READ HERE.... The issuance of preferred is only reason why the 15 million number is there..
The preferred issued for the merger is worth 12 million at the .0005 price in December. That goes against the balance sheet. Doesn't actually mean they lost 12 million dollars.
Upon the issuance of the Series B Preferred and the Series C Preferred for the SoOum Corp acquisition, the owners of these securities were entitled to receive in total 80% of the common stock of the Company upon full conversion. Assuming full conversion at a fixed conversion ratio, based on the common shares outstanding at December 31, 2014, there would be 26,250,000,000 shares common that would be converted, which is 25,690,960,686 more shares than the current authorized amount. Based on the stock price at December 31, 2014, $.0005, the total value of those shares would be $12,845,480. In accordance with generally accepted Accounting Principles, the Company recorded a liability for that amount on the financial statements.
