Betting on the Underdogs..
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
That was a death sentence (the grey sheets), that most stocks can't pull out of, but PHOT did it in a big silent way.
PHOT-Just from observation of the Oregon MMP patients and rec. consumers, more concentrates are being consumed than buds. I see a real opportunity here again.. JMO, Have a great day!!
SFOR-Too funy, this POS can't get out of it's own way.. The adj value of these toxic shares is approx. .0006 after ALL OF THE REVERSE SPLITS..
$PHOT-NOW is the time to add shares, or buy in for the first time. It just does not get better than this..
$SFOR-DILUTION MACHINE, look at er go!! Toxic debt and Conman Kay is a recipe for YUGE LOSSES..
SFOR-THE BIG FLUSH!! lol, The fraud is outta the bag.. Conman Kay gave away the only thing he has, a lousy patent that has never yielded income.
SFOR-Just ONE of the TOXIC Lenders:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11150268
Great job "CEO" Conman Kay!!!!!
SFOR-CRASHDOWN on news.. lol
PHOT-Ready for a run.. Large trading blocks going through..
SFOR-REVERSE SPLIT NEWS end of day.. Bet on it, it is the perfect time for R/S NUMBER 5!!!!
SFOR-OTC FRAUD: Bet the "CEO" doesn't tell anybody this: Stock Compensation
The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board (FASB) whereas the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the FASB whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Options granted to non-employees are revalued each reporting period to determine the amount to be recorded as an expense in the respective period. As the options vest, they are valued on each vesting date and an adjustment is recorded for the difference between the value already recorded and the then current value on the date of vesting. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date.
The fair value of the Company's stock option and warrant grants are estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model, and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods.
http://www.otcmarkets.com/stock/SFOR/filings
NO TOXIC DEBT?? Conman Kay GAVE AWAY THE PATENTS!! Talk about a deal with the devil. If this jerk cured cancer, the stock would still be a half penny stock:
Note 3 – Convertible Notes Payable:
a)
At March 31, 2016, $542,588 in aggregate principal amount of the DART/Citco Global debentures was issued and outstanding and are secured through the note holder's claim on the Company's intellectual property. The secured convertible debentures are past maturity. Due to the adjustable conversion price feature of the secured convertible debentures, our obligation to issue shares upon conversion of the secured convertible debentures owed to DART is potentially limitless. DART did not process any conversions in fiscal 2016 or 2015, and the Company has been in contact with the note holder who has indicated that it has no present intention of exercising its right to convert the debentures into shares of the Company's common stock. In connection with the secured convertible debentures with DART/Citco Global, we granted DART/Citco Global a secured interest in all of our assets. Under the terms of the secured debentures, we are restricted in our ability to issue additional securities as long as any portion of the principal or interest on the secured debentures remains outstanding. During 2016 or 2015, we did not obtain DART/Citco Global's written consent related to any of our financing agreements.
(b)
Convertible notes payable consisted of fourteen unsecured convertible notes ranging in interest rates of 0% per annum to 18% per annum. The notes are convertible at a fixed amount into 14 shares of the Company's common stock, at fixed per share amounts ranging from $1,950,000 to $9,750,000,000 per share, as defined in the agreements. The notes were due in various dates through 2015 and are all currently in default. The Company is currently pursuing settlements with certain of the holders.
At December 31, 2015, the balance of the accrued interest on the unsecured convertible notes with fixed conversion features was $932,272. During the interim period ended March 31, 2016, interest expense of $20,082 was recorded, and at March 31, 2016, the balance of accrued interest on unsecured convertible notes with fixed conversion features was $954,352.
