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From the annual report.
We presently have convertible notes outstanding that may be converted into an estimated 20,000,000 shares of common stock at current market prices. The number of shares of common stock issuable upon conversion of the outstanding convertible notes may increase if the market price of our stock declines. All of the shares, including all of the shares issuable upon conversion of the notes may be sold without restriction upon the six month anniversary of the sale of the notes. The sale of these shares may adversely affect the market price of our common stock.
The continuously adjustable conversion price feature of our convertible notes could require us to issue a substantially greater number of shares, which will cause dilution to our existing stockholders. The convertible notes are convertible into such number of shares of common stock as is determined by dividing the principal amount thereof by the then current conversion price. The conversion price is discounted from the current market price in the range of 45%-50%. The number of shares issuable could prove to be significantly greater in the event of a decrease in the trading price of the common stock.
Purchasers of common stock could therefore experience substantial dilution of their investment upon conversion of the notes. Our obligation to issue shares upon conversion of our convertible notes is essentially limitless.
If Ashler or any of the other note holders convert less than 5% of the OS at any given time they aren't required to file a 13G. That's why most limit their conversions to 4.99%. Only holder of 5% or more are required to file their holdings since their not institutions.
I started tracking the closing bid prices but only for the past 3 days so far .0191, .0190, and .0185. If Ashler converts more it will be at their discount.The problem is the language in the other notes state that if any conversion is done at a lower price after their notes were signed then they all get shares at the same lower price for any of the notes not yet converted. So does that lock in a lower conversion price for the notes signed in March, May etc.?
I doubt very much Ashler's completely done selling. Their filing on April 15th just shows they converted an amount of the note to equal 9.99% of the then outstanding shares which is the most they can convert at one time. Today's filling just shows they sold ( those ) shares. Do you really think their whole note just happened to convert into a number of shares that exactly equalled 9.99% of the OS?
amount of $22,500 (the "Asher Note"). The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on December 9, 2014. The Note is convertible into common stock, at Asher’s option, at a 45% discount to the average of the three lowest closing bid prices of the Company’s common stock during the 10 trading day period prior to conversion.
The Asher Note is subject to prepayment penalties up to a 140% multiple of the principal, interest and other amounts owing, as defined. Asher has agreed to restrict its ability to convert the Note and receive shares of common stock such that the number of shares of common stock held by them in the aggregate and their affiliates after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock. The total net proceeds the Company received from this Offering was $22,500, less financing costs of $1,500.
Looks like it's too late to do anything about Ashler.
Securities Purchase Agreement with Asher Enterprises, Inc. ("Asher"), for the sale of an 8% convertible note in the principal amount of $58,000 (the "Asher Note"). The financing closed on January 14, 2014. The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on October 9, 2014. The Note is convertible into common stock, at Asher’s option, at a 45% discount to the average of the three lowest closing bid prices of the Company’s common stock during the 10 trading day period prior to conversion.
The Asher Note is subject to prepayment penalties up to a 140% multiple of the principal, interest and other amounts owing, as defined. Asher has agreed to restrict its ability to convert the Note and receive shares of common stock such that the number of shares of common stock held by them in the aggregate and their affiliates after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock. The total net proceeds the Company received from this Offering was $58,000, less financing costs of $3,000.
On April 15, 2014, the Company received a notice of default demanding immediate payment of a sum representing 150% of the outstanding principal plus default interest.
Don't get me wrong I believe the products will sell good and revenues will ramp up quickly. Veal did a good job turning things around at his last company and ramped up revenues. But the that doesn't mean current shareholders will benefit from it.
Integrated Freight Appoints Matthew Veal as Vice President and Treasurer
SARASOTA, FL--(Marketwire - Aug 4, 2011) - Integrated Freight Corporation ("Integrated Freight" or the "Company") (OTCBB: IFCR), a rapidly growing motor freight company providing long-haul, regional and local service to its customers in the U.S., today announced the appointment of Matthew Veal as Vice President and Treasurer.
