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SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2017
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 18 SUBSEQUENT EVENTS

 

In accordance with ASC Topic 855, “Subsequent Events”, the Company evaluated subsequent events through January 29, 2019, the date these financial statements were available to be issued. During their evaluation, the following subsequent events were identified.

 

Issuance of debt and warrants

 

Subsequent to the Balance sheet date, the company has issued $1,116,923 of promissory notes. Of that amount, $100,000 has been repaid. All of the debt matures in 2019 and has a stated interest rate of 12% and is unsecured. Concurrent with the issuance of debt, the Company has issued 7,924,354 warrants at an average exercise price of $0.20. At the time of issuance, all warrants had a five year term.

 

Issuance of common stock

 

The Company has issued 3,597,971 shares subsequent to December 31, 2017 as follows:

 

On December 31, 2017, the Company entered into a Settlement Agreement with Joe Canouse (“Holder”) stemming from a complaint filed, but not served, by Holder against the Company concerning a dispute over the repayment of certain convertible promissory notes in the aggregate principal amount of two hundred forty thousand dollars ($240,000), exclusive of accrued interest, held by Holder as assignee from Southridge Partners II, LP (the “Notes”). The Notes were issued in connection with a consulting agreement between the Company and Southridge Partners II LP in May 2014. In connection with the Settlement Agreement, the Company, without admitting liability or wrongdoing, agreed to settle the dispute by issuing 2,000,000 shares of its common stock to Holder. Each party agreed to a mutual general release of any further claims against the other party upon full satisfaction of the Settlement Agreement. The common were issued on January 8, 2018. The aforementioned notes were never recorded on the Company’s financial statements and are no longer valid. Please see our Form 8-K filed on January 8, 2018 for more detail.

 

During 2018, one of the Company’s noteholders sold a note to a third party for $50,000. The $50,000 note was converted into 1,597,971 shares.