from the 10qsb, page 8
Note 5 – Capital Stock
On October 4, 2007, the Company issued 600,000,000 shares of common stock to the shareholders of Franchise Capital Corporation “FCCN” as part of a share exchange under which Aero became the successor issuer to FCCN. Under the terms of the share exchange, a commercial revolving credit line in the amount of $1,870,000 payable to Franchise Capital Corporation was eliminated as partial consideration for the shares issued.
The Company previously had a note payable to Morgan McClure Motorsports (“MMM”) for prior advertising and promotion associated with the Company’s sponsorship of the MMM race team in the amount of $2,613,411. On October 4, 2007, the note was converted into 117,815,306 shares of restricted common stock.
The Company had a note payable of $244,925 to one of the Company’s former directors. The note bore interest at the rate of 15% per annum and was past due. On October 4, 2007 the note was converted, together with accrued interest of $170,475 into 41,540,000 shares of restricted common stock.
The Company had notes payable totaling $345,000 to unrelated parties. The notes were past due and bore interest at 12% per annum. On October 4, 2007, the notes were converted, together with accrued interest of $66,667 into 41,166,774 shares of restricted common stock.
On October 4, 2007, the Company converted $891,128 of loan principle owed to a third party, plus accrued interest of $448,319, into 133,944,727 shares of restricted common stock, leaving a principle balance due of $750,000.
On November 7, 2007, the Company agreed to a court-ordered settlement for payment on services previously rendered by a director of the Company valued at $80,000. The director had previously sold the services contract to a third party who then sought payment and brought an action against the Company in the 12th Circuit Court in Sarasota, Florida. Under the terms of the settlement, the Company issued a total of 72,700,000 shares of common stock. As a result, the Company recorded settlement costs of $318,850 which represented the difference between the fair value of the shares issued and the value of the debt obligation.
9/4/07 600,000,000 $1,870,000 PPS = .0031 FCCN
117,815,306 $2,613,411 PPS = .01469 MMM
41,540,000 $170,475 PPS = .0041 former d
41,116,774 $411,667 PPS = .01 unrelated irector
133,944,727 $750,000 PPS = .0056 third party
10/7/07 72,700,000 $318,850 PPS = .0044 court-ord
