0001445866-15-001113.txt : 20150930 0001445866-15-001113.hdr.sgml : 20150930 20150930170146 ACCESSION NUMBER: 0001445866-15-001113 CONFORMED SUBMISSION TYPE: 10-K PUBLIC DOCUMENT COUNT: 12 CONFORMED PERIOD OF REPORT: 20150630 FILED AS OF DATE: 20150930 DATE AS OF CHANGE: 20150930 FILER: COMPANY DATA: COMPANY CONFORMED NAME: STRATEGABIZ, INC. CENTRAL INDEX KEY: 0000726293 STANDARD INDUSTRIAL CLASSIFICATION: AGRICULTURE PRODUCTION - CROPS [0100] IRS NUMBER: 841089377 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-11730 FILM NUMBER: 151134434 BUSINESS ADDRESS: STREET 1: 922 CHAPPEL VALLEY LOOP CITY: LEHI STATE: UT ZIP: 84043 BUSINESS PHONE: 801-592-3000 MAIL ADDRESS: STREET 1: 922 CHAPPEL VALLEY LOOP CITY: LEHI STATE: UT ZIP: 84043 FORMER COMPANY: FORMER CONFORMED NAME: Agricon Global Corp DATE OF NAME CHANGE: 20120412 FORMER COMPANY: FORMER CONFORMED NAME: BAYHILL CAPITAL CORP DATE OF NAME CHANGE: 20080428 FORMER COMPANY: FORMER CONFORMED NAME: COGNIGEN NETWORKS INC DATE OF NAME CHANGE: 20000718 10-K 1 cryptosign10k06302015.htm 10-K cryptosign10k06302015.htm



UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM 10-K

þ                  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 2015

¨                  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period From ________ to _________

Commission File Number 0-11730

CRYPTOSIGN INC.
(Exact name of registrant as specified in its charter)

Delaware
 
84-1089377
(State or other jurisdiction of
 
(I.R.S. Employer
incorporation or organization)
 
Identification No.)
     
626 East 1820 North
   
Orem, Utah
 
84097
(Address of principal executive offices)
 
(Zip Code)

(801) 592-3000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Exchange Act: None

Securities registered pursuant to 12(g) of the Exchange Act: Common Stock, $.0001 par value

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.¨ Yes  þ No

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act.¨ Yes  þ No

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes  ¨ No

Indicate by check mark if whether the registrant has submitted electronically and posted in its corporate Web site, if any, every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or such shorter period that the registrant is required to submit and post such files).      þ Yes  ¨ No

 
1

 


Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K.   ¨

Indicate by check mark whether the registrant is a large accelerated filed, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.  (Check one):
 
Large accelerated filer o
Accelerated filer o
Non-accelerated filer o
(Do not check if a smaller reporting company)
Smaller reporting company x

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act.)      þ Yes   o No

The aggregate number of shares held by non-affiliates of the registrant at December 31, 2014 was 1,408,916.  The market value of the common stock held by non-affiliates was $2,405,603, based on the closing bid price for the shares of common stock reported on the OTC Markets (“OTCQB”) on December 31, 2014.  Shares held by each officer, each director and each person who owns 10% or more of the outstanding common stock have been excluded from this calculation in that such persons may be deemed affiliates.

As of September 30, 2015, the registrant had 3,847,236 shares of common stock, par value $0.0001, issued and outstanding.

DOCUMENTS INCORPORATED BY REFERENCE:  Exhibit 10.61 Subscription Agreeement

 
2

 

 
   
Page
PART I
     
     
Item 4 Mine Safety Disclosure 7
     
PART II
     
     
PART III
     
PART IV
 
  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA F-1




CryptoSign Inc.

Unless otherwise indicated by the context, references herein to the “Company”, “CryptoSign”, “we”, “our” or “us” means CryptoSign Inc., a Delaware corporation, and its corporate subsidiaries and predecessors.

Forward Looking Statements

This annual report on Form 10-K contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended that are based on management’s beliefs and assumptions and on information currently available to our management.  For this purpose any statement contained in this annual report on Form 10-K that is not a statement of historical fact may be deemed to be forward-looking, including, but not limited to those relating to future demand for the products and services we offer, changes in the composition of the products and services we offer, future revenues, expenses, results of operations, liquidity and capital resources or cash flows, the commodity price environment, managing our asset base, our ability to restructure our existing credit facilities or to obtain additional debt or equity financing, management’s assessment of internal control over financial reporting, financial results, opportunities, growth, business plans, strategies and objectives.  Without limiting the foregoing, words such as “believe,” “expect,” “project,” “intend,” “estimate,” “budget,” “plan,” “forecast,” “predict,” “may,” “will,” “could,” “should,” or “anticipate” or comparable terminology are intended to identify forward-looking statements.  These statements by their nature involve known and unknown risks, uncertainties, and other factors that may cause our actual results, performance or achievements or the industry to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements.  Such factors include, but are not limited to, market factors, market prices and marketing activity, future revenues and costs, unsettled political conditions, civil unrest and governmental actions, foreign currency fluctuations, and environmental and labor laws and other factors detailed herein and in our other filings with the U.S. Securities and Exchange Commission (the “Commission”) filings.    Additional Factors that may cause actual results, our performance or achievements, or industry results, to differ materially from those contemplated by such forward-looking statements include without limitation:
 
·
our ability to raise capital when needed and on acceptable terms and conditions;
 
·
our ability to identify and acquire a viable operating business;
 
·
our ability to attract and retain management, and to integrate and maintain technical information and management information systems;
 
·
the intensity of competition; and
 
·
general economic conditions.

Forward-looking statements are predictions and not guarantees of future performance or events.  The forward-looking statements are based on current industry, financial and economic information, which we have assessed but which by its nature, is dynamic and subject to rapid and possibly abrupt changes.  Our actual results could differ materially from those stated or implied by such forward-looking statements due to risks and uncertainties associated with our business.  We hereby qualify all our forward-looking statements by these cautionary statements.  These forward-looking statements speak only as of their dates and should not be unduly relied upon.  We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. All written and oral forward-looking statements made in connection with this Annual Report on Form 10-K that are attributable to us or persons acting on our behalf are expressly qualified in their entirety by these cautionary statements. Given the uncertainties that surround such statements, you are cautioned not to place undue reliance on such forward-looking statements.
 
 
 


Company History

CryptoSign Inc. (“CryptoSign” or the “Company”, formerly StrategaBiz Inc., Agricon Global Corporation and BayHill Capital Corporation) was incorporated in May 1983 in the state of Colorado and re-incorporated in the state of Delaware in April 2008. This filing includes the operations and balances of CryptoSign Inc. The Company’s prior business activities consisted of organizing the Company, acquiring all the shares of Canola Property Ghana Limited (“CPGL”), forming Agricon SH Ghana Limited (“ASHG”), both Ghanaian companies and locating appropriate land that might be leased for cultivating and harvesting agricultural products in Ghana. These subsidiaries were our only active business and in December 2013 all operations in CPGL were transferred to ASHG and thereafter all business operations of CPGL ceased. Effective June 20, 2014 the Company sold ASHG, the only active business of the Company, to Ghana Journeys Limited, a company owned by Stephen Abu, a Vice President of Agricon.

Discontinued Operations

Agricon SH Ghana Limited

Effective June 20, 2014, the Company sold all of the issued and outstanding shares (200,000) of ASHG to Ghana Journeys Limited. The Company also issued to Ghana Journeys Limited 4,755,000 shares of the Company’s common stock. In return, Ghana Journeys Limited assumed all of the liabilities and ongoing operating expenses of ASHG. See also Note 7, “Discontinued Operations,” to our Consolidated Financial Statements, set forth in Item 8 of this report, for additional information regarding the sale of ASHG.  As of June 30, 2015 the Company had no business activities, other than its search for future merger or acquisition candidates and engaging in activities in furtherance of such acquisitions, and is therefore considered a “shell corporation” as defined in Rule 144(i)(1) of the Securities Act.  As a consequence, no additional information regarding the Company’s operations, customers, markets, competition, environmental impact, licensing or regulations is provided.

Change in Company Name and Equity Structure

Reverse Stock Split and Name Change to StrategaBiz, Inc.

Effective December 15, 2014, the Company filed an Amended and Restated Certificate of Incorporation (“Restated Certificate”) with the Delaware Secretary of State whereby the Company (a) changed its name to StrategaBiz, Inc. and (b) effected a reverse stock split to reduce the number of shares of outstanding common stock at a rate of 1 share for every 30 shares of common stock then outstanding (“Reverse Split”).  The approval of the Restated Certificate to change the Company's name was approved by written consent of holders of a majority of the Company’s common stock.  Each stockholder owning fewer than 30 shares of common stock immediately before the effective time of the Reverse Stock Split received from the Company $0.10 in cash, without interest, for each of such shares of common stock; and (b) each stockholder owning of record 30 or more shares of common stock immediately before the effective time of the Reverse Split held, after the Reverse Split, the number of shares of common stock equal to 1/30th of the number held prior to the Reverse Split.  On November 25, 2014 the Company filed with the Securities and Exchange Commission, and the Company’s stockholders were furnished with a Definitive Information Statement filed on Schedule 14(c) to advise the stockholders of the corporate actions.  The Company’s common stock began trading on January 15, 2015 on a post-split basis under the symbol “SGBZ.” All share and per-share amounts included in these consolidated financial statements have been restated to reflect the 1 for 30 reverse stock split.

 
Name Change to CryptoSign, Inc.
 
Effective June 18, 2015, the Company changed its name to CryptoSign, Inc. by filing a Certificate of Amendment to the Amended and Restated Certificate of Incorporation with the Delaware Secretary of State.  In connection with the name change, the Company changed its trading symbol to “CPSN.”  The name and symbol change were done in anticipation of a merger with an operating company in the crypto currency industry.

Employees
 
As of June 30, 2015, we had three part-time employees.

Reports to Security Holders

We file annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other items and amendments, thereto with the Commission.  We provide free access to these filings, as soon as reasonably practicable after filing, on our Internet web site located at  www.cryptosign.com. In addition, the public may read and copy any materials we file with the Commission at its Public Reference Room at 100 F Street N.E., Washington, DC 20549. The public may obtain information on the operation of the Public Reference Room by calling the Commission at 1-800-SEC-0330. The Commission maintains its internet site www.sec.gov, which contains reports, proxy and information statements and our other information regarding issuers like the Company.  Information appearing on the Company’s website is not part of any report that it files with the Commission.


Not required for smaller reporting companies


None


Through ASHG, the Company had previously entered into one or more leases relating to properties in Ghana.  With the sale of ASHG, the Company no longer has any interests in real property.


