I'll keep watch but Do not get married to this one
Post# of 47162
Posted On: 11/05/2015 11:30:56 AM
I'll keep watch but Do not get married to this one just in my opinion.
I see that it should easily go up, so do not be afraid to take profits if the float begins to increase Via dumping by toxic finance whom no doubt advised the recent R/S.
major debt here and the old SS was supper huge. warning sign to me
could be a quick flip as the toxic financers want this to go up
VFIN on the Ask. yesterday & today?
More shares on the ask then reported Float on L2 yesterday as-well.
octmarkets.com filings & disclosure
4. NOTE PAYABLE
Notes payable Comprised as the following:
June 30, March 31,
2015 2015
Asher Note #4
$ 13,000 $ 13,000
Special Situations
21,491 21,491
Direct Capital #1
70,671 70,671
Direct Capital #2
380,800 380,800
Direct Capital #3
360,000 360,000
Direct Capital #4
360,000 360,000
Direct Capital #5
240,000 240,000
Direct Capital #6
240,000 -
Syndication Capital #1
5,000 5,000
Syndication Capital #2
14,072 14,072
Syndication Capital #3
11,000 11,000
Syndication Capital #4
11,000 11,000
Syndication Capital #5
11,000 11,000
Syndication Capital #6
16,000 16,000
Syndication Capital #7
16,000 16,000
Syndication Capital #8
16,000 16,000
Syndication Capital #9
16,000 16,000
Syndication Capital #10
16,000 16,000
Syndication Capital #11
16,000 16,000
Syndication Capital #12
48,000 48,000
Syndication Capital #13
48,000 48,000
Syndication Capital #14
48,000 48,000
Coventry Enterprises #2
20,000 20,000
LG Capital Funding
29,000 29,000
New Venture Attorneys
50,000 50,000
2,077,034 1,837,034
Debt discount (361,667 ) (429,542 )
Notes payable, net of discount 1,715,367 1,407,492
Accrued interest 213,182 147,836
1,928,549 1,555,328
F-7
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Asher Note #4
On April 4, 2013, the Company arranged a debt swap under which a Special Situations Fund note for $40,000 was transferred to Asher Enterprises. The promissory note is unsecured, bears interest at 8% per annum. Any principal amount not paid by the maturity date bears interest at 22% per annum. During the three months June 30, 2015 and 2014, the Company accrued $713 and $713 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 55% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date”.
On June 30, 2013, the Company recorded a derivative liability of $66,774 being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
During the three months June 30, 2015 and 2014, the Company recorded a loss of $85 and a gain of $22,551 respectively due to the change in value of the derivative liability.
At June 30, 2015 and 2014, principal balance of $13,000 and $13,000 respectively, accrued interest of $6,566 and $3,706 respectively, and a derivative liability of $21,173 and $18,844 respectively was recorded.
Special Situations Fund One Note
On March 12, 2012, the Company arranged a debt swap under which an Asher Enterprises note for $40,000 was transferred to Special Situations Fund One for the Asher note plus an additional $21,491, for a total of $61,491. On April 4, 2013, the Company transferred $40,000 of the note to Asher Enterprises. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 12, 2012. During the three months ended June 30, 2015 and 2014, the Company accrued $429 and $1,179 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 55% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.”
On September 9, 2012, the Company recorded a derivative liability of $71,218, being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $144 and a gain of $40,340 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $21,491 and $21,491 respectively, accrued interest of $11,458 and $20,226 respectively, and a derivative liability of $37,925 and $33,962 respectively was recorded.
Direct Capital Note #1
On December 31, 2012, the Company entered into a debt settlement agreement with Direct Capital Group, Inc., whereby the Company exchanged $70,671 in total outstanding debt into Convertible Preferred Shares of the Company. Each of the Convertible Preferred shares will convert into common shares of the Company with the conversion price being the lesser of $0.001 or shall equal the variable conversion price (the “Variable Conversion Price”). The Variable Conversion Price shall mean 50% multiplied by the market price (the “Market Price”). The
Market Price means the average of the lowest six (3) Trading Prices for the Common Stock during the ten (10) Trading day period ending on the latest complete Trading Day prior to the Conversion Date. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
On December 31, 2012, the Company recorded an initial derivative liability of $94,326 being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $480 and a gain of $135,425 due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $70,671 and $70,671 respectively and a derivative liability of $127,362 and $114,230 respectively was recorded.
Direct Capital Note #2
On October 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $384,000. The promissory note is unsecured, bears interest at 6% per annum, and matures on April 1, 2014. Any principal amount not paid by the maturity date shall bear interest at the rate of 12% per annum. During the three months ended June 30, 2015 and 2014, the Company accrued $11,393 and $11,488 respectively in interest expense.
The note may be converted at the option of the holder into common stock of the Company. The conversion price is 70% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.”