(c)
The Notes are convertible into shares of Common Stock of the Company at the option of the holder commencing on various dates following the issuance date of the Notes and ending on the later of the maturity date or date of full payment of principal and interest. The principal amount of the note along with, at the holder's option, any unpaid interest and penalties, is convertible at a price per share discount of 40% of the Company's Common Stock trading market price during a certain time period, as defined in the agreement. In addition, the conversion price is subject to adjustment in certain events, such as in conjunction with any sale, conveyance or disposition of all or substantially all of the Company's assets or consummation of a transaction or series of related transactions in which the Company is not the surviving entity. The Company considered the current FASB guidance of "Contracts in Entity's Own Stock" and determined that the conversion prices of the Notes were not a fixed amount because they were subject to an adjustment based on the occurrence of future offerings or events and accounted for as derivative liability upon issuance in prior periods (see Note 7).
At December 31, 2015, the balance of the unsecured convertible notes with adjustable conversion features was $824,861. During the interim period ended March 31, 2016, the Company repaid a total of $613,351 of unsecured convertible notes principal. In addition, note holders converted an aggregate of $143,123 of unsecured convertible note principal. At March 31, 2016, the balance of unsecured convertible notes with adjustable conversion features was $68,387 and pertains to one unsecured convertible note which was repaid in April 2016.
11
At December 31, 2015, the balance of the accrued interest on the unsecured convertible notes with adjustable conversion features was $296,396. During the interim period ended March 31, 2016, the Company repaid a total of $147,829 of accrued interest, and note holders converted an aggregate of $37,968 of accrued interest into shares of common stock. During the interim period ended March 31, 2016, interest expense of $16,702 was recorded. Additionally, accrued interest of $15,843 was forgiven and written-off . At March 31, 2016, the balance of accrued interest on unsecured convertible notes payable with adjustable conversion features was $111,458.
During the interim period ended March 31, 2016, a total of $181,071 principal and accrued interest on unsecured convertible notes with adjustable conversion features was converted into 1,394,298,115 shares of the Company's common stock at conversion prices ranging from $0.000058 to $0.0008 per share. In addition, 397,937,526 shares of common stock were issued with a fair value of $239,153 as additional interest to certain note holders.
At March 31, 2016 and December 31, 2015, accrued interest due for all convertible notes was $1,064,082 and $1,228,668, respectively, and is included in accrued interest in the accompanying balance sheets. Interest expense for all convertible notes payable for the interim period ended March 31, 2016 and 2015 was $36,784 and $52,213, respectively.
Note 4 – Convertible Notes Payable – Related Parties
Convertible notes payable - related parties consisted of twelve unsecured convertible notes payable: six to the Company's Chief Executive Officer, for $268,000, at a compounded interest rate of 8% per annum; two to the Company's VP of Technology, for $57,500, interest ranging from prime plus 2% to prime plus 4% per annum; and four to a Developer who is the spouse of the Company's Chief Technology Officer, for $30,000, at a compounded interest rate of 8% per annum. All of the notes are convertible at a fixed conversion price of $9,750,000,000 per share, as defined in the agreements, and have extended due dates of December 31, 2016. The balance of the outstanding convertible notes payable - related parties was $355,500 and $355,500 as of March 31, 2016 and December 31, 2015, respectively. At March 31, 2016, all convertible notes payable-related parties are current liabilities.
At March 31, 2016 and December 31, 2015, accrued interest due for the convertible notes – related parties was $404,448 and $391,001, respectively, and is included in accrued expenses in the accompanying balance sheets. Interest expense for convertible notes payable – related parties for the interim period ended March 31, 2016 and 2015 was $13,447 and $12,252, respectively.
This CEO Mark Kay is lying through his teeth to fund his ATM!!
http://www.otcmarkets.com/stock/SFOR/filings
NOT NEWS-JUST MORE OF THE SAME CRAPPY PRODUCT V3.. The s same better tech. is ALREADY built into existing devices...lolll
SFOR-Gotta hand it to Conman Kay, he went "all in", literally betting the Company and the Patents on a glimmer of a chance that he might be able to pay himself another $225,000 this year by filing lawsuits that have no merit HOPING that the deep pockets will settle. Mark Kay the SCUMBAG CEO..