There are no legal proceedings pending or threatened against the Company that the Company’s management believes would have a material adverse effect on the financial position of the business of the Company.
 
 
 

Not applicable.

PART II


Market Information

Our shares are currently traded on the OTC Markets (“OTCQB”) under the symbol “CPSN”.  The following table presents the high and low bid prices for the fiscal years ended June 30, 2015 and 2014.  The prices have been adjusted retroactively to reflect the reverse stock split effective December 2014.  These quotations reflect inter-dealer prices without retail mark-up, mark-down, or commissions and may not necessarily represent actual transactions.

Fiscal year ended June 30, 2015
High
 
Low
       
     Fourth quarter
  $ 4.75     $ 3.50  
     Third quarter
  $ 7.00     $ 1.75  
     Second quarter
  $ 3.60     $ 1.75  
     First quarter
  $ 3.35     $ 2.40  
                 
Fiscal year ended June 30, 2014
High
 
Low
                 
     Fourth quarter
  $ 6.00     $ 2.40  
     Third quarter
  $ 13.20     $ 3.00  
     Second quarter
  $ 22.50     $ 10.50  
     First quarter
  $ 21.00     $ 6.00  

Holders

As of June 30, 2015 we had approximately 318 shareholders of record holding 3,847,236 shares of our common stock.  The number of record holders was determined from the records of our transfer agent and does not include beneficial owners of common stock whose shares are held in the names of various security brokers, dealers, and registered clearing agencies.

Dividends

The Company has not paid any cash dividends to date, and has no intention of paying any cash dividends on the Common Stock in the foreseeable future.  The declaration and payment of dividends is subject to the discretion of the Company’s Board of Directors and to certain limitations imposed under Delaware law.  The timing, amount and form of dividends, if any, will depend upon, among other things, the Company’s results of operations, financial condition, cash requirements, and other factors deemed relevant by the Board of Directors.  The Company intends to retain any future earnings for use in its business.  The Company has never paid dividends on its Common Stock.
 
 
 
Securities Authorized for Issuance Under Equity Compensation Plans

The Company is required to measure and recognize compensation expense for all share-based payment awards (including stock options) made to employees and directors based on estimated fair value. Compensation expense for equity-classified awards is measured at the grant date based on the fair value of the award and is recognized as an expense in earnings over the requisite service period.

At a special meeting of our shareholders held on March 31, 2008, our shareholders approved a proposal to adopt our 2008 Stock Incentive Plan (the “Stock Incentive Plan”). The Stock Incentive Plan became effective on April 23, 2008. Directors, employees, consultants and advisors of the Company and its subsidiaries are eligible to receive awards under the Stock Incentive Plan. The Stock Incentive Plan is administered by the Compensation Committee of our Board of Directors. The Stock Incentive Plan will continue until April 23, 2018. A maximum of 300,000 shares of our common stock was made available for issuance under the Stock Incentive Plan. The following types of awards are available under the Stock Incentive Plan: (i) stock options; (ii) stock appreciation rights; (iii) restricted stock; (iv) restricted stock units; and (v) performance awards. Our Board of Directors may, from time to time, alter, amend, suspend or terminate the Stock Incentive Plan.

On February 10, 2012 a majority of our shareholders approved an amendment to the Stock Incentive Plan to increase the share amount under the plan from 300,000 to 3,300,000.  This amount was reduced accordingly in connection with the Reverse Stock Split to 110,000. As of June 30, 2015, there are no outstanding awards under the Stock Incentive Plan.

 
 
The following table sets forth information regarding our equity compensation plans as of June 30, 2015:

   
 Plan category
 
Number of securities to
be issued upon exercise
of outstanding options,
warrants and rights
   
Weighted-average exercise
price of outstanding
options, warrants
and rights
 
Number of securities
remaining available for
future issuance under
equity compensation plans
(excluding securities
reflected in column (a))
 
   
(a)
   
(b)
 
(c)
 
   
Equity compensation plans
                 
approved by security holders
    0     $ 0       110,000  
   
Equity compensation plans not approved by security holders
    0     $ 0       -  
   
Total
    0     $ 0       110,000  

The Company did issue non-qualified stock options outside of the Stock Incentive Plan to certain of its officers and directors. However as of June 20, 2014 all such issued options were cancelled as part of an overall settlement with all option holders.  See Recent Sales of Unregistered Securities below and also Note 6 to our Consolidated Financial Statements.  As of June 30, 2015, the Company had no outstanding options or other awards under the Stock Incentive Plan.

Performance Graph

As a smaller reporting company, as defined in Rule 12b-2 promulgated under of the Securities Exchange Act of 1934, as amended, and in Item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore are not required to provide the information requested by this Item.

Recent Sales of Unregistered Securities

During the quarter ended June 30, 2014, the Company issued 267,108 shares for payment of notes payable, accrued interest payable, accounts payable, and for the cancelation of options to current and former affiliates (directors, officers and service providers of the company), in settlement of vendor liabilities, and cancelation of stock options. The shares were issued at a value of $4.20 per share, which was the market price on the date of issue. The Company also issued 16,667 shares in a private placement to Rene Mikkelsen, a director and 16,667 shares to two unrelated individuals at $0.75 per share for cash of $25,000.  The Company also issued 158,500 shares of common stock to Stephen Abu, a Company vice president, valued at $4.20 per share or $665,700, as part of the sale of ASHG.

On August 28, 2014 the Company completed a private placement of 314,286 shares of its common stock for cash in the amount of $50,000 to World Wide Investment Fund Ltd., a company controlled by Mr. Brian Mertz, a resident of Denmark.
 
 
 
On October 6, 2014 the Company issued 666,667 shares to World Wide Investment Fund Ltd., 333,333 shares to Stratega ApS, a company controlled by Mr. Mertz, and 885,714 shares to Mr. Brian Mertz, for a total purchase price of $300,000.

On December 2, 2014 the Company issued 66,667 shares to each of the following: Soren Jonassen, Ole Sigetty, and Brian Mertz in lieu of cash payments. The Company expensed an aggregate of $350,002 as compensation expense during the year ended June 30, 2015, which reflected the market price ($1.75 per share) of the Company’s stock at the time of issuance.

On December 28, 2014 the Company issued 46,667 shares to Hugo Svaneeng Holdings ApS for the purchase of Domain names, which the board of directors valued at $81,667 which reflected the market price ($1.75 per share) of the Company’s stock at the time the shares were issued.

From February 19, 2015 through March 10, 2015 the Company completed a series of private placements totaling 137,000 shares of its common stock for cash in the total amount of $137,000 to five third-party investors.

On June 30, 2015, the Company received subscriptions for the purchase of 175,000 shares of its common stock totaling $393,750. The Company received cash for the full subscriptions in July 2015.

The Company relied on the statutory exemption from registration found in section 4.2 of the Securities Act and comparable Utah and Delaware state provisions and also the provisions of Regulation S for offerings and issuances to non-U.S. persons.  The Company believes that all purchasers would have qualified as accredited investors to the extent that the offerings were conducted under Regulation D.  The Company made no state or SEC filings for such offerings and issuances.

Purchases of Equity Securities by the Issuer and Affiliated Purchasers

Neither the Company nor any Subsidiary purchased any of our equity securities during the year ended June 30, 2015.

On May 2, 2014, the Company issued 16,667 shares of common stock for $12,500 of cash to a Director of the Company.

On June 20, 2014, the Company issued 267,108 shares of common stock for settlement of liabilities of $780,035 to officers, directors, and affiliates (see Note 6 of the Consolidated Financial Statements).  The Company also issued 158,500 shares of Company common stock to Ghana Journeys valued at $4.20 per share or $665,700 in conjunction with the sale of ASHG to an officer of the Company (see Note 7 of the Consolidated Financial Statements).

On August 28, 2014 the Company completed a private placement of 314,286 shares of its common stock for cash in the amount of $50,000 to World Wide Investment Fund Ltd., a company controlled by Mr. Brian Mertz, a resident of Denmark.

On October 6, 2014 the Company issued 666,667 shares to World Wide Investment Fund Ltd., 333,333 shares to Stratega ApS, a company controlled by Mr. Mertz, and 885,714 shares to Mr. Brian Mertz, for a total purchase price of $300,000.
 
 
 
On December 2, 2014 the Company issued 66,667 shares to each of the following: Soren Jonassen, Ole Sigetty, and Brian Mertz in lieu of cash payments.  The Company expensed an aggregate of $350,002 as compensation expense during the year ended June 30, 2015, which reflected the market price ($1.75 per share) of the Company’s stock at the time of issuance.

On December 28, 2014 the Company issued 46,667 shares to Hugo Svaneeng Holdings ApS, a Company owned by Brian Mertz for the purchase of domain names, which were recorded at a cost of $81,667, which reflected the market price ($1.75 per share) of the Company’s stock at the time the shares were issued.


As a smaller reporting company, as defined in Rule Rule 12b-2 promulgated under of the Securities Exchange Act of 1934, as amended, and in Item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore are not required to provide the information requested by this Item.


This discussion summarizes the significant factors affecting our consolidated operating results, financial condition, liquidity and capital resources during the fiscal year ended June 30, 2015. This discussion should be read in conjunction with the Consolidated Financial Statements and footnotes to the Consolidated Financial Statements included in this annual report on Form 10-K.

Summary

We sold our only active business, our wholly owned subsidiary Agricon SH Ghana Limited, (ASHG) effective June 20, 2014. The transaction was effectuated by the sale of all of the issued and outstanding shares of ASHG in exchange for the assumption by the acquirer of all Company related liabilities and all liabilities of ASHG. This sale included substantially all of the Company’s assets and operations and concluded the Company’s activity in the agricultural business.  Following the completion of the sale on June 20, 2014, the Company has been a “shell” corporation under SEC regulations.

Prior to the sale of ASHG, the Company’s only activities were organizing the Company and locating appropriate land that might be leased for cultivating and harvesting agricultural products.  The Company was unable to raise sufficient capital to engage in the farming operations and agricultural activities that it had planned.

On February 27, 2015, the Company signed a Share Exchange and Purchase Agreement (the "Share Exchange Agreement"), with CryptoCorum Ltd., a Malta holding company (“CryptoCorum”) and its sole shareholder, LXCCoin Ventures Limited, a Cyprus limited company formerly known as Jeckelson Investments Limited (“LVL”), pursuant to which the Company agreed to acquire 100% of the issued and outstanding equity securities in CryptoCorum in exchange for 10,500,000 of the issued and outstanding shares of the Company’s common stock par value $0.0001 per share (the “Share Exchange”).  The closing (“Closing”) of the Share Exchange was scheduled to take place on May 17, 2015, or such other time as agreed upon the directors of the Company.  The Share Exchange was terminated prior to closing by the Company on August 28, 2015.
 