On October 31, 2013 the Company recorded a debt discount and derivative liability of $268,330, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $2,235 and a gain of $516,926 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $380,800 and $384,000 respectively, accrued interest of $68,834 and $22,913 respectively, and a derivative liability of $479,481 and $421,245 respectively was recorded.
F-8
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Direct Capital Note #3
On October 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $360,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on April 1, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the three months ended June 30, 2015 and 2014, the Company accrued $19,746 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On October 1, 2014, interest expense relating to the beneficial conversion feature of this convertible note of $360,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $989 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $360,000 and $0 respectively, accrued interest of $34,027 and $0 respectively, and debt discount of $0 and $0 respectively was recorded.
Direct Capital Note #4
On January 1, 2015 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $360,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on July 1, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the three months ended June 30, 2015 and 2014, the Company accrued $7,180 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On January 1, 2015, interest expense relating to the beneficial conversion feature of this convertible note of $360,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $181,972 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $360,000 and $0 respectively, accrued interest of $14,203 and $0 respectively, and debt discount of $1,011 and $0 respectively was recorded.
Direct Capital Note #5
On March 31, 2015 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $240,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 30, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the three months ended June 30, 2015 and 2014, the Company accrued $4,787 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On March 31, 2015, interest expense relating to the beneficial conversion feature of this convertible note of $240,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $119,344 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $240,000 and $0 respectively, accrued interest of $4,787 and $0 respectively, and debt discount of $120,656 and $0 respectively was recorded.
F-9
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Direct Capital Note #6
On June 30, 2015 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $240,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on December 30, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the three months ended June 30, 2015 and 2014, the Company accrued $0 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On June 30, 2015, interest expense relating to the beneficial conversion feature of this convertible note of $240,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $0 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $240,000 and $0 respectively, accrued interest of $0 and $0 respectively, and debt discount of $240,000 and $0 respectively was recorded.
Syndication Capital Note #1
On December 31, 2012, the Company entered into a debt settlement agreement with Syndication Capital, whereby the Company exchanges $105,000 in total outstanding debt into Convertible Preferred Shares of the Company. Each of the Convertible Preferred shares will convert into common shares of the Company with the conversion price being the lesser of $0.001 or shall equal the variable conversion price (the “Variable Conversion Price”). The Variable Conversion Price shall mean 50% multiplied by the market price (the “Market Price”). The Market Price means the average of the lowest three (3) Trading Prices for the Common Stock during the ten (10) Trading day period ending on the latest complete Trading Day prior to the Conversion Date. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
On December 31, 2012, the Company recorded an initial derivative liability of $140,146 being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
On August 4, 2013, the Company transferred $100,000 of the note to Gel Properties, LLC and recorded a credit to derivative liability of $453,305.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $34 and a gain of $9,581 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $5,000 and $5,000 respectively and a derivative liability of $9,011 and $8,082 respectively was recorded.
Syndication Capital Note #2
On July 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $14,072. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $772 and $772 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $14,072 and $14,072 respectively and accrued interest of $4,927 and $1,831 respectively was recorded.
Syndication Capital Note #3
On July 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $603 and $603 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $11,000 and $11,000 respectively and accrued interest of $3,851 and $1,431 respectively was recorded.
F-10
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Syndication Capital Note #4
On August 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on March 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $603 and $603 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $11,000 and $11,000 respectively and accrued interest of $3,659 and $1,239 respectively was recorded.
Syndication Capital Note #5
On September 30, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on April 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $603 and $597 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $11,000 and $11,000 respectively and accrued interest of $3,453 and $1,033 respectively was recorded.
Syndication Capital Note #6
On October 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on May 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $687 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $4,737 and $1,217 respectively was recorded.
Syndication Capital Note #7
On November 30, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on June 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $497 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $4,441 and $921 respectively was recorded.
Syndication Capital Note #8
On December 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on July 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $319 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $4,145 and $635 respectively was recorded.
F-11
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Syndication Capital Note #9
On January 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on August 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $319 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $3,850 and $526 respectively was recorded.
Syndication Capital Note #10
On February 28, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $319 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $3,561 and $428 respectively was recorded.
Syndication Capital Note #11
On March 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on October 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $319 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $3,265 and $319 respectively was recorded.
Syndication Capital Note #12
On April 30, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on November 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $2,633 and $642 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $48,000 and $48,000 respectively and accrued interest of $8,919 and $642 respectively was recorded.
F-12
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Syndication Capital Note #13
On July 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2015. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $2,633 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $48,000 and $0 respectively and accrued interest of $6,257 and $0 respectively was recorded.
Syndication Capital Note #14
On October 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on May 1, 2015. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $2,062 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On October 31, 2014, interest expense relating to the beneficial conversion feature of this convertible note of $48,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $5,436 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $48,000 and $0 respectively, debt discount of $0 and $0 respectively, and accrued interest of $3,651 and $0 respectively was recorded.