SFOR-Shameless Promoters need to be held accountable. The stock is not up, and Dilution/Toxic debt is rampant..
SFOR Conman Kay SCAM: Reverse Stock Splits
In March 2014, the Company effected a 1:1,500 reverse stock split of the Company's issued and outstanding shares of common stock.
In January 2015, the Company effected a 1:650 reverse stock split of the Company's issued and outstanding shares of common stock.
In July 2015, the Company effected a 1:1,000 reverse stock split of the Company's issued and outstanding shares of common stock.
Share numbers, share prices, and exercise prices have been adjusted, on a retroactive basis, to reflect the reverse stock splits adopted by the Company as if the reverses had occurred at the beginning of the earliest period presented.
http://www.otcmarkets.com/stock/SFOR/filings
No, The extension is that the opposing firms legal counsel is hoping that Cockroach Kay gets stomped on soon. He is a leech on the legal system..
SFOR-Shameless Promoters need to be held accountable. The stock is not up..
$MTVX-Mornin all! MTVX sales are increasing, news could be close!!
SFOR-THE BIG FLUSH!! lol, The fraud is outta the bag..
SFOR-Gotta hand it to Conman Kay, he went "all in", literally betting the Company and the Patents on a glimmer of a chance that he might be able to pay himself another $225,000 this year by filing lawsuits that have no merit HOPING that the deep pockets will settle. Mark Kay the SCUMBAG CEO..
SFOR-Gotta hand it to Conman Kay, he went "all in", literally betting the Company and the Patents on a glimmer of a chance that he might be able to pay himself another $225,000 this year by filing lawsuits that have no merit HOPING that the deep pockets will settle. Mark Kay the SCUMBAG CEO..
$SFOR-What Company use it's only moneymaker AS COLLATERAL for TOXIC DEBT. Conman Mark Kay does. No wonder this POS is headed back to triple zeros, no bid then REVERSE SPLIT.. Unreal..
At March 31, 2016, $542,588 in aggregate principal amount of the DART/Citco Global debentures was issued and outstanding and are secured through the note holder's claim on the Company's intellectual property. The secured convertible debentures are past maturity. Due to the adjustable conversion price feature of the secured convertible debentures, our obligation to issue shares upon conversion of the secured convertible debentures owed to DART is potentially limitless. DART did not process any conversions in fiscal 2016 or 2015, and the Company has been in contact with the note holder who has indicated that it has no present intention of exercising its right to convert the debentures into shares of the Company's common stock. In connection with the secured convertible debentures with DART/Citco Global, we granted DART/Citco Global a secured interest in all of our assets. Under the terms of the secured debentures, we are restricted in our ability to issue additional securities as long as any portion of the principal or interest on the secured debentures remains outstanding. During 2016 or 2015, we did not obtain DART/Citco Global's written consent related to any of our financing agreements.
(b)
Convertible notes payable consisted of fourteen unsecured convertible notes ranging in interest rates of 0% per annum to 18% per annum. The notes are convertible at a fixed amount into 14 shares of the Company's common stock, at fixed per share amounts ranging from $1,950,000 to $9,750,000,000 per share, as defined in the agreements. The notes were due in various dates through 2015 and are all currently in default. The Company is currently pursuing settlements with certain of the holders.
At December 31, 2015, the balance of the accrued interest on the unsecured convertible notes with fixed conversion features was $932,272. During the interim period ended March 31, 2016, interest expense of $20,082 was recorded, and at March 31, 2016, the balance of accrued interest on unsecured convertible notes with fixed conversion features was $954,352.
