Note 10 - Stockholders' Equity |
3 Months Ended |
|---|---|
Aug. 31, 2015 | |
| Disclosure Text Block Supplement [Abstract] | |
| Shareholders' Equity and Share-based Payments [Text Block] |
Note 10 – Stockholders’ Equity
The Company’s authorized capital stock consists of 250,000,000 shares of common stock, par value $0.0001 per share and 20,000,000 shares of preferred stock, par value $0.001 per share. The Company had 20,060,003 and 20,000,003 shares (post Reverse Split) of common stock issued and outstanding as of August 31, 2015 and May 31, 2015, respectively.
On December 10, 2014, the Company effected a reverse stock split of the Company’s issued and outstanding common stock at a ratio of 1-for-0.625, wherein 0.625 shares of common stock were issued in exchange for each share of the Company’s common stock owned by the Company’s stockholders on December 1, 2014, the record date for the reverse stock split. As a result of the reverse stock split, 11,250,000 shares (post Reverse-Split) of common stock were outstanding as of December 10, 2014. The reverse stock split did not affect the number of authorized shares of the Company’s common stock. All share and per share information contained in the financial statements has been retroactively adjusted to reflect the reverse stock split.
The Company recorded imputed interest of $271 and $0 during the three months ended August 31, 2015 and 2014 on related party payables due to a director and officer of the Company.
On July 22, 2015, the Company agreed to issue 5,000 shares of common stock, valued at $5,750 based on the stock price at July 22, 2015, as part of a consulting agreement. On August 26, 2015 the Company agreed to issue an additional 10,000 shares of common stock, valued at $12,700 based on the stock price on August 26, 2015, to extend the agreement. As a result the Company had included $18,450 in stock payable on the accompanying balance sheet as of August 31, 2015.
On August 1, 2015, the Company and Alan Bonsett entered into a five-year employment agreement. Pursuant to the agreement, Mr. Bonsett commenced serving as the Company’s Chief Operating Officer on August 15, 2015. Mr. Bonsett is entitled to a one-time signing bonus of 250,000 (post Reverse Split) shares of restricted common stock of the Company, which will become fully vested one year from the effective date of the agreement. As of August 31, 2015, no shares have been issued. The Company valued the shares at $327,500 based on the stock price at August 3, 2015 and is amortizing them over the term of the employment agreement. During the three months ended August 31, 2015 the Company recognized $27,292 in share based compensation, which is included in stock payable on the accompanying balance sheet.
On August 28, 2015, the Company issued 60,000 shares of common stock, valued at $45,000, to a consultant for services. Of these shares, 50,000, valued at $37,500, were included in stock payable as of May 31, 2015.
|