Subsequent Toxic Convertible Death Spirals listed on Form 10Q. It doesnt end. There are endless not converted debentures left to convert into shares. I wonder if this will be a Trillion shares authorized?
Note 11 – Subsequent Events
Amendment to Articles of Incorporation
On October 21, 2012, a closely held voting majority of the shareholders approved an amendment to the Company’s previously amended Articles of Incorporation which increased the number of authorized shares of common stock from 900,000,000 shares to 5 billion shares of its $0.001 par value common stock.
Convertible Promissory Notes
On November 9, 2012, the Company received proceeds of $31,500 in exchange for an unsecured convertible promissory note, which carries an 8% interest rate, matures on November 9, 2013, convertible at the holder’s discretion into the greater of 25% of the average of the lowest three (3) trading prices over the ten (10) day trading period prior to the conversion date, or $0.0001 per share.
On October 9, 2012, the Company received proceeds of $5,000 in exchange for an unsecured convertible promissory note, which carries an 8% interest rate, matures on October 9, 2013, convertible at the holder’s discretion into the greater of 25% of the average of the lowest three (3) trading prices over the ten (10) day trading period prior to the conversion date, or $0.0001 per share.
On October 4, 2012, the Company received proceeds of $6,000 in exchange for an unsecured convertible promissory note, which carries an 8% interest rate, matures on October 4, 2013, convertible at the holder’s discretion into the greater of 25% of the average of the lowest three (3) trading prices over the ten (10) day trading period prior to the conversion date, or $0.0001 per share.
On October 1, 2012, the Company received proceeds of $6,500 in exchange for an unsecured convertible promissory note, which carries an 8% interest rate, matures on October 1, 2013, convertible at the holder’s discretion into the greater of 25% of the average of the lowest three (3) trading prices over the ten (10) day trading period prior to the conversion date, or $0.0001 per share.
Common Stock Issuances
On December 12, 2012, the Company issued 84,541,370 shares of common stock pursuant to a debt holder’s request to convert $8,454 on a partial conversion of a $30,000 promissory note that was originated on April 2, 2012, which consisted of $8,000 of principal and $454 of accrued interest. The note was converted in accordance with the conversion terms, therefore no gain or loss has been recorded.
On various dates between November 15, 2012 and December 29, 2012, the Company issued a total of 808,661,073 shares of common stock pursuant to a total of nine debt holders’ requests to convert outstanding debts in the cumulative amount of $80,866 on the conversion of a $80,000 promissory note that was originated on February 13, 2012 and was subsequently partially assigned to the nine debt holders on November 14, 2012, which consisted of $76,000 of principal and $4,866 of accrued interest. The note was converted in accordance with the conversion terms, therefore no gain or loss has been recorded.
17
FrogAds, Inc.
(A Development Stage Company)
Notes to Condensed Financial Statements
(Unaudited)
On November 14, 2012, the Company issued 78,534,247 shares of common stock pursuant to a debt holder’s request to convert $7,854 on a partial conversion of a $25,000 promissory note that was originated on April 13, 2012, which consisted of $7,500 of principal and $354 of accrued interest. The note was converted in accordance with the conversion terms, therefore no gain or loss has been recorded.
On November 2, 2012, the Company issued a total of 50,000,000 shares of common stock pursuant to a debt holder’s request to convert $5,000 on a partial conversion of a $25,000 promissory note that was originated on April 13, 2012, which consisted of $5,000 of principal. Of these shares, 49,166,667 shares were issued in excess of the conversion terms; therefore a loss of $14,750 has been recorded based on the closing price of the Company’s common stock on the date of grant.
On various dates between November 2, 2012 and November 8, 2012, the Company issued a total of 312,333,000 shares of common stock pursuant to a total of four debt holders’ requests to convert outstanding debts in the cumulative amount of $31,462 on the conversion of a $30,000 promissory note that was originated on March 23, 2012 and was subsequently partially assigned to the four debt holders on November 2, 2012, which consisted of $30,000 of principal and $1,462 of accrued interest. Of these shares, 307,089,334 shares were issued in excess of the conversion terms; therefore a loss of $72,722 has been recorded based on the closing price of the Company’s common stock on the date of grant.
On October 24, 2012, the Company issued a total of 125,000,000 shares of common stock pursuant to a total of three debt holders’ requests to convert outstanding debts in the cumulative amount of $13,687 on a partial conversion of a $45,000 promissory note that was originated on August 12, 2011 and was subsequently partially assigned to the three debt holders on October 13, 2012, which consisted of $12,500 of principal and $1,187 of accrued interest. Of these shares, 90,782,075 shares were issued in excess of the conversion terms; therefore a loss of $18,156 has been recorded based on the closing price of the Company’s common stock on the date of grant.
On various dates between October 14, 2012 and October 22, 2012, the Company issued a total of 316,500,000 shares of common stock pursuant to a total of twelve debt holders’ requests to convert outstanding debts in the cumulative amount of $31,650 on the conversion of a $30,000 promissory note that was originated on March 23, 2012 and was subsequently partially assigned to the twelve debt holders on October 14, 2012, which consisted of $30,000 of principal and $1,650 of accrued interest. Of these shares, 311,225,001 shares were issued in excess of the conversion terms; therefore a loss of $152,023 has been recorded based on the closing price of the Company’s common stock on the date of grant.
On various dates between October 8, 2012 and October 10, 2012, the Company issued a total of 81,000,000 shares of common stock pursuant to a total of six debt holders’ requests to convert outstanding debts in the cumulative amount of $16,200 on the conversion of a $15,000 promissory note that was originated on January 26, 2012 and was subsequently partially assigned to the six debt holders on October 4, 2012, which consisted of $15,000 of principal and $1,200 of accrued interest. Of these shares, 78,300,001 shares were issued in excess of the conversion terms; therefore a loss of $50,847 has been recorded based on the closing price of the Company’s common stock on the date of grant.
On October 7, 2012, the Company issued a total of 52,500,000 shares of common stock pursuant to a total of four debt holders’ requests to convert outstanding debts in the cumulative amount of $10,901 on a partial conversion of a $35,000 promissory note that was originated on February 24, 2012 and was subsequently partially assigned to the four debt holders on October 6, 2012, which consisted of $10,500 of principal and $401 of accrued interest. Of these shares, 50,683,247 shares were issued in excess of the conversion terms; therefore a loss of $45,615 has been recorded based on the closing price of the Company’s common stock on the date of grant.
On various dates between October 1, 2012 and October 5, 2012, the Company issued a total of 80,000,000 shares of common stock pursuant to subscriptions payable in the total amount of $120,375 amongst a total of eight debt holders’ conversion requests to convert outstanding debts on various dates between September 25, 2012 and September 29, 2012.
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