Coventry Enterprises Note #2
On March 3, 2014, the Company arranged a debt swap under which an Xploration, Inc. note for $4,000 in principal and $46,000 in interest was transferred to Coventry Enterprises, LLC. The promissory note is unsecured, bears interest at 6% per annum and matures on March 3, 2015. Any principal amount not paid by the maturity date bears interest at 24% per annum. During the three months ended June 30, 2015 and 2014, the Company accrued $1,197 and $418 respectively in interest expense.
On March 3, 2014 the Company recorded a debt discount and derivative liability of $63,693, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $126 and a gain of $63,282 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $20,000 and $26,793 respectively, accrued interest of $3,056 and $616 respectively, and a derivative liability of $29,692 and $35,142 respectively was recorded.
LG Capital Funding Note
On March 3, 2014, the Company arranged a debt swap under which an Xploration, Inc. note for $40,000 was transferred to LG Capital Funding, LLC. The promissory note is unsecured, bears interest at 8% per annum and matures on March 3, 2015. Any principal amount not paid by the maturity date bears interest at 24% per annum. During the three months ended June 30, 2015 and 2014, the Company accrued $1,735 and $578 respectively in interest expense.
On March 3, 2014 the Company recorded a debt discount and derivative liability of $63,048, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $197 and a gain of $55,571 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $29,000 and $29,000 respectively, accrued interest of $4,554 and $721 respectively, and a derivative liability of $52,264 and $46,875 respectively was recorded.
F-13
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
New Venture Attorneys Note
On April 1, 2014, the Company issued a convertible promissory note to New Venture Attorneys PC for legal fees. Under the terms of the note, the Company has borrowed a total of $50,000 from New Venture Attorneys PC, which accrues interest at an annual rate of 8% and has a maturity date of April 1, 2015. Any principal amount not paid by the maturity date bears interest at 24% per annum. The note also contains customary events of default. During the three months ended June 30, 2015 and 2014, the Company accrued $2,992 and $986 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 50% of the market price, where market price is defined as “the lowest closing bid on the OTCQB for the ten prior trading days including the day upon which a Notice of Conversion is received by the Company.”
On September 29, 2014 the Company recorded a debt discount and derivative liability of $81,987, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $340 and $0 respectively due to the change in value of the derivative liability during the period and a debt discount of $134 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $50,000 and $50,000 respectively, accrued interest of $6,981 and $986 respectively, a debt discount of $0 and $0 respectively and a derivative liability of $90,110 and $0 respectively was recorded.
5. DERIVATIVE LIABILITIES
The Company issued financial instruments in the form of convertible notes with embedded conversion features. Some of the convertible notes payable have conversion rates, which are indexed to the market value of the Company’s stock price.
During the three months ended June 30, 2015 and 2014, the Company recorded derivative liabilities for embedded conversion features related to convertible notes payable of face value $0 and $0 respectively. During the three months ended June 30, 2015 and 2014, $0 and $82,851 respectively of convertible notes payable principal and accrued interest was converted into common stock of the Company. For the three months ended June 30, 2015 and 2014, the Company performed a final mark-to-market adjustment for the derivative liability related to the convertible notes of and the carrying amount of the derivative liability related to the conversion feature of $0 and $148,036 respectively, was re-classed to additional paid in capital on the date of conversion in the statement of shareholders’ deficit. During the three months ended June 30, 2015 and 2014, the Company recognized a loss of $3,642 and a gain of $920,962 respectively based on the change in fair value (mark-to market adjustment) of the derivative liability associated with the embedded conversion features in the accompanying statement of operations.
These derivative liabilities have been measured in accordance with fair value measurements, as defined by ASC 820. The valuation assumptions are classified within Level 1 and Level 2 inputs. The following table represents the Company’s derivative liability activity for the embedded conversion features discussed above.
The following table represents the Company’s derivative liability activity for the embedded conversion features discussed above :
June 30,
June 30,
2015
2014
Balance, beginning of year
$ 843,376 $ 1,747,378
Initial recognition of derivative liability
- -
Conversion of derivative instruments to Common Stock
- (148,036 )
Mark-to-Market adjustment to fair value
3,642 (920,962 )
Balance, end of year
$ 847,018 $ 678,380
These instruments were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation. The instruments do not qualify for hedge accounting, and as such, all future changes in the fair value will be recognized currently in earnings until such time as the instruments are exercised, converted or expire.
F-14
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
6. SECURITIES PURCHASE AGREEMENT
On April 23, 2010, the Company entered into an agreement with an investor whereby the investor committed to purchase up to $5,000,000 of units, consisting of shares of the Company’s common stock and share purchase warrants, until April 22, 2013. The Company may draw on the facility from time to time, as and when it determines appropriate in accordance with the terms and conditions of the agreement. Each advance shall be in an aggregate amount of not more than $1,000,000 and in integral multiples of $100,000. The Company will use the advances to fund operating expenses, acquisitions, and exploration and general corporate activities. The investor also has an option to subscribe up to a further $2,500,000.