 
 
We are actively seeking to merge with or acquire one or more private companies to create business opportunities and are currently discussing possible acquisitions with one or more companies. We believe an appropriate merger or an acquisition strategy will create a foundation to expand into new markets and acquire operating companies that will add new technologies, products, or services.  We can give no assurances that the Company can continue operations until completing any such transaction, and can give no assurance that the Company can complete any such transaction.

Development stage entity

The Company is considered to be a development stage entity, as defined by the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 915.  Since its inception through June 30, 2015, the Company has not generated any revenues to date, has no significant assets and has incurred losses since inception from developing its business and planned operations. Consequently, its operations are subject to all the risks inherent in the establishment of a new business enterprise.

Results of Operations

The Company’s consolidated operations included the operations of CryptoSign for all periods presented and the operations of ASHG through June 20, 2014.

During the year ended June 30, 2015, the Company had a net loss from continuing operations of $822,876, which consisted selling, general and administrative expenses of $804,488, and $18,388 of other expenses.  These amounts compare to net losses from continuing operations of $2,742,341 for the year ended June 30, 2014, which consisted of selling, general and administrative expenses of $2,658,712 and $83,629 of other expenses.  The loss from discontinued operations during the year ended June 30, 2015 was $0 as compared to $756,270 for 2014.

General and administrative expenses consist mainly of executive compensation, consulting, legal and accounting fees.

Since July 1, 2014, management of the Company has spent time and resources in looking for and pursuing acquisition and merger opportunities.

Liquidity and Capital Resources

Cash flows from the issuances of common stock for cash are not sufficient to meet our working capital requirements for the foreseeable future or provide for expansion opportunities. We incurred $822,876 and $3,498,611 in net losses, and we used $566,192 and $189,446 in cash for operations for the years ended June 30, 2015 and 2014, respectively. Investing activities provided cash in the amounts of $128,657 and $98,804 for the years ended June 30, 2015 and 2014, respectively.  Net cash generated from financing activities for the years ended June 30, 2015 and 2014 was $436,213 and $89,500, respectively.  As of June 30, 2015, we had working capital of $291,331.  These conditions raise substantial doubt about our ability to continue as a going concern.

As a shell corporation, the Company’s material commitments for capital expenditures are limited to salaries, legal and audit expenses and the expenses associated with looking for and acquiring an acceptable acquisition target.  In order for us to continue as a going concern, we hope to obtain additional debt or equity financing. We are regularly and continually seeking additional funding from investors and from time to time we are in various stages of negotiations.  Nonetheless, to date we have not accomplished a financing of the size needed to put the Company on a stable operating basis. There can be no assurance that we will be able to secure additional debt or equity financing, that we will be able to acquire cash flow positive operations, or that, if we are successful in any of those actions, or that those actions will produce adequate cash flow to enable us to meet our future obligations. All of our existing financing arrangements are short-term. If we are unable to obtain additional debt or equity financing, we may be required to significantly reduce or cease operations. We do not believe that inflation has had a material effect on our business, financial condition or results of operations. If our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could adversely affect our business, financial condition and results of operations.
 
 
 
Off-Balance Sheet Financing Arrangements

We do not maintain off-balance sheet arrangements nor do we participate in any non-exchange traded contracts requiring fair value accounting treatment.  The Company has no off-balance sheet financing arrangements as of June 30, 2015.

New Accounting Standards

For details of applicable new accounting standards, please, refer to Note 3 of our Consolidated Financial Statements.

Critical Accounting Policies and Estimates
 
The preparation of financial statements in accordance with accounting standards generally accepted in the United States requires management to make estimates and assumptions that affect both the recorded values of assets and liabilities at the date of the financial statements and the revenues recognized and expenses incurred during the reporting period. Our estimates and assumptions affect our recognition of income taxes, the carrying value of our long-lived assets and our provision for certain contingencies.  We evaluate the reasonableness of these estimates and assumptions continually based on a combination of historical information and other information that comes to our attention that may vary our outlook for the future. Actual results may differ from these estimates under different assumptions.
 
We suggest that the Summary of Significant Accounting Policies, as described in Note 3 of our Consolidated Financial Statements, be read in conjunction with this Management’s Discussion and Analysis of Financial Condition and Results of Operations. We believe the critical accounting policies that most impact our consolidated financial statements are described in Note 3 of our Consolidated Financial Statements.


As a smaller reporting company, as defined in Rule 12b-2 promulgated under of the Securities Exchange Act of 1934, as amended, and in Item 10(f)(1) of Regulation S-K, we are electing scaled disclosure reporting obligations and therefore are not required to provide the information requested by this Item.
 
 
 
 
Our consolidated financial statements, together with accompanying footnotes, and the report of our independent registered public accounting firm, are set forth on page F-1.


None.


Evaluation of Disclosure Controls and Procedures

Our management, under the supervision and with the participation of our President, who is also our Chief Financial Officer, evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act.”)) and based upon this evaluation, and the engagement of a qualified outside third party review of our disclosure controls and procedures, concluded that as of June 30, 2015, our disclosure controls and procedures were effective in ensuring that information required to be disclosed by us in the reports filed or submitted by us under the Exchange Act is (i) recorded, processed, summarized and reported, within the time periods specified in the Commission’s rules and forms and (ii) accumulated and communicated to our management, including our principal executive and financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

Management's Report on Internal Control over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting. Internal control over financial reporting, defined in Rule 13a-15(f) or 15d-15(f) promulgated under the Exchange Act, is a process designed by, or under the supervision of, the company’s principal executive officer who is also our principal financial officer and effected by the Company’s board of directors, management and other personnel, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States and includes those policies and procedures that:

pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the Company;
provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles in the United States, and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and
provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company’s assets that could have a material effect on the financial statements.
 
 
 
Because of its inherent limitations, internal control over financial reporting is not intended to provide absolute assurance that a misstatement of our financial statements would be prevented or detected.  Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. To mitigate the current limited resources and limited employees, we rely heavily on direct management oversight of transactions, along with the use of legal and accounting professionals. As we grow, we expect to increase our number of employees and engage outsourced accounting professionals, which will enable us to implement adequate segregation of duties within the internal control framework.

Management of the Company conducted an assessment of the effectiveness of our internal control over financial reporting based on the framework set forth by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”) in Internal Control - Integrated Framework. As part of this assessment, management has taken into consideration that we are a small company, and due to the fact that we have a limited number of employees, we are not able to have proper segregation of duties and have limited technical accounting research capabilities. Based on this assessment, management concluded that as of June 30, 2013, we had a material weakness in our internal control over financial reporting because of the lack of segregation of duties and the limited technical accounting capabilities. In July 2013 we engaged a third party service provider with the necessary financial expertise to provide an independent review and additional oversight of financial reporting. In addition, the board of directors, as part of their review of the quarterly and annual financial statements, has complete access to the detailed financial information of the Company for further review and verification of all financial transactions during the reporting periods. Management believes these changes and detailed review by the board of directors enhance our effectiveness over financial reporting to provide reasonable assurance regarding the reliability of financial reporting and preparation of financial statements for external purposes in accordance with generally accepted accounting principles in the United States.

Attestation Report of Independent Registered Public Accounting Firm

This annual report on Form 10-K does not include an attestation report of our independent registered public accounting firm regarding internal control over financial reporting.  Management’s report was not subject to attestation by our independent registered public accounting firm pursuant to an exemption for non-accelerated filers set forth in Section 989G of the Dodd-Frank Wall Street Reform and Consumer Protection Act.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting during the quarter ended June 30, 2015 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.


Subsequent issuances

On June 30, 2015, the Company received subscriptions for 175,000 shares of common stock in a series of private placements for the aggregate purchase price of $393,750. Payment for the subscriptions was received during July 2015.
 
 
 
PART III


Our board of directors is responsible for the overall management of the company and appoints the executive officers who are responsible for administering our day-to-day operations.  Our executive officers and directors are elected annually for a one year term or until their respective successors are duly elected and qualified or until their earlier resignation or removal.  The following table identifies our directors and officers as of September 30, 2015.
 
Name
Age
Position
Brian Mertz
40
Chief Executive Officer and Director
Robert K. Bench
66
President and Chief Financial Officer
Soren Jonassen
47
Director, Chairman
Ole Sigetty
46
Director
 
Brian Mertz, age 40, was elected as a director and the Chief Executive Officer, in November 2014. Mr Mertz has over fifteen years of experience working with start-up enterprises where he has served on management teams, boards of directors and in executive level management positions.  Mr. Mertz has special qualifications within international negotiations, merger & acquisitions, public offerings, sales, business development and business-to-business marketing. Mr. Mertz served as Chief Operations Officer of the Nasdaq listed IT-security company, EuroTrust, in the period of 2001 to 2004, where he worked with the company’s largest shareholder, VeriSign (now Symantec).  Mr. Mertz was the co-founder and Chief Executive Officer of Guava A/S, a Danish online marketing company listed on the Danish Share Exchange from the period 2004 to 2009 and Chief Executive Officer of the Norwegian listed entertainment company NIO Inc. during the period 2012 to 2014. Mr Mertz is educated with a BA in Organization and Marketing from Niels Brock Business College in Copenhagen, Denmark.
 
Robert K. Bench, age 66, has served as our President and Chief Financial Officer since October 2007 and as a member of our board of directors from December 2007 through November 2014.  Mr. Bench was a founder and since April 1999 has been a managing member of BayHill Group LC, a consulting group focused on assisting microcap companies (“BayHill Group”). From January 2005 until April 2007, he also served as the Chief Financial Officer of Innuity, Inc. (INNU), software as a service company that delivers applications for small business. From November 2000 until August 2004, he also served as Chief Financial Officer of The SCO Group (SCOX), a developer and marketer of software applications and operating systems. Mr. Bench is a certified public accountant and holds a bachelor degree in accounting from Utah State University.

Soren Jonassen, age 47, has served as a director since April 2012. Mr. Jonassen is an experienced professional with over 25 years in audit profession in Denmark. He was appointed as a certified public accountant in 1996 and served as audit manager in Arthur Andersen until 1996 and has been serving as audit partner in Crowe Horwath Denmark since 1996. Mr. Jonassen is a CPA and holds a degree of master in business economy from Copenhagen Business School. Mr. Jonassen has served as CEO of Crowe Horwath where he was also International liaison partner establishing a professional world-wide network. During his professional work he has assisted start-ups and a large number of small to midsized companies, including assisting with IPO’s in Denmark and USA. Mr. Jonassen has specialized in IFRS public reporting and conversion process.  He has been an adviser in large M&A transactions, and has been co-founder of a number of private companies in Denmark in a number of different sectors.
 
