XML 32 R29.htm IDEA: XBRL DOCUMENT v2.4.0.6
SUBSEQUENT EVENTS
 3 Months Ended
Mar. 31, 2013
Subsequent Events [Abstract]  
Subsequent Events [Text Block]
23. SUBSEQUENT EVENTS

 

Conversions of debentures to common stock occurred subsequent to March 31, 2013. The stock was issued upon partial conversion of a convertible note without restrictive legend pursuant to Rule 144, as the holder acquired convertible note issued by the Company more than six months prior to the date of conversion and did not pay any additional consideration for the shares. Conversions were as follows (ref. number corresponds to lender reference number in Note 11. CONVERTIBLE DEBENTURES):

 

Ref (4) lender -
On April 1, 2013, the lender converted $18,000 of its debenture to 100,000,000 shares.
On April 10, 2013, the lender converted $9,800 of its debentures to 81,666,667 shares.
On April 10, 2013, the lender converted $3,140 accrued interest to 26,166,667 shares.
 
 
Ref (13) lender -
On April 4, 2013, the lender converted $10,655 of its debenture to 121,077,767 shares.
On May 1, 2013, the lender converted $5,538 of its debenture to 125,856,655 shares.

 

On April 9, 2013, the Company entered into an equity line agreement for $5,000,000. Funding under the agreement is subject to certain conditions prior to closing and registration statement on Form S-1.

 

On April 8, 2013, the Company entered into a convertible debenture with new lender for $20,000. The note bears interest at 9.9% per annum and matures on April 14, 2014. The conversion rate is 60% of the lowest trading price for the 5 trading days prior to conversion notice.

 

On April 3, and 9, 2013, two consultants of the Company returned for cancel a combined 158,333,333 restricted shares of common stock. This stock was issued to them by Company in first quarter 2013 for combined $47,500 in 2012 year end bonuses. Accordingly, the Company recognized as other income in 2013 since the bonuses were recognized during 2012 as operating expense.

 

On April 2, 2013, the Company issued 13,063,923 shares of restricted common stock for $4,500 payroll compensation to employee.