(c)
The Notes are convertible into shares of Common Stock of the Company at the option of the holder commencing on various dates following the issuance date of the Notes and ending on the later of the maturity date or date of full payment of principal and interest. The principal amount of the note along with, at the holder's option, any unpaid interest and penalties, is convertible at a price per share discount of 40% of the Company's Common Stock trading market price during a certain time period, as defined in the agreement. In addition, the conversion price is subject to adjustment in certain events, such as in conjunction with any sale, conveyance or disposition of all or substantially all of the Company's assets or consummation of a transaction or series of related transactions in which the Company is not the surviving entity. The Company considered the current FASB guidance of "Contracts in Entity's Own Stock" and determined that the conversion prices of the Notes were not a fixed amount because they were subject to an adjustment based on the occurrence of future offerings or events and accounted for as derivative liability upon issuance in prior periods (see Note 7).
At December 31, 2015, the balance of the unsecured convertible notes with adjustable conversion features was $824,861. During the interim period ended March 31, 2016, the Company repaid a total of $613,351 of unsecured convertible notes principal. In addition, note holders converted an aggregate of $143,123 of unsecured convertible note principal. At March 31, 2016, the balance of unsecured convertible notes with adjustable conversion features was $68,387 and pertains to one unsecured convertible note which was repaid in April 2016.
NO TOXIC DEBT?? Conman Kay GAVE AWAY THE PATENTS!! Talk about a deal with the devil:
Note 3 – Convertible Notes Payable:
a)
At March 31, 2016, $542,588 in aggregate principal amount of the DART/Citco Global debentures was issued and outstanding and are secured through the note holder's claim on the Company's intellectual property. The secured convertible debentures are past maturity. Due to the adjustable conversion price feature of the secured convertible debentures, our obligation to issue shares upon conversion of the secured convertible debentures owed to DART is potentially limitless. DART did not process any conversions in fiscal 2016 or 2015, and the Company has been in contact with the note holder who has indicated that it has no present intention of exercising its right to convert the debentures into shares of the Company's common stock. In connection with the secured convertible debentures with DART/Citco Global, we granted DART/Citco Global a secured interest in all of our assets. Under the terms of the secured debentures, we are restricted in our ability to issue additional securities as long as any portion of the principal or interest on the secured debentures remains outstanding. During 2016 or 2015, we did not obtain DART/Citco Global's written consent related to any of our financing agreements.
(b)
Convertible notes payable consisted of fourteen unsecured convertible notes ranging in interest rates of 0% per annum to 18% per annum. The notes are convertible at a fixed amount into 14 shares of the Company's common stock, at fixed per share amounts ranging from $1,950,000 to $9,750,000,000 per share, as defined in the agreements. The notes were due in various dates through 2015 and are all currently in default. The Company is currently pursuing settlements with certain of the holders.
At December 31, 2015, the balance of the accrued interest on the unsecured convertible notes with fixed conversion features was $932,272. During the interim period ended March 31, 2016, interest expense of $20,082 was recorded, and at March 31, 2016, the balance of accrued interest on unsecured convertible notes with fixed conversion features was $954,352.
(c)
The Notes are convertible into shares of Common Stock of the Company at the option of the holder commencing on various dates following the issuance date of the Notes and ending on the later of the maturity date or date of full payment of principal and interest. The principal amount of the note along with, at the holder's option, any unpaid interest and penalties, is convertible at a price per share discount of 40% of the Company's Common Stock trading market price during a certain time period, as defined in the agreement. In addition, the conversion price is subject to adjustment in certain events, such as in conjunction with any sale, conveyance or disposition of all or substantially all of the Company's assets or consummation of a transaction or series of related transactions in which the Company is not the surviving entity. The Company considered the current FASB guidance of "Contracts in Entity's Own Stock" and determined that the conversion prices of the Notes were not a fixed amount because they were subject to an adjustment based on the occurrence of future offerings or events and accounted for as derivative liability upon issuance in prior periods (see Note 7).
At December 31, 2015, the balance of the unsecured convertible notes with adjustable conversion features was $824,861. During the interim period ended March 31, 2016, the Company repaid a total of $613,351 of unsecured convertible notes principal. In addition, note holders converted an aggregate of $143,123 of unsecured convertible note principal. At March 31, 2016, the balance of unsecured convertible notes with adjustable conversion features was $68,387 and pertains to one unsecured convertible note which was repaid in April 2016.
