x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
DELAWARE
|
000-51886
|
26-3534190
|
||
(State or other jurisdiction of
incorporation or organization)
|
(Commission File Number)
|
(I.R.S Employer Identification No.)
|
Large accelerated filer
|
¨
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
|
Smaller reporting company
|
x
|
(Do not check if a smaller reporting company)
|
Item 1.
|
Financial Statements
|
1
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
43
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
50
|
Item 4.
|
Controls and Procedures
|
50
|
Item 1
|
Legal Proceedings
|
51
|
Item 1A
|
Risk Factors
|
51
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
51
|
Item 3.
|
Defaults Upon Senior Securities
|
51
|
Item 4.
|
Mine Safety Disclosures
|
51
|
Item 5.
|
Other Information
|
51
|
Item 6.
|
Exhibits
|
52
|
PAGE
|
1
|
CONDENSED BALANCE SHEETS AS OF JUNE 30, 2012 (UNAUDITED) AND AS OF DECEMBER 31, 2011 (AUDITED).
|
PAGE
|
2
|
CONDENSED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2012 AND 2011 AND FOR THE PERIOD DECEMBER 9, 2005 (INCEPTION) TO JUNE 30, 2012 (UNAUDITED).
|
PAGE
|
3
|
CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY FOR THE PERIOD FROM DECEMBER 9, 2005 (INCEPTION) TO JUNE 30, 2012 (UNAUDITED).
|
PAGE
|
4
|
CONDENSED STATEMENTS OF CASH FLOWS FOR THE SIX MONTHS ENDED JUNE 30, 2012 AND 2011 AND FOR THE PERIOD DECEMBER 9, 2005 (INCEPTION) TO JUNE 30, 2012 (UNAUDITED).
|
PAGES
|
5 - 42
|
NOTES TO CONDENSED FINANCIAL STATEMENTS (UNAUDITED).
|
(A Development Stage Company)
|
||||||||
Condensed Balance Sheets
|
||||||||
ASSETS
|
||||||||
June 30, 2012
|
December 31, 2011
|
|||||||
(UNAUDITED)
|
||||||||
Current Assets
|
||||||||
Cash
|
$ | 114,903 | $ | 516,532 | ||||
Prepaid expenses
|
26,805 | 23,659 | ||||||
Debt offering costs - net
|
43,954 | - | ||||||
Total Current Assets
|
185,662 | 540,191 | ||||||
Property and equipment, net
|
221,046 | 146,000 | ||||||
Other Assets
|
||||||||
Security deposit
|
413 | 413 | ||||||
Intangible assets
|
7,800,275 | 7,800,275 | ||||||
Total Other Assets
|
7,800,688 | 7,800,688 | ||||||
Total Assets
|
$ | 8,207,396 | $ | 8,486,879 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
Current Liabilities
|
||||||||
Accounts payable
|
$ | 38,600 | $ | 25,470 | ||||
Accrued expenses
|
74,812 | 165,897 | ||||||
Derivative liability
|
708,783 | - | ||||||
Convertible note payable, net of debt discount of $331,364
|
443,970 | - | ||||||
Total Current Liabilities
|
1,266,165 | 191,367 | ||||||
Commitments and Contingencies
|
||||||||
Stockholders' Equity
|
||||||||
Preferred stock, $0.0001 par value; 10,000,000 shares authorized,
|
||||||||
No shares issued and outstanding
|
- | - | ||||||
Common stock, $0.0001 par value; 400,000,000 shares authorized,
|
||||||||
255,335,394 and 255,184,661 shares issued and outstanding, respectively
|
25,534 | 25,519 | ||||||
Additional paid-in capital
|
22,709,948 | 22,629,977 | ||||||
Deficit accumulated during the development stage
|
(15,794,251 | ) | (14,359,984 | ) | ||||
Total Stockholders' Equity
|
6,941,231 | 8,295,512 | ||||||
Total Liabilities and Stockholders' Equity
|
$ | 8,207,396 | $ | 8,486,879 |
For the Three Months Ended,
|
For the Six Months Ended,
|
For the Period From December 9, 2005
(Inception) to
|
||||||||||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
||||||||||||||||
Revenue
|
$ | - | $ | - | $ | - | $ | - | $ | 23,826 | ||||||||||
Operating Expenses
|
||||||||||||||||||||
General and administrative
|
144,717 | 32,243 | 338,332 | 69,135 | 961,700 | |||||||||||||||
Endorsement fees
|
- | 411,900 | - | 819,273 | 4,942,277 | |||||||||||||||
Consulting
|
139,611 | 455,246 | 259,611 | 2,382,106 | 5,655,557 | |||||||||||||||
Professional fees
|
26,059 | 26,883 | 84,629 | 67,559 | 450,940 | |||||||||||||||
Website development
|
- | - | - | - | 251,263 | |||||||||||||||
Compensation
|
162,000 | 54,000 | 324,000 | 108,000 | 2,982,343 | |||||||||||||||
Total Operating Expenses
|
472,387 | 980,272 | 1,006,572 | 3,446,073 | 15,244,080 | |||||||||||||||
Loss from Operations
|
(472,387 | ) | (980,272 | ) | (1,006,572 | ) | (3,446,073 | ) | (15,220,254 | ) | ||||||||||
Other Income / (Expense)
|
||||||||||||||||||||
Interest income
|
57 | 25 | 129 | 25 | 640 | |||||||||||||||
Gain on extinguishment of debt
|
- | - | - | - | 6,643 | |||||||||||||||
Interest expense
|
(127,730 | ) | (2,647 | ) | (127,730 | ) | (5,682 | ) | (144,731 | ) | ||||||||||
Amortization of debt offering costs
|
(29,178 | ) | (30,380 | ) | - | (30,380 | ) | |||||||||||||
Amortization of debt discount
|
(185,392 | ) | (3,139 | ) | (189,925 | ) | (9,371 | ) | (213,908 | ) | ||||||||||
Change in fair value of embedded derivative liability
|
(9,285 | ) | 17,040 | (79,789 | ) | (32,085 | ) | (55,806 | ) | |||||||||||
Total Other Income / (Expense)
|
(351,528 | ) | 11,279 | (427,695 | ) | (47,113 | ) | (437,542 | ) | |||||||||||
Provision for Income Taxes
|
- | - | - | - | - | |||||||||||||||
Net Loss
|
$ | (823,915 | ) | $ | (968,993 | ) | $ | (1,434,267 | ) | $ | (3,493,186 | ) | $ | (15,657,796 | ) | |||||
Net Loss Per Share - Basic and Diluted
|
$ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | $ | (0.02 | ) | ||||||||
Weighted average number of shares outstanding
|
||||||||||||||||||||
during the year Basic and Diluted
|
255,335,394 | 234,809,929 | 255,274,304 | 231,642,501 |
Max Sound Corporation
|
||||||||||||||||||||||||||||||||||||
(A Development Stage Company)
|
||||||||||||||||||||||||||||||||||||
Condensed Statement of Changes in Stockholders' Equity
|
||||||||||||||||||||||||||||||||||||
For the Period from December 9, 2005 (Inception) to June 30, 2012
|
||||||||||||||||||||||||||||||||||||
(UNAUDITED)
|
||||||||||||||||||||||||||||||||||||
Preferred stock
|
Common stock
|
Additional
|
Total
|
|||||||||||||||||||||||||||||||||
paid-in
|
Accumulated
|
Subscription
|
Deferred
|
Stockholder's
|
||||||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
capital
|
Deficit
|
Receivable
|
Compensation
|
Equity
|
||||||||||||||||||||||||||||
Balance, December 9, 2005 (Inception)