 
 
Ole Sigetty, age 46, has served as a Director since November 2014. Mr. Sigetty is an experienced professional with more than 30 years as an attorney-at-law in Denmark.  Mr. Sigetty is admitted to the Supreme Court of Denmark where he appears regularly. Mr. Sigetty is a senior partner of the Law Firm Németh & Sigetty A/S, Copenhagen, Denmark. During his professional work, Mr. Sigetty, has practiced business law and litigation with a focus on M&A transactions, contract law, and public listings. Mr. Sigetty has served on several boards as both director chairman including the position of chairman of the board of Guava A/S, a Danish online marketing company listed on the Danish Share Exchange in the period 2004-2009, director and chairman of the board Norwegian listed entertainment company, Nio Inc., in the period 2012-2013, director and chairman of the board of International Food Science Center A/S and director of MMC Optical A/S, director of Seven Seas Clothing Co. A/S.  Mr. Sigetty holds a Master of Arts in Journalism and Public Affairs from the American University in Washington D.C.
 
As of the date hereof, we have no other significant employees and do not anticipate adding any key employees other than our executive officers identified above.
 
There are no family relationships among our directors, our executive officers, or persons to become our directors or our executive officers following the Share Exchange.

Except as discussed above, to our knowledge, there have been no events under any bankruptcy act, criminal proceedings and no federal or state judicial or administrative orders, judgments, decrees or findings, no violations of any federal or state securities laws, and no violation of any federal commodities law material to the evaluation of the ability and integrity of any director (existing or proposed), executive officer (existing or proposed), promoter or control person of the Company during the past 10 years.

To our knowledge, there are no material proceedings to which any director (existing or proposed), officer (existing or proposed), affiliate of the Company, any holder of 5% or more of our currently outstanding common stock, any associate of any such director or officer, or any affiliate of such security holder that is adverse to us or has a material interest adverse to us. There are no family relationships among any of the officers and directors.

Corporate Governance
 
Leadership Structure
 
Our board of directors has appointed Mr. Soren Jonassen as its chairman. Our board of directors has determined that its leadership structure is appropriate and effective for the Company.
 
Board Committees
 
Our Board of Directors has standing Audit and Compensation Committees. To date, our Board of Directors has not established a Nominating or Governance Committee, in part because our Board of Directors believes that, at this stage of our development, all of our directors should be actively involved in the matters which would be addressed by such a committee. We may, in the future, establish a Nominating or Governance Committee. We believe each of the directors serving on our Audit and Compensation Committees is an independent director pursuant to NASD Rule 4200(a) (15) and that each of the directors serving on the Compensation Committee is an “independent director” for purposes of Section 162(m) of the Internal Revenue Code of 1986, as amended.
 
 
 
Audit Committee. Soren Jonassen and Ole Sigetty serve as members of the Audit Committee, with Mr. Jonassen serving as Chairman. Our Board of Directors has determined that Mr. Jonassen satisfies the criteria for an audit committee financial expert under Rule 401(e) of Regulation S-B promulgated by the SEC. Each member of our Audit Committee is able to read and understand fundamental financial statements, including our consolidated balance sheets, statements of operations and statements of cash flows. The functions of the Audit Committee are primarily to: (a) facilitate the integrity of our financial statements and internal controls, (b) oversee our compliance with legal and regulatory requirements related to accounting and/or financial controls, (c) evaluate our independent registered public accounting firm’s qualifications and independence, (d) oversee the performance of any internal audit function that we may adopt and oversee our independent registered public accounting firm, and (e) review our systems of disclosure controls and procedures, internal controls over financial reporting, and compliance with ethical standards related to accounting and/or financial controls we have adopted. Our Board of Directors has adopted a written charter for our Audit Committee, a copy of which is available on the Company’s website, www.cryptosign.com.  Except as otherwise required by applicable laws, regulations or listing standards or our Audit Committee Charter, major decisions regarding our activities and operations are considered by our Board of Directors as a whole.

Compensation Committee. Soren Jonassen and Ole Sigetty serve as members of the Compensation Committee of our Board of Directors, with Mr. Sigetty serving as Chairman. The functions of our Compensation Committee are primarily to: (a) to oversee the responsibilities of the Board relating to compensation, and (b) to ensure that our compensation plans, programs and values transferred through cash pay, stock and stock-based awards, whether immediate, deferred, or contingent are fair and appropriate to attract, retain and motivate management and are reasonable in view of company economics and of the relevant practices of other, similar companies. Our Board of Directors has adopted a written charter for our Compensation Committee, a copy of which is available on the Company’s website, www.cryptosign.com.
 
Director Nominations. Our Board of Directors will consider recommendations for director nominees by shareholders if the names of those nominees and relevant biographical information are submitted in writing to our Corporate Secretary in the manner described for shareholder nominations below under the heading “Proposals of Shareholders.” All director nominations, whether submitted by a shareholder or the Board of Directors, will be evaluated in the same manner.

Code of Ethics

On May 12, 2008, our Board of Directors adopted a Code of Business Conduct and Ethics (the “Code of Ethics”). The Code of Ethics is designed to deter wrongdoing by employees and to promote honest and ethical conduct, full, fair and accurate disclosure, compliance with laws, prompt internal reporting and accountability to adherence to the Code of Ethics. The Code of Ethics is applicable to all of our employees, as well as employees of our subsidiaries, including our principal executive officer and principal financial officer. A copy of the Code of Ethics was previously filed with the SEC and is posted on the Company’s website, www.cryptosign.com.
 
 
 
Compliance with Section 16(a) of the Exchange Act

Section 16(a) of the Securities Exchange Act of 1934 requires our directors and executive officers, and any persons who own more than 10% of our common stock to file with the Commission reports of beneficial ownership and changes in beneficial ownership of common stock.  Directors and officers are required by Commission regulation to furnish us with copies of all Section 16(a) forms they file.  On June 20, 2014 the Company issued 267,108 shares of its common stock to present and past officers, directors, and affiliates, and an additional 158,500 shares to a company owned by Stephen Abu, a former Vice President of the Company (see Note 6 and Note 7 to the financial statements). In addition, all holders of options agreed to cancel their options as part of the settlement agreements in consideration for the receipt of Common Stock. The required “Statement of Changes in Beneficial Ownership (Form 4) for the recipients of the shares and for the cancellation of options were not timely filed.

On August 28, 2014 the Company completed a private placement of 314,286 shares of its common stock for cash in the amount of $50,000 to World Wide Investment Fund Ltd., a company controlled by Mr. Brian Mertz, a resident of Denmark.  On October 6, 2014 the Company issued 666,667 shares to World Wide Investment Fund Ltd., 333,333 shares to Stratega ApS, a company controlled by Mr. Mertz, and 885,714 shares to Mr. Brian Mertz, for a total purchase price of $300,000. On December 2, 2014 the Company issued 66,667 shares to each of the following: Soren Jonassen, Ole Sigetty, and Brian Mertz in lieu of cash payments of $50,000 each.  A Schedule 13D was filed in connection with such acquisitions by Mr. Mertz.

Involvement in Certain Legal Proceedings

Except as stated below, none of our directors or executive officers has been convicted in a criminal proceeding, excluding traffic violations or similar misdemeanors, or has been a party to any judicial or administrative proceeding during the past ten years that resulted in a judgment, decree or final order enjoining the person from future violations of, or prohibiting activities subject to, federal or state securities laws, or a finding of any violation of federal or state securities laws, except for matters that were dismissed without sanction or settlement.  Except as set forth in our discussion below in “Transactions with Related Persons; Promoters and Certain Control Persons; Director Independence,” none of our directors, director nominees or executive officers has been involved in any transactions with us or any of our directors, executive officers, affiliates or associates which are required to be disclosed pursuant to the rules and regulations of the SEC.
 
On September 10, 2009, Mr. Mertz was convicted of stock manipulation for actions taken in June 2006, when he bought shares in Notabene.net A/S listed on Nasdaq First North in Denmark for approximately DKK 14,000 (approximately USD $2,200), a company in which he served as CEO, leading to an increase of the share price.  The incident was investigated in July-August of 2006 and Mr. Mertz was indicted and convicted in 2009.  He served a one-year suspension and paid a fine in the amount of approximate $1,500.
 

Summary Compensation Table
 
The following table sets forth information concerning all cash and non-cash compensation awarded to, earned by or paid to the named person for services rendered in all capacities during the years ended June 30, 2015 and 2014.  No other executive officers received total annual compensation in excess of $100,000.
 
 
 
Person
Year
 
Salary ($)
   
Bonus ($)
   
Stock Awards ($)
   
Option Awards ($)
   
Non-equity Incentive Comp ($)
   
All Other Comp.
($)
   
Total ($)
 
                                             
Brian Mertz (1)
2015
  $ -       -       -       -       -     $ 116,667     $ 116,667  
Robert K. Bench (1)
2015
  $ 154,000       -       -       -       -     $ 0     $ 154,000  
Robert K. Bench (1)
2014
  $ 28,000       -       -       -       -     $ 5,400     $ 33,400  
 
(1)
Mr. Mertz has served as CriptoSign’s Chief Executive Officer since July 2014.
 
(2)
Mr. Bench has served as CryptoSign’s President since October 2008 and Chief Financial Officer since November 30, 2008.

Employment Agreements
 
The Company had no employment contracts outstanding at June 30, 2015 with any employees.
 
Robert Bench.  Mr. Bench has agreed to serve as CryptoSign’s President and Chief Financial Officer.  He will receive a salary of $10,000 for the months of July 2015 through September 2015 of which $5,000 will be paid in cash and $5,000 accrued. Subsequent to September 2015 his remuneration will be set by the Board of Directors of the Company.
 
As of June 30, 2015, there were no outstanding options of the Company.
 
Compensation of Directors

On March 6, 2012 the Company adopted a compensation plan for its non-management Board members. Compensation includes cash and non-cash components.  The cash component is based on attendance at Board meetings in accordance with the following table:

   
Quarterly
   
Face to Face Mtg.
   
Telephonic Mtg.
 
