Replies to post #26923 on CoreStream Energy, Inc. (fka ZLUS)

[Gutts2318]

It's not misleading at all. They strictly said 2009 and 2010. Comparison of how it generate for them. What is so misleading? No matter how many time you try be misleading, I stay focus and keep on making profit with CSE and moving forward with it. You keep on sticking to the past while we all move forward. :)

[hvnsangel67]

Seems to be play on numbers. Trying to wrap my head around it.

NOTE 11. GAIN ON DEBT EXTINGUISHMENTS

As noted within Legal Matters included in Note 12 below, Mr. Kent Wyatt entered into a settlement agreement dated March 15, 2010 to replace all liabilities due to him. These liabilities included a short term note of $166,367, penalties of $993,903, interest of $70,129, consulting fees of $85,500 and insufficient funds of $15,000, totaling $1,330,899


The terms of the above referenced agreement called for the settlement of all obligations for the amount of $525,000 payable within six months with specific repayment terms. Once the Company fully and finally satisfied the $525,000, the Company would issue 7,000,000 shares of common stock in full satisfaction of all obligations.


Due to limited cash the Company entered into a verbal agreement with Mr. Wyatt to issue him free trading shares in lieu of cash payment. The stock will be deposited into a brokerage account in Mr. Wyatt’s name. The proceeds from the sale of the stock will be applied towards the $525,000 obligation. The Company will agree to issue additional free trading shares until the $525,000 is repaid.


Based on the aforementioned settlement and modified verbal terms, the Company recognized as of March 31, 2010 a note payable reduction of $635,270, an accrued interest reduction of $70,129, reduction of $15,000 of insufficient funds payable and a reduction of the accrued consulting fee of $85,500 which realized a savings to the Company of $805,899.


Subsequent to March 31, 2010, the Company issued Mr. Wyatt 150,000,000 shares of common stock in accordance with the verbal agreement. Proceeds from the sale of stock through February 2011 total $115,614 and have been applied towards the $525,000 obligation. Mr. Wyatt still retains approximately 33,000,000 shares as of February 2011 and will continue to sell the shares to reduce the obligation by the amount of proceeds received until fully satisfied.


The above transaction was accounted for per ASC Topic 470-50 “Modification and Extinguishments” Total Extraordinary Gains resulting from the debt extinguishment was $805,899 as of March 31, 2010.