Zerify Inc (ZRFY)

[nodummy]

Our outstanding hasn't gone up since March 2016

That's a flat out lie.

You might want to look at the information in the last 10Q filed on May 23, 2016

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=11403434

According to that 10Q the outstanding share count on March 31, 2016 was 1,814,955,065 shares.

According to that same 10Q the outstanding share count on May 16, 2016 was 2,282,957,407 shares.


So after March 2016 another 468,002,342 shares were diluted into the market.

In the subsequent events section of that 10Q it clearly states that those shares were issued for convertible debt and interest due on that convertible debt after March 2016:

Issuance of shares of Common Stock upon conversion of accrued interest

Subsequent to March 31, 2016, convertible note holders were issued 313,002,342 shares of the Company's common stock with a fair value of approximately $31,956 as additional interest .

313,002,342 shares issued for just $31,956 in interest. That's $.0001/share. Just sickening.

$31,956 of interest wasn't even 1% of the interest due that was on the balance sheet as of March 31, 2016.

As of March 31, 2016, SFOR had far far far more convertible debt on the books than cash on hand. The interest alone due on that convertible debt was $3,810,797. With only $2,144,752 in cash still on hand from the court settlement that math doesn't work that all the convertible debt and interest due could have been paid off with cash alone.


The fact that so little debt turned into so many shares between January 2016 and March 2016 is just sickening:

During the three month period ended March 31, 2016, the Company issued an aggregate of 1,792,243,141 shares of its common stock as follows:

Convertible note holders converted $143,123 of principal, $37,968 of accrued interest and $239,153 of additional interest into 1,792,235,641 shares of common stock at conversion prices ranging from $0.000058 to $0.0008 per share.

If only a tiny fraction of the debt and interest can become that many free trading shares of stock it is scary to think what could happen with the rest of the millions and millions of dollars of debt and interest that were still on the balance sheet as of March 31, 2016.

I very very much look forward to the next 10Q filing due out this month. I will be more than a little impressed if you managed to pay off all the notes and interest due on those notes with only $2,144,752 in cash.

We'll see if there truly is no more Toxic Debt and no more convertibles. It will be impossible to live that down if you are wrong.