Board Chairman
  $ 4,000     $ 1,500     $ 750  
Board Member
  $ 3,000     $ 1,000     $ 500  
Committee Chair
          $ 500     $ 250  
Committee Member
          $ 400     $ 200  
 
In addition, non-management Board members receive stock option grants from time to time with the minimum set forth in the following table:
 
 
Upon Election (1)
Annual Refresh (2)
Board Chairman
40,000 options
7,000 options
Board Member
30,000 options
6,000 options
 
(1)
One time grant at time of election or reappointment to the board. Options to be priced at the 5-day volume weighted average price (“VWAP”) prior to the date of election.
 
(2)
Shares to be granted each year when the board member is re-elected at the Company’s annual shareholder meeting. Options will be priced at the 5-day VWAP prior to the date of shareholder meeting.
 
Each of the directors was issued 66,667 shares of common stock in lieu of $50,000 compensation during the year ended June 30, 2015. No fees were paid to our directors for the fiscal year ended June 30, 2014.
 
 
 
 
The following table sets forth the number of shares of our common stock beneficially owned by the following persons or groups as of September 30, 2015 (i) each person known by us to be the beneficial owner of more than 5% of our outstanding shares of common stock, (ii) each of our executive officers and directors and (iii) all of our executive officers and directors as a group.  Beneficial ownership is determined in accordance with Rule 13d-3 under the Exchange Act. In determining the percentages, the following table assumes 3,847,236 shares of our common stock are issued and outstanding.
 
   
Amount and Nature of
   
Percent of Class of
 
Name and Address
 
Beneficial Ownership (1)
   
Common Stock
 
Brian Mertz, CEO and Director
    2,266,667 (2 ) 58.92 %
626 East 1820 North
             
Orem, Utah 84097
             
               
Stephen Abu
    251,326 (3 ) 6.53 %
626 East 1820 North
             
Orem, Utah 84097
             
               
Robert Bench, President and CFO
    29,457 (4 ) 0.77 %
626 East 1820 North
             
Orem, Utah 84097
             
               
Ole Sigetty, Director
    66,667     1.73 %
626 East 1820 North
             
Orem, Utah 84097
             
               
Soren Jonassen, Director
    75,529     1.96 %
Hvedevej 4
             
2765 Smorum, Denmark
             
               
All current executive officers and
             
directors as a group (4 persons)
    2,438,320     63.38 %

 
(1)
Except as indicated below, each person has sole and voting and/or investment power over the shares listed, subject to applicable community property laws. There are no options granted or outstanding.
 
 
(2)
Includes 980,952 shares owned by World Wide Investment Fund and 333,333 shares owned by Stratega ApS, which may be deemed to be beneficially owned by Mr. Mertz who is a control person in each company.
 
 
(3)
Includes 251,167 shares owned by African Heavy Machinery and 76,159 shares owned by Ghana Journeys Limited, which may be deemed to be beneficially owned by Mr. Abu who is a control person in each company. Mr. Abu has no other affiliation with CryptoSign.
 
 
(4)
Includes 8,885 shares owned by Vector Capital, LLC, which may be deemed to be beneficially owned by Mr. Bench who is the managing member of Vector Capital LLC.
 

Transactions with Related Persons

On August 28, 2014 the Company completed a private placement of 314,286 shares of its common stock for cash in the amount of $50,000 to World Wide Investment Fund Ltd., a company controlled by Mr. Brian Mertz, a resident of Denmark.
 
 
 
On October 6, 2014 the Company issued 666,667 shares to World Wide Investment Fund Ltd., 333,333 shares to Stratega ApS, a company controlled by Mr. Mertz, and 885,714 shares to Mr. Brian Mertz, for a total purchase price of $300,000.

On December 2, 2014 the Company issued 66,667 shares to each of the following: Soren Jonassen, Ole Sigetty, and Brian Mertz in lieu of cash payments of $50,000 each. The Company recorded compensation expense of $720,004 for the 200,001 shares issued based on the per share market price of $3.60 at the time of issuance.

On December 28, 2014 the Company issued 46,667 shares to Hugo Svaneeng Holdings ApS, a Company owned by Brian Mertz for the purchase of domain names, which the Company recorded a cost of $81,667 based on the per share market price of $1.75 at the time of issuance.
 
We have a code of ethics, which was adopted by the Company before the consummation of the Share Exchange and continues to apply to our directors, officers and employees, including our principal executive officer and principal financial and accounting officer (each, a “Covered Person” and, collectively, the “Covered Persons”). As provided in our code of ethics, each of our employees and officers (other than our principal executive officer and principal financial officer) is responsible for reporting to his or her immediate supervisor, and each director and each of our principal executive officer and our principal financial officer is responsible for reporting to the chairman of the audit committee, if such a committee is created, or, in the absence of an audit committee, to the chairman of our board of directors, any potential conflict of interest. The audit committee chairman, if any, or the chairman of our board of directors, as applicable, will determine if a conflict of interest exists, and if so determined, will determine the necessary resolution of such conflict. We intend to re-evaluate our policies and procedures relating to related party transactions, and anticipate adopting changes to our current written policy providing for the formal procedures through which any such potential transaction will be evaluated.
 
Promoters and Control Persons
 
The Company has not at any time engaged a promoter during the last five years.
 
Securities Authorized for Issuance Under Equity Compensation Plans

At a special meeting of our shareholders held on March 31, 2008, our shareholders approved a proposal to adopt our 2008 Stock Incentive Plan (the “Stock Incentive Plan”). The Stock Incentive Plan became effective on April 23, 2008. Directors, employees, consultants and advisors of the Company and its subsidiaries are eligible to receive awards under the Stock Incentive Plan. The Stock Incentive Plan will be administered by the Compensation Committee of our Board of Directors. The Stock Incentive Plan will continue until April 23, 2018. A maximum of 10,000 shares of our common stock was made available for issuance under the Stock Incentive Plan. The following types of awards are available under the Stock Incentive Plan: (i) stock options; (ii) stock appreciation rights; (iii) restricted stock; (iv) restricted stock units; and (v) performance awards. Our Board of Directors may, from time to time, alter, amend, suspend or terminate the Stock Incentive Plan.

On February 10, 2010 a majority of our shareholders approved an amendment to the Stock Incentive Plan to increase the share amount under the plan from 10,000 to 110,000. As of June 30, 2015, there were no issued or outstanding awards under the Stock Incentive Plan.
 
Changes in Control

The Company completed a private placement of 314,286 shares of its common stock to World Wide Investment Fund Ltd., a company controlled by Mr. Brian Mertz, a resident of Denmark.  World Wide Investment Fund Ltd. was also granted a 45-day exclusive option to acquire an additional 1,885,714 shares of common stock at a purchase price of $300,000, which it exercised. Following the private placement, Mertz beneficially owned 2,200,000 shares or 66.9% of the then 3,288,666 total shares issued and outstanding.
 
 
 
Director Independence

The board of directors has determined that Ole Sigetty and Soren Jonassen are “independent directors” as that term is defined in the listing standards of the NYSE Amex.  Such independence definition includes a series of objective tests, including that the director is not an employee of the company and has not engaged in various types of business dealings with the company.  In addition, as further required by the NYSE Amex listing standards, the board of directors has made a subjective determination as to each independent director that no relationships exist which, in the opinion of the board of directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director.


EKS&H LLLP (“EKS&H”) served as the Company’s independent registered public accounting firm for the fiscal years ended June 30, 2015 and 2014.  Principal accounting fees for professional services rendered for us by EKS&H for the twelve months ended June 30, 2015 and 2014, are summarized as follows:

   
2015
   
2014
 
Audit
  $ 39,500     $ 35,400  
Tax
  $ 10,775     $ 6,825  
Consultation
  $ 0     $ 1,517  
Total
  $ 50,275     $ 43,767  

Audit Fees.  Audit fees were for professional services rendered in connection with the audit of the financial statements included in our annual report on Form 10-K and review of the financial statements included in our quarterly reports on Form 10-Q and for services normally provided by our independent registered public accounting firm in connection with statutory and regulatory filings or engagements.

Tax Fees.  Tax fees consist of fees rendered for services on tax compliance matters, including tax return preparation, claims for refund and assistance with tax audits of previously filed tax returns, tax consulting and advisory services consisting primarily of tax advice rendered by EKS&H in connection with the formulation of our tax strategy and assistance in minimizing custom, duty and import taxes.

Consultation.  Consultation services were rendered as requested for items and activities relating to options and acquisition activities the Company was contemplating.
 
Board of Directors Pre-Approval Policies and Procedures.  All audit, audit-related, tax, and any other services performed for us by our independent registered public accounting firm are subject to pre-approval by the Audit Committee of our Board of Directors and were pre-approved by the Audit Committee prior to such services being rendered. Our Audit Committee determined that the services provided by, and fees paid to, EKS&H were compatible with maintaining the independent registered public accounting firm’s independence.
 
Shareholder ratification of the selection of EKS&H as our independent registered public accounting firm is not required by our Bylaws or otherwise. However, the Audit Committee intends to submit the selection of EKS&H to our shareholders for ratification at our upcoming annual meeting of shareholders as a matter of good corporate governance. If our shareholders fail to ratify the selection, the Audit Committee will reconsider whether or not to retain that firm. Even if the selection is ratified, the Audit Committee in its discretion may direct the appointment of a different independent registered public accounting firm at any time if the Audit Committee determines that such a change would be in the best interests of CryptoSign and our shareholders.
 



Part IV

 
Exhibit No.
Description and method of filing
   
3.1
Certificate of Incorporation of BayHill Capital Corporation, dated April 24, 2008 (incorporated by reference to Exhibit 99.5 to Form 8-K filed on April 30, 2008).
   
3.2
Certificate of Amendment of Certificate of Incorporation Registrant, filed on March 19, 2012. (incorporated by reference to Exhibit 3.3 to Form 8-K filed on April 5, 2012).
   
3.3
 
Bylaws of BayHill Capital Corporation, as adopted on May 12, 2008 (incorporated by reference to Exhibit 3.1 to Form 10-KSB filed on May 14, 2008)
PREVIOUSLY FILED EXHIBITS 10.1 THRU 10.55 ARE EXCLUDED HERE AS NO LONGER MATERIAL OR RELEVANT.  SUCH EXHIBITS REMAIN ON FILE AND ARE AVAILABLE FROM THE COMPANY.
   
10.56
Subscription Agreement dated August 20, 2014 by and between the Company and World Wide Investment Fund, Ltd. (Filed as Exhibit 10.56 to the Company’s Annual Report on Form 10-K filed on October 20, 2015.
   