11
At December 31, 2015, the balance of the accrued interest on the unsecured convertible notes with adjustable conversion features was $296,396. During the interim period ended March 31, 2016, the Company repaid a total of $147,829 of accrued interest, and note holders converted an aggregate of $37,968 of accrued interest into shares of common stock. During the interim period ended March 31, 2016, interest expense of $16,702 was recorded. Additionally, accrued interest of $15,843 was forgiven and written-off . At March 31, 2016, the balance of accrued interest on unsecured convertible notes payable with adjustable conversion features was $111,458.
During the interim period ended March 31, 2016, a total of $181,071 principal and accrued interest on unsecured convertible notes with adjustable conversion features was converted into 1,394,298,115 shares of the Company's common stock at conversion prices ranging from $0.000058 to $0.0008 per share. In addition, 397,937,526 shares of common stock were issued with a fair value of $239,153 as additional interest to certain note holders.
At March 31, 2016 and December 31, 2015, accrued interest due for all convertible notes was $1,064,082 and $1,228,668, respectively, and is included in accrued interest in the accompanying balance sheets. Interest expense for all convertible notes payable for the interim period ended March 31, 2016 and 2015 was $36,784 and $52,213, respectively.
Note 4 – Convertible Notes Payable – Related Parties
Convertible notes payable - related parties consisted of twelve unsecured convertible notes payable: six to the Company's Chief Executive Officer, for $268,000, at a compounded interest rate of 8% per annum; two to the Company's VP of Technology, for $57,500, interest ranging from prime plus 2% to prime plus 4% per annum; and four to a Developer who is the spouse of the Company's Chief Technology Officer, for $30,000, at a compounded interest rate of 8% per annum. All of the notes are convertible at a fixed conversion price of $9,750,000,000 per share, as defined in the agreements, and have extended due dates of December 31, 2016. The balance of the outstanding convertible notes payable - related parties was $355,500 and $355,500 as of March 31, 2016 and December 31, 2015, respectively. At March 31, 2016, all convertible notes payable-related parties are current liabilities.
At March 31, 2016 and December 31, 2015, accrued interest due for the convertible notes – related parties was $404,448 and $391,001, respectively, and is included in accrued expenses in the accompanying balance sheets. Interest expense for convertible notes payable – related parties for the interim period ended March 31, 2016 and 2015 was $13,447 and $12,252, respectively.
This CEO Mark Kay is lying through his teeth to fund his ATM!!
http://www.otcmarkets.com/stock/SFOR/filings
SFOR-Conman Kay is making alot of money off of Investors, and obviously does not try to enhance the Common holders stock value.
OS has almost doubled!! False info being spread.. HUGE DILUTION and Rampant Lawsuits, and TOXIC DEBT.. When SFOR got the judgements, what did they do.... NOT pay down the TOXIC Financing..
It is well known that revenues are not very good. Actually they are non sustainable to overcome the huge Toxic debt. AND they are asking for more money from the sharks. It is in black and white, and Easy to find..
SFOR DOESN'T EVEN HAVE A BUSINESS PLAN..lol after all the years, the Conman Fraud CEO still works outta Mom's basement..
Liquidity and Going Concern
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the three months ended March 31, 2016, the Company incurred a loss from operations of $551,421 and at March 31, 2016, the Company had a stockholders' deficit of $7,633,226. These factors raise substantial doubt about the Company's ability to continue as a going concern. In addition, the Company's independent registered public accounting firm, in its report on the Company's December 31, 2015 financial statements, has raised substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
At March 31, 2016, the Company had cash on hand in the amount of $2,144,752. The Company's ability to continue as a going concern is dependent upon its ability to implement its business plan. Currently, management is attempting to increase revenues and improve gross margins by a revised sales strategy. The Company is redirecting its sales focus from direct sales to domestic and international sales channels, where it is primarily selling through a channel of Distributors, Value Added Resellers, Strategic Partners and Original Equipment Manufacturers. While the Company believes in the viability of its strategy to increase revenues, there can be no assurances to that effect. The Company's ability to continue as a going concern is dependent upon its ability to continually increase its customer base and realize increased revenues from recently signed contracts. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.
