x ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
NEVADA
|
98-0441032
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
60 Dutch Hill Road, Suite 15
Orangeburg, NY
|
10962
|
(Address of principal executive offices)
|
(Zip Code)
|
Securities registered under Section 12(b) of the Exchange Act:
|
|
Title of each class registered:
|
Name of each exchange on which registered:
|
None
|
None
|
Securities registered under Section 12(g) of the Exchange Act:
|
|
Common Stock, par value $.001
(Title of class)
|
Large accelerated filer o
|
Accelerated filer o
|
Non-accelerated filer o (do not check if smaller reporting company)
|
Smaller reporting company x
|
PART I
|
|||
Item 1.
|
Business
|
3
|
|
Item 1A.
|
Risk Factors
|
10
|
|
Item 1B.
|
Unresolved Staff Comments
|
10
|
|
Item 2.
|
Properties
|
10
|
|
Item 3.
|
Legal Proceedings
|
10
|
|
Item 4.
|
Mine Safety Disclosures
|
10
|
|
PART II
|
|||
Item 5.
|
Market for the Registrant's Common Equity, Related Stockholder Matters, and Issuer Purchases of Equity Securities
|
11
|
|
Item 6.
|
Selected Financial Data
|
11
|
|
Item 7.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
12
|
|
Item 7A.
|
Quantitative and Qualitative Disclosure about Market Risk
|
18
|
|
Item 8.
|
Financial Statements and Supplementary Data
|
18
|
|
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
18
|
|
Item 9A.
|
Controls and Procedures
|
19
|
|
Item 9B.
|
Other Information
|
20 | |
PART III
|
|||
Item 10.
|
Directors, Executive Officers and Corporate Governance
|
21
|
|
Item 11.
|
Executive Compensation
|
23
|
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
24
|
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence
|
25
|
|
Item 14.
|
Principal Accounting Fees and Services
|
26
|
|
PART IV
|
|||
Item 15.
|
Exhibits, Financial Statement Schedules
|
27
|
|
Signatures
|
29
|
“Commission” refers to the Securities and Exchange Commission;
|
|
·
|
“Crisnic” refers to Crisnic Fund, S.A., a Costa Rican corporation;
|
·
|
“Exchange Act” refers to the Securities Exchange Act of 1934, as amended;
|
·
|
“OSL” refers to Office Supply Line, Inc., a Nevada corporation and a wholly-owned subsidiary of the Company;
|
·
|
“Red Rock” refers to the Company while named Red Rock Pictures Holdings, Inc.; and
|
·
|
“Securities Act” refers to the Securities Act of 1933, as amended.
|
●
|
We plan to sell data to major consumer brands for designated markets, such as urban retail, convenient and/or liquor stores.
|
●
|
We plan to facilitate developing electronic marketplaces with real time buy-side and sell side capabilities for multiple private & public markets.
|
●
|
We plan to operate a real-time loyalty rewards platform that can facilitate the earning and redemption of our currency at the point of the transaction (online, mobile, at retail) as well as on future transactions.
|
●
|
Expand our partner base. We intend to increase our market share by adding new partners with strong brand franchises who are seeking to leverage our real-time sales data, electronic marketplaces or loyalty rewards to generate revenues as well as provide value to their customers or audience. New partners could include companies with major brand names in specialty and full-line retail, consumer products, non-profits
|
●
|
Internet and media. We expect to launch a rewards platform and B2B marketplace businesses online when funding permits
|
●
|
Promote online/offline brands. We intend to build awareness and drive traffic to our businesses by capitalizing on the brand assets, large marketing databases and retail traffic of our partners. Each of our partners prominently features and promotes its brand and/or URL in its marketing and communications materials. We also plan to continue to selectively use a variety of online and offline marketing strategies to reach prospects, including but not limited to search marketing, direct mail, public relations, email programs and affinity relationships.
|
●
|
Enhance the online transaction experience. We plan to continually enhance and expand our online marketplaces to address the evolving needs of our customers. We plan to invest in technology to maximize the flexibility and speed to market of our website www.officesupplyline.com as well as future websites that will be built. We intend to improve the presentation of our product offerings by taking advantage of the unique characteristics of the internet as a retail/selling medium. Specifically, we plan to develop features that improve the functionality, speed, navigation and ease of use of our websites.
|
·
|
Pursue growth by acquisitions or development of new business units. From time to time we will assess strategic development and acquisitions that are aligned with our goal of increasing our partner and customer base and/or expanding our product offerings.
|
●
|
Service the shopper in a better way by understanding their shopping habits and product needs;
|
●
|
Support retailers by providing fact based information for their decision making process;
|
●
|
Create product and store loyalty with the consumer by having their favorite products on the shelves; and
|
●
|
Develop effective retail execution at these stores.
|
●
|
First Level. Deliver normalized, real-time via dashboards across markets of full basket sales data.
|
●
|
Second Level. Enhanced data combines the real time data with over 1,000 point of data from various sources to make meaningful marketing campaigns and decisions.
|
●
|
Third Level. Offers promotional control with the ability to tie national rewards, instant promotions at POS, and follow-up promotional capabilities (SMS, E-mail and Direct Mail).
|
●
|
is easy to use so that members can become proficient quickly;
|
●
|
has intuitive interfaces, reports and tools to reduce the learning curve;
|
●
|
provides a critical mass of participants so buyers can find the products and services they need, and sellers can locate interested buyers;
|
●
|
creates marketplace-to-marketplace interaction to give participants access to a larger or smaller "virtual" marketplace and audience as desired; and
|
●
|
is functionality rich enough to perform the range of commerce tasks from searching, sourcing, bidding, dynamic pricing, tracking, auditing and authorization management to catalog management.
|
High
|
Low
|
|||||||
Fiscal Year 2012
|
||||||||
First quarter ended November 30, 2011
|
$
|
.50
|
$
|
.07
|
||||
Second quarter ended February 28, 2012
|
$
|
.50
|
$
|
.05
|
||||
Third quarter ended May 31, 2012
|
$
|
.11
|
$
|
.04
|
||||
Fourth quarter ended August 31, 2012
|
$
|
.05
|
$
|
.01
|
||||
Fiscal Year 2011
|
||||||||
First quarter ended November 30, 2010
|
$
|
.40
|
$
|
.12
|
||||
Second quarter ended February 28, 2011*
|
$
|
38.00
|
$
|
.10
|
||||
Third quarter ended May 31, 2011
|
$
|
.35
|
$
|
.10
|
||||
Fourth quarter ended August 31, 2011
|
$
|
.15
|
$
|
.10
|
||||
|
●
|
We plan to sell data to major consumer brands for designated markets, such as urban retail, convenient and/or liquor stores.
|
●
|
We plan to facilitate developing electronic marketplaces with real time buy-side and sell side capabilities for multiple private & public markets.
|
●
|
We plan to operate a real-time loyalty rewards platform that can facilitate the earning and redemption of our currency at the point of the transaction (online, mobile, at retail) as well as on future transactions.
|
-
|
Segregation of Duties – As a result of limited resources, we did not maintain proper segregation of incompatible duties. Namely the lack of an audit committee, an understaffed financial and accounting function, and the need for additional personnel to prepare and analyze financial information in a timely manner and to allow review and on-going monitoring and enhancement of our controls. The effect of the lack of segregation of duties potentially affects multiple processes and procedures.
|
-
|
Maintenance of Current Accounting Records – This weakness specifically affects the payments and purchase cycle and therefore we failed to maintain effective internal controls over the completeness and cut off of accounts payable, expenses and other capital transactions.
|
Name
|
Age
|
Position
|
||
Eli Feder
|
56
|
Chief Executive Officer and Chairman of the Board
|
||
Eric Kotch
|
53
|
Chief Financial Officer, Treasurer, Secretary and Director
|
||
Robert Rothenberg
|
42
|
President
|
Name and
Principal Position
|
Year
|
Salary($)
|
Bonus($)
|
All Other
Compensation ($)
|
Total($)
|
|||||||||||||
Eli Feder (1)
|
2012
|
$
|
145,500
|
$
|
25,000
|
$
|
0
|
$
|
170,500
|
|||||||||
Chief Executive Officer and Chairman
|
2011
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
|||||||||
Eric Kotch (2)
|
2012
|
$
|
145,500
|
$
|
25,000
|
$
|
0
|
$
|
170,500
|
|||||||||
Chief Financial Officer, Treasurer, Secretary and Director
|
2011
|
$
|
0
|
$
|
0
|
$
|
0
|
$
|
0
|
|||||||||
Robert Rothenberg (3)
President
|
2012
|
$
|
200,000
|
$
|
0
|
$
|
96,250
|
$
|
296,250
|
(1)
|
For the year ended August 31, 2012, Mr. Feder received $15,500 in cash. Mr. Feder also received 2,833,333 shares of common stock, in lieu of cash compensation owed valued at $85,000. The shares were issued at an average market price of $0.03 per share. The remaining balance owed has been accrued and is included in accrued officer compensation in the attached Consolidated Balance Sheets.
|
(2)
|
For the year ended August 31, 2012, Mr. Kotch received $15,500 in cash. Mr. Kotch also received 2,833,333 shares of common stock, in lieu of cash compensation owed valued at $85,000. The shares were issued at an average market price of $0.03 per share. The remaining balance owed has been accrued and is included in accrued officer compensation in the attached Consolidated Balance Sheets.
|
(3)
|
For the year ended August 31, 2012, Mr. Rothenberg received $20,000 in cash. Mr. Rothenberg also received 2,374,996 shares of common stock of which 708,330 shares, valued at $96,250, were issued per his employment agreement dated January 17, 2012. Additionally, 1,666,666 shares, valued at $50,000, were issued in lieu of cash compensation owed. The shares were issued at an average market price of $0.03 per share. The remaining balance owed has been accrued and is included in accrued officer compensation in the attached Consolidated Balance Sheets.
|
Name of Beneficial Owner and Address
|
Amount and Nature of Beneficial Ownership of Common Stock
|
Percent of
Common Stock (1)
|
Amount and Nature of
Beneficial Ownership of
Preferred Stock
|
Percent of
Preferred Stock (2)
|
||||||||||
Crisnic Fund, S.A.
Conhotel Office Center Office 5 Sabana
San Jose, Costa Rica
|
-
|
-
|
650,001
|
(2) |
100
|
% | ||||||||
ARMK LLC (3)
|
21,575,000
|
18.42
|
%
|
|||||||||||
Eric Kotch (3)
60 Dutch Hill Rd, Suite 15
Orangeburg, NY 10963
|
3,723,833
|
3.18
|
%
|
-
|
-
|
|||||||||
Eli Feder
60 Dutch Hill Rd, Suite 15
Orangeburg, NY 10963
|
21,430,833
|
28.30
|
%
|
-
|
-
|
|||||||||
Robert Rothenberg
|
2,524,990
|
2.16
|
%
|
|||||||||||
All directors and executive officers as a group (3 people)
|
49,254,656
|
42.05
|
%
|
-
|
-
|
(1)
|
Based on 117,121,248 shares of common stock issued and outstanding as of December 1, 2012. Shares of common stock subject to options or warrants currently exercisable or exercisable within 60 days, are deemed outstanding for purposes of computing the percentage of the person holding such options or warrants, but are not deemed outstanding for purposes of computing the percentage of any other person.
|
(2)
|
We agreed, as security for a loan, to issue an aggregate of 650,001 shares of our preferred stock, pending repayment in full of such loan by December 1, 2012. The Company recently received a written notice of default in accordance with the terms of the loan and is obligated to issue the 650,001 shares of Preferred Stock to Crisnic. Each share of preferred stock effectively would entitle the holder to 100 votes on all matters submitted to shareholders. The preferred stock would also convert into our common stock on a 100:1 basis upon certain circumstances. As of the filing of this Annual Report, the 650,001 Preferred Shares have not been issued.
|
(3)
|
Mr. Kotch personally owns 3,723,833 shares and through his wife, Andrea Kotch, is the beneficial owner of the 21,575,000 shares owned by ARMK, LLC.
