common stock on the date of
the agreement exchanged for the services.
On January 31, 2014, the Company issued
210,000,000 shares of common stock valued at $84,000 to Al Kau, consultant, investor and customer of the Company, as stock-based
compensation for development, implementation and maintenance of sound business strategies including identification of suitable
merger and acquisition candidates. The services are valued based on the closing price of the Company's common stock on the date
of the agreement exchanged for the services.
On January 31, 2014, the Company issued
210,000,000 shares of common stock valued at $84,000 to Aaron Shrira, consultant, investor and customer of the Company, as stock-based
compensation for introducing us to potential customers. The services are valued based on the closing price of the Company's common
stock on the date of the agreement exchanged for the services.
On January 31, 2014, the Company issued
192,000,000 shares of common stock valued at $76,800 to William Reil as stock-based compensation for development, implementation
and maintenance of sound business strategies including identification of suitable merger and acquisition candidates. The services
are valued based on the closing price of the Company's common stock on the date of the agreement exchanged for the services.
On January 31, 2014, the Company issued
193,000,000 shares of common stock valued at $77,200 to Robert McLean, the Chief Financial Officer of the Company, as stock-based
compensation. The services are valued based on the closing price of the Company's common stock on the date of the agreement exchanged
for the services.
On January 31, 2014, the Company issued
193,000,000 shares of common stock valued at $77,200 to Grant Stummer, a director of the Company, as stock-based compensation.
The services are valued based on the closing price of the Company's common stock on the date of the agreement exchanged for the
services.
On January 31, 2014, the Company issued
265,000,000 shares of common stock valued at $106,000 to Stuart Turk as stock-based compensation development, implementation and
maintenance of sound business strategies including identification of suitable merger and acquisition candidates. The services are
valued based on the closing price of the Company's common stock on the date of the agreement exchanged for the services.