XML 30 R16.htm IDEA: XBRL DOCUMENT v2.3.0.15
Warrants
9 Months Ended
Sep. 30, 2011
Notes to Financial Statements 
Warrants

NOTE 11 — WARRANTS

 

A summary of warrants issued, exercised and expired during the six months ended September 30, 2011, is as follows:

 

            Weighted  
            Avg.  
            Exercise  
Warrants:   Shares     Price  
Balance at December 31, 2010     10,614,007     $ .31  
Issued            
Exercised            
Expired            
Balance at September 30, 2011     10,614,007     $ .31  

 

On October 4th, 2007, the company entered into a financing agreement whereby warrants were issued to an investor to purchase the following amounts of common stock:

 

  a)   650,000 shares of common stock exercisable at $0.72 per share.
       
  b)   1,500,000 shares of common stock exercisable at $1.00 per share.
       
  c)   1,500,000 shares of common stock exercisable at $2.00 per share.

 

On March 10, 2010 the Company and T Squared Investments LLC agrees to cancel the following warrants:

 

    Warrant “A” for 650,000 shares;
       
    Warrant “B” for 1,500,000 shares;
       
    Warrant “C” for 1,500,000 shares; and,
       
    Warrant “4” for 384,615 shares.

 

Post such cancellation, the only warrants held by T Squared Investments LLC was their existing Warrant “D” for 231,000 shares with an exercise price of $0.0001 per share and the following warrant below. Pursuant to this agreement the expiration date of Warrant “D” was reduced from July 29, 2014 to December 31, 2012.

 

In consideration for the cancellation of such warrants above and for the payment to Dolphin Digital Media, Inc. (DPDM) , T Squared Investments LLC was issued a new Warrant “E” for 7,000,000 shares of DPDM with an expiration date of December 31, 2012 and an exercise price of $0.25 per share.

 

T Squared Investments LLC wired Two Hundred Thousand Dollars ($200,000) to the Company, which resulted in the effective reduction of the exercise price of Warrant “E” from $0.25 per share to $0.2214 per share. T Squared Investments LLC can continually pay the Company an amount of money to reduce the exercise price of Warrant “E” until such time as the exercise price of Warrant “E” is effectively $0.0001 per share. Each time a payment by T Squared Investments LLC is made to DPDM, a side letter will be executed by both parties that states the new effective exercise price of Warrant “E” at that time. At such time when T Squared Investments LLC has paid down Warrant “E” to an exercise price of $0.0001 per share or less, T Squared Investments LLC shall have the right to exercise Warrant “E” via a cashless provision and hold for six months to remove the legend under Rule 144.

 

T Squared Investments LLC may not exercise such warrant if post the exercise, T Squared Investments LLC would be above the 9.99% ownership level of the Company.

 

On February 16, 2011 T-Squared Investments, LLC paid down an additional $100,000 reducing the exercise price on the warrants to $.0214.

 

On July 11, 2011 T-Squared Investments, LLC paid down an additional $25,000 reducing the exercise price on the warrants to $.0179.