¹û¶³APP´«Ã½ Group, Inc. General form of registration statement for all companies including face-amount certificate companies

General form of registration statement for all companies including face-amount certificate companies

9. Stockholders' Equity (Tables)

9. Stockholders' Equity (Tables)

9 Months Ended

Sep. 30, 2012

The assets acquired and liabilities assumed from the publicly-held company were as follows:

Cash and cash equivalents	$	337
Liabilities assumed		(21,206	)
Net	$	(20,869	)

Warranty Activity

A summary of the Company’s warrant activity during the nine months ended September 30, 2012 is presented below:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
	Number of		Exercise		Contractual		Intrinsic
Warrants	Shares		Price		Term		Value
Balance Outstanding, December 31, 2011		456,000	$	0.33
Issued		6,187,264	$	0.44
Exercised		-		-
Forfeited		-		-
Expired		-		-
Balance Outstanding, September 30, 2012		6,643,264	$	0.43		4.7	$	47,332

Exercisable, September 30, 2012		6,643,264	$	0.43		4.7	$	47,332

Compensation Expense for Stock Options Granted

The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to employees during the nine months ended September 30, 2012 and 2011:

	For the Nine			For the Nine
	Months Ended			Months Ended
Assumptions	Septmber 30, 2012			Septmber 30, 2011
Expected life (years)		2.5 - 3.8			N/A
Expected volatility		44.2	%		N/A
Weighted-average volatility		44.2	%		N/A
Risk-free interest rate		0.31% - 0.60	%		N/A
Dividend yield		0.00	%		N/A
Expected forfeiture rate		1.4	%		N/A

Stock Options Activity to Employees

A summary of the Company’s stock option activity for employees and directors during the nine months ended September 30, 2012 is presented below:

						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number of			Exercise		Contractual		Intrinsic
Options	Shares			Price		Term		Value
Balance Outstanding, December 31, 2011		-
Granted		4,779,371		$	0.61
Exercised		-
Forfeited		(190,000	)	$	1.00
Expired		-
Balance Outstanding, September 30, 2012		4,589,371		$	0.59		4.8	$	-

Expected to vest, September 30, 2012		4,531,194		$	0.59		4.8	$	-

Exercisable, September 30, 2012		166,665		$	0.35		5.0	$	-

Stock Options Grants to Non-Employees

The following table summarizes the assumptions the Company utilized to record compensation expense for stock options granted to non-employees during the nine months ended September 30, 2012 and 2011:

	For the Nine			For the Nine
	Months Ended			Months Ended
Assumptions	Septmber 30, 2012			Septmber 30, 2011
Expected life (years)		3.5			N/A
Expected volatility		44.2	%		N/A
Weighted-average volatility		44.2	%		N/A
Risk-free interest rate		0.60	%		N/A
Dividend yield		0.00	%		N/A

A summary of the Company’s stock option activity for non-employees during the nine months ended September 30, 2012 is presented below:

					Weighted
			Weighted		Average
			Average		Remaining		Aggregate
	Number of		Exercise		Contractual		Intrinsic
Options	Shares		Price		Term		Value
Balance Outstanding, December 31, 2011		-
Granted		175,000	$	1.00
Exercised		-
Forfeited		-
Expired		-
Balance Outstanding, September 30, 2012		175,000	$	1.00		4.5	$	-

Expected to vest, September 30, 2012		175,000	$	1.00		4.5	$	-

Exercisable, September 30, 2012		-		N/A		N/A		N/A

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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- Definition

Tabular disclosure of warrants or rights issued. Warrants and rights outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Warrants are often included in a new debt issue to entice investors by a higher return potential. The main difference between warrants and call options is that warrants are issued and guaranteed by the company, whereas options are exchange instruments and are not issued by the company. Also, the lifetime of a warrant is often measured in years, while the lifetime of a typical option is measured in months. Disclose the title of issue of securities called for by warrants and rights outstanding, the aggregate amount of securities called for by warrants and rights outstanding, the date from which the warrants or rights are exercisable, and the price at which the warrant or right is exercisable.

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