XML 22 R18.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2011
Notes to Financial Statements  
NOTE L - SUBSEQUENT EVENTS

From January 1, 2012 through April 9, 2012, the Company sold 5,677,500 shares of its common stock in private transactions for aggregate gross proceeds of  $552,833. The Company also issued 5,772,500 shares for services and 3,300,000 shares for debt conversions.

 

On August 19, 2011, Abundance Partners LP (“APL”) filed a complaint against the Company and its wholly owned subsidiary, Syncpointe, Inc., in the United States District Court, Southern District of New York (the “Court”).  APL’s complaint alleged, among other things, that the Company and Syncpointe failed to comply with the terms of, and were in default under, a certain loan and security agreement with APL, as amended, because the company failed to pay APL certain amounts allegedly due under the loan agreement.  APL sought a judgment against the Company and Syncpointe, jointly and severally, in an amount estimated by APL to be at least $99,883.99.  On January 23, 2012, the Company and APL settled this matter and it was dismissed with prejudice by the Court on February 14, 2012. Pursuant to the settlement agreement the Company issued to APL 200,000 shares of its common stock.

 

On September 21, 2011, Mary Kratka, doing business as StockVest (“StockVest”), filed a complaint against the Company in the Circuit Court of the Ninth Judicial Circuit in and for Osceola County, Florida (the “Circuit Court”).  StockVest’s complaint alleged, among other things, that the Company failed to comply with the terms of, and are in default under, a certain contract with StockVest because the Company failed to issue to StockVest 200,000 restricted shares of its common stock.  StockVest sought a judgment against the Company in the amount of $130,000.  On February 7, 2012, the Company and StockVest settled this matter and it was dismissed with prejudice by the Circuit Court on February 17, 2012. Pursuant to the settlement agreement the Company agreed to issue to StockVest 25,000 shares of its common stock.

 

Effective March 13, 2012, the Company sold substantially all of its RocketVoip assets to an unrelated third party for $100,000 in cash. As a result of this sale, the Company is no longer in the retail, subscriber based voice over IP (VoIP) business.