During the nine month period ended September 30, 2013, notes with a face value of $312,000 and penalties in the amount of $59,000 were converted into 701,175,843 shares of common stock . The debt conversion was recorded at the fair market value of the stock, at an average price of $.0005.
13. Subsequent Events
Management has evaluated subsequent events through the date the financial statements were issued. Based on our evaluation the following events have occurred and require disclosure:
The Company received $16,000 in proceeds from an unrelated third party in exchange for a convertible promissory note at an annual interest rate of 8% on any unpaid principal and a maturity date of nine months from the date of funding.
The Company issued 345,805,195 shares in satisfaction of payments on its convertible promissory notes.
How do you get out from under all of these shares when they get converted? According to OTC Markets, the float was 900,000,000 on July 4, 2013. Where is it now?
The O/S is listed as 3.1B from end of Q3. One should be able to start adding up shares and come reasonably close to the O/S, and know basically where they are. I can't. Can you? I know a pile of them have either been converted or awaiting conversion, which means they are coming down on our heads. It's not "dilution" per se, but it sure looks and feels like it.
Increasing the A/S, so one can increase the O/S, does absolutely no good to get the PPS to rise.
How can anyone get out from such a bloated O/S? With that much in the float, and more being added to it during conversions, how can the price ever move? I only know of one way, and I'm not being a smart alek about it. Unless the company is going to have a share buyback and retirement of around 2B shares..........
I'm out of answers. Would be more than glad to listen to anyone else's that have validity.
