Note 13 - Subsequent Events

3 Months Ended

Mar. 31, 2015

Notes

Note 13 - Subsequent Events

NOTE 13 – SUBSEQUENT EVENTS

Dividends of Series B Preferred Shares

On April 28, 2015, the Company issued 2,959 shares of common stock and paid $15,781 in cash as dividend payments on Series B Preferred Shares relating to the month of April, 2015 (See Footnote 5).

Commons Shares Issued as Interest on Personal Guaranty

On April 28, 2015, the Company issued 60,940 shares of common stock to the Guarantors of the Advance to Loan Amount (See Footnote 7) as interest due relating to the month of April 2015.

Promissory Note

The Company accrued $1,250 interest expense relating to the month of April 2015 and had an accrued balance of $1,917 (See Footnote 8).

Financing From Black Ink Energy, LLC

On April 28, 2015, the Company paid $37,500 of interest relating to the month of April 2015 bringing total interest paid for the calendar year 2015 to $75,000 (See Footnote 9).

Private Placement Offering

On May 7, 2015, the Company accepted a subscription from an accredited investor to purchase a total of one (1) Investment Unit (“Unit”) comprised of common stock and warrants for a purchase price of $30,000 per Unit, for gross proceeds to the Company of $30,000.  Each Unit consists of (i) 30,000 shares of the Company’s common stock (the “Common Stock”) and (ii) a five (5) year warrant (each a “Warrant” and collectively “Warrants”) to purchase 15,000 shares of Common Stock for an exercise price of $1.50 per share