New folks - MUST READ
From the recently filed 9/30/2012 AAPT Form 10-Q filing....
8. RELATED PARTY TRANSACTIONS
On March 6, 2012, the Board of Directors authorized the Company to execute a Convertible Revolving Grid Note for a principal sum of up to $1,000,000 with CEO Barry Schwartz and President, Lisa Bershan. The Grid note bears interest at 10% per year and may be converted into common stock of the Company at a conversion price of $0.0022 any time before March 6, 2013. Neither Mr. Schwartz nor Ms. Bershan has advanced capital under the terms of the grid note as of November 14, 2012.
On April 30, 2012, the Board of Directors approved salary advances not to exceed $250,000 for each of Mr. Schwartz and Ms. Bershan in 2012. The Board of Directors requires that all salary advances are repaid in full before any transactions pursuant to the grid note are consummated. The Company made salary advances to Mr. Schwartz and Ms. Bershan, which the balance of officer advances as of September 30, 2012 is $371,117.
12. SUBSEQUENT EVENTS
On October 8, 2012, the Company agreed to settle the share guaranty liability resulting from the conversion of preferred stock to common stock by issuing 10,000,000 shares valued at $0.02 and making two payments of $225,000 on December 31, 2012 and March 31, 2013. The Company will recognize a $50,000 share guarantee liability expense in its financial statements for the quarter ended December 31, 2012. The Company issued the 10,000,000 shares on October 19, 2012.
On November 8, 2012, the Board of Director’s approved a private placement offering of up to 60,000,000 shares of common stock at $0.007 per share.
Between October 1, 2012 and November 14, 2012, the Company received and accepted subscriptions for 31,000,000 common shares, of which 6,850,000 were subscribed at $0.02 per share and 24,150,000 common shares were subscribed at $0.007. The sale of equity securities resulted in a net capital increase of $306,050 less offering costs valued at $5,873.
Between October 1 and October 21, 2012, the Company issued 74,893,890 shares, of which 57,893,893 were subscribed at $0.01 per share, 6,850,000 shares were subscribed at $0.02 per share, 1,350,000 shares valued at $35,640 were collectively issued to three key employees as bonuses, 10,000,000 shares valued at $200,000 were issued pursuant to the share guaranty obligation resulting from the conversion of preferred stock to common stock, and 3,800,000 shares were issued for consulting services valued at $100,320