|
●
|
the director is, or at any time during the past three years was, an employee of the company;
|
●
|
the director or a family member of the director accepted any compensation from the company in excess of $120,000 during any period of 12 consecutive months within the three years preceding the independence determination (subject to certain exclusions, including, among other things, compensation for board or board committee service);
|
●
|
a family member of the director is, or at any time during the past three years was, an executive officer of the company;
|
●
|
the director or a family member of the director is a partner in, controlling stockholder of, or an executive officer of an entity to which the company made, or from which the company received, payments in the current or any of the past three fiscal years that exceed 5% of the recipient’s consolidated gross revenue for that year or $200,000, whichever is greater (subject to certain exclusions);
|
●
|
the director or a family member of the director is employed as an executive officer of an entity where, at any time during the past three years, any of the executive officers of the company served on the compensation committee of such other entity; or
|
●
|
the director or a family member of the director is a current partner of the company’s outside auditor, or at any time during the past three years was a partner or employee of the company’s outside auditor, and who worked on the company’s audit.
|
Exhibit No.
|
|
Title of Document
|
|
Location
|
3.1
|
|
Articles of Incorporation
|
|
Incorporated by reference to Form SB-2 filed on June 17, 2005
|
3.2
|
Bylaws
|
Incorporated by reference to Form SB-2 filed on June 17, 2005
|
||
3.3
|
Certificates of Amendment to Articles of Incorporation and Certificate of Designation
|
Filed herewith
|
||
10.1
|
Convertible Note dated January 20, 2012 with Asher Enterprises
|
Filed herewith
|
||
10.2
|
Convertible Note dated June 15, 2012 with Asher Enterprises
|
Filed herewith
|
||
10.3
|
Convertible Note dated July 17, 2012 with Asher Enterprises
|
Filed herewith
|
||
10.4
|
Convertible Note dated November 8, 2012 with Asher Enterprises
|
Incorporated by reference to Form 8-K filed on November 14, 2012
|
||
10.5
|
Convertible Note dated March 5, 2012 with Panache Capital
|
Incorporated by reference to Form 8-K filed on March 15, 2012
|
||
10.6
|
Convertible Note dated April 10, 2012 with Panache Capital
|
Filed herewith
|
||
10.7
|
Convertible Note dated April 18, 2012 with Panache Capital
|
Incorporated by reference to Form 8-K filed on April 20, 2012
|
||
10.8
|
Convertible Note dated April 26, 2012 with Panache Capital
|
Incorporated by reference to Form 8-K filed on May 1, 2012
|
||
10.9
|
Amendment to Convertible Notes dated September 21, 2012 with Panache Capital
|
Filed herewith
|
||
10.10
|
Convertible Note dated August 13, 2012 with Continental Equities
|
Incorporated by reference to Form 8-K filed on September 25, 2012
|
||
10.11
|
Note dated October 10, 2011 with Crisnic Fund
|
Filed herewith
|
||
10.12
|
Stock Purchase Agreement with Asher Enterprises dated November 8, 2012
|
Incorporated by reference to Form 8-K filed on November 14, 2012
|
||
10.13
|
Office Lease Agreement
|
Filed herewith
|
||
10.14*
|
Employment Agreement dated January 17, 2012 with Robert Rothenberg
|
Filed herewith
|
||
10.15
|
Senior Secured Convertible Note dated December 28, 2008 with The Exchange LLC (as assignee of Emerald Asset Advisors, LLC)
|
Filed herewith
|
10.16
|
Amendment No. 1 to Senior Secured Convertible Note dated as of October 12, 2011 with The Exchange LLC
|
Filed herewith
|
||
10.17
|
Amendment No. 2 to Senior Secured Convertible Note dated as of December 4, 2012 with The Exchange LLC
|
Filed herewith
|
||
14
|
Code of Ethics
|
Incorporated by reference to Form 10-K/A filed on December 17, 2008
|
||
31.1
|
Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith
|
||
31.2
|
Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith
|
||
32.1
|
Certification of Principal Executive Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith
|
||
32.2
|
Certification of Principal Financial Officer, pursuant to 18 U.S.C. Section 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
Filed herewith
|
||
101
|
Materials from the OSL Holdings, Inc.’s Annual Report on Form 10-K for the fiscal year ended August 31, 2012, formatted in Extensible Business Reporting Language (XBRL): (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Operations, (iii) Consolidated Statement of Stockholders’ Deficit, (iv) Consolidated Statement of Cash Flows and (v) related Notes to the Financial Statements.
|
Filed herewith
|
OSL HOLDINGS INC.
|
||
By:
|
/s/ Eli Feder
|
|
Eli Feder
Chairman and Chief Executive Officer
(Duly Authorized Officer and Principal Executive Officer)
|
||
By:
|
/s/ Eric Kotch
|
|
Eric Kotch
|
||
Chief Financial Officer, Treasurer and Secretary
(Principal Financial Officer)
|
/s/ Eli Feder
|
Chairman of the Board and Chief Executive Officer
|
|
Eli Feder
|
||
/s/ Eric Kotch
|
Director, Chief Financial Officer, Treasurer and Secretary
|
|
Eric Kotch
|
||
Page
|
||
Report of Independent Registered Public Accounting Firm
|
F-2
|
|
Consolidated Balance Sheets as of August 31, 2012 and 2011
|
F-3
|
|
Consolidated Statements of Operations for the Year Ended August 31, 2012 and from inception to August 31, 2012 and 2011
|
F-4
|
|
Consolidated Statements of Changes in Stockholders’ Deficit from inception to August 31, 2012
|
F-5
|
|
Consolidated Statements of Cash Flows for the Year Ended August 31, 2012 and from inception to August 31, 2012 and 2011
|
F-6
|
|
Notes to the Consolidated Financial Statements
|
F-7
|
OSL HOLDINGS INC. AND SUBSIDIARIES
(A DEVELOPMENT STAGE COMPANY)
|
||||||||
CONSOLIDATED BALANCE SHEETS
|
||||||||
As of
August 31,
|
As of
August 31,
|
|||||||
2012
|
2011
|
|||||||
Assets
|
||||||||
Current assets:
|
||||||||
Cash
|
$
|
202
|
$
|
1,147
|
||||
Prepaid and other assets
|
2,000
|
12,500
|
||||||
Total current assets
|
2,202
|
13,647
|
||||||
Website development costs
|
-
|
185,800
|
||||||
Total assets
|
$
|
2,202
|
$
|
199,447
|
||||
Liabilities and Stockholders’ Deficit
|
||||||||
Current liabilities:
|
||||||||
Accounts payable and accrued liabilities
|
$
|
659,001
|
$
|
301,393
|
||||
Accrued officers compensation
|
270,000
|
-
|
||||||
Advances from related parties
|
14,727
|
4,508
|
||||||
Senior secured convertible note, including accrued interest of $51,300
|
135,300
|
-
|
||||||
Secured promissory note
|
170,000
|
-
|
||||||
Convertible notes, including accrued interest of $18,800
|
318,142
|
-
|
||||||
Promissory notes, including accrued interest of $2,000
|
26,000
|
24,000
|
||||||
Derivative liability
|
250,970
|
-
|
||||||
Total current liabilities
|
1,844,140
|
329,901
|
||||||
Stockholders’ deficit:
|
||||||||
Preferred Stock, $.001 par value; 5,000,000 shares authorized; no shares issued and outstanding
|
-
|
-
|
||||||
Common Stock, $.001 par value; 120,000,000 shares authorized; 86,694,333 and 50,000,000 shares issued and outstanding at August 31, 2012 and August 31, 2011, respectively
|
86,694
|
50,000
|
||||||
Additional paid-in capital
|
771,990
|
20,000
|
||||||
Common shares issuable (1,624,998 shares)
|
102,083
|
-
|
||||||
Deficit accumulated during the development stage
|
(2,802,705
|
)
|
(200,454
|
)
|
||||
Total stockholders’ deficit
|
(1,841,938
|
)
|
(130,454
|
)
|
||||
Total liabilities and stockholders’ deficit
|
$
|
2,202
|
$
|
199,447
|
Year
Ended
August 31, 2012
|
September 16, 2010
(Inception) to
August 31, 2011
|
September 16, 2010
(Inception) to
August 31, 2012
|
||||||||||
Revenues
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Operating expenses:
|
||||||||||||
General and administrative expenses
|
1,424,793
|
200,454
|
1,625,247
|
|||||||||
Impairment of website development
|
185,800
|
-
|
185,800
|
|||||||||
Operating loss
|
(1,610,593
|
)
|
(200,454
|
)
|
(1,811,047
|
)
|
||||||
Other:
|
||||||||||||
Reverse merger costs
|
(647,880
|
)
|
-
|
(647,880
|
)
|
|||||||
Costs of rescinded acquisition
|
(27,297
|
)
|
-
|
(27,297
|
)
|
|||||||
Interest expense
|
(178,511
|
)
|
-
|
(178,511
|
)
|
|||||||
Cost of offering
|
(145,510
|
) |
-
|
(145,510
|
) | |||||||
Change in value of derivative liability
|
7,540
|
-
|
7,540
|
|||||||||
Other expense, net
|
(991,658
|
)
|
-
|
(991,658
|
)
|
|||||||
Net loss
|
$
|
(2,602,251
|
)
|
$
|
(200,454
|
)
|
$
|
(2,802,705
|
)
|
|||
Net loss per common share
|
||||||||||||
Net loss per common share – basic and diluted
|
$
|
(0.04
|
)
|
$
|
(0.00
|
)
|
||||||
Weighted average common shares outstanding – basic and diluted
|
66,796,315
|
50,000,000
|
Preferred Stock
|
Common Stock
|
Additional
Paid in
|
Common
Shares
|
Stockholders’
|
||||||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Issuable
|
Deficit
|
Deficit
|
|||||||||||||||||||||||||
Balance, September 16, 2010 (Inception)
|
-
|
$
|
-
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||||
Common shares issued for cash received
|
2,000,000
|
2,000
|
20,000
|
22,000
|
||||||||||||||||||||||||||||
Stock based compensation expense
|
48,000,000
|
48,000
|
48,000
|
|||||||||||||||||||||||||||||
Net loss
|
(200,454
|
)
|
(200,454)
|
|||||||||||||||||||||||||||||
Balance, August 31, 2011
|
-
|
$
|
-
|
50,000,000
|
$
|
50,000
|
$
|
20,000
|
$
|
-
|
$
|
(200,454
|
)
|
$
|
(130,454
|
)
|
||||||||||||||||
Shares issued upon Reverse acquisition
|
-
|
-
|
1,068,255
|
1,068
|
(1,068
|
)
|
-
|
-
|
||||||||||||||||||||||||
Fair value of stock issued upon rescinded acquisition
|
-
|
-
|
400,000
|
400
|
19,600
|
-
|
20,000
|
|||||||||||||||||||||||||
Shares issued to employees for services provided
|
8,041,662
|
8,042
|
308,208
|
316,250
|
||||||||||||||||||||||||||||
Fair value of stock issued for outside services received
|
-
|
-
|
5,800,000
|
5,800
|
234,200
|
-
|
240,000
|
|||||||||||||||||||||||||
Common stock issued for cash
|
29,412
|
29
|
4,971
|
5,000
|
||||||||||||||||||||||||||||
Common stock to be issued
|
100,000
|
100,000
|
||||||||||||||||||||||||||||||
Common stock to be issued for employee compensation
|
2,083
|
2,083
|
||||||||||||||||||||||||||||||
Shares issued upon conversion of Convertible Notes
|
-
|
-
|
21,355,004
|
21,355
|
102,746
|
-
|
-
|
124,101
|
||||||||||||||||||||||||
Fair value of beneficial conversion feature of Convertible Notes
|
-
|
-
|
-
|
-
|
83,333
|
-
|
83,333
|