http://www.otcmarkets.com/stock/SFOR/filings
$SFOR-BEWARE of false repetitive promotions..Real companies don't trade at NANO levels. SFOR SCAM Stock, and Fraud CEO.. HOW MANY REVERSE SPLITS HERE 3, 4, 5..??????
Yea, That's believable... LOL, THAT is funny stuff!! Kay the Conman would't even do that..
SFOR-OTC FRAUD: Bet the "CEO" doesn't tell anybody this: Stock Compensation
The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board (FASB) whereas the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the FASB whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Options granted to non-employees are revalued each reporting period to determine the amount to be recorded as an expense in the respective period. As the options vest, they are valued on each vesting date and an adjustment is recorded for the difference between the value already recorded and the then current value on the date of vesting. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date.
The fair value of the Company's stock option and warrant grants are estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model, and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods.
http://www.otcmarkets.com/stock/SFOR/filings
SFOR SCAM: Reverse Stock Splits
In March 2014, the Company effected a 1:1,500 reverse stock split of the Company's issued and outstanding shares of common stock.
In January 2015, the Company effected a 1:650 reverse stock split of the Company's issued and outstanding shares of common stock.
In July 2015, the Company effected a 1:1,000 reverse stock split of the Company's issued and outstanding shares of common stock.
Share numbers, share prices, and exercise prices have been adjusted, on a retroactive basis, to reflect the reverse stock splits adopted by the Company as if the reverses had occurred at the beginning of the earliest period presented.
http://www.otcmarkets.com/stock/SFOR/filings
SFOR-Just ONE of the TOXIC Lenders:
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11150268
Great job "CEO" Conman Kay!!!!!
Interesting, on Friday the T/A was gagged due to pending litigation. Soo, taday they are not???? LOL
Yea, That's believable... LOL, THAT is funny stuff!!
Good luck with that..LOLLLLLL
SFOR-Conman Kay is making alot of money off of Investors, and obviously does not try to enhance the Common holders stock value.
SFOR-NO TOXIC DEBT?? Note 3 – Convertible Notes Payable:
a)
At March 31, 2016, $542,588 in aggregate principal amount of the DART/Citco Global debentures was issued and outstanding and are secured through the note holder's claim on the Company's intellectual property. The secured convertible debentures are past maturity. Due to the adjustable conversion price feature of the secured convertible debentures, our obligation to issue shares upon conversion of the secured convertible debentures owed to DART is potentially limitless. DART did not process any conversions in fiscal 2016 or 2015, and the Company has been in contact with the note holder who has indicated that it has no present intention of exercising its right to convert the debentures into shares of the Company's common stock. In connection with the secured convertible debentures with DART/Citco Global, we granted DART/Citco Global a secured interest in all of our assets. Under the terms of the secured debentures, we are restricted in our ability to issue additional securities as long as any portion of the principal or interest on the secured debentures remains outstanding. During 2016 or 2015, we did not obtain DART/Citco Global's written consent related to any of our financing agreements.
(b)
Convertible notes payable consisted of fourteen unsecured convertible notes ranging in interest rates of 0% per annum to 18% per annum. The notes are convertible at a fixed amount into 14 shares of the Company's common stock, at fixed per share amounts ranging from $1,950,000 to $9,750,000,000 per share, as defined in the agreements. The notes were due in various dates through 2015 and are all currently in default. The Company is currently pursuing settlements with certain of the holders.
At December 31, 2015, the balance of the accrued interest on the unsecured convertible notes with fixed conversion features was $932,272. During the interim period ended March 31, 2016, interest expense of $20,082 was recorded, and at March 31, 2016, the balance of accrued interest on unsecured convertible notes with fixed conversion features was $954,352.
