you for got this one
Some one still wants to give them money? How much assets do they have? Also look who has the voting power!
During 2016, the Company issued promissory notes in the aggregate amount of $310,000. These notes bear interest at 10% per annum and $165,000 is due on October 26, 2016, $65,000 is due on February 26, 2017, $40,000 is due on December 12, 2016, and $40,000 is due on March 29, 2017. These notes are secured by substantially all assets of the Company. The convertible promissory notes are convertible into shares of the Company’s common stock at a rate equal to $0.01-$0.05 per share, subject to downward adjustments for future equity issuances. In connection with these convertible promissory notes, the Company issued warrants to purchase 36,500,000 shares of common stock at an exercise price of $0.01 per share, subject to downward adjustments for future equity issuances. The warrants have a term of 7 years from the date of issuance.
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The conversion features and warrants are considered derivative liabilities pursuant to ASC 815 and were measured at their grant-date fair value and recorded as a liability and note discount on the date of issuance. Subsequent changes to the value of the derivative liabilities are recorded in earnings. As a result, during the year ended December 31, 2015, the Company recorded an initial note discount of $455,000, with an additional immediate charge to interest expense of $749,809 relating to the excess value of the derivative liabilities over the promissory notes. During the nine months ended September 30, 2016, the Company recorded an additional note discount of $276,757, with an immediate charge to interest expense of $2,403,706 relating to the excess value of the derivative liabilities over the promissory notes. Amortization of the note discount amounted to $272,090 during the nine months ended September 30, 2016 and $225,167 for the nine months ended September 30, 2015.
7. STOCKHOLDERS’ EQUITY
Preferred Stock
Upon confirmation of the Company’s Chapter 11 Reorganization Plan, the Company was authorized to issue 2,000 shares of preferred stock, no par value. The rights, privileges, and preferences of the preferred stock are to be determined by the Company’s board of directors and may be issued in series. As of December 31, 2015, there were no shares of preferred stock outstanding. As of January 18, 2016, Imaging3 issued 2,000 preferred voting shares to Dane Medley, CEO/Chairman. Each share constitutes 350,000 voting shares. The estimated value of these shares was not significant. As of September 30, 2016, there were 2,000 shares of preferred stock outstanding.
