CYIOS Corporation (CYIO)

[surfkast]

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.


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


One has to realize that Tim is a major shares holder and millions of free trading shares were doled out last year.


Then look at the discounted toxic notes issued last year that will be payable on demand or will become due no later than 6/15/2021.


Now some have questions about the preferred shares held by insiders, I believe the following explains it all.

(1) Concurrent with the acquisition of Choice Wellness on May 7, 2020, David Green Exchanged his Series BPreferred shares for 2,348,103 shares of Company common stock and resigned as CEO. He remains a director of
the Company.

(2) Each share of Series C Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into that number of fully paid and nonassessable shares of Common Stock (whether whole or fractional) equal to 0.001% of the total number of shares of Common Stock outstanding at the Conversion Time


(3) Each share of Series D Preferred Stock shall be convertible, at the option of the holder thereof, at any time and from time to time, and without the payment of additional consideration by the holder thereof, into that number of fully paid and nonassessable shares of Common Stock (whether whole or fractional) equal to 0.001% of the total number of shares of Common Stock outstanding at the Conversion Time.

NOTE 8 - PREFERRED STOCK - CONTINUED
Series A
As of September 30 2020, the Company is authorized the issue of up to 10,000,000
shares of $.001 par value Series A preferred stock. The preferred stock carries a voting
right of 20 votes per share and each share is convertible to 20 shares of common stock.
As of September 30, 2020, the Company had previously issued 10,000,000 shares of
preferred stock which were returned as part of the settlement with a former CEO.
Series B
As of September 30, 2020, the Company is authorized the issue of up to 10,000 shares
of $.001 par value Series B preferred stock. As of September 30, 2020, the Company
had previously issued 10,000 shares of preferred stock to David Green for his service as
CEO. Those shares were later converted to 2,348,103 common shares at $.015 per
share. Subsequently, the 10,000 shares of Series B we issued to Mr. John O’Shea at par
value for services to the Company.
Series C
As of September 30, 2020, the Company is authorized the issue of up to 15,000 shares
of $.001 par value Series C preferred stock. During the nine months ended September
30, 2020, the Company issued 15,000 shares of Series C to Mr. John O’Shea at par
value for services to the Company. Each share of Series C Preferred Stock is
convertible into a number of common shares equal to .001% of the number of common
shares issued and outstanding on the date of conversion.
Series D
As of September 30, 2020, the Company is authorized the issue of up to 32,500 shares
of $.001 par value Series D preferred stock. . As of September 30, 2020, the Company
had issued 20,000 shares of preferred stock to acquire Choice Wellness, Inc.
Additionally, 2,500 and 10,000 shares of Series D were issued at par value to Mr. John
O’Shea and Mr. David Lewis, respectively, for services provided (2,500 to each for
services provided to the Board of Directors and the other 7,500 to Mr. Lewis for service
as the Chief Executive Officer (CEO). Each share of Series D Preferred Stock is
convertible into a number of common shares equal to .001% of the number of common
shares issued and outstanding on the date of conversion.
NOTE 9 - STOCK-BASED NONEMPLOYEE COMPENSATION
On October 14, 2019, the Company entered into an agreement with a consultant to
ensure compliance with legal obligations concerning OTC markets and related filings.
The yearlong $30,000 agreement, after an initial $2,500 cash payment, will pay the
$27,500 balance in the Company’s common shares calculated at $0.05 per share. In the
event the Company’s shares is less than 5 cents per share, the price will be adjusted to a
price per share equity to a 25% discount to the lowest closing price for the stock during
the preceding 30 days.