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Re: MonestHind post# 9075

Thursday, 09/11/2014 4:36:42 PM

Thursday, September 11, 2014 4:36:42 PM

Post# of 14966
I WOULD BE WORRIED MORE BY OTHER THINGS. HERE ARE TWO TO START.

Note 9 - Convertible Debentures



1. On April 24, 2014, the Company issued several convertible debentures to certain accredited investors. The total amount of the debentures is $395,000 and matures on April 24, 2016 with zero percent interest rate. The debentures are convertible into shares of the Company’s common stock at $0.08 per share.



The debentures were discounted in the amount of $395,000 due to the intrinsic value of the beneficial conversion option. As of June 30, 2014, the aggregate carrying value of the debentures was $36,204, net of debt discounts of $358,796. The Company recorded amortization of debt discount in amount of $36,204 during the six months ended June 30, 2014.




2. Note 10 - Capital Structure



During the three months ended June 30, 2014, the Company issued 1,228,501 shares of common stock in exchange for 2,500 shares of preferred Series H shares and warrants to purchase 225,000 shares of common stock at $0.60 per share which expires at the fifth anniversary from its original issuance.



During the three months ended June 30, 2014, the Company issued 1,811,042 shares of common stock for service rendered valued at $1,249,269, which is based on the closing stock price at the date of issuance.



During the three months ended June 30, 2014, the Company issued 380,715 shares of common stock to retire $70,000 loans from directors and officers and $36,476 accounts payable due to various parties. Services expense of $131,471 was recognized due to fair value of the shares in excess of the value of the debts retired.



During the three months ended June 30, 2014, the Company issued 31,710,628 shares of common stock and 39,985,000 shares of common stock were returned to the Company and retired per the Merger Agreement and Separation Agreement. These agreements were not effective yet as of June 30, 2014, as a result, these shares have not been recorded for accounting purposes.





Anything said by me is strictly my opinion and is subject to change without notice. I am not a financial planner or advisor.

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