Each unit consists of one share of the Company’s common stock and one share purchase warrant. The unit price will be the price to the higher of either: (a) $0.75; or (b) 90% of the volume weighted average of the closing price of common stock, for the five banking days immediately preceding the date of the notice of advance. Each warrant shall entitle the investor to purchase one additional share of common stock at an exercise price equal to 150% of the unit price at which the unit containing the warrant being exercised was issued.
The Company issued 401,067 shares under the agreement during the fiscal year ended March 31, 2011, realizing $400,000. This option expired as of April 22, 2013.
7. RELATED PARTY TRANSACTIONS
Related party transaction is not disclosed elsewhere in the consolidated financial statements are as follows:
On March 8, 2010, the Company entered an employment agreement with the newly-appointed President, James Powell. Pursuant to the terms of the agreement, the President will receive a base salary of $5,000 per month. The employment agreement will continue indefinitely subject to termination by either party without cause on 30 days’ notice.
On October 24, 2011, the Company entered into a new employee agreement with President, James Powell. Pursuant to the terms of the agreement, the President will receive a base salary of $2,500 per month. This agreement supersedes any prior agreements made between the Company and the President.
On March 8, 2010, the Company entered an employment agreement with the newly-appointed Chairman of the Board, Tim DeHerrera. Pursuant to terms of the terms of the agreement, Mr. DeHerrera will receive a base salary of $8,000 per month with an incremental rise of $500 per quarter until an amount of $10,000 per month is achieved.
Mr. DeHerrera agreed to acquire 6,000,000 shares of the former CEO’s shares at $0.02 per share. The new CEO’s shares were be held in escrow in the form of eight certificates each representing 750,000 shares which were released between April 30, 2010 and March 5, 2012 (a minimum of twenty-one months from the first release date).
On December 2, 2011, the Company entered into a new employee agreement with Chairman, Tim DeHerrera. Pursuant to the terms of the agreement, the Chairman will receive an annual salary of $90,000 payable as follows; $7,500 per month for months 1-12 and $10,000 per month for months 13-24. The parties agreed that if the Company does not have the capital available to compensate the cash portion of the agreement, Mr. DeHerrera shall have the option of converting the fees earned into common stock at $.01 per share. As additional compensation for services, the Company shall issue common stock of the Company equal up to an amount of 12,000,000 shares upon signing the agreement and an additional 12,000,000 on December 12, 2013. This agreement supersedes any prior agreements made between the Company and the Chairman.
On December 2, 2011, pursuant to the employment and consulting agreement, Mr. DeHerrera was issued 12,000,000 restricted common shares.
On May 23, 2012, pursuant to the employment consulting agreement, Mr. Powell was issued 2,500,000 common shares.
On March 3, 2015, Tim DeHerrera, resigned from his position with the Company as Treasurer, Secretary and a member of the Board. His resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
On March 3, 2015, James Powell was appointed as the Company’s Treasurer, Secretary and as a member of the Board.
During the three months ended June 30, 2015 and 2014, the Company recorded $7,500 and $7,500 respectively in consulting fees for Mr. Powell increasing the amount due to $157,500 .
During the three months ended June 30, 2015 and 2014, the Company recorded $0 and $30,000 respectively in consulting fees and other expenses for Mr. DeHerrera increasing the amount due to $358,459.
The Company is indebted to its officers as follow:
June 30,
2015
2014
James Powell - President
$ 157,500 $ 127,500
Tim DeHererra - Chairman of the Board
358,459 278,459
$ 515,959 $ 405,959
they sell share for Cash IMO
I see that it should easily go up, so do not be afraid to take profits if the float begins to increase Via dumping by toxic finance whom no doubt advised the recent R/S.
major debt here and the old SS was supper huge. warning sign to me
could be a quick flip as the toxic financers want this to go up
VFIN on the Ask. yesterday & today?
More shares on the ask then reported Float on L2 yesterday as-well.
