On April 4, 2014, the Company issued to WHC Capital, LLC (“WHC”) a one-year convertible promissory note in the amount of $32,000. The Company incurred deferred loan cost of $5,000. Principal and interest at 12% per annum is due and payable at maturity. WHC has the option to convert any portion of the note into shares of the Company’s common stock at any time during the note’s term.
On May 29, 2014 the Company issued a demand note to GE Park, LLC in the amount of $47,600. Interest of 4% per annum on any unpaid principal is payable on demand.
On May 29, 2014 the Company issued a demand note to Summit in the amount of $8,500. Interest of 4% per annum on any unpaid principal is payable on demand.
On August 15, 2014, the Company issued a one-year convertible note to Summit in the amount of $59,835, for payments made on behalf of the Company. Interest of 10% per annum on any unpaid balance is due at maturity. At any time prior to maturity, the note is convertible into Company common stock. The conversion price will be computed by dividing the principal outstanding plus unpaid accrued interest by the average volume weighted average price of the Company’s common stock over the seven days prior to conversion and then multiplying the result by 80%.
B. Capital Transactions
On February 7, 2014, the Company’s board of directors approved the following transactions for the issuance of 1,250,000 shares of its common stock:
1. An individual acquired 400,000 shares of restricted common stock at the purchase price of $0.075 per share.
2. The board accepted the assignment of a third party Advisory Agreement from Summit and issued 100,000 shares of the Company’s restricted common stock as total and complete consideration for the advisor provided services to Summit on behalf of the Company. These shares were valued at $0.09 share, the closing stock price on February 7, 2014.
3. The Board approved the issuance of 750,000 shares of Company common stock to two key Seaniemac employees. The total value of these shares of $52,500 was expensed as compensation in February 2014.
