Drone Services USA Inc. (DSUS)

[Seaam]

If you received shares for services rendered, remember to declare the income.

1) Declare income on the date that the shares are irrevocably yours.

2) Declare income even if you did not receive a 1099. The responsibility is yours. PVEC is repsonsible for issuing a 1099; but their failure does not relive one of reporting the income.

3) Declare the difference in income if the shares were earned or purchased at a bargain purchase amount.

4) Valuation date (date to value the shares for income) is the date of irrevocable ownership.

5) If value of the stock has declined since irrevocable ownership, than a loss is recognized against any gains (not ordinary income of the ownership of the original shares)for other common stock gains and losses.

6) Failure to declare income could result in penalties and interest, even years later.

EXAMPLE: Silicone Valley start-up issued $1 million dollars of shares to founders without restrictions. Owners declare income of $1 million dollars in year of receipt. Two years later, the company is bankrupt...Share owners can take a loss of $1 million dollars only against the gains they have from other stock transactions...if not, a carry forward of loss.