DD Support Board and Research Team

[stockmasterflash]

Posts like this are a dime a dozen on iHub

IMO the note fit the definition of a toxic note which came as quite a surprise to me when we were told they would never issue toxic debt, and were very aware of the risk that imposes to a stock. If I'm wrong, all I can say is that nobody ever explained how it doesn't fit the definition of a toxic note. What WAS said is that it will be paid off, so no toxic dilution will occur. So in reality the note will not be toxic, assuming it will be paid off. And it is for a small amount.

So, no worries most likely.

I bought more at .191 today. Hoping for the best.

Toxic notes are never paid off early excepth when they are replaced by a larger toxic note to cover the pre payment penalty/original issue discount and months worth of expenses.

Here is the latest example from that company. Borrow $600k. Owe $680k on day1. You don't need bashers when you have dilution like this.

https://www.otcmarkets.com/stock/FUSZ/filings

6. CONVERTIBLE NOTE PAYABLE


The Company entered into a series of unsecured loan agreement with Oceanside Strategies, Inc. (“Oceanside”) a third party-lender, in the aggregate principal amount of $600,000 through December 31, 2015. The loans bear interest at rates ranging from 5% to 12% per annum and were due on demand.

On April 3, 2016, the Company issued an unsecured convertible note payable to Oceanside in the amount of $680,268 (this amount includes $600,000 principal amount and $80,268 accrued and unpaid interest). This note superseded and replaced all previous notes and current liabilities due to Oceanside for sums Oceanside loaned to the Company in 2014 and 2015. This note bears interest at the rate of 12% per annum, compounded annually. In consideration for Oceanside’s agreement to convert the prior notes from current demand notes and extend the maturity date to December 4, 2016, the Company granted Oceanside the right to convert up to 30% of the amount of such note into shares of the Company’s common stock at $0.07 per share and issued 2,429,530 share purchase warrants, exercisable at $0.07 per share until April 4, 2019.

Effective December 30, 2016, the Company entered into an extension agreement (the “Extension Agreement”) with Oceanside to extend the maturity date of the Note to and including August 4, 2017. All other terms of the Note remain unchanged. In consideration for Oceanside’s agreement to extend the maturity date to August 4, 2017, the Company issued Oceanside 2,429,530 share purchase warrants, exercisable at $0.08 per share until December 29, 2019.

As of March 31, 2017, and December 31, 2016, the principal amount of the note payable was $680,268.


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To date, we have not derived any revenues from our operations and have incurred losses since inception. Our net loss was $856,820 for the three months ended March 31, 2017 and $697,280 for the three months ended March 31, 2016. As of March 31, 2017, we had stockholders’ deficit of $3,834,770. We will need to raise additional working capital to continue our normal and planned operations.