|||||||||||||||||||||||||
Net loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,602,251
|
)
|
(2,602,251
|
)
|
||||||||||||||||||||||
Balance, August 31, 2012
|
-
|
$
|
-
|
86,694,333
|
$
|
86,694
|
$
|
771,990
|
$
|
102,083
|
$
|
(2,802,705
|
)
|
$
|
(1,841,938
|
)
|
Twelve Months
Ended
August 31, 2012
|
September 16, 2010
(Inception) to
August 31, 2011
|
September 16, 2010
(Inception) to
August 31, 2012
|
||||||||||
Cash flows from operating activities:
|
||||||||||||
Net loss:
|
$
|
(2,602,251
|
)
|
$
|
(200,454
|
)
|
$
|
(2,802,705
|
)
|
|||
Adjustments to reconcile net loss to cash used in operating activities:
|
||||||||||||
Cost of reverse merger
|
647,880
|
-
|
647,880
|
|||||||||
Impairment of website development costs
|
185,800
|
185,800
|
||||||||||
Fair value of stock issued upon rescinded acquisition
|
20,000
|
-
|
20,000
|
|||||||||
Fair value of stock issued for services
|
240,000
|
-
|
240,000
|
|||||||||
Stock issued to employees for compensation and services
|
98,333
|
48,000
|
146,333
|
|||||||||
Cost of offering
|
145,510
|
-
|
145,510
|
|||||||||
Change in fair value of derivative liability
|
(7,540)
|
-
|
(7,540)
|
|||||||||
Amortization of note discount
|
69,810
|
-
|
69,810
|
|||||||||
Accrued interest
|
29,600
|
-
|
29,600
|
|||||||||
Non cash interest expense on note conversions
|
69,101
|
-
|
69,101
|
|||||||||
(Increase) decrease in:
|
||||||||||||
Prepaid and other assets
|
10,500
|
-
|
10,500
|
|||||||||
Accrued compensation
|
490,000
|
-
|
490,000
|
|||||||||
Accounts payable and accrued liabilities
|
92,228
|
127,093
|
219,320
|
|||||||||
Net cash used in operating activities
|
(511,029)
|
(25,361)
|
(536,390
|
)
|
||||||||
Cash flows from financing activities:
|
||||||||||||
Advances from related parties
|
10,219
|
4,508
|
14,727
|
|||||||||
Payment of senior secured convertible note
|
(70,000
|
)
|
-
|
(70,000
|
)
|
|||||||
Payment of promissory note
|
(3,000
|
)
|
-
|
(3,000
|
)
|
|||||||
Cash received on issuance of convertible promissory notes
|
400,500
|
-
|
400,500
|
|||||||||
Cash received on issuance of a promissory note
|
67,365
|
-
|
67,365
|
|||||||||
Cash received on shares to be issued
|
100,000
|
-
|
100,000
|
|||||||||
Cash received on issuance of common stock
|
5,000
|
22,000
|
27,000
|
|||||||||
Net cash provided by financing activities
|
510,084
|
26,508
|
536,592
|
|||||||||
Change in cash:
|
||||||||||||
Net (decrease) increase
|
(945)
|
1,147
|
202
|
|||||||||
Balance at beginning of period
|
1,147
|
-
|
-
|
|||||||||
Balance at end of period
|
$
|
202
|
$
|
1,147
|
$
|
202
|
||||||
Supplemental disclosures of cash flow information:
|
||||||||||||
Cash paid for:
|
||||||||||||
Income taxes
|
$
|
-
|
$
|
-
|
$
|
|||||||
Interest
|
$
|
-
|
$
|
-
|
$
|
|||||||
Non cash financing activities
|
||||||||||||
Fair value of common shares issued upon conversion of senior secured promissory note
|
$ |
16,000
|
$ |
-
|
$ |
16,000
|
||||||
Fair value of common shares issued upon conversion of convertible notes
|
$ |
39,000
|
$ | $ |
39,000
|
|||||||
Accounts payable assumed on reverse acquisition
|
$ |
265,380
|
$ |
-
|
$ |
265,380
|
||||||
Acquisition of website for accounts payable
|
$ |
-
|
$ |
185,800
|
$ |
185,800
|
||||||
Promissory notes assumed on reverse acquisition
|
$ |
142,500
|
$ |
-
|
$ |
142,500
|
||||||
Issuance of note payable on reverse merger
|
$ |
240,000
|
$ |
-
|
$ |
240,000
|
||||||
Fair value of common shares issued upon conversion of accrued compensation
|
$ |
220,000
|
$ |
-
|
$ |
220,000
|
||||||
Fair value of beneficial conversion feature of convertible notes
|
$ |
358,333
|
$ | $ |
358,333
|
Level 1
|
Level 2
|
Level 3
|
Total
|
|||||||||||||
Fair value of Derivative Liability
|
$
|
–
|
$
|
–
|
$
|
250,970
|
$
|
250,970
|
Convertible notes payable, interest at 8% per annum (A)
|
$
|
116,600
|
||
Convertible notes payable, interest at 10% per annum (B)
|
260,600
|
|||
Convertible notes payable, interest at 8% per annum, due June 30, 2013 (C)
|
67,465
|
|||
Convertible notes payable
|
444,665
|
|||
Less: note discount
|
(126,523)
|
|||
Convertible notes payable, net of discount
|
$
|
318,142
|
August 31, 2012
|
At Date of Issuance
|
|||||||
Conversion feature :
|
||||||||
Risk-free interest rate
|
0.25%
|
0.25%
|
||||||
Expected volatility
|
215%
|
215%
|
||||||
Expected life (in years)
|
1 year
|
1 year
|
||||||
Expected dividend yield
|
0%
|
0%
|
||||||
Fair Value :
|
||||||||
Conversion feature
|
$
|
250,970
|
$
|
258,510
|
![]() |
DEAN HELLER
|
Secretary of State
|
|
204 North Carson Street, Suite 1
|
|
Carson City, Nevada 89701-4299
|
|
(775) 684 5708
|
|
Website: secretaryofstate.biz
|
Certificate of Amendment
|
(PURSUANT TO NRS 78.380)
|
Important: Read attached instructions before completing form.
|
ABOVE SPACE IS FOR OFFICE USE ONLY
|
||
Certificate of Amendment to Articles of Incorporation
|
|||
For Nevada Profit Corporations
|
|||
(Pursuant to NRS 78.380 - Before Issuance of Stock)
|
|||
1. Name of corporation: MANEKI MINING, INC.
|
|||
2. The articles have been amended as follows (provide article numbers, if available):
|
|||
Article 1: Name of corporation.- Red Rock Pictures Holdings, Inc.
|
|||
4. Effective date of filing (optional): ________________________________________________
|
|||
(must not be later than 90 days after the certificate is filed)
|
|||
5. The undersigned affirmatively declare that to the date of this certificate, no stock of the corporation has been issued.
|
|||
6. Signatures*.
|
|||
/s/
|
|||
Signature
|
Signature
|
||
* If more than two signatures, attach an 81/2 x 11 plain sheet with the additional signatures.
|
|||
IMPORTANT: Failure to include any of the above information and submit the proper fees may cause this filing to be rejected.
|
|||
This form must be accompanied by appropriate fees.
|
![]() |
ROSS MILLER
|
Secretary of State
|
|
204 North Carson Street, Suite 1
|
|
Carson City, Nevada 89701-4299
|
|
(775) 684 5708
|
|
Website: secretaryofstate.biz
|
Certificate of Amendment
|
(PURSUANT TO NRS 78.380)
|
USE BLACK INK ONLY - DO NOT HIGHLIGHT.
|
ABOVE SPACE IS FOR OFFICE USE ONLY
|
||
Certificate of Amendment to Articles of Incorporation
|
|||
For Nevada Profit Corporations
|
|||
(Pursuant to NRS 78.380 - Before Issuance of Stock)
|
|||
1. Name of corporation:
|
|||
RED ROCK PICTURES HOLDINGS, INC.
|
|||
2. The articles have been amended as follows (provide article numbers, if available):
|
|||
The corporation shall have authority to issue an aggregate of one hundred twenty million (120,000,000) shares of common stock at par value of $.001 with no preemptive rights
|
|||
3. The undersigned declare that they constitute at least two-thirds of the incorporators o, or of the board of directors x. (check one box only)
|
|||
4. Effective date of filing (optional):
|
|||
(must not be later than 90 days alter the certificate is filed)
|
|||
5. The undersigned affirmatively declare that to the date of this certificate, no stock of the corporation has been issued.
|
|||
6. Signatures:
|
|||
/s/
|
/s/
|
||
Signature
|
Signature
|
||
IMPORTANT: Failure to include any of the above information and submit the proper fees may cause this filing to be rejected.
|
|||
This form must be accompanied by appropriate fees.
|
![]() |
ROSS MILLER
|
Secretary of State
|
|
204 North Carson Street, Suite 1
|
|
Carson City, Nevada 89701-4299
|
|
(775) 684 5708
|
|
Website: secretaryofstate.biz
|
Certificate of Designation
|
(PURSUANT TO NRS 78.1955)
|
USE BLACK INK ONLY - DO NOT HIGHLIGHT.
|
ABOVE SPACE IS FOR OFFICE USE ONLY
|
|||
Certificate of Designation
|
||||
For Nevada Profit Corporations
|
||||
(Pursuant to NRS 78.1955)
|
||||
1. Name of corporation:
|
||||
Red Rock Pictures Holdings, Inc.
|
||||
2. By resolution of the board of directors pursuant to a provision in the articles of incorporation. this certificate establishes the following regarding the voting powers, designations, preferences, limitations, restrictions and relative rights of the following class or series of stock.
|
||||
Designate a Series A Convertible Preferred class of stock consisting 530,000 shares whereby each share of Series A Convertible Preferred would: (i) carry voting rights 100 times the number of Common Stock votes, (ii) carry no dividends, (iii) carry liquidation preference two times the sum available for distribution to Common Stock holders, (iv) automatically convert after at such time as the Corporation has filed a certificate of amendment with the State of Nevada to increase the authorized shares of common stock of the Corporation to a minimum of 500,000,000 into One Hundred (100) common share, and (v) not be subject to reverse stock splits and other changes to the common stock capital of the Company,” (hereinafter, items (i) through (v) shall be referred to as the “Designation”.
|
||||
3. Effective date of filing (optional):
|
||||
(must not be later than 90 days alter the certificate is filed)
|
||||
4. Officer Signature (Required):
|
X /s/
|
|||
Filing Fee: $175.00
|
||||
IMPORTANT: Failure to include any of the above information and submit the proper fees may cause this filing to be rejected.
|
||||
This form must be accompanied by appropriate fees.
|
/s/
|
RENO R. ROLLE
|
Date of Conversion:
|
|||
Number of Preferred Shares to be converted:
|
|||
Please confirm the following information:
|
|||
Number of shares of Common Stock to be issued:
|
|||
Please issue the Common Stock into which the Preferred Shares are being converted and, if applicable, any check drawn on an account of the Corporation in the following name and to the following address:
|
Issue to:
|
|||
Facsimile Number:
|
|||
Authorization:
|
|||
By: _______________________________________
|
|||
Title: ______________________________________
|
|||
Applicable only if the Transfer Agent is a participant in the electronic book entry transfer program:
|
|||
Account Number:
|
|||
(if electronic book entry transfer):
|
|||
Transaction Code Number
|
|||
(if electronic book entry transfer):
|
|||
Participant Code:
|
|||
THIS NOTICE MUST BE DELIVERED TO THE TRANSFER AGENT:
|
|||
WITH AN ADDITIONAL COPY TO BE MAILED TO THE CORPORATION
|
![]() |
ROSS MILLER
|
Secretary of State
|
|
204 North Carson Street, Suite 1
|
|
Carson City, Nevada 89701-4520
|
|
(775) 684 5708
|
|
Website: www.nvsos.gov
|
Certificate of Amendment
|
(PURSUANT TO NRS 78.385 AND 78.390)
|
USE BLACK INK ONLY - DO NOT HIGHLIGHT.
