On January 30, 2007, the Company borrowed $500,000 from John M. Fife. In connection with such loan, the Company issued an original issue discounted note pursuant to which the Company was obligated to pay Mr. Fife $825,000 on July 30, 2007.
On each of February 26, 2007, April 11, 2007, May 17, 2007 and June 29, 2007, the Company borrowed an additional $250,000 from Mr. Fife, and the note was amended such that on July 30, 2007, the Company was obligated to pay Mr. Fife an aggregate of $2,481,000. The Company pledged 23,000,000 shares of its Common Stock to secure its obligations under the note. In addition, the note is secured by a personal guaranty of the Company’s CEO, Terry Kiefer, and the guaranty is in turn secured by a pledge of 17,000,000 shares of the Company’s Common Stock owned by Mr. Kiefer. The Company defaulted on the note and subsequently entered into a Partial Settlement Agreement dated August 15, 2007 with Mr. Fife pursuant to which we have agreed to issue to Mr. Fife, pursuant to Section 3(a)(10) of the Securities Act, an aggregate of 12,000,000 shares of freely tradable Common Stock as payment of $800,000 due and payable under the note and as partial settlement of Mr. Fife’s claims, leaving a balance of $1,681,000 due and owing under the note. To date, we have issued 4,000,000 shares to Fife, and are scheduled to issue 4,000,000 on or about November 2, 2007 and 4,000,000 on or about January 4, 2008.
So we have a balance of $1.68 million on that note in addition to 12 million shares he got.
On August 31, 2007, the Company borrowed $250,000 from Mr. Fife. In connection with such loan, the Company issued an original issue discounted note pursuant to which the Company is obligated to pay Mr. Fife $375,000 on February 28, 2008.
On September 26, 2007, the Company borrowed an additional $150,000 from Mr. Fife, and the note was amended such that on February 28, 2008, the Company will be obligated to pay Mr. Fife $600,000.
That brings us up to date (as of Nov 20th last info from company)...but that was only accurate as of Sept 30, 2007.
That leaves 6 months unnaccounted for or roughly $1.5 million more...based on a solid pattern of borrowing.
Wont see year-end and 4th quarter results until June so investors need to have faith that
1/ There are a few big ones 2/ NSMG can make money >> something they haven't done even when Katrina hit
My money says...it is the infamous Fife character.