5 Capitalization

12 Months Ended

Jun. 30, 2012

Accounting Policies [Abstract]

5 Capitalization

Note 5 — Capitalization

During the year ended June 27, 2008, Verilink began issuing post-reorganization New Common Stock as follows:

·Issued 25,000,000 shares, which are not subject to the reversal, to the IACE Investments Two, Inc.

·Issue 1,000,000 shares to the Venture Fund I, Inc., pursuant to the terms under the DIP Loan.  

·Issue 75,000 shares to the Bankruptcy Trustee to be distributed according to the Plan.  

·Issue 100 shares to each of 191 holders of an Allowed Unsecured Claim in Class 7 for a total of 19,100 shares issued.

Stock Warrants

On the 27th day of June, 2008, pursuant to the terms of the DIP Loan and Plan, we issued 1,000,000 New shares and warrants for 5,000,000 New shares to Venture Fund I, Inc., for providing the DIP Loan.  The warrants are exercisable at $25 per share at any time on or prior to November 30, 2016.  The number of shares called or exercised at any given time and the purchase price per share shall be subject to adjustment from time to time by the Board of Directors of the Company.