Shareholders Equity

6 Months Ended

Jun. 30, 2011

Stockholders' Equity Note Disclosure [Text Block]

18. Shareholders’ Equity

Shareholders’ Equity as of June 30, 2011 and December 31, 2010, consists of the following:

Equity	Periods ended
USD thousand	June, 30 2011		December 31, 2010

Capital stock	$	36	$	34
Additional paid in capital		7,229		7,292
Accumulated other comprehensive income		457		(119	)
Retained earnings		1,504		271
Total Equity	$	9,226	$	7,477

As discussed in paragraph 2 of note 2, “Basis of consolidation”, on April 29, 2011 ITP Energy Corporation, completed a share exchange transaction (the “Agreement”) whereby it acquired 100% of ITP Benelli S.p.A. together with its subsidiaries in exchange for 94% of its stock issued to ITP Lux.

The transaction was accounted for as a reverse acquisition. As stated in ASC 805 “Business Combination”, in a reverse acquisition the legal acquirer is treated as the accounting acquiree and the legal acquiree is treated as the accounting acquirer. For this reason, the consolidated condensed financial statements presented herein is the continuation of the accounting acquirer (ITP Benelli S.p.A.), adjusted to reflect the legal capital of the accounting acquiree.

The legal capital of ITP Energy Corporation at the date of the consummation of the agreement was constituted of 36.107.500 common shares of a par value of $ 0.001 each, for a value of capital stock of $ 36 thousand. The item “additional paid in capital”, in equity, reflects the difference between the capital stock of the accounting acquirer and that of the accounting acquiree, plus the fair value of the consideration transferred by the accounting acquiree.

The pre-combination comparative period presented, December 31, 2010, is also adjusted, for comparison purposes, to reflect number and value of the issued shares attributed to ITP Lux, equal to 34.000.000 of common stock for a total value of $ 34 thousand. As of December 31, 2010, the item “additional paid in capital” reflects the difference between the capital stock of the ITP Benelli S.p.A. and the value of the issued shares attributed to ITP Lux.

In May 2011, the Company issued unregistered common share purchase warrants (the “Warrants”) that assigns to the holders the right to purchase from ITP Energy Corporation a number of common shares of the Company at a fixed price. The Warrants will be exercisable starting May 20th, 2012 and will expire on April 29th, 2015. There are 1.083.226 common shares issuable under these Warrants.

- 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

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+ Details

ITP Energy Corp 10-Q/A