STOCKHOLDERS' DEFICIT

9 Months Ended

Jun. 30, 2011

10.	STOCKHOLDERS’ DEFICIT

Common Stock

During October 2010 the Company issued 250,000 Rule 144 restricted shares for cashless option agreements expensed during April 2010 based upon black-scholes calculation of $47,948.

During October 2010 the Company issued 100,000 Rule 144 restricted shares for consulting services with a total value of $15,000. Deferred compensation expense recognized during the three months ended December 31, 2010 totaled $3,750.

During October 2010 the Company issued 545,551 Rule 144 restricted shares for stock options exercised during the period ended September 30, 2010.

During October 2010 the Company recorded a stock payable for 160,000 shares for legal services valued at $84,800. Deferred compensation expenses recognized during the three months ended December 31, 2010 totaled $84,800.

During November 2010 there were 64,000 cashless stock options exercised and issued as common stock.

During November 2010 the 700,000 shares issued but held in September 2010 were delivered by the company to one director for a twenty four month consulting agreement approved in November 2010. The shares were valued at $292,000, with $21,000 deferred compensation expenses recognized during the three months ended December 31, 2010.

The Company cancelled 545,551 shares of stock from negotiations with shareholders prior to the reverse merger on July 13, 2010.

As of December 29, 2010 the Company filed an S-1 Registration statement and spun-off 21,112,702 shares held by Solar Energy Initiatives, Inc. awaiting the effective distribution date for those shares by SEC approval.

As of December 31, 2010 Solar Energy Initiatives, Inc., the majority owner, retained ownership of 56.7% as the controlling interest in the Company. Upon distribution of 21,112,702 shares, Solar Energy Initiatives, Inc. retained approximately 22% ownership. The S-1 Registration statement and spin-off from Solar Energy went effective on January 26, 2011.

During January 2011 the Company filed Form S-8 pursuant to Rule 416(a) of the Securities Act of 1933, as amended (the “Securities Act”), registering 5,000,000 shares under this Registration Statement which shall also cover any additional shares of Common Stock attributable to these registered shares which become issuable under the 2011 Incentive Stock Plan.

During January 2011 the Company issued 1,000,000 S-8 shares for a stock payable under deferred compensation for consulting services initially in September, 2010.

During January 2011 the Company issued 602,889 S-8 shares for consulting services with a total value of $94,866 for five consultants, of which $50,000 had been included in accounts payable.

During January and February 2011 the Company issued 3,011,595 S-8 shares for legal, and consulting services on a deferred compensation basis. The total value of deferred compensation was $208,244. and related expenses of $2,208.

During February 2011, 950,000 incentive stock options under the 2010 incentive stock option plan were granted to officers and directors. Using the Black-Scholes method of valuation the amount of compensation expense for these, options was $2,272.

During March 2011 the Company cancelled or shares to be cancelled amounted to 8,150,647 post merger shares as negotiated with share holders. At par the net value of shares to be cancelled amounted to $6,151.

During March 2011 the amortization of the beneficial conversion discounts on convertible loans was $39,716 reflected in interest during the period ending June 30, 2011.

On April 7, 2011, the Company entered into a Securities Purchase Agreement with JDF Capital, Inc. ("JDF"), for the sale of an 12% convertible promissory note in the principal amount of $100,000 (the "JDF Note"). The financing closed on April 9, 2011.

The Note bears interest at the rate of 12% per annum. All interest and principal must be paid on April 5, 2012. The JDF Note is convertible into common stock, at JDF’s option, at a 40% discount to the average of the three lowest closing bid prices of the common stock during the 20 trading day period ending one day prior to conversion. The Note contains a prepayment option whereby the Company may make a payment to JDF equal to 150% of all amounts owed under the Note during the one hundred fifty (150) day period beginning on the date of issuance of the Note and expiring on the 150 day anniversary.

On April 18, 2011, the Company amended its articles of incorporation to increase its authorized shares of common stock from 100,000,000 to 500,000,000 (the “Increase Amendment”). The Increase Amendment was approved by the board of directors as well as the shareholders holding a majority of the issued and outstanding shares of common stock pursuant to a written consent dated March 16, 2011.

During April 2011 the Company filed Form S-8 pursuant to Rule 416(a) of the Securities Act of 1933, as amended (the “Securities Act”), registering 5,000,000 shares under this Registration Statement which shall also cover any additional shares of Common Stock attributable to these registered shares which become issuable under the 2011 Incentive Stock Plan.

During April 2011, 2,428,571 incentive stock options under the 2010 incentive stock option plan were granted to officers and directors. Using the Black-Scholes method of valuation the amount of compensation expense for these, options was $21,850.

During June 2011, 3,000,000 incentive stock options under the 2010 incentive stock option plan were granted to officers and directors. Using the Black-Scholes method of valuation the amount of compensation expense for these, options was $3,843.

During June 2011 the Company issued 18,182 S-8 shares for consulting services with a total value of $363 for one consultant.

- Definition

The entire disclosure for shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, if any, including other comprehensive income (as applicable). Including, but not limited to: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms, and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables, effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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+ Details

Solar Park Initiatives, Inc. 10-Q/A