Historical price
Aug 1, 2011 0.18 0.20 0.12 0.14 17,700 0.14
Recent historical prices
Prices
Date Open High Low Close Volume Adj Close*
Jul 11, 2014 0.01 0.01 0.01 0.01 0 0.01
Jul 10, 2014 0.01 0.01 0.01 0.01 0 0.01
Jul 9, 2014 0.01 0.01 0.01 0.01 5,000 0.01
Jul 8, 2014 0.01 0.01 0.01 0.01 0 0.01
Jul 7, 2014 0.01 0.01 0.01 0.01 0 0.01
Jul 4, 2014 0.01 0.01 0.01 0.01 0 0.01
Jul 3, 2014 0.01 0.01 0.01 0.01 0 0.01
Jul 2, 2014 0.01 0.01 0.01 0.01 22,200 0.01
Jul 1, 2014 0.01 0.01 0.01 0.01 2,400 0.01
Jun 30, 2014 0.01 0.01 0.01 0.01 0 0.01
Jun 27, 2014 0.01 0.01 0.01 0.01 0 0.01
Jun 26, 2014 0.01 0.01 0.01 0.01 33,600 0.01
Jun 25, 2014 0.01 0.01 0.01 0.01 16,600 0.01
Jun 24, 2014 0.00 0.00 0.00 0.00 0 0.00
Jun 23, 2014 0.00 0.00 0.00 0.00 0 0.00
Jun 20, 2014 0.00 0.00 0.00 0.00 0 0.00
Jun 19, 2014 0.00 0.00 0.00 0.00 0 0.00
Jun 18, 2014 0.00 0.00 0.00 0.00 0 0.00
Jun 17, 2014 0.00 0.00 0.00 0.00 0 0.00
Jun 16, 2014 0.00 0.00 0.00 0.00 80,000 0.00
The thing is how many convertible notes/dilution can the stock stand. Only a few have been converting so far. 3 more signed in March will all start converting next month. Then another signed in May, and now these. Unless the share price goes up all these convertible notes will crush this stock.
Private Label Nutraceuticals, LLC v. Hangover Joe's Holding Corporation et al
Defendant: Hangover Joe's Holding Corporation and Hangover Joe's, Inc.
Plaintiff: Private Label Nutraceuticals, LLC
Thirdparty_defendant: Kevin Harden and Bjarte Rene
Thirdparty_plaintiff: Hangover Joe's Holding Corporation and Hangover Joe's, Inc.
Counter_claimant: Hangover Joe's Holding Corporation and Hangover Joe's, Inc.
Counter_defendant: Private Label Nutraceuticals, LLC
Case Number: 1:2014cv00683
Filed: March 7, 2014
Court: Georgia Northern District Court
Office: Atlanta Office
County: Gwinnett
Presiding Judge: Orinda D. Evans
Nature of Suit: Other Contract
Cause of Action: 28:1441
Jury Demanded By: Plaintiff
Access additional case information on PACER
Right now the closing bid price is more important. Since each lender will do future conversions based on a 45% to 50% discount of "the average lowest closing bid prices" in the 10 to 20 trading days before each conversion is done.
Real-Time Best Bid & Ask
0.0191 / 0.022
All that means is KBM can only convert up to 4.99% of the outstanding shares at one time. With Ashler it's 9.99% (is the most they can hold at one time). HJOE already defaulted on the Ashler note and now has to pay much more (likely in shares. Plus after 180 days from when each note was signed the company can no longer pay it off in cash.
Securities Purchase Agreement with Asher Enterprises, Inc. ("Asher"), for the sale of an 8% convertible note in the principal amount of $58,000 (the "Asher Note"). The financing closed on January 14, 2014.
