Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Deficit

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Stockholders' Deficit
6 Months Ended
Jun. 30, 2015
Stockholders' Deficit [Abstract]  
Stockholders' Deficit

Note 8 – Stockholders’ Deficit

 

On March 23, 2015 the Company issued 100,000 shares of restricted common stock for services related to Corporate Governance. The common shares were valued based on the fair value of the services provided rather than the common stock issued because it was determined by management that the fair value of the services rendered was more readily available than the fair value of the restricted common stock issued. The total value assigned to these services was $6,100; $3,500 was paid in cash and $2,500 was recognized related to the issuance of the restricted common stock. The Company receiving the shares paid the Company $100 for the shares as part of the consulting agreement.

 

During May 2015, the Company amended the Articles of Incorporation to authorize 10,000,000 shares of the Company’s Series A preferred stock, no par value per share. On June 17, 2015, the Company issued one share of Series A Preferred Stock, no par value, to the Company’s Chairman of the Board (the “Chairman”). As a holder of the outstanding share of Series A Preferred Stock, the Chairman is entitled to voting power equivalent to the number of votes equal to the total number of the Company’ common stock outstanding as of the record date for the determination of stockholders entitled to vote at each meeting of stockholders of the Company and entitled to vote on all matters submitted or required to be submitted to a vote of the stockholders of the Company.

 

The Company promised 100,000 shares of common stock to an attorney who worked with the Company. The shares are being issued as compensation for services provided as part of the original reverse merger filed by the Company. The shares were promised prior to the Company being a public entity and thus had no trading value or history. The shares were valued at $3,600. The common shares were valued based on the fair value of the services provided rather than the common stock issued because it was determined by management that the fair value of the services rendered was more readily available than the fair value of the restricted common stock issued. The shares were issued subsequent to June 30, 2015, and thus have been accounted for as stock subscribed as of June 30, 2015.

 

As discussed in Note 7, a related entity incurred costs and paid deposits on an acquisition on behalf of the Company. Total cash outlays by Strategic were $251,842 through June 30, 2015. During June 2015, the Company and Strategic agreed to settle this amount for 251,842 of the Company’s common shares. The shares were issued subsequent to June 30, 2015 and thus were accounted for as stock subscribed as of June 30, 2015.