Interesting bit from the footnotes:
Reeltime Rentals, Inc. – June 30, 2009 Page 12
NOTE 6: COMMON STOCK, OPTIONS AND WARRANTS
A. Common Stock
The Stockholders’ Equity section of the Company contains the following class of Common Stock (no par value) as of December 31:
2009
650,000,000 shares authorized, 598,343,332 shares issued and outstanding and 16,811,313 subscriptions for shares outstanding
2008
200,000,000 shares authorized, 199,899,999 shares issued and outstanding and 16,811,313 subscriptions for shares outstanding
B. Common Stock Options
2009
-0- common stock options were outstanding
2008
1,300,000 common stock options were outstanding
C. Common Stock Warrants
2009
666,667 common stock warrants were outstanding
2008
-0- common stock warrants were outstanding
NOTE 7: SUBSEQUENT EVENTS
A. Equity
REELTIME RENTALS, INC.
(A Development Stage Company)
Notes to Financial Statements
Reeltime Rentals, Inc. – June 30, 2009 Page 13
On May 4, 2009 the Company authorizes the increase in common shares to 650M and 50M Preferred, to clear up an over-issuance of equity by previous management and to fulfill its obligation to CEC for its equity position in Reeltime.
On May 6, 2009, the State of Washington approves the increase in the common shares to 650,000,000 and 50,000,000 preferred shares.
On May 18, 2009 Reeltime under its agreement obligation, issued 422,500,000 restricted shares of common stock to Challenge Entertainment Corporation.
B. Agreements
On December 31, 2008, the Company signed a definitive Joint Venture Agreement to establish a joint venture with Jagran Prakashan Limited (NYSE: JAGRAN.NS), one of the largest media companies in India and publisher of the most widely read newspaper in the world, Dainik Jagran. The Joint Venture will develop a mainstream media portal, n partnership with the world’s largest Indian movie libraries, for streaming movies over the internet using subscription, pay-per-view, download-to-own and advertising supported models. Reeltime would be a 50% equity holder within the JV. In order to consummate the agreement, a cash infusion of $250,000/each will need to occur from both parties. At present due to the financial position of the company current management has not made a definitive decision to move forward with the transaction.
⎯ On April 1, 2009, Reeltime’s Board of Directors found that it had 2 options available. One was to become Insolvent the other was to find an investor that would allow the company to move forward therefore it was in the Company's best interest to enter into an agreement with Challenge Entertainment Corporation (CEC). CEC will supply services, cash and/or arrange for financing with a value of $2,000,000.00. It is agreed that CEC will receive 422,500,000 shares from the Company representing 65% of all common shares. The cash will be used to provide capital for business operations and to provide capital for current and future Joint Ventures. Services to be provided include, marketing and new revenue models, such as Reelstore, Reelclub and 20 New online television stations and the expansion of its professional staff. In addtion to these elements, CEC will be providing operating support for the company, including management support, original television programs and access to public broadcasting.
AI