|
- | $ | - | - | $ | - | $ | - | $ | - | $ | - | $ | - | $ | - | ||||||||||||||||||||
Stock issued on acceptance of incorporation expenses
|
- | - | 100,000 | 10 | 90 | - | - | - | 100 | |||||||||||||||||||||||||||
Net loss for the period December 9, 2005 (Inception) to December 31, 2005
|
- | - | - | - | - | (400 | ) | - | - | (400 | ) | |||||||||||||||||||||||||
Balance, December 31, 2005
|
- | - | 100,000 | 10 | 90 | (400 | ) | - | - | (300 | ) | |||||||||||||||||||||||||
Net loss for the year ended December 31, 2006
|
- | - | - | - | - | (1,450 | ) | - | - | (1,450 | ) | |||||||||||||||||||||||||
Balance, December 31, 2006
|
- | - | 100,000 | 10 | 90 | (1,850 | ) | - | - | (1,750 | ) | |||||||||||||||||||||||||
Net loss for the year ended December 31, 2007
|
- | - | - | - | - | (1,400 | ) | - | (1,400 | ) | ||||||||||||||||||||||||||
Balance, December 31, 2007
|
- | - | 100,000 | 10 | 90 | (3,250 | ) | - | - | (3,150 | ) | |||||||||||||||||||||||||
Common stock issued for services to founder ($0.001/sh)
|
- | - | 44,900,000 | 4,490 | 40,410 | - | - | - | 44,900 | |||||||||||||||||||||||||||
Common stock issued for cash ($0.25/sh)
|
- | - | 473,000 | 47 | 118,203 | - | (67,750 | ) | - | 50,500 | ||||||||||||||||||||||||||
Common stock issued for services ($0.25/sh)
|
- | - | 12,000 | 1 | 2,999 | - | - | - | 3,000 | |||||||||||||||||||||||||||
Shares issued in connection with stock dividend
|
- | - | 136,455,000 | 13,646 | 122,809 | (136,455 | ) | - | - | - | ||||||||||||||||||||||||||
In kind contribution of rent - related party
|
- | - | - | - | 2,913 | - | - | - | 2,913 | |||||||||||||||||||||||||||
Accrued expenses payment made by a former shareholder
|
- | - | - | - | 4,400 | - | - | - | 4,400 | |||||||||||||||||||||||||||
Net loss for the year ended December 31, 2008
|
- | - | - | - | - | (117,115 | ) | - | - | (117,115 | ) | |||||||||||||||||||||||||
Balance, December 31, 2008
|
- | - | 181,940,000 | 18,194 | 291,824 | (256,820 | ) | (67,750 | ) | - | (14,552 | ) | ||||||||||||||||||||||||
Common stock issued for cash ($0.25/sh)
|
- | - | 62,000 | 6 | 15,494 | - | - | - | 15,500 | |||||||||||||||||||||||||||
Common stock issued for services ($0.25/sh)
|
- | - | 24,000 | 2 | 5,998 | - | - | - | 6,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.35/sh)
|
- | - | 1,700,000 | 170 | 594,830 | - | - | (499,333 | ) | 95,667 | ||||||||||||||||||||||||||
Common stock issued for services ($0.0625/sh)
|
- | - | 935,714 | 94 | 58,388 | - | - | - | 58,482 | |||||||||||||||||||||||||||
Warrants issued for services
|
- | - | - | - | 823,077 | - | - | - | 823,077 | |||||||||||||||||||||||||||
Common stock issued for services ($1.50/sh)
|
- | - | 30,000 | 3 | 44,997 | - | - | (39,699 | ) | 5,301 | ||||||||||||||||||||||||||
Common stock issued for services ($1.77/sh)
|
- | - | 30,000 | 3 | 53,097 | - | - | (53,100 | ) | - | ||||||||||||||||||||||||||
Common stock issued for services ($1.78/sh)
|
- | - | 100,000 | 10 | 177,990 | - | - | (166,052 | ) | 11,948 | ||||||||||||||||||||||||||
Common stock issued for services ($1.80/sh)
|
- | - | 100,000 | 10 | 179,990 | - | - | (168,904 | ) | 11,096 | ||||||||||||||||||||||||||
Common stock issued for services ($1.93/sh)
|
- | - | 2,830,000 | 283 | 5,461,617 | - | - | (5,459,098 | ) | 2,802 | ||||||||||||||||||||||||||
Common stock issued for services ($1.94/sh)
|
- | - | 30,000 | 3 | 58,197 | - | - | (58,200 | ) | - | ||||||||||||||||||||||||||
Common stock issued for services ($1.95/sh)
|
- | - | 920,000 | 92 | 1,793,908 | - | - | (1,135,808 | ) | 658,192 | ||||||||||||||||||||||||||
Common stock issued for services ($2.00/sh)
|
- | - | 300,000 | 30 | 599,970 | - | - | (506,423 | ) | 93,577 | ||||||||||||||||||||||||||
Return of common stock issued for services ($0.35/sh)
|
- | - | (1,100,000 | ) | (110 | ) | (384,890 | ) | - | - | 385,000 | - | ||||||||||||||||||||||||
Shares issued in connection with stock dividend
|
- | - | 258,000 | 26 | (26 | ) | - | - | - | - | ||||||||||||||||||||||||||
Stock offering costs
|
- | - | - | - | (850 | ) | - | - | - | (850 | ) | |||||||||||||||||||||||||
Collection of subscription receivable
|
- | - | - | - | - | - | 67,750 | - | 67,750 | |||||||||||||||||||||||||||
In kind contribution of rent - related party
|
- | - | - | - | 12,600 | - | - | - | 12,600 | |||||||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | 114,333 | 114,333 | |||||||||||||||||||||||||||
Net loss for the year ended December 31, 2009
|
- | - | - | - | - | (2,298,552 | ) | - | - | (2,298,552 | ) | |||||||||||||||||||||||||
Balance, December 31, 2009
|
- | - | 188,159,714 | 18,816 | 9,786,211 | (2,555,372 | ) | - | (7,587,284 | ) | (337,629 | ) | ||||||||||||||||||||||||
Common stock issued for cash ($0.25/sh)
|
- | - | 1,200,000 | 120 | 299,880 | - | - | - | 300,000 | |||||||||||||||||||||||||||
Accrued salary conversion into common stock ($0.30/sh)
|
- | - | 945,507 | 95 | 283,557 | - | - | - | 283,652 | |||||||||||||||||||||||||||
Common stock issued for services ($0.15/sh)
|
- | - | 250,000 | 25 | 37,475 | - | - | - | 37,500 | |||||||||||||||||||||||||||
Common stock issued for services ($0.18/sh)
|
- | - | 100,000 | 10 | 17,990 | - | - | - | 18,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.19/sh)
|
- | - | 100,000 | 10 | 18,990 | - | - | - | 19,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.20/sh)
|
- | - | 210,000 | 21 | 41,979 | - | - | - | 42,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.25/sh)
|
- | - | 140,000 | 14 | 34,986 | - | - | - | 35,000 | |||||||||||||||||||||||||||
Common stock issued in exchange for technology rights ($0.25/sh)
|
- | - | 30,000,000 | 3,000 | 7,497,000 | - | - | - | 7,500,000 | |||||||||||||||||||||||||||
Return of common stock issued for services ($1.05/sh)
|
- | - | (150,000 | ) | (15 | ) | 15 | - | - | - | - | |||||||||||||||||||||||||
Common stock issued for services ($1.24/Sh)
|
- | - | 1,000,000 | 100 | 1,239,900 | - | - | (1,097,315 | ) | 142,685 | ||||||||||||||||||||||||||
Common stock issued for services ($1.70/sh)
|
