THE REAL EYSM STORY DIRECT FROM THE COMPANY - IF YOU DARE.....
I would love to hear a competent rebuttal based upon the facts herein.
Did a laywer or anybody competent (like an accountant) actually review these financials? Typo's about years seems like kind of important thing when dealing with Quarterly reports and the like. No?????
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NOTE THE SAME DATE FOR THE CURRENT AND PREVIOUS LOSS?????
Net Income (Loss)
We reported a net loss of $56,655 for the three months ended February 28, 2011 from a net loss of $110,319 for the three months ended February 28, 2011. The reduction in net loss
was attributed to a reduction of $53,950 of Interest expense versus the previous year
Revenues
NOTE THE MIX UP IN YEARS??
Revenue increased from $17,656 for the three months ended February 28, 2011 to $48,298 for the three months ended February 28, 2010, for an increase of $30,642.
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This default is at the very heart and core of the company - everyone talks about these quality domain names and the value, yet they have not paid for them.
Item 6. Defaults upon senior securities:
The Company is in technical default on several loan and purchase agreements but has not been served any formal notice of default. The Company has been in contact with the other parties and believes that a positive outcome will result in each case while no guarantee can be provided of what the ultimate outcomes from such talks will be.
The amount due under the contract was set forth in a Promissory Note which is payable by the Company in quarterly installments of $300,000 beginning on January 1, 2009,payable in either cash or stock at the Company's option. If the Company elects to make
payments in stock, the amount of shares to be issued will be calculated at 94% of the average closing price of the Company's common stock for the proceeding five trading days as traded on the Over-the-Counter Bulletin Board stock market. The Promissory Note was due October 31, 2009; as remains unpaid. The Company has had contact with the holder and is working to resolve the matter. However, management cannot guarantee the outcome of the negotiations based on current market conditions. The Company is currently in default of this agreement and will be attempting to work with the note holders to extend the term of the agreement. There can be no guarantee that the Company will be successful
in being granted an extension of the agreement.
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RED FLAG #1
Total current Liabilites 3,616,633
Accounts payable and accrued expenses $ 286,822 $ 280,707
Capital lease obiligation-current portion - -
Note payable - Smash Clicks (face value $1,000,000) 647,777 647,777
Fair Value of embedded derivative - Smash Clicks 1,052,512 1,052,512
Fair Value of embedded derivative - FTS - -
Notes payableto individuals 730,050 730,050
Notes payable to related parties 899,472 872,409
Total current Liabilites 3,616,633 3,583,455
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RED FLAG #2 Helloooooo people. Does anyone really believe that this number will not increase based upon the debt load and lack of operational cash???
Weighted number of shares between 2010 and 2011
2,286,624,262 from 124,107,595
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When are these shares free tradeable?
Stock issued for debt and interest 316,666,667
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Those ugly lawsuits. Based upon the limited amount of working capital that they have, where is this going? Doesn't sound good to me.
On April 20, 2007, Mr. Chin filed a cross-complaint against Ms.
Sawyer also alleging a breach of contract. On November 21, 2007, the Company reached a settlement with Ms. Sawyer, whereby the Company agreed to pay to Ms. Sawyer an aggregate sum of $90,000 over 15 months. In the event of default, the Company may be
required to pay Ms. Sawyer a sum of $225,000 less any payments made under this agreement. This situation remains unresolved as of June 15, 2011. The Company cannot guarantee what the ultimate resolution will be at this time.
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THE NAIL IN THE COFFIN
Note 4-Going Concern
9 Million Bucks in debt - Wake up people!!!!!
The Company incurred an operating loss for the quarter ended February 28, 2011 of $56,655. The Company incurred an operating loss for the year ended November 30, 2010 of $212,008, at November 30, 2010, the Company had an accumulated deficit of $9,261,971. In addition, the Company generated limited revenue from its operations relative to its operational expenses. These conditions raise substantial doubt as to the Company's ability
to continue as a going concern.
AI
