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SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 18 - SUBSEQUENT EVENTS

 

The Board voted to create a new class of preferred stock named Class A. The stock will convert 1,000 to 1 into common shares, have a liquidation preference and earn 10% annual dividends. Class A stock will be available to all debt holders including Board members.

 

On January 5, 2022, the Board approved the repurchase of 20,000 shares of common stock at par value.

 

Blue Oar has advanced Rotmans $500,000 under a promissory note agreement dated April 28, 2022. The note bears interest at a rate of six percent (6%) and requires weekly principal payments of $12,500 beginning on May 25, 2022 and continuing until interest is paid in full. Blue Oar has also advanced the Company funds totaling $40,000. The Company has not formalized an agreement with repayment terms as of this date.

 

Steven Rotman has advanced the Company funds totaling $19,087. The advances bear interest at an annual rate of five percent (5%). The Company has not formalized an agreement with repayment terms as of this date.

 

Pursuant to a settlement agreement with a vendor in May 2022, Steven Rotman personally guaranteed an obligation of the Company totaling $96,681. Weekly payments of $7,437 began on May 9, 2022 and will continue until August 1, 2022. The Company has not formalized an agreement with repayment terms as of this date.