take a look at this...
only trying to help
dddx qrtly report, the reason this stock went from
2 bucks to 1 penny is dilution... they have no cash and have to
take up these dangerous cash loans in exchange for shares
and the diluters have been slowly but steadily bleeding the share price down to a penny from 2 bucks !!!!
is it over ??? don't know.... can this go lower... definitely
can it make a run... DEFINITELY
who knows... but u should know the facts, see below
(2) Lender 1
a. 5% various notes payable
Balance, October 31, 2014 $ 223,478
Additional: Principal 43,000
Accrued interest 3,354
Balance, January 31, 2015 $ 269,832
During the three months ended January 31, 2015, the Company received an additional $43,000 in loans from the aforementioned party which is assessed interest 5% per annum and mature at various dates through December 15, 2015.
b. 5% promissory note
In addition to the loans indicated above, the same lender advanced $150,000 to the Company on November 5, 2013. The $150,000 is evidenced by an unsecured promissory note bearing interest at a rate of 5%. Outstanding principal and accrued interest is fully due and payable on December 31, 2015. Effective January 1, 2015, the holder has the right to convert any or all of the outstanding principal and accrued interest into shares of the Company’s common stock at a conversion rate of $0.10 per share. Upon conversion, the holder has certain registration rights. The Company is obligated to bear all costs associated with the registration of the shares. The outstanding balance at January 31, 2015 amounted to $159,431 (October 31, 2014 - $157,541). Accrued interest charged to operation for the three months period ended January 31, 2015 and 2014 totaled $1,890 and $1,932, respectively.
(3) Lender 2
Balance, October 31, 2014 $ 67,855
Additional: Principal —
Accrued interest 819
Balance, January 31, 2015 $ 68,674
On September 9, 2013, the Company borrowed $30,000 from a third party. The loan is evidenced by an unsecured promissory note. The loan is assessed interest at an annual rate of 5% per annum with principal and accrued interest fully due and payable on May 1, 2014. The outstanding balance was not paid on its due date.
F-8
On March 7, 2014, the Company borrowed an additional $35,000 from the same party noted above. The loan is evidenced by an unsecured promissory note. The loan is assessed interest at an annual rate of 5% per annum with principal and accrued interest fully due and payable on December 31, 2014.
Accrued interest charged to operations for the three month periods ended January 31, 2015 and 2014 amounted to $819 and $592, respectively.
(4) Lender 3
On November 18, 2014, the Company borrowed $25,000 from a third party (Note 1). The $25,000 is evidenced by an unsecured promissory note bearing interest at a rate of 10% beginning April 1, 2015. Outstanding principal and accrued interest is fully due and payable on December 01, 2015. The holder has the right to convert any or all of the outstanding principal and accrued interest into shares of the Company’s common stock at a conversion rate of $0.30 per share.
On December 10, 2014, the Company further borrowed $100,000 from a third party (Note 2). The $100,000 is evidenced by an unsecured promissory note bearing interest at a rate of 10% beginning April 1, 2015. Outstanding principal and accrued interest is fully due and payable on December 31, 2016. The holder has the right to convert any or all of the outstanding principal and accrued interest into shares of the Company’s common stock at a conversion rate of $0.15 per share.
Pursuant to ASC Topic 470-20, “Debt with Conversion and Other Options,” there is no beneficial conversion feature associated with these promissory notes because the conversion rate is equal or greater than the fair market value on the issuance date.
Note 1 Note 2
Balance, October 31, 2014 $ — $ —
Additional: Principal 25,000 100,000
Accrued interest — —
Balance, January 31, 2015 $ 25,000 $ 100,000
AI
