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SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2016
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 11 - SUBSEQUENT EVENTS

 

On July 19, 2016, we issued a sixty day 15% promissory note payable to a purchaser for cash proceeds totaling $35,000. In the event that we secure any future financing with aggregate gross proceeds of at least $500,000 while the promissory note is outstanding, the promissory note and all accrued interest therefrom will be immediately due and payable within ten business days of the closing of such financing.

 

During July and August 2016, four individuals (the “Lenders”) advanced a total of $435,000 to the Company. The borrowings (“Advances”) were not accompanied by documentation of the nature of the Advances. However, there were general discussions as to the repayment terms and the interest expected to be paid to the Lenders in connection with the Advances. Accordingly, we have accounted for the Advances based on estimates of their still undocumented final terms.

 

On July 18, 2016, the Board of Directors of the Company (the “Board”) appointed Steven R. Carlson to serve as Chief Executive Officer of NuGene International, Inc. (the “Company”). His appointment is to be effective as of and on 25 July 2016. In connection with the hiring of Mr. Carlson, Ali Kharazmi resigned his position as our Chief Executive Officer. Mr. Kharazmi’s resignation will coincide with Mr. Carlson’s start date, 25 July 2016. Mr. Kharazmi will continue to render significant services to the Company and will continue to serve as the Company’s Chairman of the Board.

 

On or around August 4, 2016 the Company settled the litigation brought by Stemage Skin Care, LLC (the “Plaintiff”). In that matter the Plaintiff sued the Company, our Chairman and Secretary, Kathy Ireland Worldwide, Stephen Roseberry, Steve Rosenblum, and Erik Sterling. The complaint sought damages based upon: (i) copyright infringement; (ii) interference with contract; (iii) intentional interference with prospective economic advantage; (iv) negligent interference with prospective economic advantage; and (v) conspiracy. The action arose out of an August 20, 2012 agreement between Plaintiff and Kathy Ireland Inc. (“KI”) pursuant to which KI made Kathy Ireland available to perform “Ambassador Services”, as defined within that agreement. That agreement effectively terminated in October 2014 and is the subject of a separate arbitration with KI and Kathy Ireland. The matter has been settled for a total payment of $50,000 to Plaintiff. It has yet to be determined how much of that amount will be paid by the Company. The settlement paperwork is in process but has not yet been finalized. The Company expects full dismissal, with prejudice, within the next 45-days.