- | - | 100,000 | 10 | 169,990 | - | - | (152,534 | ) | 17,466 | ||||||||||||||||||||||||||
Cancellation of shares held in escrow ($1.93/sh)
|
- | - | (1,000,000 | ) | (100 | ) | (1,929,900 | ) | - | - | 487,802 | (1,442,198 | ) | |||||||||||||||||||||||
Warrants issued for services
|
- | - | - | - | 10,559 | - | - | - | 10,559 | |||||||||||||||||||||||||||
Blue sky fees
|
- | - | - | - | (400 | ) | - | - | - | (400 | ) | |||||||||||||||||||||||||
Stock and financing offering costs
|
- | - | - | - | (8,000 | ) | (8,000 | ) | ||||||||||||||||||||||||||||
In kind contribution of rent - related party
|
- | - | - | - | 9,450 | - | - | - | 9,450 | |||||||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | 6,546,046 | 6,546,046 | |||||||||||||||||||||||||||
Net loss for the year ended December 31, 2010
|
- | - | - | - | - | (6,312,965 | ) | - | - | (6,312,965 | ) | |||||||||||||||||||||||||
Balance, December 31, 2010
|
- | - | 221,055,221 | 22,106 | 17,509,682 | (8,868,337 | ) | - | (1,803,285 | ) | 6,860,166 | |||||||||||||||||||||||||
Common stock issued in exchange for assets ($0.10/sh)
|
- | - | 3,000,000 | 300 | 299,700 | - | - | - | 300,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.07/sh)
|
- | - | 2,000,000 | 200 | 139,800 | - | - | - | 140,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.08/sh)
|
- | - | 1,006,500 | 101 | 80,419 | - | - | - | 80,520 | |||||||||||||||||||||||||||
Common stock issued for services ($0.10/sh)
|
- | - | 3,066,462 | 307 | 306,339 | - | - | - | 306,646 | |||||||||||||||||||||||||||
Common stock issued for services ($0.11/sh)
|
- | - | 500,000 | 50 | 54,950 | - | - | - | 55,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.22/sh)
|
- | - | 15,403 | 2 | 3,387 | - | - | - | 3,389 | |||||||||||||||||||||||||||
Common stock issued for services ($0.23/sh)
|
- | - | 100,000 | 10 | 22,990 | - | - | - | 23,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.25/sh)
|
- | - | 702,860 | 70 | 175,645 | - | - | - | 175,715 | |||||||||||||||||||||||||||
Common stock issued for services ($0.33/sh)
|
- | - | 100,000 | 10 | 32,990 | - | - | - | 33,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.35/sh)
|
- | - | 2,443 | - | 855 | - | - | - | 855 | |||||||||||||||||||||||||||
Common stock issued for services ($0.39/sh)
|
- | - | 101,500 | 10 | 39,575 | - | - | - | 39,585 | |||||||||||||||||||||||||||
Common stock issued for services ($0.47/sh)
|
- | - | 123,795 | 12 | 58,172 | - | - | - | 58,184 | |||||||||||||||||||||||||||
Common stock issued for services ($0.50/sh)
|
- | - | 100,000 | 10 | 49,990 | - | - | - | 50,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.54/sh)
|
- | - | 200,000 | 20 | 107,980 | - | - | - | 108,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.70/sh)
|
- | - | 100,000 | 10 | 69,990 | - | - | - | 70,000 | |||||||||||||||||||||||||||
Common stock issued for services ($0.88/sh)
|
- | - | 100,000 | 10 | 87,990 | - | - | - | 88,000 | |||||||||||||||||||||||||||
Convertible debt conversion into common stock ($0.0295/sh)
|
- | - | 271,186 | 27 | 7,973 | - | - | - | 8,000 | |||||||||||||||||||||||||||
Convertible debt conversion into common stock ($0.0315/sh)
|
- | - | 587,382 | 59 | 18,444 | - | - | - | 18,503 | |||||||||||||||||||||||||||
Convertible debt conversion into common stock ($0.032/sh)
|
- | - | 109,375 | 11 | 3,489 | - | - | - | 3,500 | |||||||||||||||||||||||||||
Convertible debt conversion into common stock ($0.0336/sh)
|
- | - | 357,143 | 36 | 11,964 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Convertible debt conversion into common stock ($0.0454/sh)
|
- | - | 220,264 | 22 | 9,978 | - | - | - | 10,000 | |||||||||||||||||||||||||||
Convertible debt conversion into common stock ($0.1339/sh)
|
- | - | 116,505 | 12 | 15,588 | - | - | - | 15,600 | |||||||||||||||||||||||||||
Convertible debt conversion into common stock ($0.1455/sh)
|
- | - | 96,220 | 9 | 13,991 | - | - | - | 14,000 | |||||||||||||||||||||||||||
Convertible debt conversion into common stock ($0.1554/sh)
|
- | - | 77,220 | 8 | 11,992 | - | - | - | 12,000 | |||||||||||||||||||||||||||
Accrued salary conversion into common stock ($0.11/sh)
|
- | - | 1,309,091 | 131 | 143,869 | - | - | - | 144,000 | |||||||||||||||||||||||||||
Line of credit conversion into common stock ($0.11/sh)
|
- | - | 909,091 | 91 | 99,909 | - | - | - | 100,000 | |||||||||||||||||||||||||||
Common stock issued for cash ($0.10/sh)
|
- | - | 18,857,000 | 1,886 | 1,883,814 | - | - | - | 1,885,700 | |||||||||||||||||||||||||||
Warrants issued for services
|
- | - | - | - | 248,498 | - | - | - | 248,498 | |||||||||||||||||||||||||||
Stock offering costs
|
- | - | - | - | (79,780 | ) | - | - | - | (79,780 | ) | |||||||||||||||||||||||||
Amortization of stock options
|
- | - | - | - | 1,199,794 | - | - | - | 1,199,794 | |||||||||||||||||||||||||||
Deferred compensation realized
|
- | - | - | - | - | - | - | 1,803,285 | 1,803,285 | |||||||||||||||||||||||||||
Net loss for the year ended December 31, 2011
|
- | - | - | - | - | (5,491,647 | ) | - | - | (5,491,647 | ) | |||||||||||||||||||||||||
Balance, December 31, 2011
|
- | - | 255,184,661 | 25,519 | 22,629,977 | (14,359,984 | ) | - | - | 8,295,512 | ||||||||||||||||||||||||||
Common stock issued for services ($0.62/sh)
|
- | - | 733 | - | 455 | - | - | - | 455 | |||||||||||||||||||||||||||
Common stock issued for services ($0.21/sh)
|
- | - | 150,000 | 15 | 31,485 | - | - | - | 31,500 | |||||||||||||||||||||||||||
Warrants issued for services
|
- | - | - | - | 48,031 | - | - | - | 48,031 | |||||||||||||||||||||||||||
Net loss for the six months ended June 30, 2012
|
- | - | - | - | - | (1,434,267 | ) | - | - | (1,434,267 | ) | |||||||||||||||||||||||||
Balance, June 30, 2012
|
- | $ | - | 255,335,394 | $ | 25,534 | $ | 22,709,948 | $ | (15,794,251 | ) | $ | - | $ | - | $ | 6,941,231 |
Max Sound Corporation
|
||||||||||||
(A Development Stage Company)
|
||||||||||||
Condensed Statements of Cash Flows
|
||||||||||||
(UNAUDITED)
|
||||||||||||
For the Six Months Ended,
|
For the Period From
December 9, 2005
(Inception) to
|
|||||||||||
