OK. HERE YOU GO. TOXIC NOT CONVERSION AND DILUTION:
NOTE 6 – OTHER LONG TERM DEBT
HEB GmbH has lent Atlas significant monies at varying rates of interest. The loan remains the obligation of Atlas and totaled $5,316,725 as at March 31, 2014.
NOTE 7 – NOTES PAYABLE
The following presents the notes payable outstanding as of March 31, 2014.
March 31, 2014`
Lender
Date of Loan
Due Date
Original Principal Amount
Principal Balance Only
Balance with Accrued Interest
Film
Prime Focus
10/1/2013
10/1/2016
3,764,000
3,764,000
3,764,000
Yellow & New Projects
Tommee May
5/18/2011
Post Release
180,000
180,000
180,000
Yellow
AMAG
9/13/2011
8/13/2012
1,000,000
687,764
1,033,827
Yellow
Derreck Lee
5/1/2011
Post Release
500,000
600,000
600,000
Yellow
DDA
3/19/2014
3/18/16
120,000
120,00
120,000
N/A
$5,351,764
$5,697,827
Prime Focus is a multi-national visual effects and post-production company. The Dubai division of Prime Focus provided $3,764,000 of services, of which $2,500,000 was in relation to special effects costs of Yellow and $1,264,000 was in relation to pre visualization costs for two current projects. No interest is payable.
Tommee May, a media investor, made a loan of $180,000 towards the production cost of the film Yellow . This liability was assumed by the Company upon the acquisition of the rights in Yellow as of October 18, 2012. No interest is payable.
AMAG, Inc. is a media investment company. It made a loan of $1,000,000, which has accumulated $346,063 of interest, towards the production cost of the film Yellow . In addition to repayment of principal and interest, AMAG shall receive a three percent participation in Yellow . This liability was assumed by the Company upon the acquisition of the rights in Yellow as of October 18, 2012. The Company is in the process of negotiating an extension and has made a payment since March 31, 2014 in reduction of the note. Annual interest is payable at 12%.
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Mr. Derreck Lee, a media investor made a loan of $500,000, which has accumulated $160,000 of interest, towards the production cost of the film Yellow . In addition to repayment of principal and interest, Mr. Lee shall receive profit participation in the film after all other debts and equity investors in the film are paid in full. This liability was assumed by the Company upon the acquisition of the rights in Yellow as of October 18, 2012. No interest is payable.
DDA Public Relations Limited (“DDA”) is a public relations company, whose division, DDA Consulting, was retained by the Company as at March 19, 2014. DDA’s fee is $160,000, of which $40,000 was paid in April 28, 2014, and the balance of $120,000 is in the form of a note payable. No interest accrues on the note payable.
As of March 31, 2014, it cannot be reasonably estimated as to how much, if any, may be paid out as profit participation under these agreements and therefore, nothing (other than interest where applicable) has been accrued.
NOTE 8 - CREDIT LINE
As of March 31, 2014, the Company has a credit line of which $600,000 has been drawn down and with interest and other costs the amount outstanding of $788,289. The Company has no other outstanding liabilities on any credit facilities. The annual interest rate on the credit line is 12%. The current credit line was repaid on May 13, 2014 in the amount of $806,506.
NOTE 9 – RESTRICTED NOTES
During the three months ended March 31, 2014, the Company issued $1,087,000 of Restricted Notes. Of the Restricted Notes $247,661 were converted to common stock during the period. The balance of Restricted Notes as at March 31, 2014 was $1,805,339.
Annual interest rates on Restricted Notes range from 0% to 12%. Accrued Interest as of March 31, 2014 on the Restricted Notes was $23,644
NOTE 10 -AGED DEBT
During the three months to March 31, 2014, the Company retired debt with the use of Aged Debt in the amount of $911,480. Of the total Aged Debt, $1,252,403 was converted to common stock during the period, with a balance outstanding of $276,459 as a March 31, 2014.
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Annual interest rates on Aged Debt range from 0% to 12%. Interest Accrued on Aged Debt as of March 31, 2014 was $8,278.
NOTE 11 – SCREEN ACTORS GUILD
During the year ended December 31, 2013, the Company assumed a debt due to the Screen Actors Guild (“SAG”) regarding the film, Yellow , in the amount of $311,244 of which $269,244 was outstanding at December 31, 2013. The Company repaid the full $269,244 of the debt in the three months ended March 31, 2014.
The Company also has a deposit held by SAG in the amount of $70,000.
NOTE 12 - STOCKHOLDERS' EQUITY
The authorized capital stock of the Company is 5,000,000,000 common shares with a $0.001 par value. At March 31, 2014 and 2013, the Company had 327,883,654 and 33,856,551 shares of its common stock issued and outstanding respectively. The Company has 50,000,000 preferred shares authorized and 10,000,000 and 10,000,000 shares issued and outstanding, respectively.
During the three months ended March 31, 2014 and 2013, the Company issued 218,042,234 and 8,023,551 common shares, respectively.