The Asher Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on October 9, 2014. The Asher Note is convertible into common stock, at Asher’s option, at a 45% discount to the average of the three lowest closing bid prices of the common stock during the 10 trading day period prior to conversion. In the event the Company prepays the Asher Note in full, the Company is required to pay off all principal, interest and any other amounts owing multiplied by (i) 115% if prepaid during the period commencing on the closing date through 30 days thereafter, (ii) 120% if prepaid 31 days following the closing through 60 days following the closing and (iii) 125% if prepaid 61 days following the closing through 90 days following the closing and (iv) 130% if prepaid 91 days following the closing through 120 days following the closing and (v) 135% if prepaid 121 days following the closing through 150 days following the closing and (vi) 140% if prepaid 151 days following the closing through 180 days following the closing. After the expiration of 180 days following the date of the Asher Note, the Company has no right of prepayment.
Asher has agreed to restrict its ability to convert the Asher Note and receive shares of common stock such that the number of shares of common stock held by them in the aggregate and their affiliates after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock. The total net proceeds the Company received from this Offering was $58,000, less attorney’s fees. As of the date of the Asher Note, the Company is obligated on the Asher Note issued to Asher in connection with the offering. The Asher Note is a debt obligation arising other than in the ordinary course of business, which constitutes a direct financial obligation of the Company.
In March, 2014, the Company executed a second tranche under this agreement with the same term in the amount of $22,500.
According to the SEC filings (in the company's own words) the debt is not limited to 5% of the outstanding.
We presently have convertible notes outstanding that may be converted into an estimated 20,000,000 shares of common stock at current market prices. The number of shares of common stock issuable upon conversion of the outstanding convertible notes may increase if the market price of our stock declines. All of the shares, including all of the shares issuable upon conversion of the notes may be sold without restriction upon the six month anniversary of the sale of the notes. The sale of these shares may adversely affect the market price of our common stock.
The continuously adjustable conversion price feature of our convertible notes could require us to issue a substantially greater number of shares, which will cause dilution to our existing stockholders. The convertible notes are convertible into such number of shares of common stock as is determined by dividing the principal amount thereof by the then current conversion price. The conversion price is discounted from the current market price in the range of 45%-50%. The number of shares issuable could prove to be significantly greater in the event of a decrease in the trading price of the common stock.
Purchasers of common stock could therefore experience substantial dilution of their investment upon conversion of the notes. Our obligation to issue shares upon conversion of our convertible notes is essentially limitless.
Everyone thinks the product is good and will sell well. But near term the company will have to do more financings. The terms of the ones already done are locked in. The one below is at a 55% discount to the lowest closing BID price in the period before conversion. Unfortunately the " dilutive issuance" clause in the other financings done before this one would all get more shares for they haven't already converted into shares ( and sold ). A single closing bid price of .01 or so would equal a lot of dilution for current shareholders.
Adar Bays LLC Note
On March 24, 2014, the Company entered into a Securities Purchase Agreement with Adar Bays LLC (“Adar Bays”), for the sale of two convertible notes in the aggregate principal amount of $51,500 (with the first note for an amount of $26,500 and the second note for an amount of $25,000). The Company received proceeds of $25,000 (net of financing costs) in exchange for an 8% convertible promissory note due on March 24, 2015. This note is convertible into common stock, at the holder’s option, at any time after 180 days at a 55% discount to the lowest closing bid price of the Company’s common stock during the 20 day trading period prior to conversion, as defined.
The Company determined a beneficial conversion feature existed at the commitment date. A beneficial conversion feature of approximately $12,000 was recorded as a discount to the note and is being amortized over the term of the loan. The unamortized debt discount recorded at March 31, 2014 was approximately $10,000. The LG note has an effective interest rate of approximately 53%
Each of the financings contain this clause. So whenever one of the lenders converts at a lower price than the previous ones. All the earlier lenders who haven't converted all will get more shares at the same price as the lowest conversion price.