octmarkets.com filings & disclosure
4. NOTE PAYABLE
Notes payable Comprised as the following:
June 30, March 31,
2015 2015
Asher Note #4
$ 13,000 $ 13,000
Special Situations
21,491 21,491
Direct Capital #1
70,671 70,671
Direct Capital #2
380,800 380,800
Direct Capital #3
360,000 360,000
Direct Capital #4
360,000 360,000
Direct Capital #5
240,000 240,000
Direct Capital #6
240,000 -
Syndication Capital #1
5,000 5,000
Syndication Capital #2
14,072 14,072
Syndication Capital #3
11,000 11,000
Syndication Capital #4
11,000 11,000
Syndication Capital #5
11,000 11,000
Syndication Capital #6
16,000 16,000
Syndication Capital #7
16,000 16,000
Syndication Capital #8
16,000 16,000
Syndication Capital #9
16,000 16,000
Syndication Capital #10
16,000 16,000
Syndication Capital #11
16,000 16,000
Syndication Capital #12
48,000 48,000
Syndication Capital #13
48,000 48,000
Syndication Capital #14
48,000 48,000
Coventry Enterprises #2
20,000 20,000
LG Capital Funding
29,000 29,000
New Venture Attorneys
50,000 50,000
2,077,034 1,837,034
Debt discount (361,667 ) (429,542 )
Notes payable, net of discount 1,715,367 1,407,492
Accrued interest 213,182 147,836
1,928,549 1,555,328
F-7
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Asher Note #4
On April 4, 2013, the Company arranged a debt swap under which a Special Situations Fund note for $40,000 was transferred to Asher Enterprises. The promissory note is unsecured, bears interest at 8% per annum. Any principal amount not paid by the maturity date bears interest at 22% per annum. During the three months June 30, 2015 and 2014, the Company accrued $713 and $713 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 55% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date”.
On June 30, 2013, the Company recorded a derivative liability of $66,774 being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
During the three months June 30, 2015 and 2014, the Company recorded a loss of $85 and a gain of $22,551 respectively due to the change in value of the derivative liability.
At June 30, 2015 and 2014, principal balance of $13,000 and $13,000 respectively, accrued interest of $6,566 and $3,706 respectively, and a derivative liability of $21,173 and $18,844 respectively was recorded.
Special Situations Fund One Note
On March 12, 2012, the Company arranged a debt swap under which an Asher Enterprises note for $40,000 was transferred to Special Situations Fund One for the Asher note plus an additional $21,491, for a total of $61,491. On April 4, 2013, the Company transferred $40,000 of the note to Asher Enterprises. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 12, 2012. During the three months ended June 30, 2015 and 2014, the Company accrued $429 and $1,179 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 55% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.”
On September 9, 2012, the Company recorded a derivative liability of $71,218, being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $144 and a gain of $40,340 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $21,491 and $21,491 respectively, accrued interest of $11,458 and $20,226 respectively, and a derivative liability of $37,925 and $33,962 respectively was recorded.
Direct Capital Note #1
On December 31, 2012, the Company entered into a debt settlement agreement with Direct Capital Group, Inc., whereby the Company exchanged $70,671 in total outstanding debt into Convertible Preferred Shares of the Company. Each of the Convertible Preferred shares will convert into common shares of the Company with the conversion price being the lesser of $0.001 or shall equal the variable conversion price (the “Variable Conversion Price”). The Variable Conversion Price shall mean 50% multiplied by the market price (the “Market Price”). The
Market Price means the average of the lowest six (3) Trading Prices for the Common Stock during the ten (10) Trading day period ending on the latest complete Trading Day prior to the Conversion Date. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
On December 31, 2012, the Company recorded an initial derivative liability of $94,326 being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $480 and a gain of $135,425 due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $70,671 and $70,671 respectively and a derivative liability of $127,362 and $114,230 respectively was recorded.
Direct Capital Note #2
On October 1, 2013 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $384,000. The promissory note is unsecured, bears interest at 6% per annum, and matures on April 1, 2014. Any principal amount not paid by the maturity date shall bear interest at the rate of 12% per annum. During the three months ended June 30, 2015 and 2014, the Company accrued $11,393 and $11,488 respectively in interest expense.
The note may be converted at the option of the holder into common stock of the Company. The conversion price is 70% of the market price, where market price is defined as “the average of the lowest three of the last ten closing trading prices on the OTCBB immediately prior to conversion date.”
On October 31, 2013 the Company recorded a debt discount and derivative liability of $268,330, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $2,235 and a gain of $516,926 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $380,800 and $384,000 respectively, accrued interest of $68,834 and $22,913 respectively, and a derivative liability of $479,481 and $421,245 respectively was recorded.
F-8
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Direct Capital Note #3
On October 1, 2014 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $360,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on April 1, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the three months ended June 30, 2015 and 2014, the Company accrued $19,746 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On October 1, 2014, interest expense relating to the beneficial conversion feature of this convertible note of $360,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $989 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $360,000 and $0 respectively, accrued interest of $34,027 and $0 respectively, and debt discount of $0 and $0 respectively was recorded.
Direct Capital Note #4
On January 1, 2015 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $360,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on July 1, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the three months ended June 30, 2015 and 2014, the Company accrued $7,180 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On January 1, 2015, interest expense relating to the beneficial conversion feature of this convertible note of $360,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $181,972 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $360,000 and $0 respectively, accrued interest of $14,203 and $0 respectively, and debt discount of $1,011 and $0 respectively was recorded.
Direct Capital Note #5
On March 31, 2015 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $240,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 30, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the three months ended June 30, 2015 and 2014, the Company accrued $4,787 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On March 31, 2015, interest expense relating to the beneficial conversion feature of this convertible note of $240,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $119,344 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $240,000 and $0 respectively, accrued interest of $4,787 and $0 respectively, and debt discount of $120,656 and $0 respectively was recorded.
