SideChannel Inc (SDCH)

[Slojab]

10-K out.

Stock Issued for Cash

During the year ended September 30, 2016, through the utilization of a Private Placement Memorandum and upon receipt of executed Subscription Agreements, the Company issued 513,500 shares of common stock for $946,320 in net cash proceeds pursuant to the exemption from the registration provisions of the Securities Act of 1933, as amended (the “Act”), afforded by Rule 506 of Regulation D.

Stock Issued in Connection with acquisition of Software

During the year ended September 30, 2016, the Company issued 5,000 shares of common stock valued at $27,500 based on the market price on the date of grant for the acquisition of software. The software was expensed as there was not technical feasibility for use of the software.

Stock Issued for Services

During the year ended September 30, 2016, the Company issued 75,000 shares of common stock for legal services with a fair value of $210,000 and was recorded on the date of grant. The Company issued 28,000 shares of common stock to BrokerBank Securities having a market value of $56,000 as the stock portion of the fees due pursuant to the fee agreement. BrokerBank Securities is a registered broker dealer in connection with sales of securities. The Company issued 10,677 shares of common stock with a fair value of $32,138 at date of grant to Michael Salas as a quarterly bonus. The Company also issued 800 shares of common stock to Pamela Kafka to design a company logo which had a fair value of $1,600 at date of grant.

At September 30, 2016, there were 5,268,859 shares of common stock of the Company outstanding and there were 963 shareholders of the Company’s common stock.

As of February 2, 2017, there were 5,877,673 shares of common stock, par value $0.01, and 10,000,000 shares of preferred stock, par value $0.01, issued and outstanding.

An additional 600,000 shares is worth approximately $2M and it won't be known where those shares went until the next Q.