Interest expense ($3,339,359)
Congratulations "Alpha capital Anstalt" and "Barry Hoing" for knowing how the game is played
The company didn't pay out this cash. Its just dollar value assigned to the dilution shares they doled out to get rid of them.
Is this part of the $7,094,467 General and administrative expenses? Must be.
On August 2, 2010, Clear Skies Solar, Inc. (the “Company”) entered into an agreement with Alpha Capital Anstalt (“Alpha”) pursuant to which Alpha agreed to convert outstanding promissory notes issued by the Company to Alpha in the aggregate principal amount of $275,000 (the “Notes”); provided that following a conversion the holder of the Notes, together with its affiliates, would not beneficially own greater than 9.99% of the outstanding shares of the Company’s common stock.
In addition, Alpha (a) waived any and all rights under the Notes and related subscription agreement (the “SA”) relating to: (i) any rights of first refusal, (ii) anti-dilution and most favored nations provisions, and (iii) negative covenants in the SA, including but not limited to limitations on filing of any registration statements under the Securities Act of 1933, as amended, and transactions with affiliates and other insiders, and (b) released any and all security interests in any collateral pledged to Alpha to secure the Notes.
How many shares did they get? 35M maybe
OS: 121,479,279 (08-19-2010)
OS: 84,749,254 (05-07-2010)
$275,000 / 35M shares = .0078
35M shares at .04 is $1.4M (not even 1/2 the Interest expense ($3,339,359)