10.57
 
Subscription Agreement dated October 2, 2014 by and between the Company and World Wide Investment Fund, Ltd. (Filed as Exhibit 10.1 to the Company’s Form 8-K filed with the Securities and Exchange Commission on October 8, 2014 and incorporated herein by reference)
   
10.58
Subscription Agreement dated October 2, 2014 by and between the Company and Stratega ApS. (Filed as Exhibit 10.2 to the Company’s Form 8-K filed with the Securities and Exchange Commission on October 8, 2014 and incorporated herein by reference)
   
10.59
Subscription Agreement dated October 2, 2014 by and between the Company and Brian Mertz. (Filed as Exhibit 10.3 to the Company’s Form 8-K filed with the Securities and Exchange Commission on October 8, 2014 and incorporated herein by reference)
   
10.60
Subscription Agreement dated February 23, 2015 by and between the Company and certain purchasers. (File as Exhibit 10.1 to the Company’s Form 8-K filed with the Securities and Exchange Commission on February 23, 2015 and incorporated herein by reference)
   
10.61
Subscription Agreement Dated Jun 30, 2015 by and between the Company and certain purchasers.
   
14.1
Code of Business Conduct and Ethics, adopted May 12, 2008 (filed as Exhibit 14.1 to Company’s Annual Report on Form 10-K filed with the Securities and Exchange Commission for the year ended June 30, 2008, filed September 12 and incorporated by reference).
   
31.1
Certification of Principal Executive Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a))
   
31.2
Certification of Principal Financial Officer of Registrant pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 (Rule 13a-14(a) or Rule 15d-14(a))
   
32.1
Certification of Principal Executive Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
32.2
Certification of Principal Financial Officer pursuant to 18 U.S.C. 1350 as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
   
99.1
Press Release dated September 1, 2015 (Filed as Exhibit 99.1 to the Company’s form 8-K filed with the Securities and Exchange Commission on September 1, 2015 and incorporated herein by reference)
   



 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
   
Date:    September 30, 2015
CryptoSign Inc., a Delaware corporation
 
/S/   Robert K. Bench
 
Robert K. Bench, President, Chief Financial Officer
 
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the date indicated.
 
 
Date:
September 30, 2015
/S/ Brian Mertz
   
Brian Mertz
Chief Executive officer and Director
     
Date:
September 30, 2015
/S/ Soren Jonassen
   
Soren Jonassen, Director
     
Date:
September 30, 2015
/S/ Ole Sigetty
   
Ole Sigetty, Director


TABLE OF CONTENTS

  Page
   
Report of Independent Registered Public Accounting Firm
F-2
   
Consolidated Financial Statements:
 
   
Consolidated Balance Sheets as of June 30, 2015 and 2014
F-3
   
Consolidated Statements of Operations for the Years Ended
 
June 30, 2015 and 2014
F-4
   
Consolidated Statements of Stockholders’ Deficit for the
 
Years Ended June 30, 2015 and 2014
F-5
   
Consolidated Statements of Cash Flows for the Years Ended
 
June 30, 2015 and 2014
F-6
   
Notes to Consolidated Financial Statements
F-7

 
F-1
The accompanying notes are an integral part of these consolidated financial statements.



REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM



To the Board of Directors and Stockholders
CryptoSign Inc.
Orem, Utah


We have audited the accompanying consolidated balance sheets of CryptoSign Inc. and Subsidiary (the “Company”) as of June 30, 2015 and 2014, and the related consolidated statements of operations, changes in stockholders' equity, and cash flows for the year ended June 30, 2015 and 2014. These consolidated financial statements are the responsibility of the Company's management.  Our responsibility is to express an opinion on these consolidated financial statements based on our audits.

We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. The Company is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion.  An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of CryptoSign Inc. and Subsidiary as of June 30, 2015 and 2014, and the results of their operations and their cash flows for the year ended June 30, 2015 and 2014, in conformity with accounting principles generally accepted in the United States of America.

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As discussed in Note 2 to the consolidated financial statements, the Company has experienced circumstances that raise substantial doubt about its ability to continue as a going concern. Management’s plans regarding those matters also are described in Note 2. The consolidated financial statements do not include any adjustments that might result from the outcome of this uncertainty.



/s/ EKS&H LLLP

September 30, 2015
Denver, Colorado
 
 
F-2
The accompanying notes are an integral part of these consolidated financial statements.



CRYPTOSIGN INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

   
June 30, 2015
   
June 30, 2014
 
ASSETS
           
Current Assets
           
Cash
  $ 2,306     $ 3,628  
Prepaid expenses
    10,500       -  
Subscriptions receivable
    393,750       -  
Notes receivable
    -       128,657  
Total current assets
    406,556       132,285  
                 
                 
Total Assets
  $ 406,556     $ 132,285  
                 
LIABILITIES AND STOCKHOLDERS' DEFICIT
         
Current Liabilities
               
Accounts payable
  $ 31,672     $ 8,503  
Accounts payable, related parties
    11,901       -  
Accrued liabilities
    6,652       206,207  
Notes payable, related parties
    65,000       115,787  
Total current liabilities
    115,225       330,497  
                 
Total Liabilities
  $ 115,225     $ 330,497  
                 
Commitments and Contengiencies
               
STOCKHOLDERS'  EQUTY (DEFICIT)
               
Preferred stock, $.0001 par value, 400,000 shares authorized; no shares
 
issued and outstanding
    -       -  
Common stock $.0001 par value, 100,000,000 shares authorized;
 
3,847, 236 shares issued and outstanding at June 30, 2015 and
 
1,088,667 shares issued and outstanding at June 30, 2014
    385       109  
Additional paid-in capital
    6,889,818       5,577,675  
Accumulated deficit
    (6,598,872 )     (5,775,996 )
Total stockholders' equity (deficit)
    291,331       (198,212 )
                 
Total Liabilities and Stockholders' Deficit
  $ 406,556     $ 132,285  
 
 
F-3
The accompanying notes are an integral part of these consolidated financial statements.




CRYPTOSIGN INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF OPERATIONS
 
             
   
For the Years Ended June 30,
 
   
2015
   
2014
 
Operating Expenses:
           
Selling, general and administrative
  $ (804,488 )   $ (2,658,712 )
Total Operating Expenses
    (804,488 )     (2,658,712 )
                 
Loss from Operations
    (804,488 )     (2,658,712 )
                 
Other Income and Expense:
               
Interest income
    2,931       21,196  
Interest expense
    (21,319 )     (104,825 )
        Total Other Income and Expense
    (18,388 )     (83,629 )
                 
Loss from continuing operations
    (822,876 )     (2,742,341 )
Loss from discontinued operations
    -       (756,270 )
Net Loss
  $ (822,876 )   $ (3,498,611 )
                 
Basic and diluted loss per common share
 
From continuing operations
  $ (0.28 )   $ (4.56 )
From discontinued operations
    -       (1.27 )
Total
  $ (0.28 )   $ (5.83 )
                 
Basic and diluted weighted average number of common shares outstanding
    2,942,468       601,160  
 

F-4
The accompanying notes are an integral part of these consolidated financial statements.



CRYPTOSIGN INC. AND SUBSIDIARIES
 
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT
 
                                           
                           
Additional
             
   
Preferred Stock
   
Common Stock
   
Paid-in
   
Accumulated
       
   
Shares
   
Amount
   
Shares
   
Amount
   
Capital
   
Deficit
   
Total
 
Balance at June 30, 2013
    -     $ -       623,529     $ 62     $ 2,036,130     $ (2,277,385 )   $ (241,193 )
                                                         
Issuance of stock for cash
    -       -       33,333       3       24,997       -       25,000  
Issuance of stock for settlement of liabilities
    -       -       273,205       27       838,808       -       838,835  
Issuance of stock related to sale of ASHG
    -       -       158,500       16       665,684       -       665,700  
Share-based compensation from issuance of options
                                                 
    and stock
    -       -       -       -       1,638,666       -       1,638,666  
Stock expense for settlement in stock in excess of
                                                 
   liability
    -       -       -       -       373,391       -       373,391  
Net loss
    -       -       -       -       -       (3,498,611 )     (3,498,611 )
                                                         
Balance at June 30, 2014
    -       -       1,088,568       109       5,577,675       (5,775,996 )     (198,212 )
                                                         
Issuance of stock for cash
    -       -       2,337,000       234       486,766       -       487,000  
Issuance of stock for subscriptions receivable
    -       -       175,000       18       393,733       -       393,750  
Issuance of stock for payment of expenses
    -       -       46,667       5       81,663       -       81,667  
Issuance of stock for Compensation
    -       -       200,001       20       349,982       -       350,002  
Net loss
    -       -       -       -       -       (822,876 )     (822,876 )
                                                         
Balance at June 30, 2015
    -     $ -       3,847,236     $ 385     $ 6,889,818     $ (6,598,872 )   $ 291,331  
 

F-5
The accompanying notes are an integral part of these consolidated financial statements.



CRYPTOSIGN INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
             
   
For the Years Ended June 30,
 
   
2015
   
2014
 
Cash Flows From Operating Activities
           
Net loss
  $ (822,876 )   $ (3,498,611 )
Adjustments to reconcile net loss to net cash used in operating activities:
 
Share-based compensation
    350,002       1,638,666  
Stock issued for expenses
    81,667       -  
Stock expense for settlement in stock in excess of liability
    -       373,391  
Accretion of debt discount
    -       44,424  
Depreciation
    -       3,648  
Bad debt expense-notes receivable
    -       50,833  
Impairment of land under capital lease
    -       257,414  
Changes in operating assets and liabilities:
         
Prepaid expenses
    (10,500 )     -  
Accounts payable
    23,169       432,390  
Accounts payable, related parties
    11,901       (54,031 )
Accrued liabilities
    (199,555 )     562,430  
        Net Cash Used in Operating Activities
    (566,192 )     (189,446 )
                 
Cash Flows From Investing Activities
               
Principal payments on notes receivable
    128,657       98,804  
       Net Cash Provided by Investing Activities
    128,657       98,804  
                 
Cash Flows From Financing Activities
               
  Proceeds from issuance of common stock for cash
    487,000       125,000  
  Principal payments on unsecured notes payable, related parties
    (115,787 )     (17,500 )
  Proceeds from issuance of unsecured notes payable, related parties
    65,000       -  
  Principal payments on secured convertible notes payable, related parties
    -       (18,000 )
       Net Cash Provided by Financing Activities
    436,213       89,500  
                 
Net Decrease in Cash
    (1,322 )     (1,142 )
Cash at Beginning of Period
    3,628       4,770  
Cash at End of Period
  $ 2,306     $ 3,628  
                 
Supplemental Disclosures of Cash Flow Information:
 
Noncash Investing and Financing activities:
         
  Conversion of accounts payable and accrued liabilities to notes payable
  $ -     $ 476,926  
Shares issued to pay principal and accrued interest of secured
 
convertible notes payable
    -       58,800  
Shares issued to sale Agricon SH Ghana
    -       665,700  
Shares issued for settlement of liabilities
    -       838,835  
Shares issued for subscriptions receivable
    393,750       -  
                 
Cash paid for interest
  $ 13,319     $ 9,544  
 

F-6
The accompanying notes are an integral part of these consolidated financial statements.