F-9
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Direct Capital Note #6
On June 30, 2015 the Company entered into a Convertible Promissory Note with Direct Capital Group, Inc. in the sum of $240,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on December 30, 2015. Any principal amount not paid by the maturity date shall bear interest at a rate of 22% annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933
During the three months ended June 30, 2015 and 2014, the Company accrued $0 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On June 30, 2015, interest expense relating to the beneficial conversion feature of this convertible note of $240,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $0 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $240,000 and $0 respectively, accrued interest of $0 and $0 respectively, and debt discount of $240,000 and $0 respectively was recorded.
Syndication Capital Note #1
On December 31, 2012, the Company entered into a debt settlement agreement with Syndication Capital, whereby the Company exchanges $105,000 in total outstanding debt into Convertible Preferred Shares of the Company. Each of the Convertible Preferred shares will convert into common shares of the Company with the conversion price being the lesser of $0.001 or shall equal the variable conversion price (the “Variable Conversion Price”). The Variable Conversion Price shall mean 50% multiplied by the market price (the “Market Price”). The Market Price means the average of the lowest three (3) Trading Prices for the Common Stock during the ten (10) Trading day period ending on the latest complete Trading Day prior to the Conversion Date. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
On December 31, 2012, the Company recorded an initial derivative liability of $140,146 being the fair value of the conversion feature which was determined using the Black-Scholes valuation method.
On August 4, 2013, the Company transferred $100,000 of the note to Gel Properties, LLC and recorded a credit to derivative liability of $453,305.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $34 and a gain of $9,581 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $5,000 and $5,000 respectively and a derivative liability of $9,011 and $8,082 respectively was recorded.
Syndication Capital Note #2
On July 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $14,072. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $772 and $772 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $14,072 and $14,072 respectively and accrued interest of $4,927 and $1,831 respectively was recorded.
Syndication Capital Note #3
On July 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $603 and $603 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $11,000 and $11,000 respectively and accrued interest of $3,851 and $1,431 respectively was recorded.
F-10
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Syndication Capital Note #4
On August 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on March 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $603 and $603 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $11,000 and $11,000 respectively and accrued interest of $3,659 and $1,239 respectively was recorded.
Syndication Capital Note #5
On September 30, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $11,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on April 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $603 and $597 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $11,000 and $11,000 respectively and accrued interest of $3,453 and $1,033 respectively was recorded.
Syndication Capital Note #6
On October 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on May 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $687 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $4,737 and $1,217 respectively was recorded.
Syndication Capital Note #7
On November 30, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on June 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $497 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $4,441 and $921 respectively was recorded.
Syndication Capital Note #8
On December 31, 2013 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on July 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $319 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $4,145 and $635 respectively was recorded.
F-11
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Syndication Capital Note #9
On January 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on August 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $319 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $3,850 and $526 respectively was recorded.
Syndication Capital Note #10
On February 28, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on September 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $319 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $3,561 and $428 respectively was recorded.
Syndication Capital Note #11
On March 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $16,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on October 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $878 and $319 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $16,000 and $16,000 respectively and accrued interest of $3,265 and $319 respectively was recorded.
Syndication Capital Note #12
On April 30, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on November 1, 2014. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $2,633 and $642 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $48,000 and $48,000 respectively and accrued interest of $8,919 and $642 respectively was recorded.
F-12
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
Syndication Capital Note #13
On July 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on February 1, 2015. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $2,633 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
At June 30, 2015 and 2014, principal balance of $48,000 and $0 respectively and accrued interest of $6,257 and $0 respectively was recorded.
Syndication Capital Note #14
On October 31, 2014 the Company entered into a Convertible Promissory Note with Syndication Capital in the sum of $48,000. The promissory note is unsecured, bears interest at 8% per annum, and matures on May 1, 2015. Any principal amount not paid by the maturity date bears interest at 22% per annum. The Conversion Price shall mean par $.00001 multiplied by the number of Common Stock converted at the time. The transaction was handled as a private sale exempt from registration under Section 4(2) of the Securities Act of 1933.
During the three months ended June 30, 2015 and 2014, the Company accrued $2,062 and $0 respectively in interest expense.
A portion of the proceeds from issuance of the convertible debt, equal to the intrinsic value, is allocated to additional paid-in capital. Because the debt is due on demand and is convertible at the date of issuance, the valuation of the beneficial conversion feature is charged to interest expense at the date of issuance.
On October 31, 2014, interest expense relating to the beneficial conversion feature of this convertible note of $48,000 was recorded in the financial statements with a corresponding increase to additional paid in capital. During the three months ended June 30, 2015 and 2014 debt discount of $5,436 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $48,000 and $0 respectively, debt discount of $0 and $0 respectively, and accrued interest of $3,651 and $0 respectively was recorded.
