INSIDER ENRICHMENT? LET THE INVESTORS DECIDE!
Net income $ 8,621 For the Three Months Ended June 30, 2019
General and administrative $213,735 For the Three Months Ended June 30,2019
Salaries and wages $94,809 For the Three Months Ended June 30,2019
Note 2 – Related Parties
Debt Financing
From time to time we have received and repaid loans from our CEO and his immediate family members to fund operations. This related party
debts are fully disclosed in Note 7 below. The Company has a back-up lines of credit from related parties totaling $250,000 to cover the repayment
of the current portion of long-term debt, should the Company need it.
Sale and Conversion of Note Payable
On December 31, 2018, GG Mars Capital, Inc., a related party, sold a convertible note to a third party. The note, originally issued on February
7, 2014, consisted of $26,000 principal and $14,000 of accrued interest. The note and accrued interest were later converted to 4,000,000 shares
of Common Stock, Class A, within the terms of the agreement. This related party debts are fully disclosed in Note 7 below.
On February 7, 2019, GG Mars Capital, Inc., a related party, sold a convertible note to a third party. The note, originally issued on August 20,
2013, consisted of $25,000 principal and $29,007 of accrued interest. The note and accrued interest were later converted to 5,400,700 shares of
Common Stock, Class A, within the terms of the agreement. This related party debts are fully disclosed in Note 7 below.
On February 28, 2019, Star Financial Corporation, a related party, sold a convertible note to a third party. The note, originally issued on August
2, 2013, consisted of $12,000 principal and $12,367 of accrued interest. The note and accrued interest were later converted to 2,436,700 shares
of Common Stock, Class A, within the terms of the agreement. This related party debts are fully disclosed in Note 7 below.
On February 28, 2019, Star Financial Corporation, a related party, sold a convertible note to a third party. The note, originally issued on August
7, 2013, consisted of $12,000 principal and $12,367 of accrued interest. The note and accrued interest were later converted to 2,436,700 shares
of Common Stock, Class A, within the terms of the agreement. This related party debts are fully disclosed in Note 7 below.
Conversion of Preferred Stock, Series A to Preferred Stock, Series C
On February 15, 2019, the Company’s CEO convertible 53,637 shares of Preferred Stock, Series A to 20,109,020 shares of Preferred Stock,
Series C, consistent with the terms of the agreement.
Conversion of Preferred Stock, Series C to Common Stock, Class A
On January 7, 2019, GG Mars Capital, Inc., a related party, convertible 1,133,334 shares of Preferred Stock, Series C to 3,400,002 shares of
Common Stock, Class A, consistent with the terms of the agreement.
On February 13, 2019, Company’s CEO convertible 2,760,833 shares of Preferred Stock, Series C to 8,282,499 shares of Common Stock, Class
A, consistent with the terms of the agreement.
On February 18, 2019, Company’s CEO convertible 20,109,020 shares of Preferred Stock, Series C to 60,327,060 shares of Common Stock,
Class A, consistent with the terms of the agreement.
On February 22, 2019, Star Financial Corporation, a related party, convertible 4,266,667 shares of Preferred Stock, Series C to 12,800,001 shares
of Common Stock, Class A, consistent with the terms of the agreement.
On February 27, 2019, GG Mars Capital, Inc., a related party, convertible 3,666,667 shares of Preferred Stock, Series C to 11,000,001 shares of
Common Stock, Class A, consistent with the terms of the agreement.
Originated January 1, 2018, an unsecured $250,000 line of credit from Star Financial, a
corporation owned by an immediate family member of the Company’s CEO. The note
carries a 6% interest rate, matured on December 31, 2022. 68,200 52,200
Originated January 1, 2018, an unsecured $250,000 line of credit from GG Mars, Inc, a
corporation owned by an immediate family member of the Company’s CEO. The note
carries a 6% interest rate, matured on December 31, 2022. 37,000 7,000
Effective December 31, 2017, the Company entered into an agreement with an immediate
family member of the Company’s CEO to convert $1,626 of accrued interest to a note
payable due December 31, 2020 barring an annual interest rate of 6%. 7,474 7,060
Effective December 31, 2017, the Company entered into an agreement with an immediate
family member of the Company’s CEO to convert $21,471 of accrued interest to a note
payable due December 31, 2020 barring an annual interest rate of 6%. 23,893 23,086
Effective December 31, 2017, the Company entered into an agreement with Star
Financial Corporation, a related party, to convert $239,295 of accrued interest to a note
payable due December 31, 2020 barring an annual interest rate of 6%. 266,853 272,154
Effective December 31, 2017, the Company entered into an agreement with GG Mars,
Inc., a related party, to convert $282,904 of accrued interest to a note payable due
December 31, 2020 barring an annual interest rate of 6%. 290,864 293,861
Total notes payable, related parties 2,083,730 2,093,807
Less: current portion – –
Notes payable, related parties, less current portion $ 2,083,730 $ 2,093,807
Conversion of Note Payable to Common Stock, Class A
On December 31, 2018, GG Mars Capital, Inc., a related party, sold a convertible note to a third party. The note, originally issued on February
7, 2014, consisted of $26,000 principal and $14,000 of accrued interest. The note and accrued interest were later converted to 4,000,000 shares
of Common Stock, Class A, within the terms of the agreement.
