In default on new short-term notes
From today's 10-Q - "In November and December of 2017, the Compnay entered into four Bridge Loan Agreements totaling $105,000. The notes accrue annual interest at 10% and mature in 30 days. The notes are all in default as of the date of this report".
I'm surprised that Alex does not provide more info on this as it is usually about the most important thing to address (in default on debt). Is there an agreement with the lenders, negotiations, fundraising, etc? Are there covenants that prevent lenders from any actual over a stated "cure period?" Without access to the loan docs / indentures we can't tell but he should address this. Maybe he'll address the solution in a PR.
In addition , there was more massive dilution from 22.2MM shares outstanding on 12/20/2017 to 33.6MM on March 2, 2018! LEXG says in the 10-Q that they "anticipate that we will need to raise an additional $1MM ... through the balance of this fiscal year ended June 30 2018." Since the market cap at $.041 is $1.4MM, this is a 71% additional dilution coming in the next 3 months even if not raised via further dilutive convertibles once again!
Finally the 10-Q notes material weakness in disclosure controls and procedures as of 12/31/17 such that "there is a reasonable possibility that a material misstatement of the Company's interim financial statements will not be prevented or detected on a timely basis."
