CYIOS Corporation (CYIO)

[surfkast]

Lots of false information lately.

The high for last year was .11.

The float is not available, thus one does not know the actual amount of free trading shares out.


Looking at all the shares doled out is even more disconcerting.

1/7/20 New 3,631,164 Common .001 Yes 
 J-RICKS LLC 
 Christopher 
 Balmford 
 Debt 
 Conversion Unrestricted 4(a)(1) 
 1/14/20 New 3,571,428 Common .07 No 
 CICERO 
 TRANSACT 
 GROUP INC 
 Goods and 
 Services 
 Agreement 
 Restricted 4(a)(2) 
 1/15/20 New 1,100,000 Common .001 Yes 
 J-RICKS LLC 
 Christopher 
 Balmford 
 Debt 
 Conversion Unrestricted 4(a)(1) 
 3/19/20 New 4,400,000 Common .001 Yes 
 J-RICKS LLC 
 Christopher 
 Balmford 
 Debt 
 Conversion Unrestricted 4(a)(1) 
 OTC Markets Group Inc. 
 OTC Pink Basic Disclosure Guidelines (v2.1 December 2019) Page 4 of 11 
 3/25/20 New 4,450,961 Common .001 Yes 
 J-RICKS LLC 
 Christopher 
 Balmford 
 Debt 
 Conversion Unrestricted 4(a)(1) 
 4/20/2020 New 5,340,000 Common .001 Yes J-RICKS LLC 
 Christopher 
 Balmford 
 Debt 
 Conversion 
 Unrestricted 4(a)(1) 
 5/6/2020 New 20,000 Series D 
 Preferred 
 N/A N/A Choice Wellness 
 LLC 
 David Lewis/Benn 
 Wilcox 
 Acquisition 
 Consideration 
 Restricted 4(a)(2) 
 5/7/2020 New 10,000 Series B 
 Preferred 
 N/A N/A John O’Shea Services Restricted 4(a)(2) 
 5/7/2020 New 15,000 Series C 
 Preferred 
 N/A N/A John O’Shea Services Restricted 4(a)(2) 
 5/8/2020 New 2,500 Series D 
 Preferred 
 N/A N/A John O’Shea Director Fee Restricted 4(a)(2) 
 5/8/2020 New 5,800,000 Common .001 Yes J-RICKS LLC 
 Christopher 
 Balmford 
 Debt 
 Conversion 
 Unrestricted 4(a)(1) 
 5/8/2020 New 7,500 Series D 
 Preferred 
 N/A N/A David Lewis CEO 
 Compensation 
 Restricted 4(a)(2) 
 5/8/2020 New 2,500 Series D 
 Preferred 
 N/A N/A David Lewis Director Fee Restricted 4(a)(2) 
 6/26/2020 New 6,400,000 Common .001 Yes J-RICKS LLC 
 Christopher 
 Balmford 
 Debt 
 Conversion 
 Unrestricted 4(a)(1) 
 07/27/20 New 7,000,000 Common .001 Yes 
 J-RICKS LLC 
 Christopher 
 Balmford 
 Debt 
 Conversion Unrestricted 4(a)(1) 
 09/21/20 New 7,700,000 Common .001 Yes 
 J-RICKS LLC 
 Christopher 
 Balmford 
 Debt 
 Conversion Unrestricted 4(a)(1)

Now look at the heavily discounted toxic notes.

Date of 
 Note 
 Issuance 
 Outstanding 
 Balance ($) 
 Principal 
 Amount 
 at 
 Issuance 
 ($) 
 Interest 
 Accrued 
 ($) 
 Maturity 
 Date 
 Conversion Terms (e.g. 
 pricing mechanism for 
 determining conversion of 
 instrument to shares) 
 Name of Noteholder 
 (entities must have 
 individual with voting 
 / investment control 
 disclosed). 
 Reason for 
 Issuance (e.g. 
 Loan, Services, 
 etc.) 
 01/10/2016 203,267 225,000 133 01/17/2017 $.001 per share J-Ricks LLC 
 Christopher Balmford 
 Loan 
 1/2/2020 75,17 71,839 3,298 Demand 25% discount to market price 
 at time of conversion 
 OFBP Proprietary 
 Limited 
 John O’Shea 
 Loan 
 1/2/2020 7,406 7,048 358 Demand N/A OFBP Proprietary 
 Limited 
 John O’Shea 
 Loan 
 5/18/20 20,000 20,000 0 5/18/21 55% multiplied by the Market 
 Price (representing a 
 discount rate of 45%) with a 
 “Floor Price” of .001c which 
 means no conversions can 
 be priced below Floor Price. 
 “Market Price” means the 
 average of the lowest three 
 (3) Closing Prices (as defined 
 below) for the Common Stock 
 during the ten (10) Trading 
 Day period ending one 
 Trading Day prior to the date 
 the Conversion Notice is sent 
 by the Holder 
 BB Winks LLC 
 Craig Fischer 
 Loan 
 6/15/20 20,000 20,000 0 6/15/21 Fifty Percent (50%) of the 
 lowest Trading Price (defined 
 below) during the twenty (20) 
 Trading Day period ending on 
 the latest complete Trading 
 Day prior to the Conversion 
 Date, 
 GPL Ventures LLC 
 Alex Dillion 
 Lo

Also here are the conversion factors for the preferred.

Timothy
Carnahan
5% Holder Miami, FL 5,000,000 Common 5.8%


Now lets take a look at Tim


Timothy Carnahan 5% Holder Miami, FL 5,000,000 Common 5.8%

Interesting that there are claims that he has nothing to do with CYIO.


It gets even juicier. Here are the fines imposed by the ALJ.

Under Section 8A(g) of the Securities Act of 1933 and Section 21B(a) of the
Securities Exchange Act of 1934:
CYIOS Corporation must PAY A CIVIL MONEY PENALTY in the amount
of $500,000; and
Timothy W. Carnahan must PAY A CIVIL MONEY PENALTY in the
amount of $100,000.
Under Section 8A(e) of the Securities Act of 1933 and Sections 21B(e) and
21C(e) of the Securities Exchange Act of 1934:
CYIOS Corporation must DISGORGE $37,500.00, plus prejudgment
interest. The prejudgment interest owed will be calculated from December
1, 2012, to the last day of the month preceding the month in which
payment of disgorgement is made. Prejudgment interest will be computed
at the underpayment rate of interest established under Section 6621(a)(2)
of the Internal Revenue Code, 26 U.S.C. § 6621(a)(2), and compounded
quarterly.148

https://www.sec.gov/alj/aljdec/2020/id1394jeg.pdf


And finally the appeal filed by Carnahan/CYIO was denied.

ORDERS and ADJUDGES that the Plaintiffs' Complaint [ECF No. 1] is DISMISSED WITHOUT PREJUDICE for lack of subject-matter jurisdiction. The Clerk of Court is directed to CLOSE this case. Any pending motions are DENIED as moot.

DONE AND ORDERED in Fort Lauderdale, Florida, this 11th day of March 2020.

https://casetext.com/case/carnahan-v-sec-exch-commn