no reason for it to move up
IMO
The Company’s cash
balance totaled $8,058 as of March 31, 2013.
COMMITMENTS AND CONTINGENCIES
The Company has previously entered into a rental contracts with one of the founders for use of storage facilities, offices, development labs, and utilities for the Company’s operations, production, research and development, sales, and marketing. The Contract requires $16,400 in monthly payments (plus other related minimal costs) to over the Contracts’ extended term of December 1, 2007 through November 30, 2013. The Contracts are cancellable with a 15-day advance notice only if all security interest has been removed and there are no liens on the properties for loans to the Company in effect. The amounts incurred by the Company and paid for rent for the periods ended March 31, 2013 totaled $43,500. This amount has been recorded in selling, general and administrative expenses for the same period (see Note C).
Future minimum rental payments for the remaining life of the Contracts are as follow:
Year Ended June 30,
2013 130,500
Total $ 130,500
ROYALTIES
The Company has entered into several licensing agreements whereby the Company licenses certain gaming software from various developers. The Company is responsible for paying royalties to the developers based on product sales. In the event that no product is sold, the Company is also required to pay a minimum royalty in order to maintain exclusivity (i.e., the developer cannot license the same software to the Company's competitors). Certain developers also require prepayment of royalties that are either offset by future sales, or expire at the end of a calendar year - at which point they are expensed. No sales of the licensed products had occurred during the period ending March 31, 2013.
Company incurred net losses totaling $230,861
The total current outstanding convertible debentures are $14,979, carry 10% interest and are convertible at $0.001.
The note(s) are interest payments only
The notes carry interest rates ranging from 14% to 20%, resulting in interest expense of $3,087 for the period ended March 31, 2013.
The Annual salary has been adjusted and is payable in the form of $210,000 in cash and 2,250,000 in stock. The company had incurred a liability of $52,500 in wages, and this debt was secured with a convertible promissory note that carries a 0% interest rate so that this debt may be reduced by the issuance of stock in lieu of the cash necessary to pay the unpaid wages and expenses.
The Company’s cash
balance totaled $8,058 as of March 31, 2013.
As usual is the case in these pink stocks …company pays itself more than it earns
Payroll Expense $ (224,924)