(c)
The Notes are convertible into shares of Common Stock of the Company at the option of the holder commencing on various dates following the issuance date of the Notes and ending on the later of the maturity date or date of full payment of principal and interest. The principal amount of the note along with, at the holder's option, any unpaid interest and penalties, is convertible at a price per share discount of 40% of the Company's Common Stock trading market price during a certain time period, as defined in the agreement. In addition, the conversion price is subject to adjustment in certain events, such as in conjunction with any sale, conveyance or disposition of all or substantially all of the Company's assets or consummation of a transaction or series of related transactions in which the Company is not the surviving entity. The Company considered the current FASB guidance of "Contracts in Entity's Own Stock" and determined that the conversion prices of the Notes were not a fixed amount because they were subject to an adjustment based on the occurrence of future offerings or events and accounted for as derivative liability upon issuance in prior periods (see Note 7).
At December 31, 2015, the balance of the unsecured convertible notes with adjustable conversion features was $824,861. During the interim period ended March 31, 2016, the Company repaid a total of $613,351 of unsecured convertible notes principal. In addition, note holders converted an aggregate of $143,123 of unsecured convertible note principal. At March 31, 2016, the balance of unsecured convertible notes with adjustable conversion features was $68,387 and pertains to one unsecured convertible note which was repaid in April 2016.
11
At December 31, 2015, the balance of the accrued interest on the unsecured convertible notes with adjustable conversion features was $296,396. During the interim period ended March 31, 2016, the Company repaid a total of $147,829 of accrued interest, and note holders converted an aggregate of $37,968 of accrued interest into shares of common stock. During the interim period ended March 31, 2016, interest expense of $16,702 was recorded. Additionally, accrued interest of $15,843 was forgiven and written-off . At March 31, 2016, the balance of accrued interest on unsecured convertible notes payable with adjustable conversion features was $111,458.
During the interim period ended March 31, 2016, a total of $181,071 principal and accrued interest on unsecured convertible notes with adjustable conversion features was converted into 1,394,298,115 shares of the Company's common stock at conversion prices ranging from $0.000058 to $0.0008 per share. In addition, 397,937,526 shares of common stock were issued with a fair value of $239,153 as additional interest to certain note holders.
At March 31, 2016 and December 31, 2015, accrued interest due for all convertible notes was $1,064,082 and $1,228,668, respectively, and is included in accrued interest in the accompanying balance sheets. Interest expense for all convertible notes payable for the interim period ended March 31, 2016 and 2015 was $36,784 and $52,213, respectively.
Note 4 – Convertible Notes Payable – Related Parties
Convertible notes payable - related parties consisted of twelve unsecured convertible notes payable: six to the Company's Chief Executive Officer, for $268,000, at a compounded interest rate of 8% per annum; two to the Company's VP of Technology, for $57,500, interest ranging from prime plus 2% to prime plus 4% per annum; and four to a Developer who is the spouse of the Company's Chief Technology Officer, for $30,000, at a compounded interest rate of 8% per annum. All of the notes are convertible at a fixed conversion price of $9,750,000,000 per share, as defined in the agreements, and have extended due dates of December 31, 2016. The balance of the outstanding convertible notes payable - related parties was $355,500 and $355,500 as of March 31, 2016 and December 31, 2015, respectively. At March 31, 2016, all convertible notes payable-related parties are current liabilities.
At March 31, 2016 and December 31, 2015, accrued interest due for the convertible notes – related parties was $404,448 and $391,001, respectively, and is included in accrued expenses in the accompanying balance sheets. Interest expense for convertible notes payable – related parties for the interim period ended March 31, 2016 and 2015 was $13,447 and $12,252, respectively.
