Replies to post #2650 on Halberd Corp (HALB)

[TEFFY]

HALB has many large swings, trying to figure out why this happens here , possibly this will shed some light,

I wonder if debt will hurt the pps, seems the company has some conversions (DILUTION) that could occur.

4. CONVERTIBLE DEBT
On January 1, 2008, the Company issued convertible promissory notes totaling $300,000
to eight stockholders, who own a combined 15% of the Company’s common stock. The
notes bore interest at 10% per annum and were due on the earlier of the Company
registering any of its securities under the Securities Act of 1933, or eighteen months after
the date of the note (April through July 2009). In addition, each of the note holders could
convert the entire outstanding amount of their note including accrued interest into shares
HALBERD CORPORATION AND SUBSIDIARY
(a development stage company)
NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS
- 11 -
of the Company’s common stock at any time up to the maturity date of the respective
note.
During January 2009, all of the convertible debt was converted to equity, resulting in the
issuance of 4,508,000 shares of the Company’s common stock. Related accrued interest
of $23,000 on these loans was also converted to equity, resulting in the issuance of
92,000 shares of the Company’s common stock. All shares in this note have been
adjusted to reflect the exchange discussed in Note 1.
During October 2009, the Company issued convertible promissory notes totaling
$115,000 to two shareholders. The notes bear interest at 12% and are due after the 12-
month anniversary date or anytime after the 12-month anniversary date but not more than
36-months after the note maturity date. The notes and any unpaid accrued interest are
convertible into shares of common stock at the average closing bid price of the stock over
the preceding 10 trading days less a 25% discount. The notes were not converted as of
April 30, 2012.
During January 2010, the Company issued convertible promissory notes totaling
$170,475 to two shareholders. The notes bear interest at 12% and are due after the 12-
month anniversary date or anytime after the 12-month anniversary date but not more than
36-months after the note maturity date. The notes and any unpaid accrued interest are
convertible into shares of common stock at the average closing bid price of the stock over
the preceding 10 trading days less a 25% discount. The notes were not converted as of
April 30, 2012.
See Subsequent Event Note for more information.
5. RELATED PARTY
Stock holders