Saleen Automotive, Inc. (fka SLNN)

[BigBake1]

Just adding them up:

Steve Saleen (a)

The Company owed amounts to Steve Saleen, founder and Chief Executive Officer of the Company, for accrued salary and advances provided to the Company. The advances are non-interest bearing, with no formal terms of repayment. As of March 31, 2017, a total of $545,352 was owed to Mr. Saleen. On March 22, 2018, Mr. Saleen was issued 1,090,704 shares of the Company’s common stock to settle the total amount owed to him as of the prior fiscal year of $545,352. The shares were valued at $0.50 per share based on a contemporaneous private placement of Series A Preferred Stock (see Note 10). As of March 31, 2018, the Company owed Mr. Saleen $104,483.

Fair value of common shares issued to officer and directors for compensation

On March 22, 2018, Mr. Saleen was issued an additional 1,575,964 shares of the Company’s common stock in exchange for services, pursuant to an Amendment to Binding Letter of Intent and 12% Senior Secured Convertible Note dated March 1, 2017. The issuance of these shares was subject to approval by the Company’s Board of Directors which occurred on March 22, 2018. The shares were valued at $787,982 and are included in general and administrative expenses in the accompanying consolidated statement of operations during the year ended March 31, 2018. The shares were valued at $0.50 per share based on a contemporaneous private placement of Series A Preferred Stock (see Note 10).

On March 22, 2018, Mr. Saleen was also issued 1,150,000 shares of the Company’s common stock as consideration of the relinquishment of his rights to be issued a warrant to purchase preferred stock pursuant to a letter agreement dated October 12, 2017. The issuance of these shares was subject to approval by the Company’s Board of Directors which occurred on March 22, 2018. The shares were valued at $575,000 and are included in general and administrative expenses in the accompanying consolidated statement of operations during the year ended March 31, 2018. The shares were valued at $0.50 per share based on a contemporaneous private placement of Series A Preferred Stock (see Note 10).

In December 2015, the Company issued a 12% Senior Secured Convertible Note (the “12% Note”) to SM Funding in the amount of $2,550,000. The 12% Note matured in October 2016, accrued interest at 12% per annum, and was, at the holder’s option, convertible into shares of preferred stock. The 12% Note was secured by all assets and intellectual property of the Company, was guaranteed by the Company’s subsidiaries, and was senior relative to the 3% Notes and 7% Notes. In July 2017, the 12% Note of $2,550,000 plus accrued interest of $406,720 (total of $2,956,720) was exchanged for 369,590 shares of the Company’s Series A Preferred Stock at a price of $8 per share. In December 2017, the 369,590 shares of Series A Preferred Stock converted into 4,927,867 shares of the Company’s common stock (see Note 10), resulting in an effective price of $0.60 per share of common stock based on the principal and interest of $2,956,720.