This CEO Mark Kay is lying through his teeth to fund his ATM!!
http://www.otcmarkets.com/stock/SFOR/filings
SFOR-OTC FRAUD: Bet the "CEO" doesn't tell anybody this: Stock Compensation
The Company periodically issues stock options and warrants to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts for stock option and warrant grants issued and vesting to employees based on the authoritative guidance provided by the Financial Accounting Standards Board (FASB) whereas the value of the award is measured on the date of grant and recognized as compensation expense on the straight-line basis over the vesting period. The Company accounts for stock option and warrant grants issued and vesting to non-employees in accordance with the authoritative guidance of the FASB whereas the value of the stock compensation is based upon the measurement date as determined at either a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity instruments is complete. Options granted to non-employees are revalued each reporting period to determine the amount to be recorded as an expense in the respective period. As the options vest, they are valued on each vesting date and an adjustment is recorded for the difference between the value already recorded and the then current value on the date of vesting. In certain circumstances where there are no future performance requirements by the non-employee, option grants are immediately vested and the total stock-based compensation charge is recorded in the period of the measurement date.
The fair value of the Company's stock option and warrant grants are estimated using the Black-Scholes-Merton Option Pricing model, which uses certain assumptions related to risk-free interest rates, expected volatility, expected life of the stock options or warrants, and future dividends. Compensation expense is recorded based upon the value derived from the Black-Scholes-Merton Option Pricing model, and based on actual experience. The assumptions used in the Black-Scholes-Merton Option Pricing model could materially affect compensation expense recorded in future periods.
http://www.otcmarkets.com/stock/SFOR/filings
SFOR SCAM: Reverse Stock Splits
In March 2014, the Company effected a 1:1,500 reverse stock split of the Company's issued and outstanding shares of common stock.
In January 2015, the Company effected a 1:650 reverse stock split of the Company's issued and outstanding shares of common stock.
In July 2015, the Company effected a 1:1,000 reverse stock split of the Company's issued and outstanding shares of common stock.
Share numbers, share prices, and exercise prices have been adjusted, on a retroactive basis, to reflect the reverse stock splits adopted by the Company as if the reverses had occurred at the beginning of the earliest period presented.
http://www.otcmarkets.com/stock/SFOR/filings
SFOR DOESN'T EVEN HAVE A BUSINESS PLAN..lol after all the years, the Conman Fraud CEO still works outta Mom's basement..
Liquidity and Going Concern
The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the settlement of liabilities and commitments in the normal course of business. As reflected in the accompanying financial statements, for the three months ended March 31, 2016, the Company incurred a loss from operations of $551,421 and at March 31, 2016, the Company had a stockholders' deficit of $7,633,226. These factors raise substantial doubt about the Company's ability to continue as a going concern. In addition, the Company's independent registered public accounting firm, in its report on the Company's December 31, 2015 financial statements, has raised substantial doubt about the Company's ability to continue as a going concern. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.
At March 31, 2016, the Company had cash on hand in the amount of $2,144,752. The Company's ability to continue as a going concern is dependent upon its ability to implement its business plan. Currently, management is attempting to increase revenues and improve gross margins by a revised sales strategy. The Company is redirecting its sales focus from direct sales to domestic and international sales channels, where it is primarily selling through a channel of Distributors, Value Added Resellers, Strategic Partners and Original Equipment Manufacturers. While the Company believes in the viability of its strategy to increase revenues, there can be no assurances to that effect. The Company's ability to continue as a going concern is dependent upon its ability to continually increase its customer base and realize increased revenues from recently signed contracts. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.
http://www.otcmarkets.com/stock/SFOR/filings
SFOR's Tech is not revolutionary. It is a very common utility that large Companies have developed in house, and THEY DON't infringe on anyone's so called "Patent". Look at the share price. With all of the REVERSE SPLITS, the current value of the stock is NILL..
It is well known that revenues are not very good. Actually they are non sustainable to overcome the huge Toxic debt. AND they are asking for more money from the sharks. It is in black and white, and Easy to find..