June 30, 2012
|
June 30, 2011
|
June 30, 2012
|
||||||||||
Cash Flows From Operating Activities:
|
||||||||||||
Net Loss
|
$ | (1,434,267 | ) | $ | (3,493,186 | ) | $ | (15,657,796 | ) | |||
Adjustments to reconcile net loss to net cash used in operations
|
||||||||||||
Depreciation/Amortization
|
22,354 | 19,136 | 106,100 | |||||||||
Depreciation for abandonment of website
|
- | - | 38,794 | |||||||||
In kind contribution of rent - related party
|
- | - | 24,963 | |||||||||
Stock issued for services
|
31,955 | 651,598 | 2,566,565 | |||||||||
Warrants issued for services
|
48,031 | - | 1,130,165 | |||||||||
Amortization of stock options
|
- | 1,199,794 | 1,199,794 | |||||||||
Bluesky Fees
|
- | - | (1,750 | ) | ||||||||
Amortization of stock based compensation
|
- | 1,049,285 | 7,021,466 | |||||||||
Security deposit
|
- | (300 | ) | (413 | ) | |||||||
Amortization of debt offering costs
|
30,380 | - | 30,380 | |||||||||
Amortization of debt discount
|
189,925 | 9,371 | 164,993 | |||||||||
Change in fair value of derivative liability
|
187,494 | 32,085 | 212,426 | |||||||||
Changes in operating assets and liabilities:
|
||||||||||||
(Increase)/Decrease in prepaid expenses
|
(3,146 | ) | 4,944 | (26,805 | ) | |||||||
Increase/(Decrease) accounts payable
|
13,130 | (27,677 | ) | 38,600 | ||||||||
Increase(Decrease) in warrant liabilities
|
- | 162,746 | - | |||||||||
Increase/(Decrease) in accrued expenses
|
(91,085 | ) | 130,230 | 506,066 | ||||||||
Net Cash Used In Operating Activities
|
(1,005,229 | ) | (261,974 | ) | (2,646,452 | ) | ||||||
Cash Flows From Investing Activities:
|
||||||||||||
Register of trademark
|
- | - | (275 | ) | ||||||||
Purchase of property equipment
|
(97,400 | ) | - | (365,940 | ) | |||||||
Net Cash Used In Investing Activities
|
(97,400 | ) | - | (366,215 | ) | |||||||
Cash Flows From Financing Activities:
|
||||||||||||
Proceeds from stockholder loans
|
- | 81,150 | 620,583 | |||||||||
Repayment of stockholder loans
|
- | (85,000 | ) | (520,583 | ) | |||||||
Accrued expenses payment made by a former shareholder
|
- | - | 4,400 | |||||||||
Proceeds from issuance of convertible note, net of offering costs
|
701,000 | 37,500 | 785,500 | |||||||||
Proceeds from issuance of stock, net of subscriptions receivable and net of offering costs
|
- | 354,000 | 1,772,920 | |||||||||
Proceeds from collection of stock subscription receivable
|
- | - | 464,750 | |||||||||
Net Cash Provided by Financing Activities
|
701,000 | 387,650 | 3,127,570 | |||||||||
Net Increase / (Decrease) in Cash
|
(401,629 | ) | 125,676 | 114,903 | ||||||||
Cash at Beginning of Period
|
516,532 | 297 | - | |||||||||
Cash at End of Period
|
$ | 114,903 | $ | 125,973 | $ | 114,903 | ||||||
Supplemental disclosure of cash flow information:
|
||||||||||||
Cash paid for interest
|
$ | - | $ | - | $ | - | ||||||
Cash paid for taxes
|
$ | - | $ | - | $ | - | ||||||
Supplemental disclosure of non-cash investing and financing activities:
|
||||||||||||
Shares issued in connection with intellectual property
|
$ | - | $ | 300,000 | $ | 7,800,000 | ||||||
Shares issued in conversion of related party accrued compensation
|
$ | - | $ | 144,000 | $ | 427,652 | ||||||
Shares issued in conversion of related party line of credit
|
$ | - | $ | 100,000 | $ | 100,000 | ||||||
Shares issued in conversion of convertible debt and accrued interest
|
$ | - | $ | 52,003 | $ | 93,603 | ||||||
Shares issued in connection with stock dividend
|
$ | - | $ | - | $ | 136,713 | ||||||
Stock sold for subscription
|
$ | - | $ | 397,000 | $ | 464,750 | ||||||
Debt discount recorded on convertible and unsecured debt accounted for as a derivative liability
|
$ | 521,289 | $ | - | $ | 521,289 |
June 30, 2012
|
December 31, 2011
|
|||||||
Website Development
|
$ | 187,723 | $ | 127,722 | ||||
Furniture and Equipment
|
103,906 | 103,906 | ||||||
Leasehold Improvements | 6,573 | 6,573 | ||||||
Software | 29,963 | 18,888 | ||||||
Office Equipment
|
35,647 | 9,323 | ||||||
Domain Name | 1,500 | 1,500 | ||||||
Sign
|
628 | 628 | ||||||
Less accumulated depreciation and amortization
|
(144,894 | ) | (122,540 | ) | ||||
$ | 221,046 | $ | 146,000 |
Exercise price | $0.1377 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
172.27 | % | ||
Expected term: conversion feature
|
267 days
|
|||
Risk free interest rate
|
0.32 | % |
Exercise price
|
$0.0393 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
471.81 | % | ||
Risk fee interest rate
|
0.30 | % | ||
Expected life of conversion feature in days
|
0 |
Exercise price | $0.0738 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
456.63 | % | ||
Expected term: conversion feature
|
365 days
|
|||
Risk free interest rate
|
0.27 | % |
Exercise price
|
$0.035 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
514.06 | % | ||
Risk fee interest rate
|
0.19 | % | ||
Expected life of conversion feature in days
|
140 |
Exercise price | $0.2629 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
228.76 | % | ||
Expected term: conversion feature
|
365 days
|
|||
Risk free interest rate
|
0.18 | % |
Exercise price
|
$0.2331 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
233.04 | % | ||
Risk fee interest rate
|
0.21 | % | ||
Expected life of conversion feature in days
|
252 |
Exercise price | $0.1490 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
228.61 | % | ||
Expected term: conversion feature
|
280 days
|
|||
Risk free interest rate
|
0.21 | % |
Exercise price
|
$0.2080 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
233.04 | % | ||
Risk fee interest rate
|
0.21 | % | ||
Expected life of conversion feature in days
|
172 |
Exercise price | $0.2077 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
232.90 | % | ||
Expected term: conversion feature
|
268 days
|
|||
Risk free interest rate
|
0.19 | % |
Exercise price
|
$0.2240 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
233.04 | % | ||
Risk fee interest rate
|
0.21 | % | ||
Expected life of conversion feature in days
|
181 |
Exercise price | $0.1797 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
