From the SIRG Amended 10Q we can clearly see the w
Post# of 4018
From the SIRG Amended 10Q we can clearly see the work of their new accounting firm, MARCUM LLC. Much more detail and the Subsequent events.
The Fogo note was likely used to pay the Asher note dated Feb. 28, 2012.
In February 2012, the Company issued a convertible note with a face value of $190,000. The note matures on February 16, 2013, bears interest at an annual rate of 15%, and is convertible into common stock of the Company at the option of the holder at a conversion price of $0.045 per share. The investor in the convertible debt also acquired 8,650,00 shares of common stock and warrants to acquire 6,900,000 share of common stock for an exercise price of $0.015 per share over a four-year term for proceeds for $10,000. The Company allocated the proceeds from the sale of convertible debt, common stock, and warrants to their equity and liability components and recorded an additional debt discount equal to the amount of proceeds allocated the warrants equal to $8,289 to be amortized into expense through the maturity date of the convertible note. During the three and six months ended June 30, 2012, the Company recorded amortization expense of $999 and $2,067. As of June 30, 2012, the carrying value of the convertible notes was $200,541. In addition to the amortization of discounts the Company recognized $8,709 and $10,541 of interest expense on the convertible note for the three and six months ended June 30, 2012, respectively.
In May 2012, the Company issued a convertible note with a face value of $133,000. The note matures on November 1, 2012, bears interest at an annual rate of 15%, and is convertible into common stock of the Company at the option of the holder at a conversion price of $0.045 per share.
In conjunction with the issuance of convertible note, the Company also granted the holder of the convertible note the right to purchase a number of shares of common stock equal to 62.5% of the common stock issuable upon conversion of the convertible notes issued in January and February of 2012, for an exercise price equal to the outstanding principal on the notes issued in January and February of 2012. The Company is required to use the proceeds of such exercise to settle the notes issued in January and February of 2012. Because the exercise price and number of shares purchasable under the purchase option are indeterminable, the Company was required to record a derivative liability for the fair value of the purchase option.
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