SoOum Corp. (fka SOUM)

[zomniac]

10-Q/A Filing Jan 7,2014
- We have managed our liquidity during the first three quarters of 2013 through cost reduction initiatives and the proceeds from the sale of common stock and issuances of convertible notes. The Company is in default on notes payable and outstanding judgments totaling $1,691,421 and $1,057,816 respectively, and expects to repay the notes payable, judgments and accrued interest plus all of its other liabilities from the proceeds derived from the operations of acquired companies, sell of stock, or a combination of both.

- As of the date of this filing, the company has convertible debt which is convertible into approximately, 47,991,970 shares of common stock

- Pursuant to the convertible promissory notes the investor may convert the amount paid towards the Securities Purchase Agreements into common stock of the Company at a conversion price equal to 50% of the average of the 3 lowest volume weighted average trading prices during the 10 day period ending on the latest complete trading day prior to the conversion date.

- During the three months ended September 30, 2013, the Company issued 18,692,266 shares of common stock for the conversion notes

- Despite the cost reduction initiatives, the Company will be unable to pay its obligations in the normal course of business or service its debt in a timely manner throughout 2013 without raising additional debt and/or equity capital.

-We incurred net losses of $478,500 and $1,550,619 respectively, for the nine months ended September 30, 2013 and 2012 and had an accumulated deficit of $11,190,887 as of September 30, 2013. We have managed our liquidity during the first nine months of 2013 through advances from shareholders and the issuance of convertible notes.

-The Company is currently evaluating strategic alternatives that include the following: (i) raising of capital, or (ii) issuance of debt instruments. This process is ongoing and can be lengthy and has inherent costs. There can be no assurance that the exploration of strategic alternatives will result in any specific action to alleviate the Company’s 12 month working capital needs or result in any other transaction. The Company can give no assurances that it will be able to raise any equity or debt or on terms acceptable to the Company.

http://www.sec.gov/Archives/edgar/data/78311/000101054914000007/sfi10qa093013.htm