240.78 | % | ||
Expected term: conversion feature
|
365 days
|
|||
Risk free interest rate
|
0.18 | % |
Exercise price
|
$0.2240 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
233.04 | % | ||
Risk fee interest rate
|
0.21 | % | ||
Expected life of conversion feature in days
|
299 |
Exercise price | $0.2030 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
240.90 | % | ||
Expected term: conversion feature
|
60 days
|
|||
Risk free interest rate
|
0.18 | % |
Exercise price
|
$0.2240 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
233.04 | % | ||
Risk fee interest rate
|
0.21 | % | ||
Expected life of conversion feature in days
|
7 |
Exercise price | $0.1647 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
234.89 | % | ||
Expected term: conversion feature
|
278 days
|
|||
Risk free interest rate
|
0.19 | % |
Exercise price
|
$0.2240 | |||
Expected dividends
|
0 | % | ||
Expected volatility
|
233.04 | % | ||
Risk fee interest rate
|
0.21 | % | ||
Expected life of conversion feature in days
|
270 |
Number of Warrants | Weighted Average Exercise Price | |||||||
Stock Warrants | ||||||||
Balance at December 31, 2010 | 1,760,000 | $ | 0.51 | |||||
Granted | 955,800 | 0.10 | ||||||
Exercised | ||||||||
Forfeited | ||||||||
Balance at December 31, 2011
|
2,715,800 | $ | 0.36 | |||||
Granted
|
200,000 | $ | 0.25 | |||||
Exercised
|
- | |||||||
Forfeited
|
- | |||||||
Balance at June 30, 2012
|
2,915,800 | $ | 0.36 | |||||
Options Exercisable at June 30, 2012
|
2,915,800 | $ | 0.36 | |||||
Weighted Average Fair Value of Options Granted
|
$ | 0.36 |
Warrants Outstanding
|
Warrants Exercisable
|
|||||||||||||||||||||
Range of Exercise Price
|
Number
Outstanding at
June 30, 2012
|
Weighted Average Remaining Contractual Life
|
Weighted Average Exercise Price
|
Number
Exercisable at
June 30, 2012
|
Weighted Average Exercise Price
|
|||||||||||||||||
$
|
0.52
|
500,000
|
0.50
|
$
|
0.52
|
500,000
|
$
|
0.52
|
||||||||||||||
$
|
0.50
|
1,260,000
|
0.85
|
$
|
0.50
|
1,260,000
|
$
|
0.50
|
||||||||||||||
$
|
0.10
|
955,800
|
2.17
|
$
|
0.10
|
955,800
|
$
|
0.10
|
||||||||||||||
$
|
0.25
|
200,000
|
2.95
|
$
|
0.25
|
200,000
|
$
|
0.25
|
||||||||||||||
Warrants Outstanding
|
Warrants Exercisable
|
|||||||||||||||||||||
Range of Exercise Price
|
Number
Outstanding at
June 30, 2011
|
Weighted Average Remaining Contractual Life
|
Weighted Average Exercise Price
|
Number
Exercisable at
June 30, 2011
|
Weighted Average Exercise Price
|
|||||||||||||||||
$
|
0.52
|
500,000
|
1.50
|
$
|
0.52
|
500,000
|
$
|
0.52
|
||||||||||||||
$
|
0.50
|
1,260,000
|
1.99
|
$
|
0.50
|
1,260,000
|
$
|
0.50
|
Number of Options
|
Weighted Average Exercise Price
|
|||||||
Stock Options
|
||||||||
Balance at December 31, 2011
|
12,000,000 | $ | 0.12 | |||||
Granted
|
- | $ | - | |||||
Exercised
|
- | |||||||
Forfeited
|
- | |||||||
Balance at June 30, 2012
|
12,000,000 | $ | 0.12 | |||||
Options Exercisable at June 30, 2012
|
12,000,000 | $ | 0.12 | |||||
Weighted Average Fair Value of Options Granted
|
$ | 0.12 |
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||
Range of Exercise Price
|
Number
Outstanding at
June 30, 2012
|
Weighted Average Remaining Contractual Life
|
Weighted Average Exercise Price
|
Number
Exercisable at
June 30, 2012
|
Weighted Average Exercise Price
|
|||||||||||||||||
$
|
0.12
|
12,000,000
|
1.55
|
$
|
0.12
|
12,000,000
|
$
|
0.12
|
Options Outstanding
|
Options Exercisable
|
|||||||||||||||||||||
Range of Exercise Price
|
Number
Outstanding at
June 30, 2011
|
Weighted Average Remaining Contractual Life
|
Weighted Average Exercise Price
|
Number
Exercisable at
June 30, 2011
|
Weighted Average Exercise Price
|
|||||||||||||||||
$
|
-
|
-
|
-
|
$
|
-
|
-
|
$
|
-
|
For the three months Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Revenue
|
$
|
--
|
$
|
-
|
||||
Operating Expenses
|
||||||||
General and Administrative
|
144,717
|
32,243
|
||||||
Endorsement Fees *
|
-
|
411,900
|
||||||
Consulting Fees *
|
139,611
|
455,246
|
||||||
Professional Fees
|
26,059
|
26,883
|
||||||
Compensation
|
162,000
|
54,000
|
||||||
Total Operating Expenses
|
472,387
|
980,272
|
||||||
Loss from Operations
|
(472,387
|
)
|
(980,272
|
)
|
||||
Other Income / (Expense)
|
||||||||
Interest Income
|
57
|
25
|
||||||
Interest Expense
|
(127,730
|
)
|
(2,647
|
)
|
||||
Amortization of Debt Offering Costs
|
(29,178
|
)
|
-
|
|||||
Amortization of Debt Discount
|
(185,392
|
)
|
(3,139
|
)
|
||||
Change in fair value of embedded derivative liability
|
(9,285
|
)
|
17,040
|
|||||
Total Other Income / (Expense)
|
(351,528
|
)
|
11,279
|
|||||
Provision for Income Taxes
|
-
|
-
|
||||||
Net Loss
|
$
|
(823,915
|
)
|
$
|
(968,993
|
)
|
||
Net Loss Per Share - Basic and Diluted
|
$
|
(0.00
|
)
|
$
|
(0.00
|
)
|
||
Weighted average number of shares outstanding
|
||||||||
during the year Basic and Diluted
|
255,335,394
|
234,809,929
|
For the six months Ended June 30,
|
||||||||
2012
|
2011
|
|||||||
Revenue
|
$
|
-
|
$
|
-
|
||||
Operating Expenses
|
||||||||
General and Administrative
|
338,332
|
69,135
|
||||||
Endorsement Fees *
|
-
|
819,273
|
||||||
Consulting Fees *
|
259,611
|
2,382.106
|
||||||
Professional Fees
|
84,629
|
67,559
|
||||||
Compensation
|
324,000
|
108,000
|
||||||
Total Operating Expenses
|
1,006,572
|
3,446,073
|
||||||
Loss from Operations
|
(1,006,572
|
)
|
(3,446,073
|
)
|
||||
Other Income / (Expense)
|
||||||||
Interest Income
|
129
|
25
|
||||||
Interest Expense
|
(127,730
|
)
|
(5,682
|
)
|
||||
Amortization of Debt Offering Costs
|
(30,380
|
)
|
-
|
|||||
Amortization of Debt Discount
|
(189,925
|
)
|
(9,371
|
)
|
||||
Change in fair value of embedded derivative liability
|
(79,789
|
)
|
(32,085
|
)
|
||||
Total Other Income / (Expense)
|
(427,695
|
)
|
(47,113
|
)
|
||||
Provision for Income Taxes
|
-
|
-
|
||||||
Net Loss
|
$
|
(1,434,267
|
)
|
$
|
(3,493,186
|
)
|
||
Net Loss Per Share - Basic and Diluted
|
$
|
(0.01
|
)
|
$
|
(0.02
|
)
|
||
Weighted average number of shares outstanding
|
||||||||
during the year Basic and Diluted
|
255,274,304
|
231,642,501
|
Exhibit No.
