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SUBSEQUENT EVENTS
3 Months Ended
Mar. 31, 2018
Notes to Financial Statements  
NOTE 9 - SUBSEQUENT EVENTS

Management has evaluated subsequent events pursuant to the requirements of ASC Topic 855, from the balance sheet date through the date the financial statement were available to be issued, and has determined that there are no additional material subsequent events exist other than the following.

 

On April 16, 2018 the Board approved the issuance of 500,000 shares of common stock to the CEO for services rendered. The shares were valued at $0.30, the closing stock price on the date of issue, for total non-cash expense of $150,000.

 

On April 16, 2018, the Company executed a convertible promissory note with Auctus Fund, LLC for $350,000. The note bears interest at 10% per annum and matures on January 16, 2019. The holder has the right at any time to convert any portion of the note and/or interest into shares of common stock at a 40% discount to the average of the two lowest trades during the previous twenty-five days of conversion, provided that the conversion price is not less than $0.17 prior to the 180th day after issue. The Company received $322,250 net of OID and applicable fees.

 

On April 16, 2018, in connection with and pursuant to the terms of the convertible promissory note dated April 16, 2018, with Auctus Fund, LLC, the Company issued warrants to Auctus Fund to purchase up to 350,000 shares of common stock. The warrants have an exercise price of $0.50 and expire in five years.

 

On April 19, 2018, the Company repaid $100,000 towards its related party loans.

 

On April 27, 2018, the Company was approved by Google to make Google’s newest Chromebook and distribute it in the business to business (B2B) enterprise market segment within the United States. This marks the third acceptance by Google of Sector 5’s participation in the Chromebook program under Sector 5’s Google Chrome OS Brand Features and Support Agreement originally entered into with Google in January 2015.