CRYPTOSIGN INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

NOTE 1 — THE COMPANY AND BASIS OF PRESENTATION

Principles of ConsolidationThe accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America and include operations and balances of CryptoSign Inc. (formerly StrategaBiz Inc., Agricon Global Corporation, and BayHill Capital Corporation) and its wholly-owned subsidiaries Canola Properties Ghana Limited, (“CPGL”), and Agricon SH Ghana Limited (“ASHG”), both Ghanaian limited liability companies collectively “CryptoSign” or the “Company.”  CPGL and ASHG were incorporated under the laws of Ghana on July 5, 2011 and November 7, 2012, respectively.  Intercompany balances and transactions have been eliminated in consolidation. In December 2013, CPGL discontinued its agricultural activities and transferred its remaining assets to ASHG. On June 20, 2014, ASHG was sold.  The operations of CPGL and ASHG are included in the consolidated statements of operations up to the date of discontinued activities and sale, respectively, and are classified as discontinued operations.

Nature of Operations — All of the Company’s business for the year ended June 30, 2014 was conducted through its two wholly-owned subsidiaries CPGL and ASHG.  The Company’s business activities prior to June 20, 2014 were organizing the Company, locating appropriate land that might be leased or purchased for cultivating and harvesting agricultural products.  The Company discontinued all business activities on June 20, 2014 and has been since that time a “shell corporation” under SEC regulations.
 
Change in Corporate Name and Equity Structure — Effective December 15, 2015, the Company filed an Amended and Restated Certificate of Incorporation (“Restated Certificate”) with the Delaware Secretary of State whereby the Company (a) changed its name to StrategaBiz, Inc. and (b) effected a reverse stock split to reduce the number of shares of outstanding common stock at a rate of 1 share for every 30 shares of common stock then outstanding (“Reverse Split”).  The approval of the Restated Certificate to change the Company's name was approved by written consent of holders of a majority of the Company’s common stock.  Each stockholder owning fewer than 30 shares of common stock immediately before the effective time of the Reverse Stock Split received from the Company $0.10 in cash, without interest, for each of such shares of common stock; and (b) each stockholder owning of record 30 or more shares of common stock immediately before the effective time of the Reverse Split held, after the Reverse Split, the number of shares of common stock equal to 1/30th of the number held prior to the Reverse Split.  On November 25, 2014 the Company filed with the Securities and Exchange Commission, and the Company’s stockholders were furnished with a Definitive Information Statement filed on Schedule 14(c) to advise the stockholders of the corporate actions.  The Company’s common stock began trading on January 15, 2015 on a post-split basis under the symbol “SGBZ.”  All share and per-share amounts included in these consolidated financial statements have been restated to reflect the 1 for 30 reverse stock split.

Effective June 18, 2015, the Company changed its name to CryptoSign, Inc. by filing a Certificate of Amendment to the Amended and Restated Certificate of Incorporation with the Delaware Secretary of State.  In connection with the name change, the Company changed its trading symbol to “CPSN.”  The name and symbol change were done in anticipation of a merger with an operating company in the crypto currency industry.
 
 

 
Changes in Management and Directors — On October 22, 2014, the Company filed an Information Statement pursuant to Section 14(f) of the Securities Exchange Act of 1934 and Rule 14f-1 thereunder, with a proposed change in the majority of the board of directors and an addition to management. The proposed change included the resignation of Rene Mikkelsen, Alan Kronborg, Robert Bench, and Peter Opata as directors, the appointment of Brian Mertz and Ole Sigetty as directors and the appointment of Brian Mertz as Chief Executive Officer. These changes became effective on November 5, 2014.

NOTE 2 – GOING CONCERN

The accompanying consolidated financial statements have been prepared with the recognition that the Company is a shell corporation and that there is considerable doubt about whether the Company can continue as a going concern.  As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $822,876 for the year ended June 30, 2015 and has an accumulated deficit of $6,598,872at June 30, 2015.  The Company also used cash in operating activities of $566,192 during the year ended June 30, 2015.  At June 30, 2015, the Company had working capital of $291,331.  These factors raise substantial doubt about the Company’s ability to continue as a going concern.

In order for us to continue as a going concern, we will need to obtain additional debt or equity financing. We are regularly and continually seeking additional funding from investors and from time to time we are in various stages of negotiations.  Nonetheless, to date we have not accomplished a financing of the size needed to put the Company on a stable operating basis. There can be no assurance that we will be able to secure additional debt or equity financing, that we will be able to attain positive cash flow operations, or that, if we are successful in any of those actions, those actions will produce adequate cash flow to enable us to meet our future obligations. All of our existing financing arrangements are short-term. If we are unable to obtain additional debt or equity financing, we may be required to cease operations.

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ from those estimates.  The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure on contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.  Significant estimates include estimated future value of leased properties, realizability of notes receivable, and realizability of deferred tax assets. Actual results could differ from those estimates.

Business Condition – The Company discontinued all business activities on June 20, 2014 and as of June 30, 2015 was a “shell corporation” under SEC regulations. The Company has begun to look for operating companies or other business opportunities to acquire.  The ability of the Company to continue as a going concern is dependent on the success of that plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern (see Note 2—Going Concern).
 
 

 
Cash–The balance in cash consists of cash reserves held in checking accounts.

Notes Receivable – The Company had one note receivable, which arose from the sale of Commission River, a prior subsidiary. The note was paid during the year ended June 30, 2015. See further discussion and disclosure in Note 4.

Subscriptions Receivable – The Company recognizes subscriptions receivable as an asset when the cash is received subsequent to the balance sheet date but prior to the filing of the financial statements.  See further discussion and disclosure in Note 11.

Income Taxes – The Company accounts for income taxes pursuant to Accounting Standards Codification (ASC) 740, Income Taxes, which requires the use of the asset and liability method of accounting for deferred income taxes.  We recognize deferred tax liabilities and assets based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years.

All allowances against deferred income tax assets are recorded in whole or in part, when it is more likely than not those deferred income tax assets will not be realized.  Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

A valuation allowance is required to the extent it is more-likely-than-not that a deferred tax asset will not be realized. ASC 740 also requires reporting of taxes based on tax positions that meet a more-likely-than-not standard and are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. ASC 740 also provides guidance on the presentation of tax matters and the recognition of potential IRS interest and penalties. The Company classifies penalty and interest expense related to income tax liabilities as an income tax expense. The Company did not recognize interest or penalties in the consolidated statements of operations for the years ended June 30, 2015 and 2014 and no accrued interest or penalties are included in the consolidated balance sheets as of June 30, 2015 and 2014. See further discussion and disclosures in Note 10.

Basic and Diluted Loss Per Share – Basic loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period giving no effect to potentially dilutive issuable common shares.  As of June 30, 2015 the Company had no options or potentially issuable shares outstanding.

Share-Based Compensation – The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a lattice model that values the options based on probability weighted projections of the various potential outcomes. The intrinsic value, stock performance, stock volatility, vesting or exercise factors, and forfeiture variables, are all considerations under this model.  If stock grants are related to a future performance condition, the Company recognizes compensation expense when the performance condition, leading to the issuance, becomes probable of occurring.
 
 

 
Recently Enacted Accounting Standards – In June 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-10, Development Stage Entities and Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Consolidation (“ASU 2014-10”), which removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. generally accepted accounting principles.  In addition, the amendments eliminated the requirements for development stage entities to: (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage.  The amendments also clarify that the guidance for risks and uncertainties is applicable to entities that have not yet commenced planned principal operations.

The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements pertaining to development stage entities are to be applied retrospectively.  The amendments related to the disclosure of risks and uncertainties are to be applied prospectively.  ASU 2014-10 is effective for the Company for annual reporting periods beginning July 1, 2015, and for the interim periods therein, with early application of each of the amendments permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued.  As a result, management adopted ASU 2014-10 as of June 30, 2014, and the effects of the adoption are reflected in the accompanying financial statements and related notes.  As described above, the adoption of ASU 2014-10 eliminated certain disclosures of information formerly required of development stage entities, including inception-to-date information in the accompanying statements of operations, cash flows, and stockholders’ deficit.  The adoption of ASU 2014-10 also combined the amounts of deficit accumulated during the development stage and prior to the development stage into one amount for accumulated deficit in stockholders’ deficit.  The elimination of these disclosure requirements had no other effect on the amounts reported for total assets, liabilities, stockholders’ deficit, net loss, or loss per common share.

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.  To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation.  ASU 2014-09 will be effective for the Company retrospectively beginning July 1, 2017, with early adoption not permitted.  Management is currently evaluating the impact of the pending adoption of ASU 2014-09 on the Company’s financial statements.




NOTE 4 – NOTES RECEIVABLE

On August 31, 2010, the Company sold its wholly-owned subsidiary, Commission River Corporation. As part of the payment for the sale, the Company was issued a secured negotiable promissory note receivable, in the amount of $490,000, with varying interest rates beginning at 6% and required monthly payments of $10,000 until its maturity on September 12, 2014. The note was secured by all of the assets of Commission River Corporation. On September 12, 2014, Commission River Corporation paid all of the remaining principal balance and accrued interest.

