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Re: MADDSTACKER post# 7725

Saturday, 11/07/2015 1:56:04 PM

Saturday, November 07, 2015 1:56:04 PM

Post# of 21105
No notes hitting this year & you can review notes in last 10Q with those converting in 2016 at various times, but this is my favorite:
If the price per share is below .15

On June 17, 2015, the Company entered into securities purchase agreements with Magna Equities II, LLC and Riverside Merchant Partners, LLC. Pursuant to the agreements, Magna Equities II, LLC and Riverside Merchant Partners, LLC each purchased separately from the Company a convertible note of the Company in the principle amount of $35,000, for $32,500 cash. Each note matures on June 17, 2016 and bears interest at 8% per annum.




The Company analyzed these convertible notes for derivative accounting consideration under FASB ASC 470 and determined that the embedded conversion feature qualified for accounting treatment as a financial derivative. Derivative value of $220,322 was recorded as debt discount on the note issuance dates. The discount is amortized by the Company through interest expense over the life of the notes.

If the price per share is below .15



The notes issued during the three months ended June 30, 2015 are convertible at any time during the period after 179 days after the issuance date at a price of $0.15 per share. If, 180 days after the issuance of the notes, market price of the Company’s common stock is below $0.15 per share, the Company will have 30 days to repay the notes. After 30 days, the note is convertible at 80% of the lowest trading price in 10 trading days prior to the conversion date.
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