(d) Adjustment Due to Dilutive Issuance . If, at any time when any Notes are issued and outstanding, the Borrower issues or sells, or in accordance with this Section 1.6(d) hereof is deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share (before deduction of reasonable expenses or commissions or underwriting discounts or allowances in connection therewith) less than the Conversion Price in effect on the date of such issuance (or deemed issuance) of such shares of Common Stock (a “Dilutive Issuance”), then immediately upon the Dilutive Issuance, the Conversion Price will be reduced to the amount of the consideration per share received by the Borrower in such Dilutive Issuance.
The Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or grants any warrants, rights or options (not including employee stock option plans), whether or not immediately exercisable, to subscribe for or to purchase Common Stock or other securities convertible into or exchangeable for Common Stock (“Convertible Securities”) (such warrants, rights and options to purchase Common Stock or Convertible Securities are hereinafter referred to as “Options”) and the price per share for which Common Stock is issuable upon the exercise of such Options is less than the Conversion Price then in effect, then the Conversion Price shall be equal to such price per share. For purposes of the preceding sentence, the “price per share for which Common Stock is issuable upon the exercise of such Options” is determined by dividing (i) the total amount, if any, received or receivable by the Borrower as consideration for the issuance or granting of all such Options, plus the minimum aggregate amount of additional consideration, if any, payable to the Borrower upon the exercise of all such Options, plus, in the case of Convertible Securities issuable upon the exercise of such Options, the minimum aggregate amount of additional consideration payable upon the conversion or exchange thereof at the time such Convertible Securities first become convertible or exchangeable, by (ii) the maximum total number of shares of Common Stock issuable upon the exercise of all such Options (assuming full conversion of Convertible Securities, if applicable). No further adjustment to the Conversion Price will be made upon the actual issuance of such Common Stock upon the exercise of such Options or upon the conversion or exchange of Convertible Securities issuable upon exercise of such Options.
Additionally, the Borrower shall be deemed to have issued or sold shares of Common Stock if the Borrower in any manner issues or sells any Convertible Securities, whether or not immediately convertible (other than where the same are issuable upon the exercise of Options), and the price per share for which Common Stock is issuable upon such conversion or exchange is less than the Conversion Price then in effect.
According to the annual report this is how it's done.
The Company recognizes revenue when all of the following have occurred: (1) persuasive evidence of an arrangement exists; (2) delivery to third party distributors and consumers via the Company’s website has occurred; (3) the sales price is fixed or determinable; and (4) collectability is reasonably assured. Delivery is not considered to have occurred until the title and the risk of loss passes to the customer according to the terms of the contract between the Company and the customer. For sales to distributors, revenue is usually recognized at the time of delivery. The Company defers revenue on products sold to distributors for which there is a lack of credit history or if the distribution may be in a new market in which the Company has no prior experience. The Company defers recognition in these situations until cash is received. For sales through the Company’s website, revenue is recognized at the time of shipment.
Lux do you know how many stores the hangover shot was sold in? According to the March17/2014 press release it's thousands.
"'The Hangover Recovery Shot' could save world economies tens of millions of dollars in coming years," said Adamson. "Hangover Joe's can now be found in thousands of retail locations nationwide, and more retail business owners are coming aboard each month as consumers learn about and demand effective hangover recovery."
If each store only sold 1 bottle per day it would equal 90 bottles per quarter. So 5,000 stores would be. 90 X 5,000 = 450,000 bottles per quarter which equals 18,750 cases @ 24 bottles per case. Each case wholesaled for $27.55. 18,750 X $27.55 would equal gross revenues of $516,562 each quarter. Yet the financials in the SEC filings show much less.
Nov.13/2012
The Financial Industry Regulatory Authority has scrapped a deal to sell its OTC Bulletin Board trademark and other assets to Rodman & Renshaw Capital Group. As a result, FINRA will continue to operate its quotations system for over-the-counter securities under the OTCBB name.