Coventry Enterprises Note #2
On March 3, 2014, the Company arranged a debt swap under which an Xploration, Inc. note for $4,000 in principal and $46,000 in interest was transferred to Coventry Enterprises, LLC. The promissory note is unsecured, bears interest at 6% per annum and matures on March 3, 2015. Any principal amount not paid by the maturity date bears interest at 24% per annum. During the three months ended June 30, 2015 and 2014, the Company accrued $1,197 and $418 respectively in interest expense.
On March 3, 2014 the Company recorded a debt discount and derivative liability of $63,693, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $126 and a gain of $63,282 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $20,000 and $26,793 respectively, accrued interest of $3,056 and $616 respectively, and a derivative liability of $29,692 and $35,142 respectively was recorded.
LG Capital Funding Note
On March 3, 2014, the Company arranged a debt swap under which an Xploration, Inc. note for $40,000 was transferred to LG Capital Funding, LLC. The promissory note is unsecured, bears interest at 8% per annum and matures on March 3, 2015. Any principal amount not paid by the maturity date bears interest at 24% per annum. During the three months ended June 30, 2015 and 2014, the Company accrued $1,735 and $578 respectively in interest expense.
On March 3, 2014 the Company recorded a debt discount and derivative liability of $63,048, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $197 and a gain of $55,571 respectively due to the change in value of the derivative liability during the period.
At June 30, 2015 and 2014, principal balance of $29,000 and $29,000 respectively, accrued interest of $4,554 and $721 respectively, and a derivative liability of $52,264 and $46,875 respectively was recorded.
F-13
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
New Venture Attorneys Note
On April 1, 2014, the Company issued a convertible promissory note to New Venture Attorneys PC for legal fees. Under the terms of the note, the Company has borrowed a total of $50,000 from New Venture Attorneys PC, which accrues interest at an annual rate of 8% and has a maturity date of April 1, 2015. Any principal amount not paid by the maturity date bears interest at 24% per annum. The note also contains customary events of default. During the three months ended June 30, 2015 and 2014, the Company accrued $2,992 and $986 respectively in interest expense.
After 180 days from issuance, the note may be converted at the option of the holder into common stock of the Company. The conversion price is 50% of the market price, where market price is defined as “the lowest closing bid on the OTCQB for the ten prior trading days including the day upon which a Notice of Conversion is received by the Company.”
On September 29, 2014 the Company recorded a debt discount and derivative liability of $81,987, being the fair value of the conversion feature which was determined using the Black-Scholes valuation model. The debt discount is accreted to the statement of operations using the effective interest rate method over the term of the note or to the date of conversion, and the derivative liability is revalued at each reporting date to fair value. Any change in fair value is credited or charged to the statement of operations in the period.
During the three months ended June 30, 2015 and 2014, the Company recorded a loss of $340 and $0 respectively due to the change in value of the derivative liability during the period and a debt discount of $134 and $0 respectively was accreted to the statement of operations.
At June 30, 2015 and 2014, principal balance of $50,000 and $50,000 respectively, accrued interest of $6,981 and $986 respectively, a debt discount of $0 and $0 respectively and a derivative liability of $90,110 and $0 respectively was recorded.
5. DERIVATIVE LIABILITIES
The Company issued financial instruments in the form of convertible notes with embedded conversion features. Some of the convertible notes payable have conversion rates, which are indexed to the market value of the Company’s stock price.
During the three months ended June 30, 2015 and 2014, the Company recorded derivative liabilities for embedded conversion features related to convertible notes payable of face value $0 and $0 respectively. During the three months ended June 30, 2015 and 2014, $0 and $82,851 respectively of convertible notes payable principal and accrued interest was converted into common stock of the Company. For the three months ended June 30, 2015 and 2014, the Company performed a final mark-to-market adjustment for the derivative liability related to the convertible notes of and the carrying amount of the derivative liability related to the conversion feature of $0 and $148,036 respectively, was re-classed to additional paid in capital on the date of conversion in the statement of shareholders’ deficit. During the three months ended June 30, 2015 and 2014, the Company recognized a loss of $3,642 and a gain of $920,962 respectively based on the change in fair value (mark-to market adjustment) of the derivative liability associated with the embedded conversion features in the accompanying statement of operations.
These derivative liabilities have been measured in accordance with fair value measurements, as defined by ASC 820. The valuation assumptions are classified within Level 1 and Level 2 inputs. The following table represents the Company’s derivative liability activity for the embedded conversion features discussed above.
