In June 2005 we entered into a five-year agreement with Insynq, Inc. (INSN.PK) whereby it would supply our technology and communications infrastructure and programming expertise. Insynq, Inc. is partially owned and managed by two of our officers, John P. Gorst and M. Carroll Benton. During the fiscal year ended September 30, 2006, the amount of services provided to Insynq totaled $122,112.
Insynq also paid certain expenses on our behalf or advanced money to us. On October 31, 2005, Insynq accepted to convert these expenses and advances into an unsecured Promissory Note in the amount of $333,837, which included interest at the rate of 7% per annum.
On July 17, 2006, we issued 447,111 shares of common stock to Insynq, Inc. to satisfy the Note Payable and accrued interest, a partial reduction of the trade payable and certain other amounts either advanced or paid on our behalf. The fair value of the shares issued was $1.05 per share.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.