|
ABOVE SPACE IS FOR OFFICE USE ONLY
|
||
Certificate of Amendment to Articles of Incorporation
|
|||
For Nevada Profit Corporations
|
|||
(Pursuant to NRS 78.385 and 78.390 - After Issuance of Stock)
|
|||
1. Name of corporation:
|
|||
Red Rock Pictures Holdings, Inc.
|
|||
2. The articles have been amended as follows: (provide article numbers, if available)
|
|||
Article One
The name of the corporation is OSL Holdings Inc.
|
|||
3. The vote by which the stockholders holding shares in the corporation entitling them to exercise a (east a majority of the voting power, or such greater proportion of the voting power as may be required in the case of a vote by classes or series, or as may be required by the provisions of the articles of incorporation* have voted in favor of the amendment is: 93%
|
|||
4. Effective date of filing (optional):
|
|||
(must not be later than 90 days alter the certificate is filed)
|
|||
5. Signature (required):
|
- NOTARIZATION ON THE BACK -
|
||
X /s/
|
|||
Signature of Officer
|
|||
*If any proposed amendment would alter or change any preference or any relative or other right given to any class or series of outstanding shares, then the amendment must be approved by the vote, in addition to the affirmative vote otherwise required, of the holders of shares representing a majority of the voting power of each class or series affected by the amendment regardless to limitations or restrictions on the voting power thereof.
|
|||
IMPORTANT: Failure to include any of the above information and submit the proper fees may cause this filing to be rejected.
|
|||
This form must be accompanied by appropriate fees.
|
![]() |
ROSS MILLER
|
Secretary of State
|
|
204 North Carson Street, Suite 1
|
|
Carson City, Nevada 89701-4299
|
|
(775) 684 5708
|
|
Website: www.nvsos.gov
|
Certificate of Amendment
|
(PURSUANT TO NRS 78.385 AND 78.390)
|
Principal Amount: $32,500.00
|
Issue Date: January 20, 2012
|
Purchase Price: $32,500.00
|
|
If to the Borrower, to:
|
OSL HOLDINGS INC. f/k/a RED ROCK PICTURES HOLDINGS INC.
1710 First Avenue
Attn: ERIC KOTCH, Chief Financial Officer
facsimile: [enter fax number]
|
With a copy by fax only to (which copy shall not constitute notice):
|
Anslow & Jaclin, LLP
195 Route 9 South – Suite 204
Manalapan, New Jersey 07726
732-499-1212
732-577-1188
|
If to the Holder:
|
ASHER ENTERPRISES, INC.
1 Linden Pl., Suite 207
Great Neck, NY 11021
Attn: Curt Kramer, President
facsimile: 516-498-9894
|
With a copy by fax only to (which copy shall not constitute notice):
|
Naidich Wurman Birnbaum & Maday LLP
80 Cuttermill Road, Suite 410
Great Neck, NY 11021
Attn: Bernard S. Feldman, Esq.
facsimile: 516-466-3555
|
OSL HOLDINGS INC. f/k/a RED ROCK PICTURES HOLDINGS INC.
|
|||
By:
|
/s/ | ||
ERIC KOTCH
|
|||
Chief Financial Officer |
o
|
The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
|
|
Name of DTC Prime Broker: Account Number:
|
||
o
|
The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:
|
|
ASHER ENTERPRISES, INC.
1 Linden Pl., Suite 207
Great Neck, NY 11021
Attention: Certificate Delivery
(516) 498-9890
|
||
Date of Conversion:
|
_____________ | |
$____________
|
||
Number of Shares of Common Stock to be Issued Pursuant to Conversion of the Notes:
|
_____________ | |
Amount of Principal Balance Due remaining Under the Note after this conversion:
|
_____________ | |
ASHER ENTERPRISES, INC.
By:___________________________
Name: Curt Kramer
Title: President
Date: ______________
1 Linden Pl., Suite 207
Great Neck, NY 11021
|
Principal Amount: $53,000.00
|
Issue Date: June 15, 2012
|
Purchase Price: $53,000.00
|
|
If to the Borrower, to:
|
OSL HOLDINGS INC. f/k/a RED ROCK PICTURES HOLDINGS INC.
60 Dutch Hill Road - Suite 15
Orangeburg, NY 10962
Attn: ELI FEDER, Chief Executive Officer
facsimile: [enter fax number]
|
With a copy by fax only to (which copy shall not constitute notice):
|
Anslow & Jaclin, LLP
195 Route 9 South – Suite 204
Manalapan, New Jersey 07726
732-499-1212
732-577-1188
|
If to the Holder:
|
ASHER ENTERPRISES, INC.
1 Linden Pl., Suite 207
Great Neck, NY 11021
Attn: Curt Kramer, President
facsimile: 516-498-9894
|
With a copy by fax only to (which copy shall not constitute notice):
|
Naidich Wurman Birnbaum & Maday LLP
80 Cuttermill Road, Suite 410
Great Neck, NY 11021
Attn: Bernard S. Feldman, Esq.
facsimile: 516-466-3555
|
OSL HOLDINGS INC. f/k/a RED ROCK PICTURES HOLDINGS INC. | |||
By:
|
/s/ | ||
ELI FEDER | |||
Chief Executive Officer
|
o
|
The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
|
|
Name of DTC Prime Broker:
Account Number:
|
||
o
|
The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:
|
|
ASHER ENTERPRISES, INC.
1 Linden Pl., Suite 207
Great Neck, NY 11021
Attention: Certificate Delivery
(516) 498-9890
|
||
Date of Conversion:
|
____________ | |
Applicable Conversion Price:
|
$
|
|
Number of Shares of Common Stock to be Issued Pursuant to Conversion of the Notes:
|
____________ | |
Amount of Principal Balance Due remaining Under the Note after this conversion:
|
____________ | |
ASHER ENTERPRISES, INC.
By:
Name: Curt Kramer
Title: President
Date:
1 Linden Pl., Suite 207
Great Neck, NY 11021
|
Principal Amount: $27,500.00
|
Issue Date: July 12, 2012
|
Purchase Price: $27,500.00
|
If to the Borrower, to:
|
|||||
OSL HOLDINGS INC.
|
|||||
f/k/a RED ROCK PICTURES HOLDINGS INC.
|
|||||
60 Dutch Hill Road - Suite 15
|
|||||
Orangeburg, NY 10962
|
|||||
Attn: ELI FEDER, Chief Executive Officer
|
|||||
facsimile: [enter fax number]
|
With a copy by fax only to (which copy shall not constitute notice):
|
|
Anslow& Jaclin, LLP
|
|
195 Route 9 South – Suite 204
|
|
Manalapan, New Jersey 07726
|
|
732-499-1212
|
|
732-577-1188
|
If to the Holder:
|
|
ASHER ENTERPRISES, INC.
|
|
1 Linden Pl., Suite 207
|
|
Great Neck, NY. 11021
|
|
Attn: Curt Kramer, President
|
|
facsimile: 516-498-9894
|
With a copy by fax only to (which copy shall not constitute notice):
|
|||
Naidich Wurman Birnbaum & Maday LLP
|
|||
80 Cuttermill Road, Suite 410
|
|||
Great Neck, NY 11021
|
|||
Attn: Bernard S. Feldman, Esq.
|
|||
facsimile: 516-466-3555
|
OSL HOLDINGS INC.
|
||
f/k/a RED ROCK PICTURES HOLDINGS INC.
|
||
By: | /s/ | |
ELI FEDER
|
||
Chief Executive Officer
|
o
|
The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”).
|
||
Name of DTC Prime Broker:
|
|||
Account Number:
|
|||
o
|
The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto:
|
||
ASHER ENTERPRISES, INC.
|
|||
1 Linden Pl., Suite 207
|
|||
Great Neck, NY. 11021
|
|||
Attention: Certificate Delivery
|
|||
(516) 498-9890
|
|||
Date of Conversion:
|
|||
Applicable Conversion Price:
|
$_______________
|
||
Number of Shares of Common Stock to be Issued Pursuant to Conversion of the Notes:
|
|||
Amount of Principal Balance Due remaining Under the Note after this conversion:
|
ASHER ENTERPRISES, INC.
|
By: _________________________
|
Name: Curt Kramer
|
Title: President
|
Date: ___________________
|
1 Linden Pl., Suite 207
|
Great Neck, NY. 11021
|
$50,000
|
Wilmington, Delaware
|
April 10, 2012
|
|
I.
|
(a) Payee shall have the right to convert this Note in its entirety or in part into common stock valued at a price not to fall below the higher of:
|
|
II.
|
Within 48 hours after the conversion of any portion of this Note into Conversion Stock as contemplated herein, the Company shall issue and deliver to or upon the written order of me holder, to the place designated by the holder, a certificate or certificates for the number of full shares of Conversion Stock.
|
Maker:
|
OSL Holdings, Inc.
|
1710 First Avenue
|
|
New York, NY 10028
|
|
Website:
|
|
Phone:
|
|
Email:
|
Payee:
|
Panache Capital, LLC
|
1350 6TH Avenue
|
|
2nd Floor
|
|
New York, NY 10019
|
|
Attention: Mark Grober
|
|
Telephone: (646) 599-9219
|
MAKER:
|
|||
OSL Holdings, Inc.
|
|||
By:
|
/s/ | ||
Name:
|
|||
Title: CEO
|
|||
PAYEE:
|
|||
Panache Capital, LLC
|
|||
By:
|
/s/ | ||
Name: Mark Grober
|
|||
Title: Managing Member
|
DATED
|
PRINCIPAL AMOUNT
|
March 5, 2012
|
$125,000
|
April 10, 2012
|
$50,000
|
April 18, 2012
|
$50,000
|
April 26, 2012
|
$25,000
|
BY:
|
/s/ | |
Print:
|
||
Title:
|
||
Date:
|
||
PANACHE CAPITAL, LLC.
|
||
BY:
|
/s/ | |
Print:
|
||
Title:
|
||
Date:
|
Date of Issuance: | October 3, 2011 |
Principal Amount: $240,000
|
OFFICE SUPPLY LINE, INC.
|
|||
By:
|
/s/ | ||
Name | |||
Title: |
Amount Due
|
Due Date
|
$50,000
|
November 8, 2011
|
$25,000
|
November 15, 2011
|
$25,000
|
November 22, 2011
|
$25,000
|
November 29, 2011
|
$25,000
|
December 6, 2011
|
$25,000
|
December 13, 2011
|
$25,000
|
December 20, 2011
|
$25,000
|
December 27, 2011
|
$15,000
|
January 3, 2012
|
Property Damage: | $ 500,000.00; | ||
Liability: | $l,000.000.00 per person | ||
$3,000,000.00 per occurrence |
Fire and Extended Coverage, including Loss of Income: | $300,000, with Landlord as Loss Payee |
1)
|
Employment. Subject to the terms and conditions set forth in this Agreement, the Company offers and the Employee hereby accepts employment, effective as of the Effective Date.
|
2)
|
Initial Term. Subject to earlier termination as provided in Section 5 hereof, this Agreement and the Employee’s employment shall continue for an Initial Term of two (2) years, commencing on the Effective Date and ending on the second anniversary of the Effective Date (the “Initial Term”).
|
|
a)
|
After the Initial Term, and subject to earlier termination as provided in Section 5 hereof, this Agreement shall renew for successive, additional one (1) year periods (each additional year, a “Renewal Term”) commencing on the second anniversary of the Effective Date, and on each anniversary thereafter, unless terminated by written notice from either party to the other not less than ninety (90) days prior to the expiration of the then Term, on the terms and conditions as they exist on the last day of the existing Term or Renewal Term, as the case may be (the term of this Agreement, as it may be from time to time modified and in effect, the “Term”).
|
Employment Agreement for Bob Rothenberg | Page 1 of 14 |
|
b)
|
The Initial Term and the Renewal Terms (if any) are sometimes collectively referred to herein as the “Term”.
|
3)
|
Capacity and Performance. During the Term, the Employee shall serve the Company as its President (and Chief Strategy Officer). The Employee shall comply with and perform, faithfully, diligently and to the best of his ability, such duties as are customary for President and Chief Strategy Officer or such duties as may from time to time be vested in or requested of him by the CEO and/or Board of Directors of the Company (the “CEO and/or Board of Directors” are hereinafter collectively referred to herein as the “Board”).
