Mystery Theater: CABN 10-q Dilution Drama
Exactly how many shares did they print in the past three months???!!
No one knows!!!
Tomorrows News: The sky is falling!!!!
At March 31, 2015, the Company’s authorized stock consisted of 1,000,000,000 shares of common stock, with a par value of $0.001 per share. The Company is also authorized to issue 20,000,000 shares of preferred stock, with a par value of $0.001 per share. The rights, preferences and privileges of the holders of the preferred stock will be determined by the Board of Directors prior to issuance of such shares.
During the three months ended March 31, 2015, the Company issued a total of 38,167,671 shares of common stock at fair value in conversion of $14,100 of convertible promissory notes and accrued interest payable of $3,074. In connection with the debt conversion, the Company increased common stock by $38,167 and additional paid-in capital by $291,733, reduced the derivative liability by $315,326 and recognized a gain of $2,600 on conversion of the notes.
As of March 31, 2015, the Board of Directors of the Company granted non-qualified stock options exercisable for a total of 14,100,000 shares of common stock to its employees, officers, and consultants. Stock-based compensation cost is measured at the grant date based on the value of the award granted using the Black-Scholes option pricing model, and recognized over the period in which the award vests, which is generally 25 months. Stock-based compensation expense included in general and administrative expense was $8,400 and $10,335 for the three months ended March 31, 2015 and 2014, respectively. As of March 31, 2015, unrecognized stock-based compensation expense was approximately $19,600.
Securities Purchase Agreements - Services of $244,452
On December 31, 2012, we entered into convertible promissory notes with three individuals in exchange for services rendered in the aggregate amount of $244,452, including $185,852 with the Chairman of our Board of Directors and our former Chief Executive Officer. We entered into securities purchase agreements for the sale of 5% convertible promissory notes in the principal amount of $244,452, which are convertible into shares of our common stock at a conversion price equal to the lesser of $0.20 per share or the closing price per share of common stock recorded on the trading day immediately preceding the date of conversion. One of the notes with a principal balance of $25,980 at March 31, 2015 matured on December 31, 2014 and is currently in default. The other two notes mature on December 31, 2015. We recorded a debt discount of $237,742 related to the conversion feature of the notes, which has been fully amortized to interest expense, along with a derivative liability at inception.
Securities Purchase Agreement - $100,000
During 2013, we received total proceeds of $40,000 pursuant to a securities purchase agreement for the sale of 10% convertible promissory notes in the aggregate principal amount of $100,000. The notes are convertible into shares of our common stock at a price equal to a variable conversion price of the lesser of $0.09 per share or fifty percent (50%) of the lowest trade price recorded after the effective date. The notes were to mature one year from their effective date. The maturity dates have been extended to June 30, 2015. We recorded a debt discount of $40,000 related to the beneficial conversion feature of the notes, which has been fully amortized to interest expense.
Securities Purchase Agreement – Accounts Payable of $29,500
On March 14, 2013, we entered into a convertible promissory note in exchange for accounts payable in the amount of $29,500. We entered into securities purchase agreements for the sale of a 5% convertible promissory note in the principal amount of $29,500, which is convertible into shares of our common stock at a conversion price equal to the lesser of $0.15 per share or the closing price per share of common stock recorded on the trading day immediately preceding the date of conversion. The note matured two years from its effective date, or March 14, 2015, and is currently in default.
Securities Purchase Agreement - $97,000
On May 29, 2013, we exchanged $97,000 in demand promissory notes for convertible promissory notes pursuant to a securities purchase agreement for the sale of a 10% convertible promissory note in the aggregate principal amount of $97,000. The note is convertible into shares of our common stock at a price equal to a conversion price of the lesser of $0.028 per share or fifty percent (50%) of the lowest trade price recorded after the effective date. The maturity date of the note was extended to June 30, 2015. We recorded a debt discount of $97,000 related to the beneficial conversion feature of the note, which has been fully amortized to interest expense.
Securities Purchase Agreement – Services of $25,000
On June 4, 2013, we entered into a convertible promissory note with a former member of our Board of Directors in exchange for services rendered in the amount of $25,000. We entered into securities purchase agreements for the sale of a 5% convertible promissory note in the principal amount of $25,000, which is convertible into shares of common stock of the Company at a conversion price equal to the lesser of $0.035 per share or the closing price per share of common stock recorded on the trading day immediately preceding the date of conversion. The note matures three years from its effective date, or June 4, 2016.
Securities Purchase Agreement - $5,000 Exchanged Note
On September 6, 2013, we exchanged a $5,000 promissory note for a convertible promissory note pursuant to a securities purchase agreement for the sale of a 10% convertible promissory note in the aggregate principal amount of $5,000. The note is convertible into shares of our common stock at a price equal to a conversion price of the lesser of $0.0042 per share or fifty percent (50%) of the lowest trade price recorded after the effective date. The note matures on June 30, 2015. We recorded a debt discount of $2,536 related to the beneficial conversion feature of the note, which has been fully amortized to interest expense, along with a derivative liability at inception.
Securities Purchase Agreement - $250,000
On October 8, 2012, we entered into to a securities purchase agreement for the sale of 10% convertible promissory notes in aggregate principal amount of $250,000. The notes are convertible into shares of common stock of the Company at a price equal to the lesser of $0.006 or 50% of the lowest trade price subsequent to the effective date of the note and prior to the conversion. The maturity dates of the notes were extended to June 30, 2015.