The following table represents the Company’s derivative liability activity for the embedded conversion features discussed above :
June 30,
June 30,
2015
2014
Balance, beginning of year
$ 843,376 $ 1,747,378
Initial recognition of derivative liability
- -
Conversion of derivative instruments to Common Stock
- (148,036 )
Mark-to-Market adjustment to fair value
3,642 (920,962 )
Balance, end of year
$ 847,018 $ 678,380
These instruments were not issued with the intent of effectively hedging any future cash flow, fair value of any asset, liability or any net investment in a foreign operation. The instruments do not qualify for hedge accounting, and as such, all future changes in the fair value will be recognized currently in earnings until such time as the instruments are exercised, converted or expire.
F-14
GRID PETROLEUM CORP.
(Known as Sunberta Resources Inc.)
(An Exploration Stage Company)
NOTES TO THE INTERIM CONSOLIDATED FINANCIAL STATEMENTS
June 30, 2015
( Unaudited )
6. SECURITIES PURCHASE AGREEMENT
On April 23, 2010, the Company entered into an agreement with an investor whereby the investor committed to purchase up to $5,000,000 of units, consisting of shares of the Company’s common stock and share purchase warrants, until April 22, 2013. The Company may draw on the facility from time to time, as and when it determines appropriate in accordance with the terms and conditions of the agreement. Each advance shall be in an aggregate amount of not more than $1,000,000 and in integral multiples of $100,000. The Company will use the advances to fund operating expenses, acquisitions, and exploration and general corporate activities. The investor also has an option to subscribe up to a further $2,500,000.
Each unit consists of one share of the Company’s common stock and one share purchase warrant. The unit price will be the price to the higher of either: (a) $0.75; or (b) 90% of the volume weighted average of the closing price of common stock, for the five banking days immediately preceding the date of the notice of advance. Each warrant shall entitle the investor to purchase one additional share of common stock at an exercise price equal to 150% of the unit price at which the unit containing the warrant being exercised was issued.
The Company issued 401,067 shares under the agreement during the fiscal year ended March 31, 2011, realizing $400,000. This option expired as of April 22, 2013.
7. RELATED PARTY TRANSACTIONS
Related party transaction is not disclosed elsewhere in the consolidated financial statements are as follows:
On March 8, 2010, the Company entered an employment agreement with the newly-appointed President, James Powell. Pursuant to the terms of the agreement, the President will receive a base salary of $5,000 per month. The employment agreement will continue indefinitely subject to termination by either party without cause on 30 days’ notice.
On October 24, 2011, the Company entered into a new employee agreement with President, James Powell. Pursuant to the terms of the agreement, the President will receive a base salary of $2,500 per month. This agreement supersedes any prior agreements made between the Company and the President.
On March 8, 2010, the Company entered an employment agreement with the newly-appointed Chairman of the Board, Tim DeHerrera. Pursuant to terms of the terms of the agreement, Mr. DeHerrera will receive a base salary of $8,000 per month with an incremental rise of $500 per quarter until an amount of $10,000 per month is achieved.
Mr. DeHerrera agreed to acquire 6,000,000 shares of the former CEO’s shares at $0.02 per share. The new CEO’s shares were be held in escrow in the form of eight certificates each representing 750,000 shares which were released between April 30, 2010 and March 5, 2012 (a minimum of twenty-one months from the first release date).
On December 2, 2011, the Company entered into a new employee agreement with Chairman, Tim DeHerrera. Pursuant to the terms of the agreement, the Chairman will receive an annual salary of $90,000 payable as follows; $7,500 per month for months 1-12 and $10,000 per month for months 13-24. The parties agreed that if the Company does not have the capital available to compensate the cash portion of the agreement, Mr. DeHerrera shall have the option of converting the fees earned into common stock at $.01 per share. As additional compensation for services, the Company shall issue common stock of the Company equal up to an amount of 12,000,000 shares upon signing the agreement and an additional 12,000,000 on December 12, 2013. This agreement supersedes any prior agreements made between the Company and the Chairman.
On December 2, 2011, pursuant to the employment and consulting agreement, Mr. DeHerrera was issued 12,000,000 restricted common shares.
On May 23, 2012, pursuant to the employment consulting agreement, Mr. Powell was issued 2,500,000 common shares.
On March 3, 2015, Tim DeHerrera, resigned from his position with the Company as Treasurer, Secretary and a member of the Board. His resignation was not the result of any disagreement with the Company on any matter relating to the Company’s operations, policies or practices.
On March 3, 2015, James Powell was appointed as the Company’s Treasurer, Secretary and as a member of the Board.
During the three months ended June 30, 2015 and 2014, the Company recorded $7,500 and $7,500 respectively in consulting fees for Mr. Powell increasing the amount due to $157,500 .
During the three months ended June 30, 2015 and 2014, the Company recorded $0 and $30,000 respectively in consulting fees and other expenses for Mr. DeHerrera increasing the amount due to $358,459.
The Company is indebted to its officers as follow:
June 30,
2015
2014
James Powell - President
$ 157,500 $ 127,500
Tim DeHererra - Chairman of the Board
358,459 278,459
$ 515,959 $ 405,959
they sell share for Cash IMO
(0)
(0)
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