Note 5: Stockholders' Equity
|3 Months Ended|
Mar. 31, 2012
|Stockholders' Equity Note Disclosure [Text Block]||
Note 5: Stockholders’ Equity
As part of the reincorporation, the total number of authorized shares of common stock was changed to 250,000,000 shares of $0.001 par value. As of March 31, 2012, 69,426,547 shares of common stock were outstanding.
The Company has 10,000,000 shares of preferred stock authorized with a par value of $0.001 which may have such designation, rights and preferences as approved by the Board of Directors. As of March 31, 2012, no shares were outstanding and the Board of Directors has not authorized issuance of preferred shares.
On March 31, 2012, the Company issued 8,727,732 shares of common stock in exchange for outstanding notes payable, including principal and interest, in the cumulative amount of $1,745,546, or $0.20 per share, for certain related parties and officers of the Company.
Through March 31, 2012, stock option grant notices for up to 15,060,000 shares of common stock have been issued to employees and service providers of the Company pursuant to the 2008 Stock Option Plan, in accordance with the provisions of Topic 718, Compensation, of the Accounting Standards Codification, which requires companies to measure the cost of employee services received in exchange for equity instruments based on the grant date fair value of those awards and to recognize the compensation expense over the requisite service period during which the awards are expected to vest. A total of $1,894,139 has been recognized as Additional Paid in Capital as the value of these options granted, which includes $61,960 and $432,422 for the three months ended March 31, 2012 and the twelve months ended December 31, 2011, respectively. Of the total grants for shares issued, 40,000 have expired as of March 31, 2012 and options to purchase up to 15,020,000 shares of common stock are outstanding. Additional details regarding the stock options granted is found in Note 8: Stock Options.
On June 2, 2009, the Company, through Glendale Securities, Inc. of Sherman Oaks, California as broker-dealer, filed a Disclosure Statement with the Financial Investment Regulatory Agency (FINRA) pursuant to Rule 15c2-11 of the Securities and Exchange Act of 1934, as amended, to establish a secondary trading market on the Pink Sheets Electronic OTC Markets system. Glendale Securities’ request for un-priced quotation on the Pink OTC Markets was cleared by FINRA on July 13, 2009 and trading began on July 24, 2009. In May 2011, the OTC Markets, Inc. moved the Company to the OTCQB trading platform. On September 7, 2011, FINRA cleared the Company for quotation on the OTCBB. In connection with the change in domicile and name change from Pacific Entertainment Corporation to Genius Brands International, Inc., the Company filed an application for a new ticker symbol for trading purposes. The new trading symbol is “GNUS”.