|
Title of Document
|
|
31.1*
|
Certification of the Principal Executive Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
31.2*
|
Certification of the Principal Financial Officer pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
|
32.1*
|
Certification of the Principal Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
32.2*
|
Certification of the Principal Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
|
101.INS *
|
XBRL Instance Document
|
|
101.SCH *
|
XBRL Taxonomy Extension Schema Document
|
|
101.CAL *
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
101.DEF *
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
101.LAB *
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
101.PRE *
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
*
|
Filed or furnished herewith.
|
Dated: August 14, 2012
|
MAX SOUND CORPORATION
|
|
By:
|
/s/John Blaisure
|
|
John Blaisure
President and Chief Executive Officer
(Duly Authorized Officer and Principal Executive Officer)
|
By:
|
/s/Greg Halpern
|
|
Greg Halpern
Chief Financial Officer
(Duly Authorized Officer and Principal Financial Officer)
|
1.
|
I have reviewed this Form 10-Q of Max Sound Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods present in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financing reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Max Sound Corporation
|
|
|
|
By:
|
/s/ John Blaisure
|
|
John Blaisure
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
1.
|
I have reviewed this Form 10-Q of Max Sound Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods present in this report;
|
4.
|
The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13-a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principals;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financing reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involved management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
Max Sound Corporation
|
|
|
|
By:
|
/s/ Greg Halpern
|
|
Greg Halpern
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and result of operations of Max Sound Corporation
|
Max Sound Corporation
|
|
|
|
By:
|
/s/ John Blaisure
|
|
John Blaisure
|
President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Quarterly Report fairly presents, in all material respects, the financial condition and result of operations of Max Sound Corporation
|
Max Sound Corporation
|
|
|
|
By:
|
/s/ Greg Halpern
|
|
Greg Halpern
|
Chief Financial Officer
|
|
(Principal Financial Officer)
|
Litigation (Details) (USD $)
|
Feb. 21, 2012
|
Feb. 06, 2012
|
---|---|---|
Litigation (Textual) | ||
Restricted stock | 750,000 | |
Jurisdictional amount | $ 50,000 | $ 50,000 |
Stockholders' Equity (Details 2) (Stock option [Member], USD $)
|
6 Months Ended | |
---|---|---|
Jun. 30, 2012
|
Jun. 30, 2011
|
|
Stock option [Member]
|
||
Summary of option/ warrants activity | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 12,000,000 | |
Granted | ||
Exercised | ||
Forfieted | ||
Ending balance | 12,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 12,000,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 0.12 | |
Weighted Average Exercise Price, Granted | ||
Weighted Average Exercise Price, Ending balance | $ 0.12 | |
Weighted Average Exercise Price, Options Exercisable at June 30, 2012 | $ 0.12 | |
Weighted Average Fair Value of Options Granted | $ 0.12 |
Commitments (Details) (USD $)
|
12 Months Ended | 12 Months Ended | 3 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | 6 Months Ended | 1 Months Ended | 3 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 6 Months Ended | 1 Months Ended | 6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Aug. 31, 2012
|
Jul. 31, 2012
|
Jun. 30, 2012
|
Dec. 31, 2011
|
Sep. 30, 2011
|
Sep. 27, 2011
|
Sep. 25, 2011
|
Sep. 24, 2011
|
Sep. 21, 2011
|
Sep. 19, 2011
|
Sep. 18, 2011
|
Sep. 12, 2011
|
Aug. 31, 2011
|
Aug. 14, 2011
|
Jul. 31, 2011
|
Jul. 01, 2011
|
Jun. 30, 2011
|
Jun. 15, 2011
|
May 17, 2011
|
May 02, 2011
|
Mar. 21, 2011
|
Mar. 03, 2011
|
Feb. 23, 2011
|
Feb. 17, 2011
|
Jan. 24, 2011
|
Jan. 17, 2011
|
Dec. 31, 2010
|
Dec. 14, 2010
|
Nov. 01, 2010
|
Oct. 01, 2010
|
Aug. 31, 2010
|
Aug. 05, 2010
|
Jul. 31, 2010
|
Jul. 23, 2010
|
May 31, 2010
|
May 27, 2010
|
Feb. 17, 2010
|
Jan. 15, 2010
|
Dec. 31, 2009
|
Dec. 30, 2009
|
Dec. 27, 2009
|
Dec. 18, 2009
|
Dec. 15, 2009
|
Dec. 03, 2009
|
Nov. 21, 2009
|
Nov. 18, 2009
|
Nov. 16, 2009
|
Nov. 12, 2009
|
Nov. 11, 2009
|
Sep. 21, 2009
|
Sep. 18, 2009
|
Aug. 31, 2009
|
Aug. 25, 2009
|
Jan. 31, 2009
|
Jan. 15, 2009
|
Jan. 14, 2009
|
Jan. 12, 2009
|
Jan. 11, 2009
|
Jan. 03, 2009
|
Jan. 02, 2009
|
Dec. 31, 2008
|
Dec. 20, 2008
|
Dec. 05, 2008
|
Nov. 24, 2008
|
Oct. 14, 2008
|
Dec. 31, 2005
|
Dec. 31, 2011
Celebrity endorsement agreements [Member]
|
Dec. 31, 2010
Celebrity endorsement agreements [Member]
|
Dec. 31, 2009
Celebrity endorsement agreements [Member]
|
Dec. 27, 2009
Celebrity endorsement agreements [Member]
|
Dec. 31, 2009
Celebrity endorsement agreements [Member]
Minimum [Member]
|
Dec. 31, 2009
Celebrity endorsement agreements [Member]
Maximum [Member]
|
Dec. 31, 2011
Advisory board consulting agreement [Member]
|
Jun. 30, 2012
Employment agreement [Member]
|
May 11, 2010
Employment agreement [Member]
|
Oct. 31, 2008
Employment agreement [Member]
President [Member]
|
Jun. 30, 2012
Employment agreement [Member]
President [Member]
|
Jun. 30, 2012
Employment agreement [Member]
Executive [Member]
|
Feb. 04, 2011
Employment agreement [Member]
Executive [Member]
|
Jun. 30, 2012
Employment agreement [Member]
Chief internet officer [Member]
|
Jun. 30, 2012
Employment agreement [Member]
Chief technical officer [Member]
|
Jun. 30, 2012
Employment agreement [Member]
Senior Audio Engineer [Member]
|
Sep. 30, 2011
Consulting agreement [Member]
|
Jul. 31, 2011
Consulting agreement [Member]
|
Jun. 30, 2011
Consulting agreement [Member]
|
Aug. 31, 2010
Consulting agreement [Member]
|
Dec. 31, 2009
Consulting agreement [Member]
|
Dec. 31, 2011
Consulting agreement [Member]
|
Jun. 30, 2012
Consulting agreement [Member]
|
Sep. 21, 2011
Consulting agreement [Member]
|
Jul. 01, 2011
Consulting agreement [Member]
|
Jun. 15, 2011
Consulting agreement [Member]
|
Jun. 10, 2011
Consulting agreement [Member]
|
Mar. 03, 2011
Consulting agreement [Member]
|
Feb. 17, 2011
Consulting agreement [Member]
|
Dec. 14, 2010
Consulting agreement [Member]
|
Aug. 17, 2010
Consulting agreement [Member]
|
Aug. 08, 2010
Consulting agreement [Member]
|
Feb. 17, 2010
Consulting agreement [Member]
|
Dec. 27, 2009
Consulting agreement [Member]
|
Dec. 15, 2009
Consulting agreement [Member]
|
Dec. 31, 2011
Consulting agreement [Member]
Minimum [Member]
|
Sep. 30, 2011
Consulting agreement [Member]
Minimum [Member]
|
Jul. 01, 2011
Consulting agreement [Member]
Minimum [Member]
|
Dec. 31, 2011
Consulting agreement [Member]
Maximum [Member]
|
Sep. 30, 2011
Consulting agreement [Member]
Maximum [Member]
|
Jul. 01, 2011
Consulting agreement [Member]
Maximum [Member]
|
Jun. 30, 2012
Consulting agreement [Member]
Development services agreement [Member]
|
Aug. 31, 2009
Consulting agreement [Member]
Development services agreement [Member]
|
May 29, 2009
Consulting agreement [Member]