|
4)
|
Compensation and Benefits. As compensation for the satisfactory performance by the Employee of his duties and obligations hereunder to the Company and subject to the provisions of Section 5, the Company shall pay to Employee the following:
|
|
a)
|
Base Salary During Term. Commencing on or about January 15, 2012, the Employee began receiving an annualized base salary (the “Base Salary”) of $240,000 which shall continue through the pay period ending on or about January 15, 2014.
|
|
i)
|
Thereafter, the Base Salary will be reviewed annually by the Board based upon the performance of both the Employee and the Company, with any positive adjustments to Base Salary to be made at the discretion of the Board.
|
|
ii)
|
The Base Salary shall be payable by the Company to the Employee in equal installments on the dates that payments of salary are regularly made by the Company to its Employees, subject to deductions for taxes and contribution for benefits, if any, in accordance with the Company’s regular payroll practices.
|
|
b)
|
Signing Compensation: The Company shall pay a signing bonus of $50,000 weekly over the first 90 days of the agreement to cover consulting time covering hours Employee expended prior to signing employment agreement.
|
Employment Agreement for Bob Rothenberg | Page 2 of 14 |
|
c)
|
Bonus. In addition to the base salary outlined in (a), the Company may pay you a bonus of up to Hundred Thousand Dollars ($100,000) per year as set forth below in the Schedule A of this Agreement. This bonus plan and the base salary shall be revisited once a year based on a performance review to be conducted annually, with the first review taking place on or around nine (9) months from your start date of employment.
|
|
d)
|
Benefits. During the Term and subject to any contribution therefore generally required of Employees of the Company of similar position and responsibility, the Employee shall be entitled to participate in all employee benefits plans from time to time adopted by the Company and in effect for employees of the Company in similar positions, including 401(k), and medical plans. Such participation shall be subject to (1) the terms of the applicable plan documents, (2) generally applicable Company policies and (3) the discretion of the Board or any administrative or other committee provided for in or contemplated by such plan. The Company’s current plans and policies shall govern all other benefits. The Company may alter, modify, add to, or eliminate its employee benefits plans at any time as the Company and/or the Board, in its sole judgment, determines to be appropriate. The Company agrees to maintain 401(k), and medical plans substantially similar to those Company plans in effect immediately prior to the Effective Date.
|
|
i)
|
At the current moment, the benefits provided for Executives of the Company of similar position and responsibility include “Full Coverage for Employee and Dependents”.
|
|
e)
|
Expenses. The Company shall pay or reimburse the Employee for all reasonable travel and other properly documented expenses incurred by the Employee in performing his duties under this Agreement in accordance with the Company’s policies relating thereto.
|
|
f)
|
Vacation. During the Term, the Employee shall be entitled to receive up to twenty (25) days of Paid Time Off (PTO) per year on an accrual basis. PTO includes vacation, personal, sick and floating days. All PTO shall be accrued and used in accordance with the Company’s policies relating thereto in the then current Employee Handbook.
|
Employment Agreement for Bob Rothenberg | Page 3 of 14 |
|
i)
|
Stock Award. The Company anticipates delivery of Company stock and/or Equity to certain of its Employees. Employee will be entitled to 500,000 shares at signing of the employment agreement and 500,000 shares each year (or the appropriate equivalent), that will vest monthly in equal increments each year of employment.
|
5)
|
Termination of Employment. Notwithstanding the provisions of Section 2 hereof, the Employee’s employment and this Agreement shall terminate prior to the expiration of the Term under any of the following circumstances:
|
|
a)
|
Death or Disability. In the event of the Employee’s death or Disability during the Term, the Employee’s employment and this Agreement shall immediately and automatically terminate and the Company shall pay to the Employee (or in the case of death, the Employee’s designated beneficiary or, if no beneficiary has been designated by the Employee, his estate), any Base Salary earned or unearned through the date of the original term but unpaid through the date of death or Disability, after which Company shall have no further obligation or liability to the Employee relating to Employee’s employment by the Company or this Agreement (other than as it relates to any non-voting shares/options of the Company owned by Employee). For the purposes of this Agreement “Disability” shall mean any physical or mental incapacity as a result of which the Employee is unable to perform substantially all his duties and responsibilities for an aggregate of 180 days, whether or not consecutive, during any twelve month period.
|
|
b)
|
By the Company for Cause.
|
|
i)
|
The Company may terminate the Employee’s employment and this Agreement for Cause at any time during the Term. Upon such termination, the Company shall have no further obligation or liability to the Employee relating to the Employee’s employment by the Company or this Agreement, other than Base Salary earned but unpaid through the date of termination or as it relates to any non-voting shares/options of the Company owned by Employee.
|
Employment Agreement for Bob Rothenberg | Page 4 of 14 |
|
ii)
|
The following events or conditions shall constitute “Cause” for purpose of Employee’s employment: (1) the Employee’s refusal or failure to render services to the Company in accordance with his obligations under this Agreement if such failure or refusal continues for more than ten (10) days after written notice from the Company to the Employee setting forth the specifics of the Employee’s breach; (2) the commission by the Employee of any act of gross negligence, dishonesty or breach of fiduciary duty towards the Company; (3) the conviction of the Employee of any felony or any act involving dishonesty, fraud, theft or breach of trust.
|
|
c)
|
By the Company Other than for Cause. Company may terminate the Employees employment and this Agreement at any time without Cause during the Initial Term or any Renewal Term. If Employee is discharged without Cause during the Term, Employee shall be entitled to (i) receive Base Salary and continuation of benefits through the date of discharge, and (ii) upon delivery of a general release satisfactory to Company and so long as Employee is in full compliance with his obligations under Section 6 during the entire Non-Competition Period (as hereunder defined), Employee shall receive continuation of Base Salary for a period of six (6) months; provided, however that payment of the “post termination” compensation shall be paid in equal installments spread across the term of Employee’s Non-Competition Period. Thereafter, Company shall have no further obligations or liabilities to Employee under the Employment Agreement (other than as relates to any non-voting shares/options of the Company owned by Employee) or otherwise arising from Employee’s employment with, or termination of that employment by the Company.
|
Employment Agreement for Bob Rothenberg | Page 5 of 14 |
|
i)
|
If Company elects not to renew this Agreement at the conclusion of the Initial Term, Company shall either (i) pay Employee’s Base Salary and benefits through the expiration date of the Initial Term or, (ii) at the election of Company and upon delivery of a general release satisfactory to Company, and so long as Employee is in full compliance with his obligations under Section 6 during the entire Non-Competition Period (as hereunder defined) pay Employee severance equal to six (6) months of Base Salary. Payment of severance compensation shall be spread across the entire term of Employee’s Non-Competition Period. Thereafter, Company shall have no further obligations or liabilities to Employee under the Employment Agreement (other than as relates to any non-voting shares/options of the Company owned by Employee) or otherwise arising from Employees employment with, or termination of that employment by the Company.
|
|
ii)
|
The Employee shall not be required to mitigate the amount of any payment provided for in this Section 5 by seeking other employment. However, if the Employee shall obtain other employment during the Non-Competition Period or during any period in which the Employee is receiving continued payments, and the annualized salary for the other employment is greater than that of the Employee’s base salary at the time of termination, the payments to be made by the Company under this Section 5(c) shall cease immediately.
|
|
d)
|
By the Employee. If the Employee terminates this Agreement and/or his employment with the Company for any reason other than Good Reason, death or Disability, the Company shall have no further obligation or liability to the Employee relating to the Employee’s employment or this Agreement (other than as relates to any non-voting shares/options of the Company owned by Employee) except for any Base Salary earned but unpaid and any reasonable, properly documented and approved business expenses incurred but unreimbursed through the date of termination.
|
Employment Agreement for Bob Rothenberg | Page 6 of 14 |
|
i)
|
For purposes of this Agreement, “Good Reason” for termination by Employee (who shall provide thirty (60) days advance written notice if requested by the Company) shall exist if (a) the Company breaches this Agreement in any material respect, which it refuses to correct within ten (10) days following written notice of same from Employee setting forth the specifics of Company’s alleged breach. In the event of such a termination, Employee shall receive the same post-termination compensation as would have been applicable in the event Company had terminated Employee other than for Cause.
|
|
e)
|
Post-Agreement Employment. Upon the expiration of the Initial Term or any Renewal Term, this Agreement shall automatically be deemed to have terminated and the Company shall have no further obligations to Employee hereunder (other than as relates to any non-voting shares/options of the Company owned by Employee), including without limitation, any duty to provide severance pay to Employee. In the event the Employee remains in the employ of the Company following the expiration or termination of this Agreement, then such employment shall be on an at-will basis, unless otherwise agreed to in writing by the Company and the Employee.
|
6)
|
Confidentiality; Non-Competition.
|
|
a)
|
Confidentiality. It is specifically understood and agreed that some of the Company’s business activities are confidential in nature and constitute trade secrets, including but not limited to the Company’s “know-how,” methods of business and operations, and proprietary and financial analyses and reports (all such information, the “Confidential Information”). All of the Confidential Information is and shall be the property of the Company for its own exclusive use and benefit, and the Employee agrees that he will hold all of the Confidential Information in strictest confidence and will not, at any time, either during or after his employment with the Company, use or permit the use of the same for his own benefit or for the benefit of others unless authorized to do so by the prior written consent of the Board or by a contract or agreement to which the Company is a party or is bound. The provisions of this Section 6(a) shall survive the termination of this Agreement indefinitely.
|
Employment Agreement for Bob Rothenberg | Page 7 of 14 |
|
b)
|
Non-Competition. In consideration of the mutual promises contained in this Agreement, including, without limitation, those involving the Confidential Information, compensation and termination, and in order to protect the Confidential Information and to reduce the likelihood of irreparable damage that would occur in the event the Confidential Information is provided to or used by a competitor of the Company, the Employee agrees that during the Term and for an additional period of twelve (6) months immediately following the Term (collectively the “Non-Competition Period”), not to engage in any Competitive Activity. For purposes of this Agreement, “Competitive Activity” shall mean engaging in any activity, without the prior written consent of the Company (which consent may be withheld in Company’s sole discretion), directly or indirectly, either through any form of ownership or as a director, officer, principal, agent, manager, employee, employer, adviser, consultant, stockholder, partner, or in any other individual or representative capacity whatsoever, either for his own benefit or for the benefit of any other person, firm, corporation, governmental or private entity of any nature whatsoever, that involves any of (i) office supply company; or, (ii) business activity, on behalf of any person or entity, that competes with the business of the Company. If, during any period within the Non-Competition Period, the Employee is not in compliance with the terms of this Section 6(b), the Company shall be entitled to, among other remedies, compel compliance by the Employee of the terms of this Section 6(b) for an additional period equal to the period of such noncompliance. For purposes of this Agreement, the term “Non-Competition Period” shall also include this additional period. The Employee hereby acknowledges that the worldwide boundaries, scope of prohibited activities and the time duration of the provisions of this Section 6(b) are reasonable and are no broader than are necessary to protect the legitimate business interests of the Company. The provisions of this Section 6(b) shall survive the termination of the Employee’s employment and can only be revoked or modified by a writing signed by the parties that specifically states an intent to revoke or modify this provision. The Company and the Employee agree and stipulate that the agreements and covenants not to compete contained in this Section 6(b) are fair and reasonable in light of all of the facts and circumstances of the relationship between the Employee and the Company; however, the Employee and the Company are aware that in certain circumstances courts have refused to enforce certain agreements not to compete. Therefore, in furtherance of, and not in derogation of the provisions of this Section 6(b), the Company and the Employee agree that in the event a court should decline to enforce the provisions of this Section 6(b), that this Section 6(b) shall be deemed to be modified or reformed to restrict the Employee’s competition with the Company or its affiliates to the maximum extent, as to time, geography and business scope, that the court shall find enforceable; provided, however, in no event shall the provisions of this Section 6(b) be deemed to be more restrictive to the Employee than those contained herein
|
Employment Agreement for Bob Rothenberg | Page 8 of 14 |
|
c)
|
Non-Interference or Solicitation. In consideration of the numerous mutual promises contained in this Agreement, and in order to prevent the Employee from violating the provisions of Section 6(a) and 6(b), the Employee agrees that during his employment with the Company, during the Non-Competition Period and for an additional period of six months (6) months beyond the expiration of any Non-Competition Period, that neither Employee nor any individual, partner, limited partnership, corporation or other entity or business with which he is in any way affiliated, including, without limitation, any partner, limited partner, member, director, officer, shareholder or employee of any such entity or business, will solicit for employment or hire any person who is, or within the preceding six months was, an officer, manager, or employee of the Company. In consideration of the mutual promises contained in this Agreement, and in order to prevent the Employee from violating the provisions of Section 6(a) and 6(b), the Employee further agrees that during the period beginning with the Effective Date, throughout the Non-Competition Period and for an additional period of six (6) months beyond the expiration of the Non-Competition Period, he shall not, directly or indirectly, as a manager, agent, consultant, stockholder, director, employee, employer, partner or in any other individual or representative capacity, solicit or encourage any customer, supplier, contractor, partner or investor of the Company or any of its affiliates with whom the Employee or Company had dealings or about whom the Employee acquired Confidential Information during his employment with the Company, to do business with any person or entity other than the Company or its affiliates, or reduce the amount or scope of business that it did with the Company and its affiliates as of the last day of Employee’s employment with the Company.
