Global IT Holdings, Inc. (GITH)

[NextGenTrade]

I figured something out:

I continually asked myself " Why would someone raise the A/S to 10 billion shares when O/S is only 400 mill!?"

Just realized why:

(They issued CDs to Cornell....and if Cornell decided to convert those shares then it would equate to some 300 million shares. Well at this time there were 400 million shares O/S so this would give Cornell ownership of the company. So they changed the A/S just in case Cornell converted all at once so not to lost the company):

In July 2005, the Company issued a 5% Secured Convertible Debenture for $950,000 due in 2 years and determined the embedded conversion option qualified as a derivative pursuant to SFAS 133 since the conversion price is variable and the ability to have enough authorized common shares to fulfill its potential obligations under convertible debt contracts is not under the Company control. In addition, the conversion shares underlying the note are subject to registration rights with liquidated damages at 2% per month of the Note balance (see below). The fair value of the conversion option on the issuance date was of $1,972,576 as was computed using a Black-Scholes option pricing method with the following assumptions: term of 2 years, volatility of 241%, zero dividends and interest rate of 3.66%. The $1,972,576 was allocated $949,495 to debt discount the maximum to be recorded, and $1,023,081 to operations as a change in fair value of derivatives. The discount is amortized to interest expense over the 2-year term of the note. Amortization in 2005 was $305,000. During 2005, $67,500 of the note was converted to common stock resulting in a reclassification of the fair value of the related embedded conversion option derivative liability at the conversion dates aggregating $126,205. Changes in the fair value of the derivative liability through December 31, 2005 are recorded in other income (expense). In addition, due to the authorized shares issue, the 1,358 warrants were determined to be classified as derivative liabilities pursuant to EITF 00-19 and recorded at their fair value of $505 at the issuance date. Changes in the fair value of the warrant liability through December 31, 2005 are recorded in other income (expense).


This is if anyone was wondering where the 10 bill came from





"MoMo on! ...... MoMo off!"