What is being done with the 50k per month?
Reading reveals directors and officers are being compensated with stock. General and admin expenses were less than 7k a month.
Let's say the pen costs 20 bucks and retailers get 20 bucks each. That leaves 50 bucks for us. Let's slim that down to 40 for conservatism. Let us also assume 40k was used to purchase the pen yielding 2000 pens.
I guess the question would be, how long will it take to realize the 80 thousand.
One may also ponder why we need 50k a month when the sale of the pens allow us to buy that may more, appox double the est initial purchase.
We have heard about more products coming under the brand. Will be interesting to read about them when announced.
Please help me understand why persons would be selling this. From this chair it looks as if we have a printing press for cash. What am I missing? Thanks.
NOTE 6 – SUBSEQUENT EVENTS
On April 1, 2014 the Company entered into a note agreement whereby the Company is obligated to a note with a principal amount of $600,000 plus prepaid interest $60,000 and prepaid legal fees $5,000 for an aggregate amount of $665,000. Additional interest of 8% on the outstanding balance is also incurred. The note matures on April 1, 2015 and is convertible, at the note holder’s option, into common shares of the Company. The Company will receive principal from the note of $50,000 per month starting in April 2014 and for 11 months thereafter, for a total of $600,000. In addition, the Company has issued warrants to the note holder which vest in equal amounts, over the 12 month period. The note holder may purchase up to 11,083,333 shares of the Company’s common stock at $0.06 per share per warrant or convert the warrants to common stock on a formula as cashless warrants.
On April 17, 2014 the Company issued 2,000 shares of common stock valued at $15,500 based on recent stock sales to one entity for legal services.
I would imagine that was supposed to read 200k
On April 17, 2014 the Company issued 800,000 shares of common stock valued at $57,000, based on recent stock sales to two directors of the Company.
On April 17, 2014 the Company issued 500,000 shares of common stock valued at $35,700, based on recent stock sales, to one individual appointed to the advisory board.
The $259,948 increase in expenses for the three month period ended March 31, 2014 over the same period in 2013 was primarily attributable to professional fees of $301,933 for the three month period ended March 31, 2014 compared to $9,488 during the same period in 2013. The large increase in professional fees can be attributed to increased stock based compensation awarded in 2014 verses 2013. General and administrative expenses increased to $17,247 for the period ended March 31, 2014 from $2,497 in the same period in 2013 while other compensation decreased from $73,750 in 2013 to $20,007 in 2014.