|
Employment Agreement for Bob Rothenberg | Page 9 of 14 |
|
d)
|
Return of Documents. The Employee agrees that at such time as his relationship with the Company is terminated (for whatever reason), the Employee shall not take with him, but will leave with the Company, all work product, Confidential Information, records, files, memoranda, reports, customer lists, supplier lists, documents and other information related to the conduct of the business, in whatever form (including on computer disk), and any copies thereof; or if such items are not on the premises of the Company, the Employee agrees to immediately return such items to the Company upon the Employee’s termination. The Employee acknowledges that all such items are and shall at all times remain the property of the Company.
|
7)
|
Effect of Termination. The provisions of this Section 7 shall apply in the event of termination of this Agreement and/or the Employee’s employment pursuant to Sections 2 or 5.
|
|
a)
|
Payment in Full. Payment by the Company to the Employee of any Base Salary and other amounts provided for herein shall constitute the entire obligation of the Company to the Employee; provided, however, that nothing in this Section 7(a) is intended or shall be construed to affect the rights and obligations of either the Company, or the Employee with respect to any loans, stock warrants, stock pledge arrangements, option plans or other agreements to the extent said rights or obligations survive the Employee’s termination of employment under the provisions of documents relating thereto.
|
|
b)
|
Termination of Benefits. Except for any right to continuation of benefits coverage provided by the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”) or other applicable law, benefits shall terminate pursuant to the terms of the applicable benefit plans as of the termination date of the Employee’s employment without regard to any continuation of Base Salary or other payments to the Employee following such termination date.
|
Employment Agreement for Bob Rothenberg | Page 10 of 14 |
|
c)
|
Cessation of Severance and Benefits. If the Employee breaches his obligations under this Agreement, the Company may immediately cease payment of all severance and benefits described in this Agreement. The cessation of these payments shall be in addition to, and not as an alternative to, any other remedies at law or in equity available to the Company, including the right to seek specific performance or an injunction.
|
8)
|
Survival of Certain Provisions. The obligations of the parties under Sections 6 and 7 of this Agreement shall expressly survive any termination of the Employee’s employment, regardless of the manner of such termination, or termination of this Agreement.
|
9)
|
Conflicting Agreements. The Employee hereby warrants that the execution of this Agreement and the performance of his obligations hereunder will not breach or be in conflict with any other agreement to which or by which the Employee is a party or is bound and that the Employee is not now subject to and will not enter into any agreements that would affect the performance of his obligations hereunder.
|
10)
|
Withholding. All payments made by the Company under this Agreement shall be subject to and reduced by any federal, state and/or local taxes or other amounts required to be withheld by the Company under any applicable law.
|
11)
|
Miscellaneous.
|
|
a)
|
Assignment. The Employee may not assign this Agreement or any interest herein but this Agreement shall inure to the benefit of the estate of the Employee or his legal successor upon death or Disability. The Company may assign this Agreement. This Agreement shall inure to the benefit of and be binding upon the successors and assigns of the Company.
|
|
b)
|
Waiver; Amendment. No waiver of any provision hereof shall be effective unless made in writing and signed by the waiving party. The failure of the Company to require the performance of any term or obligation of this Agreement, or the waiver by the Company of any breach of this Agreement, shall not prevent any subsequent enforcement of such term or obligation or be deemed a waiver of any subsequent breach. This Agreement may be amended or modified only by a written instrument signed by the Employee and the Company.
|
Employment Agreement for Bob Rothenberg | Page 11 of 14 |
|
c)
|
Notices. All notices, requests and other communications provided for by this Agreement shall be in writing and shall be effective when delivered in person against a receipt, by facsimile or by overnight air courier or four (4) business days after being deposited in the mail of the United States, postage prepaid, registered or certified, and addressed (i) in the case of the Employee, to the address set forth underneath his signature to this Agreement or (ii) in the case of the Company, at the address of the Company’s principal office on the date of the notice and to the attention of the CEO, or to such other address as either party may specify by notice to the other, given in accordance with the provisions of this Section 11(c).
|
|
d)
|
Entire Agreement. This Agreement constitutes the entire agreement between the Company and the Employee with respect to the terms and conditions of the Employee’s employment with the Company and supersedes and cancels all prior communications, agreements and understandings, written or oral, between the Employee and the Company, with respect to the terms and conditions of the Employee’s employment with the Company.
|
|
e)
|
Counterparts; Facsimile Signatures. This Agreement may be executed in counterparts, each of which shall be original and all of which together shall constitute one and the same instrument. This Agreement may be executed and delivered by facsimile and, upon such delivery, the facsimile will be deemed to have the same effect as if the original signature had been delivered by the other party.
|
|
f)
|
Governing Law. This Agreement, the employment relationship contemplated herein and any claim arising from such relationship, whether or not arising under this Agreement, shall be governed and interpreted by the laws of the Commonwealth of Pennsylvania without giving effect to conflicts of laws principles. The parties hereto consent to the exclusive jurisdiction of the courts of the Commonwealth of Pennsylvania and of federal courts situated therein to hear all claims, disputes and causes of action arising out of this Agreement, and agree that the exclusive venue for all such claims shall be in either the Court of Common Pleas of Montgomery County, Pennsylvania or the United States District Court for the Eastern District of Pennsylvania. Each party hereto stipulates and acknowledges that litigation of claims in any such court would not be unreasonable.
|
Employment Agreement for Bob Rothenberg | Page 12 of 14 |
OSL | ROBERT H. ROTHENBERG | ||||
By: | /s/ | By: | /s/ | ||
Name: |
|
Name: |
|
||
Title: | Address: |
Employment Agreement for Bob Rothenberg | Page 13 of 14 |
|
●
|
½ (uncapped) based on organic Net Revenue growth of client portfolio – for example
|
|
(i)
|
Bonus allocation per 1% of revenue growth from benchmark period (the benchmark period being defined as the 3-month monthly average prior to the Effective Date)
|
|
(ii)
|
No bonus below a certain growth
|
|
(iii)
|
Bonus allocation per additional 1% above a certain growth
|
|
●
|
½ (uncapped) based on Gross Profit of client portfolio –
|
|
(iv)
|
Bonus allocation for every month during which fully loaded Direct Costs of Services =< certain growth of Net Revenues during first six months period and =< certain growth of Net Revenues during second six months period
|
|
●
|
Bonus shall be paid quarterly within Fifteen (15) days from the end of each Fiscal Quarter for any Bonus that was earned in that period.
|
Employment Agreement for Bob Rothenberg | Page 14 of 14 |
Issuance Date: December 28, 2008 | Original Principal Amount: U.S. $100,000 |
RED ROCK PICTURES HOLDINGS, INC. | |||
By:
|
/s/ | ||
Name: | |||
Title: |
RED ROCK PICTURES HOLDINGS, INC. | |||
By:
|
|||
Name : | |||
Title : | |||
RED ROCK PICTURES HOLDINGS, INC.
|
|||
By:
|
/s/
|
||
Name:
|
Eric Kotch
|
||
Title:
|
Chief Financial Officer, Treasurer and Secretary
|
OSL HOLDINGS INC.
