Max Sound Corp (fka MAXD)

[grantastic]

Here is some real good DD:

This is all from SIGNED FILINGS (i.e., not 4-year old websites & press releases)

2017 10-K: https://backend.otcmarkets.com/otcapi/company/sec-filings/12659683/content/html
2017 10-Q: https://backend.otcmarkets.com/otcapi/company/sec-filings/12382137/content/html
2016 10-K: https://backend.otcmarkets.com/otcapi/company/sec-filings/11969297/content/html

Lifetime revenue: $0 (ZERO DOLLARS)

2 Executives' salaries: $504,000 / yr (CFO $288k + CEO $216k /yr)

1 year operating loss: $2,807,021

Convertible debt: $6,112,938

MAXD owes Google: $819,626 (costs for dismissed lawsuit)

Average debt conversion discount: 66%

Shares issued (as of Mar 2018): 3,715,287,050
Shares issued (as of Sep 2017): 1,862,959,202
Shares issued (as of Sep 2016): 847,363,298

Dilution in 6 last months: 2.0x share increase
Dilution in 18 last months: 4.4x share increase

Current A/S: 10,000,000,000

Some important events:

A/S raised to 10,000,000,000 (10 billion) on Feb 1, 2018, even though reported O/S (~1.86b) was less than HALF the previous A/S (4.5b)

Def 14c: https://backend.otcmarkets.com/otcapi/company/sec-filings/12510930/content/html

Lawsuit against netflix withdrawn 3 years ago, never refiled:

The Company, on or about December 2015 upon advice of counsel, decided withdraw the litigation prior to oral argument

Lawsuit against google dismissed, appealed, dismissal upheld:

However, on November 24, 2015, the court granted a second motion to dismiss for lack of subject matter jurisdiction based on the defendants’ argument that the agreements between the Company and VSL/Vedanti did not clearly give the Company standing to enforce the patent rights. The Company appealed that decision on February 22, 2016. One January 18, 2017 the Company received a notice from the Federal Circuit Court of Appeals that affirmed the order of the District Court dismissing MAXD's patent infringement lawsuit against Google for lack of standing.

Google is awarded $820,000 in costs against MAXD:

On September 25, 2017, the Court issued an order that the Company should reimburse defendants for its attorneys’ fees in the amount of $820,321.41.

MAXD involved in Eli Attia's lawsuit against Google in some unspecified way:

On December 5, 2014, the Company, along with renowned architect Eli Attia, filed a lawsuit in the Superior Court of California, County of Santa Clara, against Google, its co-founders Sergey Brin and Larry Page, Google’s spinoff company Flux Factory, and senior executives of Flux. Plaintiffs’ allege misappropriation of trade secrets, breach of contract and other contract-related claims, breach of confidence, slander of title, violation of California’s Unfair Competition Law (California Business and Professionals Code §§ 17200 et seq.), and fraud, and also a claim for declaratory relief.

Eli Attia adds RICO complaint to lawsuit against google; this causes Google to move the lawsuit to Federal District Court & changes the trial date to be in the year 2021:

On October 4, 2017, the Court granted Mr. Attia leave to amend the complaint to add causes of action against defendants for civil violations of the federal Rackateer Influenced and Corrupt Organizations Act (commonly known as RICO). Subsequently, on October 23, 2017, the defendants removed the lawsuit from California state court to the federal district court in the Northern District of California, San Jose Division.

MAXD sued by their own ex-lawyers for failure to pay:

On June 1, 2016, the Company was named as a defendant in an action filed in the Superior Court of the State of California, County of Los Angeles – Central District, captioned Adli Law Group, PC v. Max Sound Corporation (Case No. BC621886).

CEO John Blaisure DUMPS $68,000 in shares ... right before the price falls an extra 90% because of dilution

2,266,613 shares @ $.0108 = $24,479.42
2,200,000 shares @ $.0200 = $44,000.00

Total: $68,479.42

Form 4, Mar 2017: https://backend.otcmarkets.com/otcapi/company/sec-filings/11951837/content/html
Form 4, Sep 2016: https://backend.otcmarkets.com/otcapi/company/sec-filings/11614233/content/html

John Blaisure's accidentally or deliberately misrepresented those share sales with a "purchase" trans code on the form 4s. This causes the insider trades to falsely appear as PURCHASES instead of SALES on most websites. The filings confirm that Blaisure actually SOLD however:

2015 10-K: https://backend.otcmarkets.com/otcapi/company/sec-filings/11290113/content/html

Beneficial ownership: 32,767,573

2016 10-K: https://backend.otcmarkets.com/otcapi/company/sec-filings/11969297/content/html

Beneficial ownership: 28,300,960 shares

Share ownership REDUCED by 4,466,613 shares.

CFO Greg Halpern converts 120,000,000 shares into preferred dividend paying stock:

On March 4, 2015 the Company filed a form 8K with the SEC associated with the Company entering into a Securities Exchange Agreement and the Company filing with the Secretary of State Delaware a Certificate of Designations, Preferences and Rights whereby, among other things, the Company for good and valuable consideration, agreed that in consideration of a large shareholder exchanging 120,000,000 shares of common stock back to the Company, the shareholder would receive 5,000,000 shares of Series A Convertible Preferred Stock of the Company at a Stated Value of $0.96 per share and a Conversion Price of $0.04 per share. The Series A Convertible Preferred Stock carries certain voting preferences and will accrue dividends at a rate of 8% per annum Stated Value, payable in cash or in kind at the election of the Board of Directors. For the year ended December 31, 2016 and for the year ended December 31, 2015, the Company has not declared dividends.

CFO Greg Halpern uses those accrued dividends to gift himself 800,000,000 shares, and trades them in to take voting control of MAXD:

On October 2, 2017, the Company, in exchange for Greg Halpern's consideration issuing the Company a line of credit of $100,000 on July 6, 2017 and another line of credit of $200,000 on October 2, 2017 and for Mr. Halpern's forgiveness of $960,000 of interest owed to Mr. Halpern for his Preferred Shares accrued dividend rate of 8% per annum of his already owned 5 million Series A Convertible Preferred Shares, the Board deemed it proper to grant Mr. Halpern an additional 800,000,000 shares of the Company's common stock, which at Mr. Halpern's election he may convert into 5,000,000 additional Series A Convertible Preferred Shares with the same voting rights and percentages as his previously granted and owned 5,000,000 Series A Convertible Preferred Shares.

On November 8, 2017, the Company, at Greg Halpern's election , converted 800,000,000 shares of Common Stock into 5,000,000 Series A Convertible Preferred Shares representing 33.4% of the Company’s voting rights and control adding to Halpern’s existing 33.4% holdings, equaling 66.8% of the Company’s total voting rights and control.

CFO Greg Halpern withdraws an extra $272,000 out of the company:

In 2015, the Company has received from Mr. Halpern additional net advances on the established lines of credit in the amount of $264,000 of which it has repaid $536,000.