The below part of filing is a good place to start. Obviously, the notes are being handed out to help grow the business. But these are convertible notes and not shares. There is no listed conversion rate. So The concern is that Henry can dish out crazy conversion rates to the benefit of the note holder while hurting the shareholder. The best example of that was the billion plus shares Gelmon got for AEGY. That is why aegy tanked recently. So we are left to trust Henry and with his history and past connections, the multiple missed prs, and lack of transparency folks have a tough time believing the picture. It's fair. I mean. I have met the guy and like the guy. So it's tough for me to ask the tough questions but business is business and we want a CEO who earns our trust. FYI. He updated his linkedin.
Effective May 1, 2012, the Company entered into a Consulting Agreement with I Equity Corp. under which I Equity Corp. agreed to undertake the research and business development necessary to implement the new business of the Company already under development. The Consulting Agreement provides for a monthly fee of $50,000 and a total of $450,000 in fees had been accrued as of December 31, 2012. The accrued amount was converted into a promissory note in the same amount on December 31, 2012 convertible into common stock at the election of the holder. Through the quarter ended March 31, 2014, a total $57,375 in principal of the note was transferred to unrelated third parties, leaving a balance due on the original note held by I Equity at $392,625. On January 1, 2014, an additional $600,000 in accrued consulting amounts payable to I Equity Corp. was converted into a promissory note in that amount, which remains outstanding. I Equity Corp. is now the controlling shareholder of the Company.
The portions of the original I Equity note transferred to three unrelated parties, were re-issued as convertible notes in the amounts of $15,000, $30,000 and $12,375. During the quarter ended March 31, 2014, $9,000 of the $30,000 note was converted into common stock, leaving a balance due of $21,000 on that note; and $6,000 of the $12,375 note was also converted into common stock, leaving a balance due of $6,375 on that note.
As of March 31, 2014, a total of $1,070,466 in short term convertible notes remained outstanding, on which a total of $83,437 had accrued as interest. In addition, two notes in the amount of $30,000 each, dated October 1, 2013 and January 1, 2014, payable for consulting services previously rendered, remained outstanding as long-term liabilities, on which a total of $2,236 in interest had accrued as of March 31, 2014.
Effective May 1, 2012, the Company entered into a Consulting Agreement with I Equity Corp. under which I Equity Corp. agreed to undertake the research and business development necessary to implement the new business of the Company already under development. The Consulting Agreement provides for a monthly fee of $50,000 and a total of $450,000 in fees had been accrued as of December 31, 2012. The accrued amount was converted into a promissory note in the same amount on December 31, 2012 convertible into common stock at the election of the holder. Through the quarter ended March 31, 2014, a total $57,375 in principal of the note was transferred to unrelated third parties, leaving a balance due on the original note held by I Equity at $392,625. On January 1, 2014, an additional $600,000 in accrued consulting amounts payable to I Equity Corp. was converted into a promissory note in that amount, which remains outstanding. I Equity Corp. is now the controlling shareholder of the Company.
The portions of the original I Equity note transferred to three unrelated parties, were re-issued as convertible notes in the amounts of $15,000, $30,000 and $12,375. During the quarter ended March 31, 2014, $9,000 of the $30,000 note was converted into common stock, leaving a balance due of $21,000 on that note; and $6,000 of the $12,375 note was also converted into common stock, leaving a balance due of $6,375 on that note.
As of March 31, 2014, a total of $1,070,466 in short term convertible notes remained outstanding, on which a total of $83,437 had accrued as interest. In addition, two notes in the amount of $30,000 each, dated October 1, 2013 and January 1, 2014, payable for consulting services previously rendered, remained outstanding as long-term liabilities, on which a total of $2,236 in interest had accrued as of March 31, 2014.