|
|||
By:
|
/s/
|
||
Name:
|
Eric Kotch
|
||
Title:
|
Chief Financial Officer, Treasurer and Secretary
|
W2.57&"0<5EW_[;=M<1^*X?@=X)U'4;OQ!X M)M+^PLO%4GVA=1>1&*?9;>/=+<^4D32@(!N3.<$8H`U/&7_"^/'GBGQ'\+/% M'[3GB)%T2PBFO=.@UBY7S7$;RQJB[E$[(J2;2I`YQSD5K0K^W)\.-,\6^,/@ M3^T_XOU+3/"/AO1I=$OU:=[F[C>T21BBW#R`&.-O*>+[Q8-@<5Q_CB']M;Q9 M\69]%TWX0>)=7M-1\4VMO:7GP^\(2?V?&&PBMYT^-_POU.*ZTCQ%8BYMT5@7@.!YD+XR%D1B59>Q!KT*@#XL_X*^?MF M>'_A%\,]/_9DT7X@76C>,OB7;S+97&FZ 7DLQ=@OEISNP! MG(KO/VJ?'\_QF_X*8>)/C[+I=CKWAOX;Z_'X9T&V>Z$#3ZC;A?+MX@YX;SY/ MF8C:<$9Z5Y3^T7-\49]3\5^)M,^#WB+2=*\,:E_:.H'PJ]OITND>+I$^TVK2 MI+N6X;S8A\J97"Y'I0!'\&?V;/VBOVSOCUX&\>V/CNR\+6AUF*_M/%.D>)"M MWI$5O$YN-*73)D\J745!0RQ2#$`V\MFOU6_9Z_8#^`'[,'A32-4^%.CV5CJ= MCH]T4UB:U1[RYO)` "/#?PS\-_MB^"O^$H M\:^/=$\V2_N-1OG@/B%]4>U:_DFMAB*WE+E6#HNX",KR#7TIXU^)>O6\7B"Z MMO'^B^%K"^\2:5I6DO<:8]Q=6]Z9@LJD*2&\PL!&>-@SNS0![+X.\'VMEH&E MKK%LEW>V=HJF]D4EF9D^ 3]W'!`_P!H M5&/B78:>NJ2VMO=7$5AJXMKF9W$B1#"[GPN2$7=@YYR.AQ0!^?'_``4T_P"" M47AKP_X,\3_&?]G;P-! )=;U'03!J]G/I6C[KIDOSY$ZC)N)D MM)EC^8((Y%P0U`'JW_!)3]I"V_9P_;(U?X`:]K%\OA3XM""[\,6T8W:?9:D. MC1]!%YL(?V`K\4?BUXI\+_``4^%(^,_P`)8+O7?$FBZ+ BZH MVL6TB:#?3W<5]';W4D:H)H7F%Q^[7YD)"Y`XK]>/A-XQC\?_``L\,^.[NQ@2 M76_#]E?RI'>[55IH$D(`SP,MTH`_$GX0^)KGXI_"O3?C-)HV@W-OXMUJX\71 MS:Q9,MQ8VY\ZY$4JL&WR#SXUWYQF,<$XKSS2K7PU\89=2N/$NC_;-76\OM6L M_%NA^))/M&GPB)+:V^UPCAD6>;(D()#':`!7HW[*&N_&+Q_^SAI_@33]-?P] M?V6L06/B2SN/$\%K;V2I*J7%E$"I#QL89`W`&\; $-)UB'^V4UG1/#>D/;:H\Z7=O,6N&!6%H,M$D.PDD+TS0!^MO[!>K:- MXF_9LL=.\1ZF]Y"YLK2?5FF(DO)XX47S'.!@DQKTX)I-&^$LEA\/_&I\?>)S MX,LIOB5'J=EK?GQ2S7$*3Q%-QD5A$LQ3;P`5YP1FODG]A[]HK6$_9TU'1/C/ M\6]/NW\->.+/4$F\(6TL,=NJ1K]HT41O\UQ-;MA9'Y4LQ]*[7]H%/VB?C%XF MU+XP_LF_M&II6G:Q-Y6L>`M>TJ"1_M=K$WEW5JLC9=F`WF(+]Z/..]`'KOQ4 M\=>`M56Y\/>"_&.E:6LOC9K_`,33:SXB^S" /K'2[[2-9TG6)O&LGAI)+B^MIK)I(T9@I MB8R^6\X*_P!QD.<5#\3+[]H/0OV-]=^#WQ5UVP\97WQ3\1VD6AZT8+FT;5=0 MB$EZUQ<1!5BM8$MX$Q&@4!\T`?9 (=+\0?$^;4X[CPG M?RS+=3Q2E([:4+G#1QKA_5@3G'%?!O[5/@WP#\=M*\/C5?A3]B-YXZO+KQ'H M&J^,QI7DR2I<[(XK[=M$(?8[,1SC`KT?2?V*+W2O!]S\1O#?[;,^DZ)8Q#7H M-!T#3(6M+G495,I0^2X/DR[][*OS)O)[U\\_&/X>^*?#]EH_Q'U:Y\%7KCQ[ M96-]I'Q!F-MHFNH+62[V3!_G$!3/[P=#M'\5`':_":]M)/V/-2T?4OBS<:_# M>?#E;J7PO)IB/;Z3')+NG:*[4XN&S&`7.7P,@C.:_/O5-?\`^"G6D:G<:5X$ M_:.\9)H=K.\6C(OQ"ND"VBL1"`HD^7Y`O':OL_PKH7B35?@(-$\)_#Z2+3]- ML+FWAUO0[W-K;W$C?+8+:']]=QL&>-&YQC/:OB?5->M+34[FUE$ELT4[HUNT M\P,1#$;2">,=/PH`_2CXO_`_XG?`+X\>/_V8](^$MI=:#K'C"*\\+ZGJ%LK[ M':YFO[>:$%B[H$F=&60A6EB9\$O7!?%5YO@Y\1-(\=_%?QUX>TC1(/';^-KV MWFT%?[5\2:O:HD9TB*6(,T"S1?.$(\L-'\W`K[;_`."Z'P`U[0;WP/\`MP^! MWU(_\(G=C2_&,L$A,,.ES,"L[0Q@-)(DFU5 `4\1:3XE@UR0Z5J5Z\%];/?>4PCN;I)041&,DBN$X((Q]T4`>@_%S3/B1\ M6O#$'BGPI\0KJS\2>,M%CU'4[WP[HJQZ58PRF::"W2/.'G5)C$TZD;MHRHQ3 M;/XW?M!Z7XSTGQ[<0>$89OA_KLXN/"&H1QG6+Z\FM/L*)E)-L E^)+#X/6-[?R>&]-T29=&L?$L]O_::F&W5[N>X$(VK:K=>>T;# M_EFR@\BO:-:^#VF_M-^.OM?QJ7P[X 9!!?:_';Q6X2]&T#SH%=E M*-DNO\?&*`.;\.WOA'3/#%G>WG[('B'3_P"P-!;41!_;UIJ,ZBQ=HH[4LDIB MC5"[1^ (/$6AP^%=4AM]+T M"8+$HLIIS)^\EN%#QK)(/D5F`PI!KZ2^`/[(/[&?B'2K/5I/@YX>74XH;E8- M+T_7,&XLPY:ZS"'_`-)CDFR\BD$%FYQFN)\8_"'7_P!JOXF:KX4T?_A"+/P2 M;![6+PRGA3']KQ3H4GDU*97"PL%!6*-5/'/& *8H]7\+WUS#<7MRWV>UO;R[M9\L)HXX9TM\@X+1''%>)?M'^-_ MBU=>-+3PS\1?$VBIXFU?P3<:CIW@KXH6"WYBM[^1+2"+3R%`2_B@0R9 ?"G]GOP)X2U/PSXX^*.E>%]4L=,9?#TNB7Z0*D\<8\N%)%)96=HD M5D)^:,,3TKXYN])U7XN7.IZO\3?BWJNI3^%C%JEYH>HV]DPN] 3 M8*AB%O$2'=V;(YH`V_B-XQTWX=?!NZU?X,6<=CJGA#PQ$^F^,+%'ENK9H6>6 M5S"AP63`RVW`W`9-?9GP?_X-_O\`@G!\8_A+X6^+OQ#^$'BV?Q!XJ\.6.L:[ M/<>)+A))+RY@2:9F4/-'1FLYM'T);6-KRV,Z@';)<;(43D,96'\%?N3;:796-O'96(DBAA0)#% M'(0J*!@*`.@`XQ0!F_&3X4^#OCC\+];^$WC_`$=+_1]=L'M;ZTD8@2*PXY'( MP0#]17XV^*?@G\0_V(O%6O\`[,OQ_P#&.F0^&]1\;_:]#O)9V_?:+-"VVYBC MP0!$5$,F.0W.,$$_MQ7BW[:/[#/P:_;<\!)X5^*&FQKJ.F2/=>%]>2',^D7A MC9!,G(WJ0?FC8[6`'0C-`'Y*/A/^Q;XRL_&O[1?PYT+5]'\36DXTCQ! M$ZWEWIME<,RR0W$>"&@DC4'CYASQGBOK;XW>$_AG\7/`'A[XW_#30_"ME>:- M837'A_7(X&U:UTVS=5WC9"1)$DL87(4`@J!U!KX@^.7[-_QP_8;\:Z7\/OVM M+;5=?\,KIT=MX7\=^'=.5[.ZNO,C?"_4O!?A+XX M'QE\#7N_#WC0^&H[74M"TB??+=RS8'F/;,6LRL8&6E"[T&>M`'M7Q5^&/[4' MC?XO>%[#X1^`O!D&D0Z3!I^I>)K'Q++IVMZ1I%[-"+C4(8U'F*S0B1@G.Y@/ M2MW3/V-_AEX4^/6M>/O@GK,=N)[K^T#IPN+E4:W>`*Q,\S?*[L69E(+$$C`S M7@^H?MH?MZ:[I'A+Q-X=^(NAM:>(3/9:O=67@>WDN[*T@G,:W"2L!L5'QMSE M3UQ7%_%WQO\`&'Q_\(5TC]J'X^:]J\4=GJJWM_)KR6$-XL :`]O=>'X]/^T:1H-W+<%%O M)Y3AA=H!E!GN,\&OECQ=KNA_L[_";Q(WBJ:\U?5+NZTO1Y='ATXIJ,ESPT3Z M>R*V+D2`X(SRHQFI]8^(GA?XI>.5^%W[+WP7UOQ'XVN+A-66PTF1[B":0%3# M(FW]W"IV8PQ"]3MSG/Z'_P#!/#_@DWJGAWQ?'^U5^VY!I^M>/;R\AU/0O#:H M6@\+.BGRU8EBLUPFXD.``IH`ZK_@CC^P7XZ_9L^&^J_M`?M"R/?_`!7^)K17 MOB.\OK@S36%BOS6NG;SUV9WN<9+L?2OMO`]!3+>)H8@C," G;%? M!?[=G_!(S]DJQ\.ZG^T=\.3XI\%:\UFUN]KX2U[[/8L)%(=OL[HZJ6'!VX') MXS110!\5_L(_#2Y^,7@RPUK7/B5XETXW.B:A8W=KHUU!!!,B7D2(Y0PL`ZA` M?EP" ;+]^0@#JQ)->B+#&A#*O(&![444`.HHHH`_]D_ ` end
Subsequent Events (Details) (USD $)
|
1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 1 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Nov. 30, 2012
|
Oct. 31, 2012
|
Sep. 30, 2012
|
Sep. 20, 2012
|
Aug. 31, 2012
|
Aug. 31, 2011
|
Sep. 30, 2012
Panache Capital, LLC [Member]
|
Aug. 31, 2012
Panache Capital, LLC [Member]
|
Aug. 31, 2012
Asher Enterprises [Member]
|
Oct. 31, 2012
Series Preferred Stock [Member]
Crisnic [Member]
|
Oct. 31, 2012
Convertible Note One [Member]
|
Oct. 08, 2012
Convertible Note One [Member]
|
Sep. 30, 2012
Convertible Note One [Member]
Panache Capital, LLC [Member]
|
Sep. 21, 2012
Convertible Note One [Member]
Panache Capital, LLC [Member]
|
Oct. 31, 2012
Convertible Notes Two [Member]
|
Sep. 30, 2012
Convertible Notes Two [Member]
Panache Capital, LLC [Member]
|
Oct. 31, 2012
Convertible Notes Three [Member]
|
Nov. 30, 2012
November 2012 Note [Member]
Asher Enterprises [Member]
|
Nov. 08, 2012
November 2012 Note [Member]
Asher Enterprises [Member]
|
|
Subsequent Events (Textual) | |||||||||||||||||||
Note principle amount | $ 250,000 | $ 150,500 | $ 30,000 | $ 22,500 | |||||||||||||||
Convertible notes payable, Maturity date | Sep. 21, 2013 | Jul. 23, 2013 | |||||||||||||||||
Interest rate | 10.00% | 8.00% | 10.00% | 8.00% | |||||||||||||||
Conversion term of convertible promissory note | Each of the Panache Notes were further amended to permit Panache to convert the Panache Notes valued at a price not to fall below a 49% discount to the average of the three lowest closing bid prices for the Company common stock during the ten trading days immediately preceding a conversion date. | The Payee has the right to convert the Panache Notes, in its entirety or in part, into common stock of the Company. The conversion price is based on a 25% discount to the average of the three lowest closing bid prices for the Company's common stock during the ten trading days immediately preceding a conversion date. | At any time or times after 180 days from the date of the Notes and until the maturity dates, Asher is entitled to convert any portion of the outstanding and unpaid amount into fully paid and non-assessable shares of common stock. The conversion price will be based on a 49% discount to the average of the three lowest closing bid prices for the Company's common stock during the ten trading days immediately preceding a conversion date | Valued at an agreed discount to market not to fall below a 49% discount to the average of the three lowest closing bid prices for the Company's common stock during the ten days immediately preceding a conversion date. | The Payee has the right to convert the Note, in its entirety or in part, into common stock of the Company. The conversion price will be based on a 49% discount to the average of the three lowest closing bid prices for the Company''s common stock during the ten trading days immediately preceding a conversion date. | The November 2012 Note is convertible into shares of the Company's common stock (up to an amount that would result in Asher holding no more than 4.99% of the outstanding shares of common stock of the Company, subject to waiver by Asher) at any time beginning on the date that is 180 days following the date of the November 2012 Note and ending on the maturity date, valued at an agreed discount to market not to fall below a 59% discount to the average of the three lowest closing bid prices for the Company's common stock during the ten days immediately preceding a conversion date., | |||||||||||||
Increase in interest rate on default | 15.00% | 22.00% | |||||||||||||||||
Conversion penalty per day | 2,000 | 1,000 | |||||||||||||||||
Convertible promissory note, amendment description | For 90 days after September 21, 2012 (the "Outside Date"), to redeem the Panache Notes for 100% of their outstanding principal and interest | For 90 days after September 21, 2012 (the "Outside Date"), to redeem the Existing Notes for 100% of their outstanding principal and interest. | |||||||||||||||||
Shares issued upon conversion of Convertible Note (Shares) | 4,018,240 | 5,355,004 | 4,476,560 | 3,529,412 | 4,107,143 | ||||||||||||||
Shares issued upon conversion of Convertible Note | 4,923.11 | 0.001 | 124,101 | 6,000 | 2,300 | ||||||||||||||
Conversion price | $ 0.007 | $ 0.001 | |||||||||||||||||
Partial repayment of indebtness | $ 4,018 | $ 39,000 | $ 4,923 | ||||||||||||||||
Preferred stock, shares issued | 650,001 | ||||||||||||||||||
Convertible debt payment term | November 2012 Note shall become immediately due and payable and the Company shall pay to the holder, in full satisfaction of its obligations under the November 2012 Note, an amount equal to the Default Sum (as defined below), multiplied by 2. | ||||||||||||||||||
Reverse stock split description | As a result of the reverse stock split, every one thousand shares of the common stock of the Company will be combined into one share of common stock. | ||||||||||||||||||
Reduction in common stock due to reverse stock split | 117,121 |
Convertible Notes (Details 1) (USD $)
|
1 Months Ended | 12 Months Ended | 23 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 20, 2012
|
Aug. 31, 2011
|
Aug. 31, 2012
|
Aug. 31, 2012
|
Aug. 31, 2012
Asher Enterprises [Member]
Note
|
Sep. 30, 2012
Panache Capital, LLC [Member]
|
Aug. 31, 2012
Panache Capital, LLC [Member]
Note
|
Sep. 21, 2012
Panache Capital, LLC [Member]
|
Aug. 31, 2012
Continental Equities, LLC [Member]
|
Oct. 31, 2012
Convertible Notes One [Member]
|
Sep. 30, 2012
Convertible Notes One [Member]
Panache Capital, LLC [Member]
|
Aug. 31, 2012
Convertible Notes One [Member]
Continental Equities, LLC [Member]
|
Aug. 13, 2012
Convertible Notes One [Member]
Continental Equities, LLC [Member]
|
Oct. 31, 2012
Convertible Notes Two [Member]
|
Feb. 20, 2012
Convertible Notes Payable [Member]
Continental Equities, LLC [Member]
|
|
Convertible Notes (Textual) | |||||||||||||||
Number of Convertible notes issued | 4 | 4 | |||||||||||||
Note principle amount | $ 150,500 | $ 250,000 | $ 67,000 | $ 67,365 | |||||||||||
Convertible debt maturity period | 1 year | 1 year | |||||||||||||
Due date | Jun. 30, 2013 | ||||||||||||||
Interest rate | 8.00% | 10.00% | 8.00% | 8.00% | |||||||||||
Interest rate on past due amount | 22.00% | 15.00% | 18.00% | ||||||||||||