Development services agreement [Member]
|
Jan. 14, 2009
Consulting agreement [Member]
Development services agreement [Member]
|
Jun. 30, 2012
Consulting agreement [Member]
Public relations services [Member]
|
Dec. 31, 2009
Consulting agreement [Member]
Public relations services [Member]
|
Nov. 11, 2009
Consulting agreement [Member]
Public relations services [Member]
|
Sep. 18, 2009
Consulting agreement [Member]
Public relations services [Member]
|
Jun. 30, 2012
Consulting agreement [Member]
Public relations services one [Member]
|
Mar. 18, 2010
Consulting agreement [Member]
Public relations services one [Member]
|
Dec. 31, 2009
Consulting agreement [Member]
Public relations services one [Member]
|
Dec. 18, 2009
Consulting agreement [Member]
Public relations services one [Member]
|
Nov. 18, 2009
Consulting agreement [Member]
Public relations services one [Member]
|
Sep. 18, 2009
Consulting agreement [Member]
Public relations services one [Member]
|
Jun. 30, 2012
Consulting agreement [Member]
Public relations services two [Member]
|
Dec. 31, 2009
Consulting agreement [Member]
Public relations services two [Member]
|
Dec. 18, 2009
Consulting agreement [Member]
Public relations services two [Member]
|
Sep. 21, 2009
Consulting agreement [Member]
Public relations services two [Member]
|
Jun. 30, 2012
Consulting agreement [Member]
Marketing agreement [Member]
|
Dec. 30, 2009
Consulting agreement [Member]
Marketing agreement [Member]
|
Nov. 21, 2009
Consulting agreement [Member]
Marketing agreement [Member]
|
Jan. 15, 2010
Consulting agreement [Member]
Celebrity endorsement agreements [Member]
|
Dec. 03, 2009
Consulting agreement [Member]
Commission agreement [Member]
|
Dec. 31, 2009
Consulting agreement [Member]
Consulting agreement 1 [Member]
|
Dec. 31, 2009
Consulting agreement [Member]
Consulting Agreement 2 [Member]
|
Jun. 02, 2010
Consulting agreement [Member]
Consulting and business services [Member]
|
May 11, 2010
Consulting agreement [Member]
Max audio technology [Member]
|
Apr. 15, 2010
Consulting agreement [Member]
Finder’s fee agreement [Member]
|
Sep. 30, 2011
Consulting agreement [Member]
Investor relation service [Member]
|
Sep. 30, 2011
Operating Lease Agreements [Member]
|
Jun. 30, 2012
Operating Lease Agreements [Member]
|
Sep. 01, 2010
Operating Lease Agreements [Member]
|
|
Commitments (Textual) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Term period of agreement | 1 year | 2 years | 5 years | 10 years | 10 years | 10 years | 5 years | 5 years | 5 years | 5 years | 5 years | 1 year | 1 year | 5 years | 3 months | 6 months | 6 months | 8 months | 6 months | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation for services | $ 8,500 | $ 18,000 | $ 18,000 | $ 8,000 | $ 9,000 | $ 10,000 | $ 6,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage commission on sales | 5.00% | 10.00% | 10.00% | 20.00% | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense | 108,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Funding required to receive compensation | 1,000,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares of Rule 144 common stock received upon execution of the agreement | 3,000,000 | 2,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Options received by executive upon execution of the agreement | 12,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares employee entitled to receive as health benefits | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of shares of health benefits payable per quarter | 125,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share price of issued stock | $ 0.0001 | $ 0.0001 | $ 0.10 | $ 0.22 | $ 0.39 | $ 0.33 | $ 0.25 | $ 0.23 | $ 0.22 | $ 0.25 | $ 0.10 | $ 0.35 | $ 0.10 | $ 0.08 | $ 0.25 | $ 0.10 | $ 0.07 | $ 0.10 | $ 0.10 | $ 0.08 | $ 0.10 | $ 0.11 | $ 0.10 | $ 0.15 | $ 0.25 | $ 0.18 | $ 0.19 | $ 0.25 | $ 0.20 | $ 0.20 | $ 0.25 | $ 0.25 | $ 1.24 | $ 1.70 | $ 1.93 | $ 1.93 | $ 1.94 | $ 2.00 | $ 1.95 | $ 1.77 | $ 1.50 | $ 1.80 | $ 1.78 | $ 0.35 | $ 0.35 | $ 0.0625 | $ 0.0625 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.001 | $ 1.94 | $ 0.12 | $ 1.94 | $ 2 | $ 1.95 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional common shares received directly from the President | 20,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation amount increase | 12,000 | 12,000 | 12,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of commission on sale equal to gross quarterly profits | 10.00% | 10.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of bonus received | 5.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of profits derived from sales | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum fee to construct social network software per hour | 150 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maximum fee to construct social network software per hour | 375 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retainer fee paid | 20,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in exchange of services | 100,000 | 76,483 | 400,000 | 6,500 | 885,714 | 20,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued in exchange of service, Value | 62,000 | 5,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share price | $ 0.25 | $ 0.08 | $ 0.10 | $ 0.47 | $ 0.23 | $ 0.10 | $ 0.88 | $ 0.39 | $ 0.39 | $ 0.25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common shares after forward split | 1,892,000 | 16,000 | 80,000 | 16,000 | 128,000 | 8,000 | 80,000 | 1,892,000 | 16,000 | 16,000 | 16,000 | 400,000 | 80,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock par value due to forward split | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.0625 | $ 0.00025 | $ 0.0625 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reduced hourly rate | 75 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding balance due | 17,163 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares valued based on the most recent fair market value | 1,240,000 | 55,357 | 175,000 | 210,000 | 210,000 | 965,000 | 53,100 | 170,000 | 144,750 | 965,000 | 10,000 | 7,500,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share price based on the most recent fair market value | $ 1.24 | $ 0.0625 | $ 0.35 | $ 0.35 | $ 0.35 | $ 1.93 | $ 1.77 | $ 1.70 | $ 1.93 | $ 1.93 | $ 0.25 | $ 0.25 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on the extinguishment of debt | 6,643 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time period to cancel the contract | 90 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share issued by company | 1,000,000 | 500,000 | 600,000 | 600,000 | 500,000 | 30,000 | 100,000 | 75,000 | 500,000 | 40,000 | 30,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares returned to company to cancel the contract | 200,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common shares returned to to the Company after cancellation of agreement | 1,000,000 | 400,000 | 400,000 | 300,000 | 300,000 | 400,000 | 400,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consulting expense | 173,260 | 1,066,740 | 68,250 | 965,000 | 70,000 | 70,000 | 70,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of deferred compensation | 105,000 | 140,000 | 140,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of