Jacobs Financial Gr. Inc. (fka JFGI)

[dickydan]

As of February 29, 2012 the Company has chosen to defer payment of dividends on the Series A Preferred Stock with such accrued and unpaid dividends amounting to $559,163 through February 29, 2012.

Subsequent to February 29, 2012, the Company made repayments of $179,500 on existing debt obtained under demand notes bearing interest ranging from 10% to 14%. The Company also extended the terms of existing debt totaling $372,000 and issued 372,000 shares of its common stock as additional consideration, and obtained short term borrowings of $32,500 from a business to fund ongoing operation and made repayments of $32,500 on these borrowings as well as $2,500 in interest. Additionally, the Company obtained borrowings of $124,176 from its principal shareholder and chief executive officer under its pre-approved financing arrangement bearing interest at the rate of 12.00% and made repayments totaling $89,093, to bring the balance owed to the principal shareholder to $1,710 at the date of this filing.

On March 10, 2012, the Company issued 7,430,017 shares of the Company's common stock in connection with the semi-annual issuance of shares under the bridge-financing arrangements (see Note D).

Subsequent to February 29, 2012, the Company issued 2,973,208 shares of the Company's common stock in connection with the additional 2% stock dividend associated with Series B Preferred shares that were requested to be redeemed upon maturity (see Note E).

On March 31, 2012, the Company elected to continue to defer payment of dividends on its Series A Preferred Stock, Series B Preferred Stock and Series C Preferred Stock, with such accrued and unpaid quarterly dividends amounting to $32,253, $90,203 and $217,143, respectively. As of March 31, 2012, the accumulated accrued and unpaid dividend amounted to $591,416, $1,795,746, and $4,299,181, respectively

As of February 29, 2012 the Company has chosen to defer payment of dividends on the Series B and Series C Preferred Stock with such accrued and unpaid dividends amounting to $1,705,543 and $4,082,038 through February 29, 2012.
For the nine months ended February 29, 2012, the Company experienced a loss after accretion of mandatorily redeemable convertible preferred stock and accrued dividends on mandatorily redeemable preferred stock of $1,084,023 as compared with a loss after accretion of mandatorily redeemable convertible preferred stock and accrued dividends on mandatorily redeemable preferred stock of $1,175,969 for the nine months ended February 28, 2011.

For the three months ended February 29, 2012, the Company experienced a loss after accretion of mandatorily redeemable convertible preferred stock and accrued dividends on mandatorily redeemable preferred stock of $434,264 as compared with a loss after accretion of mandatorily redeemable convertible preferred stock and accrued dividends on mandatorily redeemable preferred stock of $377,300 for the three months ended February 28, 2011.

As of February 29, 2012, the Company had accrued and withheld approximately $174,000 in Federal payroll taxes and approximately $18,000 in estimated penalties and interest, which are reflected in the financial statements as other liabilities. Management intends to satisfy this obligation as soon as possible.

As of February 29, 2012, the Company had accrued and withheld approximately $50,000 in West Virginia payroll withholdings and approximately $6,000 in interest and penalties, which are reflected in the accompanying financial statements as other liabilities. Management intends to satisfy this obligation as soon as possible.

http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=8557288