Conversion term of convertible promissory note | At any time or times after 180 days from the date of the Notes and until the maturity dates, Asher is entitled to convert any portion of the outstanding and unpaid amount into fully paid and non-assessable shares of common stock. The conversion price will be based on a 49% discount to the average of the three lowest closing bid prices for the Company's common stock during the ten trading days immediately preceding a conversion date | Each of the Panache Notes were further amended to permit Panache to convert the Panache Notes valued at a price not to fall below a 49% discount to the average of the three lowest closing bid prices for the Company common stock during the ten trading days immediately preceding a conversion date. | The Payee has the right to convert the Panache Notes, in its entirety or in part, into common stock of the Company. The conversion price is based on a 25% discount to the average of the three lowest closing bid prices for the Company's common stock during the ten trading days immediately preceding a conversion date. | The Payee has the right to convert the Note, in its entirety or in part, into common stock of the Company. The conversion price will be based on a 49% discount to the average of the three lowest closing bid prices for the Company''s common stock during the ten trading days immediately preceding a conversion date. | The New Note is convertible into shares of the Company's common stock commencing on a date that is 30 days after the issue date of the New Note, at a price equal to the average of the lowest two intraday trading prices for the common stock during the five trading days period ending one trading day prior to the date the conversion notice is sent by Continental to the Company. | ||||||||||
Fair value of the embedded beneficial conversion feature of the Debentures | 258,510 | 83,333 | |||||||||||||
Prepayment fee on debt | 25.00% | ||||||||||||||
Discount on the average closing bid price | 49.00% | 25.00% | 49.00% | 49.00% | |||||||||||
Unamortized balance on debt discount | 47,861 | ||||||||||||||
Cost of offering | 145,510 | 145,510 | 145,510 | ||||||||||||
Valuation discount upon issuance of convertible debt | 113,000 | ||||||||||||||
Fair value of Derivative Liability | 250,970 | 250,970 | 250,970 | ||||||||||||
Change in value of derivative liability | 7,540 | 7,540 | 7,540 | ||||||||||||
Amortization of debt discount | 69,810 | 69,810 | 34,338 | ||||||||||||
Debt discount offset against balance of notes | 78,662 | ||||||||||||||
Convertible promissory note, amendment description | For 90 days after September 21, 2012 (the "Outside Date"), to redeem the Panache Notes for 100% of their outstanding principal and interest | ||||||||||||||
Conversion price | $ 0.007 | ||||||||||||||
Remaining balance outstanding | 116,600 | 260,600 | 67,465 | ||||||||||||
Accrued interest on debt instrument | 5,100 | 10,600 | 465 | ||||||||||||
Shares issued upon conversion of Convertible Note (Shares) | 4,018,240 | 5,355,004 | 3,529,412 | 4,107,143 | |||||||||||
Partial repayment of indebtness | 4,018 | 39,000 | |||||||||||||
Beneficial conversion cost | $ 69,101 |
Going Concern (Details) (USD $)
|
12 Months Ended |
---|---|
Aug. 31, 2012
|
|
Going concern (Textual) | |
Cash in hand | Less than $1,000 |
Burn rate incurred by company per month | $ 125,000 |
Fund requirement by second quarter of 2013 for continuation of business | $ 500,000 |
Summary of Significant Accounting Policies
|
12 Months Ended | ||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 31, 2012
|
|||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||
Summary of Significant Accounting Policies | Note 3 – Summary of Significant Accounting Policies
Development Stage Company
The Company’s consolidated financial statements are presented as those of a development stage enterprise. Activities during the developmental stage primarily include equity based financing and further implementation of the Company’s business plan. The Company has not generated any revenues since inception.
Principles of Consolidation
The accompanying consolidated financial statements of the Company include the accounts of OSL Holdings, Inc. and its wholly owned subsidiaries, OSL, OSL Diversity Marketplace, Inc., OSL Rewards Corporation, Red Rock Pictures Inc. and Studio Store Direct Inc. Inter-company balances and transactions have been eliminated in consolidation.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Examples include estimates of the useful life of equipment and intangibles, the impairment of long-lived assets, intangibles and goodwill, the value of stock compensation and the estimates of revenue and costs related to film production. These estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings in the period in which they become known.
Internal Website Development Costs
Under Accounting Standards Codification (“ASC”) 350-50 – Intangibles – Goodwill and Other – Website Development Costs, costs and expenses incurred during the planning and operating stages of the Company's web site development are expensed as incurred. Costs incurred in the web site application and infrastructure development stages are capitalized by the Company and amortized to expense over the web site's estimated useful life or period of benefit. In May 2012, the Company determined that the website under development was not going to be utilized and recorded a charge of $185,800 categorized as “Loss on Impairment of Website Development Costs” in the Consolidated Statement of Operations for the year ended August 31, 2012. Prior to this charge, no amortization was recorded and the website was in development and was not yet placed into service.
Fair Value of Financial Instruments
The Company measures its financial assets and liabilities in accordance with the requirements of ASC 820, Fair Value Measurements and Disclosures. ASC 820 clarifies the definition of fair value, prescribes methods for measuring fair value, and establishes a fair value hierarchy to classify the inputs used in measuring fair value as follows:
Level 1-Inputs are unadjusted quoted
prices in active markets for identical assets or liabilities available at the measurement date.
Level 2-Inputs are unadjusted quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, inputs other than quoted prices that are observable, and inputs derived from or corroborated by observable market data.
Level 3-Inputs are unobservable inputs which reflect the reporting entity’s own assumptions on what assumptions the market participants would use in pricing the asset or liability based on the best available information.
The carrying value of the Company's cash, accounts payable and accrued liabilities, advances from stockholder, senior secured convertible debt, secured note payable and advances from related parties approximates fair value because of the short-term maturity of these instruments.
The following table presents certain investments and liabilities of the Company’s financial assets measured and recorded at fair value on the Company’s balance sheets on a recurring basis and their level within the fair value hierarchy as of August 31, 2012.
Vendor Concentration
As of August 31, 2012 and August 31, 2011, one vendor represented 32% and 70% of the accounts payable and accrued liabilities balance, respectively.
Income Taxes
The Company accounts for income taxes pursuant to ASC 740, Income Taxes. Deferred tax assets and liabilities are recorded for differences between the financial statement and tax basis of the assets and liabilities that will result in taxable or deductible amounts in the future based on enacted tax laws and rates. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense is recorded for the amount of income tax payable or refundable for the period increased or decreased by the change in deferred tax assets and liabilities during the period.
Earnings or Loss per Share
The Company accounts for earnings per share pursuant to ASC 260, Earnings per Share, which requires disclosure on the financial statements of "basic" and "diluted" earnings (loss) per share. Basic earnings (loss) per share are computed by dividing net income (loss) by the weighted average number of common shares outstanding for the year. Diluted earnings (loss) per share is computed by dividing net
income (loss) by the weighted average number of common shares outstanding plus common stock equivalents (if dilutive) related to stock options and warrants for each year. There were no dilutive financial instruments as of August 31, 2012 or August 31, 2011.
Weighted average number of shares outstanding has been retroactively restated for the equivalent number of shares received by the accounting acquirer as a result of the reverse merger as if these shares had been outstanding as of the beginning of the earliest period presented. The 1,068,225 shares issued to the legal acquirer are included in the weighted average share calculation from October 10, 2011, the date of the exchange agreement.
Stock-Based Compensation
The Company periodically issues stock options and warrants to officers, directors and consultants for services rendered. Options vest and expire according to terms established at the grant date. The Company accounts for share-based payments to officers and directors by measuring the cost of services received in exchange for equity awards based on the grant date fair value of the awards, with the cost recognized as compensation expense in the Company’s financial statements over the vesting period of the awards. The Company accounts for share-based payments to consultants by determining the value of the stock compensation based upon the measurement date at either (a) the date at which a performance commitment is reached or (b) at the date at which the necessary performance to earn the equity instruments is complete.
Derivative Financial Instruments
The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives. For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value and is then re-valued at each reporting date, with changes in the fair value reported in the statements of operations. For stock-based derivative financial instruments, the Company uses a weighted average Black Scholes Merton option pricing model to value the derivative instruments at inception and on subsequent valuation dates. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. Derivative instrument liabilities are classified in the balance sheet as current or non-current based on whether or not net-cash settlement of the derivative instrument could be required within 12 months of the balance sheet date.
Recent Accounting Pronouncements
In December 2011, the Financial Accounting Standard Board (FASB) issued Accounting Standards Update (ASU) No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” This ASU requires an entity to disclose information about offsetting and related arrangements to enable users of its financial statements to understand the effect of those arrangements on its financial position. ASU No. 2011-11 will be applied retrospectively and is effective for annual and interim reporting periods beginning on or after January 1, 2013. The Company does not expect adoption of this standard to have a material impact on its consolidated financial statement disclosures.
In July 2012, the FASB issued ASU No. 2012-02, Intangibles-Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment (ASU 2012-02) , allowing entities the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. If the qualitative assessment indicates it is more-likely-than-not that the fair value of an indefinite-lived intangible asset is less than its carrying amount, the quantitative impairment test is required. Otherwise, no testing is required. ASU 2012-02 is effective for the Company in the period beginning January 1, 2013. The Company does not expect the adoption of this update to have a material effect on the consolidated financial statements.
Other recent accounting pronouncements issued by the FASB (including its Emerging Issues Task Force), the American Institute of Certified Public Accountants, and the Securities Exchange Commission (the “SEC”) did not or are not believed by management to have a material impact on the Company's present or future consolidated financial statements. |