Vital Products Part 2
As of October 31, 2008, we have a $248,313 of notes payable and $144,520 of advances due to Metro One Development, Inc. (formerly On The Go Healthcare, Inc.), payable on demand. We do not know when Metro One Development, Inc. will demand payment on this $144,520 advance, however, should Metro One Development, Inc. demand payment we would need additional capital to repay this obligation.
As part of our acquisition of assets from Metro One Development, Inc. (formerly On The Go Healthcare, Inc.), we agreed to issue $250,000 worth our common stock and two Promissory Notes in the amount of $1,005,000. On February 23, 2006, we replaced the original Promissory Notes and issued Metro One Development, Inc.
two Secured Promissory Notes with a face value of $1,206,000. The increase from $1,005,000 to $1,206,000 represents a full year of accrued interest. Although a full year of interest had not yet accrued, we agreed to include interest of $201,000 as opposed to $128,860 as consideration for replacing the original note. The face value of these Secured Promissory Notes increased by 20% on July 3, 2007, resulting in a principal balance of $1,447,200 for the year ended July 31, 2007. On July 3, 2008 the face value of the Secured Promissory Notes will increase by an additional 20%. We must repay the Secured Promissory Notes on March 11, 2009, one year after the Securities and Exchange Commission declared our registration statement effective. The Secured Promissory Notes pay 20% simple annual interest. We may prepay the Notes at any time with accrued interest and without penalty.
For the year ended July 31, 2007, the Company wrote off certain equipment and molds that provided no future economic benefit. The value of the writedowns approximated $438,000.
(Boy thats a lot of money to owe for a product line that produced zero revenue and for which there is no competetive market, how we gonna pay that off with no money coming in? Perhaps I have an idea)
Between October 14, 2008 and October 24, 2008, an existing investor converted $1,710,000 principal and interest amount of a promissory note into an aggregate of 15,200,000 shares of our common stock, at a conversion rate of $0.1125 per share. Payments under the note are convertible into shares of our common stock at seventy five percent of the lowest closing best bid prices of our common stock for the fifteen trading days prior to the conversion date.
(Lets get the shareholders to pay it off, thats what they are for isn't it)
We intend to raise funds through the issuance of debt or equity. Raising funds in this manner typically requires significant time and effort to find accredited investors, and the terms of such an investment must be negotiated for each investment made. We cannot guarantee that we will be able to raise sufficient funds to meet our obligations. If we do not raise sufficient funds, our operations will be curtailed or will cease entirely and you may lose all of your investment.
(This baby bath thing isn't working out,what should we do?)
AI