On February 7, 2019, GG Mars Capital, Inc., a related party, sold a convertible note to a third party. The note, originally issued on August 20,
2013, consisted of $25,000 principal and $29,007 of accrued interest. The note and accrued interest were later converted to 5,400,700 shares of
Common Stock, Class A, within the terms of the agreement.
On February 28, 2019, Star Financial Corporation, a related party, sold a convertible note to a third party. The note, originally issued on August
2, 2013, consisted of $12,000 principal and $12,367 of accrued interest. The note and accrued interest were later converted to 2,436,700 shares
of Common Stock, Class A, within the terms of the agreement.
On February 28, 2019, Star Financial Corporation, a related party, sold a convertible note to a third party. The note, originally issued on August
7, 2013, consisted of $12,000 principal and $12,367 of accrued interest. The note and accrued interest were later converted to 2,436,700 shares
of Common Stock, Class A, within the terms of the agreement.
Conversion of Preferred Stock, Series A to Preferred Stock, Series C
On February 15, 2019, the Company’s CEO convertible 53,637 shares of Preferred Stock, Series A to 20,109,020 shares of Preferred Stock,
Series C, consistent with the terms of the agreement.
Conversion of Preferred Stock, Series C to Common Stock, Class A
On January 7, 2019, GG Mars Capital, Inc., a related party, convertible 1,133,334 shares of Preferred Stock, Series C to 3,400,002 shares of
Common Stock, Class A, consistent with the terms of the agreement.
On February 13, 2019, Company’s CEO convertible 2,760,833 shares of Preferred Stock, Series C to 8,282,499 shares of Common Stock, Class
A, consistent with the terms of the agreement.
On February 18, 2019, Company’s CEO convertible 20,109,020 shares of Preferred Stock, Series C to 60,327,060 shares of Common Stock,
Class A, consistent with the terms of the agreement.
On February 22, 2019, Star Financial Corporation, a related party, convertible 4,266,667 shares of Preferred Stock, Series C to 12,800,001 shares
of Common Stock, Class A, consistent with the terms of the agreement.
On February 27, 2019, GG Mars Capital, Inc., a related party, convertible 3,666,667 shares of Preferred Stock, Series C to 11,000,001 shares of
Common Stock, Class A, consistent with the terms of the agreement.
Issuance of Common Stock, Class A for Services Rendered
On April 4, 2019, the Company issued 5,000,000 shares of Common Stock, Class A to Cloud Builders, Inc. for services rendered.
Note 11 - Subsequent Events
Conversion of Preferred Stock, Series A to Preferred Stock, Series C
On July 2, 2019, the Company’s CEO convertible 53,637 shares of Preferred Stock, Series A to 20,109,020 shares of Preferred Stock, Series C,
consistent with the terms of the agreement.
On July 16, 2019, the Company’s CEO convertible 53,637 shares of Preferred Stock, Series A to 20,109,020 shares of Preferred Stock, Series C,
consistent with the terms of the agreement.
Conversion of Preferred Stock, Series C to Common Stock, Class A
On July 2, 2019, Company’s CEO convertible 20,109,020 shares of Preferred Stock, Series C to 60,327,060 shares of Common Stock, Class A,
consistent with the terms of the agreement.
On July 16, 2019, Company’s CEO convertible 20,109,020 shares of Preferred Stock, Series C to 60,327,060 shares of Common Stock, Class A,
consistent with the terms of the agreement.
Issuance of Common Stock, Class A for Services Rendered
On August 12, 2019, the Company issued 20,000,000 shares of Common Stock, Class A to Cloud Builders, Inc. for services rendered.
Amendment to Articles of Incorporation
On July 22, 2019, the Company amended its Articles of Incorporation to increase authorized shares of Class A Common Stock from 300,000,000
to 600,000,000.
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