Zerify Inc (ZRFY)

[BettingAngles]

Look at the filings..Half went to the Attorney, another chunk went to taxes, and the rest disappeared from the books. NO DEBT WAS PAID..

http://www.otcmarkets.com/stock/SFOR/filings

SCAM-At June 30, 2016, the Company had cash on hand in the amount of $1,667,607. The Company's ability to continue as a going concern is dependent upon its ability to implement its business plan. Currently, management is attempting to increase revenues and improve gross margins by a revised sales strategy. The Company is redirecting its sales focus from direct sales to domestic and international sales channels, where it is primarily selling through a channel of Distributors, Value Added Resellers, Strategic Partners and Original Equipment Manufacturers. While the Company believes in the viability of its strategy to increase revenues, there can be no assurances to that effect. The Company's ability to continue as a going concern is dependent upon its ability to continually increase its customer base and realize increased revenues from recently signed contracts. No assurance can be given that any future financing, if needed, will be available or, if available, that it will be on terms that are satisfactory to the Company. Even if the Company is able to obtain additional financing, if needed, it may contain undue restrictions on its operations, in the case of debt financing, or cause substantial dilution for its stock holders, in the case of equity financing.

Reverse Stock Splits



In January 2015, the Company effected a 1:650 reverse stock split of the Company's issued and outstanding shares of common stock.



In July 2015, the Company effected a 1:1,000 reverse stock split of the Company's issued and outstanding shares of common stock.



All share and per share amounts have been adjusted, on a retroactive basis, to reflect the reverse stock splits adopted by the Company as if the reverses had occurred at the beginning of the earliest period presented.



FRAUD:(a) At June 30, 2016 and December 31, 2015, $542,588 in aggregate principal amount of the DART/Citco Global debentures was issued and outstanding and are secured through the note holder's claim on the Company's intellectual property. The secured convertible debentures are in default. Due to the adjustable conversion price feature of the secured convertible debentures, the conversion feature of the notes were accounted for a derivative liability (see Note 7). DART did not process any conversions in fiscal 2016 or 2015, and the Company has been in contact with the note holder who has indicated that it has no present intention of exercising its right to convert the debentures into shares of the Company's common stock. In connection with the secured convertible debentures with DART/Citco Global, we granted DART/Citco Global a secured interest in all of our assets. Under the terms of the secured debentures, we are restricted in our ability to issue additional securities as long as any portion of the principal or interest on the secured debentures remains outstanding. During 2016 or 2015, we did not obtain DART/Citco Global's written consent related to any of our financing agreements.





(b) Convertible notes payable consisted of thirteen unsecured convertible notes ranging in interest rates of 0% per annum to 18% per annum. The notes are convertible at a fixed amount into 13 shares of the Company's common stock, at fixed per share amounts ranging from $1,950,000 to $9,750,000,000 per share, as defined in the agreements. The notes were due in various dates through 2015 and are all currently in default. The Company is currently pursuing settlements with certain of the holders.









At December 31, 2015, the balance of the accrued interest on the unsecured convertible notes with fixed conversion features was $932,272. During the interim period ended June 30, 2016, interest expense of $40,174 was recorded, and at June 30, 2016, the balance of accrued interest on unsecured convertible notes with fixed conversion features was $946,273.



(c) At December 31, 2015, the balance of the unsecured convertible notes with adjustable conversion features was $824,861. During the interim period ended June 30, 2016, the Company repaid a total of $681,738 of unsecured convertible notes principal. In addition, note holders converted an aggregate of $143,123 of unsecured convertible note principal. At June 30, 2016, the balance of unsecured convertible notes with adjustable conversion features was $0.









The Notes were convertible into shares of Common Stock of the Company at the option of the holder at a price per share discount of 40% of the Company's Common Stock trading market price during a certain time period. The Company determined that the conversion prices of the Notes were not a fixed amount because they were subject to adjustment based on the occurrence of future offerings or events and therefore the conversion feature of the notes were accounted for a derivative liability. During the interim period ended June 30, 2016, the payment and conversion of the convertible notes resulted in the Company recording a gain of $635,600 related to the extinguishment of the corresponding derivative liability (see Note 7).









At December 31, 2015, the balance of the accrued interest on the unsecured convertible notes with adjustable conversion features was $296,396. During the interim period ended June 30, 2016, the Company repaid a total of $147,829 of accrued interest, and note holders converted an aggregate of $49,560 of accrued interest into shares of common stock. During the interim period ended June 30, 2016, interest expense of $13,278 was recorded. Additionally, accrued interest of $71,153 was forgiven and written-off, and at June 30, 2016, the balance of accrued interest on unsecured convertible notes payable with adjustable conversion features was $22,962.









During the interim period ended June 30, 2016, a total of $192,683 principal and accrued interest on unsecured convertible notes with adjustable conversion features was converted into 1,594,171,735 shares of the Company's common stock at conversion prices ranging from $0.000058 to $0.0008 per share. In addition, 511,066,248 shares of common stock were issued with a fair value of $386,202 as additional interest to certain note holders.



At June 30, 2016 and December 31, 2015, accrued interest due for all convertible notes was $969,235 and $1,228,668, respectively, and is included in accrued interest in the accompanying balance sheets. Interest expense for all convertible notes payable for the interim periods ended June 30, 2016 and 2015 was $53,452 and $104,245, respectively.

LIES- WHY WASN'T THE MICROSOFT SETTLEMENT FUNDS USED HERE:

Note 6 - Notes Payable – Related Party



Notes payable- related party consist of eighteen unsecured notes payable to the Company's Chief Executive Officer ranging in interest rates of 0% per annum to 10% per annum. The notes have extended due dates of December 31, 2016, with the exception of one note for $19,875 due in January 2017, and all are shown as current liabilities. The balance of the outstanding notes payable - related party was $742,513 and $742,513 as of June 30, 2016 and December 31, 2015, respectively.



At June 30, 2016 and December 31, 2015, accrued interest due for the notes – related party was $576,616 and $548,653, respectively, and is included in accrued interest in the accompanying balance sheets. Interest expense for notes payable - related parties for the interim periods ended June 30, 2016 and 2015 was $27,963 and $27,810, respectively.