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Subsequent Events
9 Months Ended
Sep. 30, 2016
Subsequent Events [Abstract]  
Subsequent Events

NOTE 10: SUBSEQUENT EVENTS

 

The Company filed in September 2016 a Certificate of Amendment to perform a 1:100 reverse stock split with an effective date in October 2016. The Company has reflected to results of this reverse split in these financial statements for both the nine months ended September 30, 2016 and December 31, 2015.

 

During October 2016, the Company issued 150,000 restricted Series A Preferred Shares pursuant to a nine month advisory agreement for advise on an appropriate investor outreach program and introduction to potential investors and/or business partners and corporate advisory to facilitate a potential uplisting of the Company’s common stock to a qualified exchange.

 

During October 2016, the Company received $29,500 in shareholder loans.

 

During November 2016, the Company issued $812,500 in 10% convertible notes with $162,500 in original issue discounts and $6,000 in closing fees for net proceeds of $644,000. $377,332 was received at the initial closing with two tranches from four of the investors for an aggregate of $133,334 per tranche to be received over the next two months. In a subsequent closing in November 2016, the Company issued $310,000 in 10% convertible notes with $60,000 in original issue discounts for net proceeds of $250,000. The proceeds consisted of $161,203 of net cash, $77,533 previously funded shareholder advances, and accrued interest of $11,264 applied towards the purchase. In connection with the issuance of the 10% Convertible Notes, the Company issued 341,280 of Series A preferred stock as loan fees. A portion of these proceeds totaling $361,500 were used to pay off past due notes of $260,901, plus $48,398 accrued interest and eliminate $910,866 of penalties that had been accrued as of September 30, 2016. In addition to the cash payments paid to satisfy these past due notes, the Company issued 563,523 shares of common stock and 52,000 of Series A preferred stock as additional consideration to satisfy a portion of these obligations.

 

The Company has evaluated subsequent events pursuant to ASC Topic 855 and has determined that there are no additional subsequent events to disclose.