Replies to post #95473 on Aero Performance Products Inc (fka AERP)

[GamblerNC]

FTD - alias sounds right:

Debt after June 30th....194,063.00 + A/P which makes actual debt around 2 mil..why..because most notes retired by the issuesance of shares...please make sure you tell the whole story....

As of June 30, 2007, notes payable consisted of the following:

Note payable to a former director in the amount of $1,641,128 and bearing interest at the rate of 12% per annum. The note is past due; however, no demand for payment has been made. Subsequent to June 30, 2007, the note was assumed by Franchise Capital Corporation and $891,128 of the amount, plus accrued interest of $448,319 was converted into 133,944,727 shares of common stock of FCCN, leaving a balance due of $750,000.

Commercial revolving credit line in the amount of $1,870,000 payable to Franchise Capital Corporation. The credit line is due July 1, 2008 and bears interest at the prime rate. As a result of the share exchange consummated October 4, 2007 with FCCN, the debt obligation of Aero was eliminated in exchange for a decrease in the number of FCCN shares to be issued to acquire 100% of the Aero stock.

Note payable to Morgan McClure Motorsports (“MMM”) for prior advertising and promotion associated with the Company’s sponsorship of the MMM race team in the amount of $2,613,411. The note does not bear interest and is not due provided that the company continue to reimburse MMM for certain operational and promotional expenses approximating $25,000 per month. Subsequent to June 30, 2007, the note was assumed by Franchise Capital Corporation and converted into 117,815,306 shares of common stock of FCCN. As a result, the monthly reimbursement obligation to MMM has ceased.

Note payable of $244,925 to one of the Company’s directors. The note bears interest at the rate of 15% per annum and is past due. Subsequent to June 30, 2007, the note was assumed by Franchise Capital Corporation then converted, together with accrued interest of $170,475 into 41,540,000 shares of common stock of FCCN.

Note payable of $194,063 to Bryan Hunsaker, Chairman and Chief Executive Officer of Aero. The note bears interest at the rate of 8% per annum and is payable on demand.

Notes payable totaling $345,000 to unrelated parties. The notes are past due and bear interest at 12% per annum. Subsequent to June 30, 2007, the notes were assumed by Franchise Capital Corporation and were converted, together with accrued interest of $66,667 into 41,166,774 shares of common stock of FCCN