yes, maybe they are seeing some of
this...
the purchase agreement provides the shareholders of Continental the right to sell the common shares back to the Company, at Continental’s sole option for a period of six months after the restriction period at $0.75 per share, the Company recorded a liability for $16,100. During October 2007, the Company was notified by Continental that it would exercise its right to sell the common shares back to the Company. The Company has made a payment of $10,000 to Continental towards repurchase of shares and has accrued an additional $21,400 for repurchase of shares due to the $16,100 being accrued in a prior period.
In September 2007, the Company obtained $139,500 in new financing, at substantially different terms, from a second financial institution.
In December 2007, the Board of Directors extended the expiration period for certain Officers and the Tam Irrevocable Trust of warrants issued on March 29, 2005 and on July 27, 2005 from December 1, 2008 to December 1, 2010. These warrants are redeemable in an equal number of shares of restricted common stock, and are valued at $0.225 per share.
In December 2007, the Board of Directors granted warrants to two officers for expanded management services performed on behalf of the Company. For services rendered during the past year, one officer received 250,000 warrants and the second officer received 100,000 warrants redeemable into restricted shares of the Company’s common stock at a purchase price of $.19 per share, which was also the Company’s market price per share on the date of the grant.