The decision, revealed in a regulatory filing, follows a decision by Rodman & Renshaw in May change its name to Direct Markets Holdings Corp., and focus on its DirectMarkets securities issuance platform. In September, Rodman & Renshaw said it would withdraw from the brokerage business.
The deal with FINRA, originally announced by Rodman in September 2010, involved the acquisition of the OTCBB trademark, the operation's Internet address and content on the OTCBB Web site. A price was never disclosed.
Rodman’s plan was to create a trading system for OTC securities that would compete with the dominant system OTC Markets’ OTC Link ATS.
In August of last year, Rodman hired two industry veterans to run its OTCBB, describing the system as a “trading alternative to the current market for unlisted securities.” Rodman hired Eric Hess from the Direct Edge stock exchange to be OTCBB’s chief executive officer and Carl Giangrasso, a long time OTC Markets executive, to be OTCBB’s chief operating officer.
FINRA had planned to hold onto the quotations publishing business of OTCBB and rename it “Non-NMS Quotation Service,” or NNMS. That plan has been scrapped, according to the filing. FINRA will continue to run its quotes business as OTCBB.
FINRA has run the OTCBB for many years in competition with OTC Markets, formerly known as Pink Sheets. FINRA’s quotation system, however, has lost considerable ground to OTC Markets as market makers have moved most of their quoting over to OTC Markets’ system.
Both FINRA and OTC Markets supply investors with information about over-the-counter companies as well as collect quotes from dealers and disseminate them to market data firms. FINRA is also engaged in a battle with OTC Markets to take over the latter’s quote dissemination service, arguing a single consolidated quotation would best serve the market as well as FINRA’s surveillance needs.
The FINRA/Rodman deal, which needed Securities and Exchange Commission approval, was publicly criticized by OTC Markets, as well as Roth Capital Partners, a Rodman competitor.
Roth told the SEC in a letter the deal would give Rodman an advantage over competitors, as the OTCBB is a well-known brand. The use of the OTCBB name by Rodman to promote its own offerings could also mislead investors, Roth said, as investors might assume the offerings had the blessing of FINRA.
Check the appropriate box to designate the rule pursuant to which this Schedule is filed:
¨ Rule 13d-1(b)
x Rule 13d-1(c)
¨ Rule 13d-1(d)
* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.
The information required in the remainder of this cover page shall not be deemed to be “filed” for the purpose of Section 18 of the Securities Exchange Act of 1934 (“Act”) or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).
Persons who respond to the collection of information contained in this form are not required to respond unless the form displays a currently valid OMB control number.
SEC 1745 (1-06)
Page 1 of 5 pages
CUSIP No .00439M102
13G Page 2 of 5 Pages
1. Name of Reporting Person
I.R.S. Identification Nos. of above persons (entities only).
ASHER ENTERPRISES, INC.
EIN: 94-3437255
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) o
(b) o
3. SEC Use Only
4. Citizenship or Place of Organization
Colorado
Number of 5. Sole Voting Power
Shares 13,792,824*
Beneficially
Owned by 6. Shared Voting Power
Each
Reporting
Person 7. Sole Dispositive Power
With: 13,792,824*
8. Shared Dispositive Power
*Consists of Common Stock that the reporting person has the right to acquire by way of conversion of promissory note(s), subject to the right of the issuer to repay the note(s) as set forth in the terms of the note(s). See the issuer’s filings with the Securities and Exchange Commission for additional information on the promissory note(s).
9. Aggregate Amount Beneficially Owned by Each Reporting Person
13,792,824*
*Consists of Common Stock that the reporting person has the right to acquire by way of conversion of promissory note(s), subject to the right of the issuer to repay the note(s) as set forth in the terms of the note(s). See the issuer’s filings with the Securities and Exchange Commission for additional information on the promissory note(s).
10. Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)
11. Percent of Class Represented by Amount in Row (9)
9.99% (based on the total of 138,066,309 outstanding shares of Common Stock)
12. Type of Reporting Person (See Instructions)
CO
CUSIP No. 00439M102
13G Page 3 of 5 Pages
Item 1 (a) Name of Issuer:
HANGOVER JOE’S HOLDING CORPORATION , a
Colorado corporation
(b)
Address Of Issuer's Principal Executive Offices:
9457 S. University #349
Highlands Ranch, CO 80126
Item 2 (a) Name of Person Filing:
ASHER ENTERPRISES, INC.
(b) Address of Principal Business Office, or, if none, Residence:
1 Linden Place, Great Neck, NY 11021
(c) Citizenship:
Delaware
(d) Title of Class of Securities:
Common Stock, $ 0.001 value per share
(e) Cusip Number:
00439M102
Item 3 If this statement is filed pursuant to §240.13d-1(b) or 240.13d-2(b)
Securities Purchase Agreement with Asher Enterprises, Inc. ("Asher"), for the sale of an 8% convertible note in the principal amount of $58,000 (the "Asher Note"). The financing closed on January 14, 2014. The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on October 9, 2014. The Note is convertible into common stock, at Asher’s option, at a 45% discount to the average of the three lowest closing bid prices of the Company’s common stock during the 10 trading day period prior to conversion.
The Asher Note is subject to prepayment penalties up to a 140% multiple of the principal, interest and other amounts owing, as defined. Asher has agreed to restrict its ability to convert the Note and receive shares of common stock such that the number of shares of common stock held by them in the aggregate and their affiliates after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock. The total net proceeds the Company received from this Offering was $58,000, less financing costs of $3,000.
On April 15, 2014, the Company received a notice of default demanding immediate payment of a sum representing 150% of the outstanding principal plus default interest.
10
NOTE 3 – DEBT (CONTINUED)
On March 17, 2014, the Company entered into a second Securities Purchase Agreement with Asher, for the sale of an 8% convertible note in the principal amount of $22,500 (the "Asher Note"). The Note bears interest at the rate of 8% per annum. All interest and principal must be repaid on December 9, 2014. The Note is convertible into common stock, at Asher’s option, at a 45% discount to the average of the three lowest closing bid prices of the Company’s common stock during the 10 trading day period prior to conversion.
The Asher Note is subject to prepayment penalties up to a 140% multiple of the principal, interest and other amounts owing, as defined. Asher has agreed to restrict its ability to convert the Note and receive shares of common stock such that the number of shares of common stock held by them in the aggregate and their affiliates after such conversion or exercise does not exceed 9.99% of the then issued and outstanding shares of common stock. The total net proceeds the Company received from this Offering was $22,500, less financing costs of $1,500.
The Company determined a beneficial conversion feature existed at the commitment date for both notes. A beneficial conversion feature of approximately $26,000 was recorded as a discount to the first note and a beneficial conversion feature of $10,000 was recorded as a discount to the second note and both are being amortized over the term of the loans. The unamortized debt discount recorded at March 31, 2014 for both notes totaled approximately $31,000. The Asher notes have an effective interest rate of approximately 51%.
LG Note
Here's $47,000 worth that converted into 6m shares in Q1 at $0.007833.
The Company determined a beneficial conversion feature existed at the commitment date. A beneficial conversion feature of approximately $32,000 was recorded as a discount to the note and has been amortized over the term of the loan. The unamortized debt discount recorded at March 31, 2014 and December 31, 2013 was $12,500 and $14,800, respectively. The JMJ note has an effective interest rate of approximately 34%. During the quarter ended March 31, 2014, JMJ exercised its option to convert approximately $47,000 of the obligation into 6,000,000 common shares of the Company.
