STOCK ACTIVITY

9 Months Ended

Jun. 30, 2011

Stockholders Equity Note [Abstract]

STOCK ACTIVITY

NOTE 9. STOCK ACTIVITY

a. CONVERTIBLE PREFERRED STOCK

At June 30, 2011, our authorized shares of convertible Preferred Stock were as follows:

Series A: Solomed PTE Ltd

The Company, in accordance with filing amended Articles of Incorporation, has added a class of preferred stock related to an agreement the company has executed with Solomed PTE Ltd. The Company has issued 50 million shares of Series A preferred stock that can be converted 1:1 on a non-diluted basis. The shares have been posted as collateral with Solomed PTE Ltd for a line of credit available to the Company.   

Solomed will provide an initial line of credit of $1 million at 10% interest with an option to secure an additional $2 million; $300,000 of the initial line will be used for strategic acquisitions, $200,000 will be used for a buy-back of ValCom stock, and $500,000 for the funding of additional operations. The $1 million interest-bearing line of credit will be held in escrow where ValCom can draw down the funds as needed. The additional $2 million line will be available to the company based on ValCom’s fulfilling obligations to Solomed. ValCom is obligated to draw down a minimum of $150,000 of the funds. 

Series  B:  Preferred Stock with no voting rights, is entitled to receive cumulative dividends in preference to any dividend on the common stock at a rate of 10% per share, per year, to be issued if and when declared by the Board of Directors and can be converted at any time into common stock on a 1for 5 basis. In  the event of any liquidation, the holders of shares of Series B Preferred Stock then outstanding shall be entitled to receive an amount equal to the purchase price per share, plus an amount  equal  to  declared but unpaid dividends  thereon, if any, to the date of payment, as of June 30, 2011. As of June 30, 2011, 38,000 shares of Series B preferred stock with a par value of $0.001 were issued and outstanding.

Series C: Preferred Stock has no voting rights and is entitled to receive cumulative dividends in preference to any dividend on the common stock at a rate of 10% per share, per year, to be issued if and when declared by the Board of Directors and can be converted at any time into common stock on a 1:1 basis. In the event of any liquidation, the holders of shares of Series C Preferred Stock then outstanding shall be entitled to receive an amount equal to the purchase price per share, plus an amount equal to declared but unpaid dividends thereon, if any, to the date of payment. In connection with the acquisition of Faith TV, we issued 100,000 shares of Series C Preferred Stock valued at $9,000. We also sold 5,000,000 shares of Series C Preferred Stock for $250,000. As of June 30, 2011, 18,691,395 shares of Series C preferred stock with a par value of $0.001 were issued and outstanding.

b. COMMON STOCK  

Stock for services

During fiscal year 2008, we granted 6,595,000 shares of common stock for various services. These shares vested immediately and had an aggregate fair value of $937,600, which was recorded as share-based compensation.  The fair value was determined based on the quoted stock price on the date of grant.

During fiscal year 2009, we granted 3,532,059 shares of common stock for various services. These shares vested immediately and had an aggregate fair value of $287,447, which was recorded as share-based compensation. The fair value was determined based on the quoted stock price on the date of grant.

During fiscal year 2010, 9,454,000 common shares have been issued for services valued at $459,246.

The Company retired twenty million shares of common stock effective November 15, 2010. The shares were issued as restricted shares in anticipation of a private financing that never took effect. The certificate for these shares was never out of the personal control of the Company’s management.

In February 2011, the Company amended its Articles of Incorporation authorizing an additional 250,000,000 shares.

Stock for debt

Stock for acquisition

On December 15, 2008, we purchased 100% of the outstanding shares of FaithTV, LLC. In connection with the acquisition, we issued 1,500,000 shares of common stock, in aggregate, valued at $67,500 based on the Company's quoted stock price. We also issued 100,000 shares of preferred stock valued at $9,000.

Stock for registration rights penalty

On April 17, 2009, we issued 1,191,000 shares of common stock to settle certain registration rights penalty associated with warrants issued in prior years.