Global Digital Solutions Inc (GDSI)

[hockeypond]

Not to put the onus on you but I have a question. It's good to see the notes/derivative's be reduced from $496k to $312k from this 10q to the prior. As you discovered KBM and Vis Vires notes of $59k will be paid with the factoring agreement but where does this leave us with the balance of $250k? When are they due and will this cause further dilution now? The following statement below is of interest to all of us and curious on your analysis. A conference call with the shareholders would be nice.

As a result of recent declines in the fair value of the Company’s common stock, the Company does not currently have sufficient authorized shares to satisfy in full its obligations under several of these convertible notes payable. Accordingly, certain of the note holders have the right to accelerate the payment due under the terms of their note. In addition, they have the right to require that additional shares and/or monies be paid in connection with this technical default. At September 30, 2015, the Company has accrued $31,346 of penalty interest associated with one of these notes. The Company intends to request shareholder approval to increase the number of authorized shares of common stock in the near future in order to satisfy its obligations under these notes.