deferred compensation | 0 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares issued on increments | 100,000 | 200,000 | 200,000 | 200,000 | 200,000 | 25,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation paid | 5,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of days unrelated party would have to accept or decline additional shares | 15 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred compensation | 0 | 105,000 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation paid upon the execution of the agreement | 2,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation paid upon completion | 2,500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shares issued | 125,000 | 125,000 | 255,335,394 | 255,184,661 | 2,000,000 | 150,000 | 300,000 | 10,000 | 12,000,000 | 4,000 | 2,000 | 32,000 | 2,000 | 20,000 | 100,000 | 1,710,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Value of common stock issue | 25,534 | 25,519 | 1,093,700 | 200,000 | 15,000 | 30,000 | 1,000 | 1,000 | 500 | 8,000 | 500 | 5,000 | 118,250 | 100 | 3,285,400 | 19,400 | 19,400 | 200,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consulting expense | 1,484,780 | 1,712,815 | 87,805 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of common stock issued for services | 100,000 | 1,500 | 100,000 | 400,000 | 100,000 | 15,403 | 2,860 | 2,443 | 6,500 | 300,000 | 15,980 | 2,000,000 | 1,000,000 | 500,000 | 250,000 | 100,000 | 100,000 | 100,000 | 200,000 | 10,000 | 40,000 | 1,000,000 | 100,000 | 75,000 | 1,500,000 | 10,000 | 100,000 | 35,000 | 30,000 | 30,000 | 100,000 | 100,000 | 600,000 | 500,000 | 885,714 | 50,000 | 20,000 | 4,000 | 4,000 | 4,000 | 4,000 | 35,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock Issued for services one | 500,000 | 10,000 | 200,000 | 600,000 | 240,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock Issued for services two | 680,000 | 10,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock fair value issued for services | 39,000 | 585 | 33,000 | 100,000 | 23,000 | 3,388 | 715 | 855 | 520 | 75,000 | 1,598 | 140,000 | 80,000 | 55,000 | 37,500 | 25,000 | 18,000 | 19,000 | 40,000 | 2,000 | 10,000 | 1,240,000 | 170,000 | 144,750 | 2,895,000 | 19,400 | 200,000 | 68,250 | 53,100 | 45,000 | 180,000 | 178,000 | 210,000 | 175,000 | 55,357 | 3,125 | 5,000 | 1,000 | 1,000 | 1,000 | 1,000 | 68,250 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock fair value issued for services one | 965,000 | 19,500 | 400,000 | 210,000 | 468,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock fair value issued for services two | 1,312,400 | 19,500 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commission on common stock | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional shares of common stock issued for an additional sponsorship commitment | 750,000 | 1,000,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value of additional issued shares | 1,930,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per share value of additionaly issued shares | $ 1.93 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares held to be in escrow | 1,000,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shares delivered upon the execution of the agreement | 100,000 | 1,000,000 | 500,000 | 250,000 | 25,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Annual fee for investor relations press release service | 14,250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Initial onetime fee for investor relations press release service | 250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Music compositions fee | 500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Music compositions fee for the first renewal year | 500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Music compositions fee for the second renewal year | 750 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional renewal period for music composition agreement | 2 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock exercisable per warrant | $ 0.50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Warrants issued based upon the number of shares (40,000 shares) | 40,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Agremment Cancellation date | Jan. 02, 2011 | Nov. 01, 2010 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of fee paid in cash | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of dollar amount of securities purchased equal to fee paid | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of fee paid in warrants in addition | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of number of shares of stock purchased equal to fee in warrants | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of compensation for each gross dollar | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of shares of common stock as a compensation | 100,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Required period to renew agreement | Three month intervals | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Contract termination claims date | Feb. 17, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for general expenses per month | 500 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percentage of compensation for each gross dollar | 10.00% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cancellation of additional shares of common stock issued for additional sponsorship commitment | 750,000 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance paid | 70 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance paid in cash | 50 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance paid in capital | 20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-cancelable operating lease period | 3 years | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of person with whom agreement made | 5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Description of leasing arrangements, Operating Leases | The lease began on October 1, 2010 and expires on September 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease expiration date | Sep. 30, 2013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Base rent due | $ 134,880 |
Going Concern
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6 Months Ended |
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Jun. 30, 2012
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Going Concern [Abstract] | |
GOING CONCERN | NOTE 2 GOING CONCERN
As reflected in the accompanying financial statements, the Company is in the development stage with minimal operations, has an accumulated deficit of $15,794,251 for the period from December 9, 2005 (inception) to June 30, 2012, and has negative cash flow from operations of $2,646,452 from inception. This raises substantial doubt about its ability to continue as a going concern. The ability of the Company to continue as a going concern is dependent on the Company’s ability to raise additional capital and implement its business plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
Management believes that actions presently being taken to obtain additional funding and implement its strategic plans provide the opportunity for the Company to continue as a going concern. |