Reading the quarterly shows a mechanism that is just fine as long as its disclosed. Go Figure
The CEO of company can issue whatever shares wanted out of thin air and then cash them in systematically and its all ok as long as the transactions are buried in translations in the filings.
Patent License Agreement
1. Effective August 1, 2004, the Company executed a license agreement with Applied Cryptography, Inc. (“ACI”), a corporation controlled by the Company’s president and the owner of certain technology. Pursuant to the license agreement, the Company has the right to make use of this technology for the purpose of developing software and systems to be used by the Company
Recent Developments
On February 11, 2015, the Company entered into a security agreement (the “Agreement”) with Chaya Hendrick, the Company’s chief executive officer (“Executive”), pursuant to which the Company granted Executive a continuing security interest in all of the Company’s assets, which are existing now or arise after the date of the Agreement, until such time that the Company repays all loans and accrued but unpaid salary owed to Executive. As of the date of the Agreement, the Company had loans and accrued but unpaid salary owed to Executive in the aggregate principal amount of $270,015.
On November 12, 2012, the Company issued 200,000 shares of its Series B Convertible Preferred Stock to ACI in consideration for ACI’s patent relating to the Medical Keyring Device.
In July 2013, ACI elected to convert 190,000 shares of Series B Convertible Preferred Stock, issued in 2012, into 9,500,000 shares of the Company’s common stock.
During September 2013, the Company acquired license rights to ACI's BioCentric Cloud Device technology in consideration of the Company's issuance to ACI of 200,000 shares of its Series B Convertible Preferred Stock.
Effective November 5, 2014, the Company increased the number of preferred shares designated as Series B, and accordingly, the shares were issued to ACI on November 10, 2014
Each share of Series B Convertible Preferred Stock has a par value of $0.001, and a stated value equal to $5.00 (“Stated Value”). Holders of the Series B Convertible Preferred Stock are entitled to receive dividends or other distributions with the holders of the common stock of the Company on an as converted basis when, as, and if declared by the directors of the Company. Holders of the Series B Convertible Preferred Stock are entitled to convert all or any one (1) share of the Series B Convertible Preferred Stock into fifty (50) shares of common stock.
