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SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2011
SUBSEQUENT EVENTS

Note 18 – SUBSEQUENT EVENTS

 

On February 13, 2012, the Company’s Board of Directors adopted and approved:

 

(a)          An amendment (the “Charter Amendment”) to the Company’s Articles of Incorporation, as amended, to effect a reverse split of the Company’s common stock, par value $0.0005 per share (the “Common Stock”) of one share for every thirty outstanding shares (the “Reverse Stock Split”), so that every thirty outstanding shares of Common Stock before the Reverse Stock Split shall represent one share of Common Stock after the Reverse Stock Split. The Reverse Stock Split was retroactively reflected in the Company’s consolidated financial statements for the years presented. 

(b)          An amendment to the Company’s 2005 Equity Compensation Plan (as amended, the “Plan”) providing for the increase in the number of shares of Common Stock available for issuance pursuant to the Plan from 15,000,000 to 24,000,000 (pre-Reverse Stock Split), as further described in the Definitive Information Statement with the Securities and Exchange Commission on March 9, 2012.

 

On January 4, 2012, Linkwell Corporation, pursuant to a Legal Services Agreement, dated January 1, 2012, by and between the Company and the Shanghai Hai Mai Law Firm (“Shanghai Hai Mai”), agreed to issue to Shanghai Hai Mai the aggregate amount of 6,000,000 restricted shares of the Company’s common stock, $0.0005 par value per share. The Shares were issued as compensation for legal services to be provided by Shanghai Hai Mai during the two-year term of the Agreement. The value of 6,000,000 restricted shares is $180,000 based on the stock price at January 4, 2012.

 

In March 2012, the Company issued 5 million restricted shares to a professional business consulting company for advising the Company on strategic growth, merger and acquisition, and investor relationship.  The term of the service is two years.