Pervasip Corp (PVSP)

[Arthur]

At November 30, 2012 and 2011, total unpaid salary owed to the Company’s chief executive officer was $318,946 and $244,450, which has been converted into unsecured short-term loans bearing interest at 12%. Accrued interest on such loans was $51,233 and $19,840 as of November 30, 2012 and 2011 which is included in the other current liabilities.

Additionally, the Company owes its chief executive officer $183,480 and $233,280 as of November 30, 2012 and 2011 for cash loans made directly to the Company. Accrued interest payable on such loans was $74,345 as of November 30, 2012 and $29,953 as of November 30, 2011 which is included in other current liabilities.

The Company also owes its chief executive officer $104,571 and $109,222 for unreimbursed business expenses, which are included in the Company’s accounts payable balance as of November 30, 2012 and 2011.

At November 30, 2012, the Company owes $20,000 each to its chief executive officer and chief information officer for unissued common stock that was purchased by its chief executive officer and converted by its chief information officer from debt into equity during fiscal 2012.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9165336

At August 31, 2013 and November 30, 2012, we owed our chief executive officer $883,436 and $732,575 respectively for loans he provided to the Company, unpaid salary and unpaid business expenses.

At August 31, 2013 and November 30, 2012, we owed our chief information officer $29,947 and $24,557, respectively, for unpaid salary and unpaid business expenses.
http://www.otcmarkets.com/edgar/GetFilingHtml?FilingID=9555004
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Here is what happens. The company cannot pay its CEO. So the CEO first "lends" to the company what the company owes him --at high interest rates.
When that debt is 1 year old, it is transformed into a convertible debenture, and sold. The amount will be cconverted into shares at a high discount rate.
The CEO is thus paid his full (high)salary, albeit one year late. He then kicks back some of the money by "investing" in his company. The shares he "buys" come from the proceeds of the sale of discounted shares.

So, instead of lowering his salary, or being paid with shares, he's being paid by the sale of dilutive shares, and he impresses gullible investors by putting some of his (high) salary back into the company that he's running to the ground. Oh, and he's receiving the interest on his loans.