Larry the Cable Guy License Agreement
The Company has a license with Git-R-Done Productions, Inc. (“Larry the Cable guy”) that allows the Company the use of the costumes, artwork, logos and other elements used by the Comedian known as Larry the Cable Guy in various performances. This license has an initial term through January 31, 2015, and provides for certain royalties based on a percentage of products sold subject to certain agreed-upon guaranteed minimum royalty payments over the term of the license. The terms of the license agreement provided that the Company was to fully launch its product line by March 1, 2014; the Company has not yet launched its products pursuant to the terms of this license agreement, and therefore the Company is not in compliance with their terms of the license agreement, which subjects the Company to cancellation by the licensor. The Company has not received any notice of cancellation, and the Company is planning a product launch by spring/summer of 2014; however, there can be no assurance that such a successful launch will occur as planned. Pursuant to the agreement, $30,000 of Guaranteed Consideration was paid in January 2014, with a payment of $20,000 due on September 30, 2014, and $50,000 due on December 31, 2014.
The Company accrued the remaining guaranteed minimum royalty payments of $70,000 at March 31, 2014 in accrued liabilities. Management evaluated the recoverability of prepaid guaranteed minimum royalty payments and determined that recoverability over the contract term was not likely, and expensed the full amount in selling and marketing expense as of March 31, 2014.
Royalty and Commission Agreements - Related Parties
The Company has a representative agreement with an individual who became a member of the Company’s board of directors in March 2012. Under this agreement, as amended, this individual is entitled to a commission of between 4% and 6% of sales made by this individual, based on the nature of the sales, and a royalty of 3% of all sales made by the Company, as defined. Commissions and royalty expense to this individual for the periods ended March 31, 2014 and 2013 totaled approximately $60 and $17,450 respectively. Effective April 1, 2012, the Company agreed to pay this individual a $6,000 draw per month against commissions. As of March 31, 2014 and December 31, 2013, the Company has approximately $30,900 and $34,900, respectively, accured in notes payable and other-related parties related to this agreement.
The Company has an agreement with a second individual for design services. Under this agreement, as amended, this individual is entitled to receive a royalty of 2% of net sales, as defined. Royalty expense to this individual was $23 and $3,600 for the periods ended March 31, 2014 and 2013, respectively. Effective April 1, 2012, the Company agreed to pay this individual a $3,000 draw per month against royalties. As of March 31, 2014 and December 31, 2103, accounts payable under this agreement were approximately $12,700 and $12,700, respectively.
Hangover Joe's sells The Hangover Recovery Shot to retail locations in 24-bottle cases. The average revenue per case is $27.55, with bottles typically retailing for $2.99 per bottle. The Cost of ingredients to produce our products is expected to average 35 cents per bottle in 2014, or $8.31 for 24-pack. Fully absorbed product cost is expected to be $.47 per bottle in 2014. However, we cannot assure that such expectations will be met, and our costs of sales have been negatively impacted in 2013 and prior periods due to unforseen inventory write downs and other charges related to sales. Our product is contract bottled in Dallas, Texas. We expect to have similar costs and unit revenues for our Larry the Cable Guy Git-R-Done Energy Drink.
Historical Short Selling Data For HJOE
Date VolShorted High Low Close ShortVol RegularVol
Jul 11 32.55% 0.05 0.04 0.04 514,955 1,582,076
Jul 10 54.11% 0.06 0.04 0.04 234,750 433,801
Jul 09 43.20% 0.05 0.05 0.05 162,506 376,156
Jul 08 28.30% 0.07 0.05 0.05 108,500 383,397
Jul 07 23.51% 0.09 0.06 0.06 338,123 1,438,123
Jul 03 12.58% 0.08 0.07 0.07 22,710 180,561
Jul 02 50.14% 0.08 0.06 0.07 331,112 660,351
Jul 01 35.59% 0.07 0.06 0.07 182,522 512,865
Jun 30 38.25% 0.06 0.05 0.05 75,500 197,390
Jun 27 59.60% 0.06 0.04 0.05 209,000 350,684