The lender previously advanced a total of $11,000 in August and September 2013 that was transferred to this agreement. We recorded a debt discount of $11,000, which has been fully amortized to interest expense, along with a derivative liability upon transfer.
On October 21, 2013, we received additional proceeds of $22,000 on this securities purchase agreement. We recorded a debt discount of $22,000, which has been fully amortized to interest expense, along with a derivative liability at inception.
On November 22, 2013, we received additional proceeds of $25,000 on this securities purchase agreement. We recorded a debt discount of $25,000, which has been fully amortized to interest expense, along with a derivative liability at inception.
Securities Purchase Agreement - $500,000
On April 18, 2014, we entered into a securities purchase agreement for the sale of 10% convertible promissory notes in aggregate principal amount of $500,000 (the “$500,000 SPA”). The advance amounts received are at the lender’s discretion. The notes are convertible into shares of our common stock at a price per share equal to the lesser of: $0.003; 50% of the lowest trade price subsequent to the effective date of the note and prior to the conversion; or the lowest effective price per share granted to any person or entity to acquire common stock subsequent to the effective date of the note. The notes mature eighteen months from the effective date of each advance.
On April 18, 2014, we received proceeds of $60,000 pursuant to the $500,000 SPA. We recorded a debt discount of $60,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $9,854 and $28,139, respectively, resulting in a remaining discount of $22,007 at March 31, 2015.
On May 20, 2014, we received proceeds of $45,000 pursuant to the $500,000 SPA. We recorded a debt discount of $45,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $7,377 and $18,443, respectively, resulting in a remaining discount of $19,180 at March 31, 2015.
On June 30, 2014, we received proceeds of $200,000 pursuant to the $500,000 SPA. We recorded a debt discount of $200,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $32,847 and $67,153, respectively, resulting in a remaining discount of $100,000 at March 31, 2015.
On July 18, 2014, we received proceeds of $25,000 pursuant to the $500,000 SPA. We recorded a debt discount of $25,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $4,098 and $7,559, respectively, resulting in a remaining discount of $13,343 at March 31, 2015.
On August 6, 2014, we received proceeds of $65,000 pursuant to the $500,000 SPA. We recorded a debt discount of $65,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $10,656 and $17,404, respectively, resulting in a remaining discount of $36,940 at March 31, 2015.
On August 18, 2014, we received proceeds of $25,000 pursuant to the $500,000 SPA. We recorded a debt discount of $25,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $4,098 and $6,148, respectively, resulting in a remaining discount of $14,754 at March 31, 2015.
On September 9, 2014, we received proceeds of $56,000 pursuant to the $500,000 SPA. We recorded a debt discount of $56,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $ 9,214 and $11,569, respectively, resulting in a remaining discount of $35,217 at March 31, 2015.
On October 8, 2014, we received proceeds of $24,000 pursuant to the $500,000 SPA. We recorded a debt discount of $24,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $ 3,941 and $3,679, respectively, resulting in a remaining discount of $16,380 at March 31, 2015.
Securities Purchase Agreement - $500,000
On October 1, 2014, we entered into a securities purchase agreement for the sale of 10% convertible promissory notes in aggregate principal amount of $500,000 (the “October 2014 $500,000 SPA”). The advance amounts received are at the lender’s discretion. The notes are convertible into shares of our common stock at a price per share equal to the lesser of: $0.003; 50% of the lowest trade price subsequent to the effective date of the note and prior to the conversion; or the lowest effective price per share granted to any person or entity to acquire common stock subsequent to the effective date of the note. The notes mature eighteen months from the effective date of each advance.
On October 1, 2014, we received proceeds of $65,000 pursuant to the October 2014 $500,000 SPA. We recorded a debt discount of $65,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $10,675 and $10,794, respectively, resulting in a remaining discount of $43,531 at March 31, 2015.
On November 7, 2014, we received proceeds of $30,000 pursuant to the October 2014 $500,000 SPA. We recorded a debt discount of $30,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $4,936 and $2,962, respectively, resulting in a remaining discount of $22,102 at March 31, 2015.
On December 9, 2014, we received proceeds of $25,000 pursuant to the October 2014 $500,000 SPA. We recorded a debt discount of $25,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015 and the year ended December 31, 2014, amortization of debt discount was recorded to interest expense in the amount of $4,106 and $1,004, respectively, resulting in a remaining discount of $19,890 at March 31, 2015.
On January 14, 2015, we received proceeds of $92,000 pursuant to the October 2014 $500,000 SPA. We recorded a debt discount of $92,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015, amortization of debt discount was recorded to interest expense in the amount of $12,782, resulting in a remaining discount of $79,218 at March 31, 2015.
On February 10, 2015, we received proceeds of $30,000 pursuant to the October 2014 $500,000 SPA. We recorded a debt discount of $30,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015, amortization of debt discount was recorded to interest expense in the amount of $2,687, resulting in a remaining discount of $27,313 at March 31, 2015.
On March 16, 2015, we received proceeds of $30,000 pursuant to the October 2014 $500,000 SPA. We recorded a debt discount of $30,000 related to the conversion feature of the note, along with a derivative liability at inception. During the three months ended March 31, 2015, amortization of debt discount was recorded to interest expense in the amount of $818, resulting in a remaining discount of $29,182 at March 31, 2015.
