from the 10qsb filed` mar 29 2007 Subsequent Event – Acceptance of Reorganization Plan: In conjunction with the sale of assets, Dexterity’s Plan of Reorganization was confirmed April 13, 2006 with an effective date of March 31, 2006. Substantially all liabilities subject to compromise were dismissed, thereby being recognized as “gain on debt discharge” in the statement of operations for the three months ended March 31, 2006. The majority of the remaining accounts payable and accrued expenses at March 31, 2006 were amounts due to the Company’s legal counsel, all of which were paid or otherwise settled during the period ended June 30, 2006. The Plan also included the following major provisions:
1.
The Company will increase its authorized capital stock to 100,000,000 by filing a Certificate of Amendment to its Articles of Incorporation and then effect a 1-for-500 reverse split of all issued and outstanding stock. This was completed July 27, 2006.
2.
The Company will issue 25,000,000 new shares of restricted common stock to an investment banking group (the “investors”). The Investors anticipate consummating a merger transaction and have provided $175,000 as a cash infusion for creditors and payment of administrative claims. Of the $175,000 paid to the Company, $50,000 represents a loan which will be repaid through the issuance of 6,000,000 new common shares and 3,000,000 warrants having an exercise price of $1.00 for five years. This was completed September 8, 2006.
3.
The Company will issue 29,800 shares of new common stock to certain creditors. This issuance was completed September 8, 2006.
4.
All current outstanding common and preferred shares, and all outstanding stock options, will be cancelled. This cancellation was completed September 8, 2006.
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