—SUBSEQUENT EVENTS
The company issued an aggregate of 38,813,053 common shares to debt holders valued at a total of $151,863 for conversions pursuant to convertible notes. The conversion prices on these stock issuances averaged at a price of $0.005876.
Investors converted 83,103 Series A Preferred stock into 8,310,300 common stock.
The Company issued 28,579 Series C Preferred stock for an amount of $20,000.
The Company issued 2,200,000 Series C Preferred stock in accordance with a Settlement Agreement dated April 22, 2016. This Agreement specifies an issuance of 2.2 million Series C Preferred stock for the retirement of any and all outstanding warrants, preferred shares, or contingent considerations in the past or moving forward. As noted in Note 7, 1.7 million of these Series C Preferred shares are for the cancellation of approximately 2.95 million warrants and release from any prior Series A dividends. The remaining shares were issued for payment on certain contingent consideration accrued for as of March 31, 2016 and for compensation, recognized as of March 31, 2016.
In Company entered into a line of credit with Wells Fargo Bank for a total of $5,000.
The Company entered into a convertible note agreements for $58,000. The interest rate is 10% and the conversion terms are at the lesser of $0.02 or a 50% discount to the 20 prior trading days. The maturity date of the note is April 12, 2017.
The Company issued an aggregate of 55 Series A Preferred stock for dividends from 2015 for certain Preferred A shareholders.
The consolidated financial statements included in this report have been prepared in conformity with generally accepted accounting principles that contemplate our continuance as a going concern. The Company has had minimal revenues and has generated losses from operation. As set forth in Note 2 to the audited Financial Statements, the continuation of the Company as a going concern is dependent upon the Company obtaining adequate capital to fund operating losses until it becomes profitable, if ever. The financial statements do not include any adjustments to the recoverability and classification of recorded asset amounts and classification of liabilities that might be necessary should the Company be unable to continue as a going concern.