NOTE 5 – SECURED AND UNSECURED NOTES PAYABLE TO RELATED PARTIES

The Company previously issued unsecured notes to affiliates (officers and directors) for accrued salaries and fees and accrued interest. On June 20, 2014, the Company completed a series of settlements whereby the majority of notes were converted to the Company’s common stock.  At June 30, 2014, there were three secured notes payable and one unsecured note payable, with annual interest rates of 15% and maturity dates of September 30, 2014, to present and past affiliates of the Company which related to legal fees, director fees, and unpaid salaries.  The notes were all paid during the year ended June 30, 2015. On May 30, 2015, an officer advanced $65,000 to the Company for which an unsecured note payable was issued with an annual interest rate of 18% and maturity date of December 31, 2015. The note and all accrued interest was paid in July 2015. The notes are classified as current liabilities and consist of the following:
 
   
June 30,
   
June 30,
 
Note Holder
 
2015
   
2014
 
Brian Mertz
  $ 65,000     $ -  
ClearWater Law and Governace Group, LLC
    -       32,001 *
James U Jensen
    -       25,954 *
Robert K Bench
    -       29,546 *
Robyn Farnsworth
    -       28,286  
Total
  $ 65,000     $ 115,787  
                 
*Secured with all Company assets
               

 
 
NOTE 6 – SETTLEMENT OF LIABILITIES

On June 20, 2014, the Company issued 267,108 shares of common stock in settlement of various liabilities owed to present and past affiliates of the Company as follows:
 
Nature and Amount of Liability
                                     
   
Accounts
   
Accrued
   
Accrued
   
Notes
   
Total
   
Number
 
Name
 
Payable
   
Interest
   
Liabilities
   
Payable
   
liabilities
   
of shares
 
Stephen Abu
  $ 116,609     $ -     $ -     $ -     $ 116,609       116,667  
Robert Bench
    -       6,450       -       190,455       196,905       46,574  
Alan Kronborg
    -       -       60,000       60,000       120,000       30,038  
Clearwater Law Group
    -       2,795       -       48,001       50,796       12,731  
Robyn Farnsworth
    -       2,613       -       42,430       45,043       11,289  
Rene Mikkelsen
    -       1,353       3,500       36,462       41,315       10,355  
James Jensen
    -       2,272       4,500       33,305       40,077       10,049  
Soren Jonassen
    -       1,109       3,500       30,754       35,363       8,863  
Peter Moller
    20,000       -       -       -       20,000       6,667  
Lars Nielsen
    -       3,323       -       75,780       79,103       5,274  
Peter Opata
    -       120       3,500       8,000       11,620       2,912  
John Thomas
    -       2,715       -       6,000       8,715       2,184  
John Knab
    -       2,489       -       5,500       7,989       2,002  
Andrew Goodman
    6,500       -       -       -       6,500       1,504  
Totals
  $ 143,109     $ 25,239     $ 75,000     $ 536,687     $ 780,035       267,109  
                                                 

In addition to the settlement of the above liabilities all option holders cancelled all granted and outstanding options effective June 20, 2014.  The shares of common stock were valued at $4.20 per share on June 20, 2014.  The Company recognized additional share-based compensation of $400,249 on the 26,858 shares issued and $373,391 in stock expense for settlement of these liabilities for the fair value of the stock issued stock in excess of the fair value of the liabilities given up.  The Company also recognized additional paid in capital of $58,431 for the fair value of the liabilities that were in excess of the fair value of the common stock issued.

NOTE 7 – DISCONTINUED OPERATIONS

In December 2013, all operations in CPGL were transferred to ASHG and all operations in CPGL ceased.

On June 20, 2014, the Company sold ASHG to Ghana Journeys Limited (“Ghana Journeys”), a company owned by Stephen Abu, a former affiliate of the Company.  The fair value of ASHG on the date of sale was $665,700.  Ghana Journeys did not pay anything for ASHG other than assuming the remaining liabilities including the capital lease obligation.  In addition, the Company issued 158,500 shares of the Company’s common stock to Ghana Journeys valued at $4.20 per share or $665,700.  The Company recognized a loss on sale of ASHG of $86,822, which has been included in the discontinued operations on the statement of operations.

Since the Company no longer operates in Ghana after the sale of ASHG on June 20, 2014 and CPGL in the prior year, the operations of both subsidiaries have been classified as discontinued operations for both years presented.   The loss from discontinued operations for the year ended June 30, 2015 and 2014 was $0 and $756,270, respectively as set forth below:



 
   
For the Years Ended June 30,
 
   
2015
   
2014
 
Professional services
  $ -     $ 24,001  
Interest expense
    -       165,501  
Rent expense
    -       4,200  
Lease acquisition expenses
    -       105,750  
Depreciation
    -       3,648  
Salaries
    -       104,700  
Travel
    -       3,950  
Impairment expenses
    -       256,398  
Other expenses
    -       1,300  
Loss on sale
    -       86,822  
Loss from discontinued operations
  $ -     $ 756,270  
                 

NOTE 8 – STOCKHOLDERS’ EQUITY

The Company's capitalization is 100,000,000 common shares authorized, with a par value of $0.0001 per share. At June 30, 2015, the Company had 3,847,236 common shares outstanding.
Preferred shares of 400,000 with a par value of $0.0001 have been authorized and no shares are issued or outstanding at June 30, 2015.

In May 2014, the Company issued 33,333 shares of common stock for $25,000 of cash.

In June, 2014, the Company issued 267,108 shares of common stock for settlement of liabilities of $780,035 (Note 6).  The Company also issued 158,500 shares of the Company’s common stock to Ghana Journeys valued at $4.20 per share or $665,700 in conjunction with the sale of ASHG (Note 7).

In August 2014 the company issued 314,252 shares of common stock for $50,000 of cash.

In October 2014 the company issued 1,885,714 shares of common stock for $300,000 of cash.

Effective December 15, 2014, the company, effected a 30 for 1 reverse stock split of its authorized and outstanding common stock by filing an Amended and Restated Certificate of Incorporation with the Delaware Secretary of State.  As a result, the previously issued and outstanding number of shares of common stock at that time decreased from 98,660,002 shares of common stock to 3,288,280.  Stockholders holding less than 30 shares of common stock prior to the reverse stock split will receive cash rather than fractional shares.   There was no change in the number of authorized shares nor was there a change in the par value.

In December 2014 the company issued 46,667 shares of common stock for the purchase of website domain names for a purchase price of $81,667 which reflects the market price ($1.75 per share) of the Company’s stock at the time the shares were issued.
 
 

 
In December 2014 the company issued 200,001 of common stock for payment of $150,001 of compensation to three of its directors (Note 9).

In February and March of 2015 the company issued 137,000 shares of common stock for $137,000 of cash.

On June 30, 2015 the company issued 175,000 shares of common stock for subscription agreements in the amount of $393,750 that was paid in cash in July 2015.

NOTE 9 – SHARE BASED COMPENSATION

As part of the “Settlement of Liabilities” as discussed in Note 6, all outstanding options were cancelled as of June 20, 2014.  As of June 30, 2015 and 2014, there were no options granted or outstanding.

On November 5, 2014 the board of directors approved a one-time payment of $50,000 to Messrs. Soren Jonassen and Ole Sigetty, the Company’s outside board members and to Mr. Brian Mertz, the Company’s Chief Executive Officer for their services through the end of the Company’s fiscal year 2015. These amounts were paid by the issuance of 66,667 restricted shares of the Company’s common stock on December 27, 2014, which were priced by the directors at $0.75 per share, which they deemed the appropriate market value at the time of issuance.  The shares granted were not subject to vesting; the Company expensed the $350,002 as compensation expense during the year ended June 30, 2015, which reflected the market price ($1.75 per share) of the Company’s stock at the time of issuance.

NOTE 10 – INCOME TAXES

Operating losses for the years ended June 30, 2015 and 2014 were $822,876 and $2,829,163 relating to domestic operations and $0 and $669,448 relating to foreign operations, respectively.

We had $6,467,305 and $7,240,785 of net operating loss carry forwards as of June 30, 2015 and June 30, 2014, respectively, which are comprised of $2,540,382 and $1,945,797 of U.S. federal and $3,926,923 and $3,425,640 state net operating losses, respectively, which expire in varying amounts beginning 2032, if unused. The Company also has net operating losses related to its Ghana operations of $0 and $1,869,348 as of June 30, 2015 and 2014, which begin to expire in 2018; however, there is a tax holiday for our agriculture operations in Ghana and therefore there is no future tax benefit for the losses.  The Company ceased operations in Ghana so this portion of the net operating losses will expire unused and was reduced to zero as of June 30, 2015.

A change in our ownership of more than 50% occurred during the year ended June 30 2015. The annual utilization of the net operating carry forwards is subject to certain limitations under Section 382 of the Internal Revenue Code of 1986, as amended, and other limitations under state tax laws.  As a result, the provisions of Section 382 caused net operating losses $0 U.S. federal and $1,274,626 state to become permanently restricted.



 
The temporary differences and carry forwards which give rise to the deferred income tax assets are as follows:
 
   
For the Years Ended June 30,
 
   
2015
   
2014
 
Accrued compensation
  $ 22,380     $ 43,189  
Debt discount & benefical conversion feature
    -       (4,075 )
Other
    -       6,516  
Net operating loss carry forwards
    993,318       774,617  
Valuation allowance
    (1,015,698 )     (820,247 )
Net long-term deferred tax asset
  $ -     $ -  
 
A reconciliation of income taxes at the federal statutory rate to actual income tax expense is as follows:
 
   
For the Years Ended June 30,
 
   
2015
   
2014
 
Income tax benefit at the statutory rate
  $ (191,029 )   $ (1,189,528 )
State income taxes, net of federal benefit
    (18,641 )     (93,462 )
Foreign rate differential
    -       227,613  
Change in valuation allowance
    195,451       381,991  
Change in net operating loss carry forwards
    12,489       (2,057 )
Cancelation of stock options
    -       643,059  
Loss on sale of subsidiary
    -       32,384  
Other
    1,730       -  
Income tax expense (benefit)
  $ -     $ -  

NOTE 11 – Subsequent Events

On June 30, 2015, the Company received subscriptions for the purchase of 175,000 shares of its common stock totaling $393,750. The Company received cash for the full subscriptions in July 2015.
 

 
F-15

 

EX-10.61 2 ex1061.htm EXHIBIT 10.61 ex1061.htm
Exhibit 10.61


COMMON STOCK SUBSCRIPTION AGREEMENT
 
by and among
 
STRATEGABIZ, INC.
 
and
 
THE PURCHASERS NAMED ON SCHEDULE 1 HERETO
 
June __, 2015
 
 


 
NOTHING IN THIS DOCUMENT CONSTITUTES AN OFFER OF SECURITIES FOR SALE IN THE UNITED STATES OR ANY OTHER JURISDICTION WHERE IT IS UNLAWFUL TO DO SO. THE SECURITIES DESCRIBED IN THE ATTACHED DOCUMENT HAVE NOT BEEN, AND WILL NOT BE REGISTERED UNDER THE U.S. SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OF THE U.S. OR OTHER JURISDICTION AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO, OR FOR THE ACCOUNT OR BENEFIT OF, U.S. PERSONS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT (“REGULATION S”), EXCEPT PURSUANT TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND ANY APPLICABLE STATE OR LOCAL SECURITIES LAWS.
 

 
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COMMON STOCK SUBSCRIPTION AGREEMENT
 
This COMMON STOCK SUBSCRIPTION AGREEMENT, dated as of June ___, 2015 (this “Agreement”), is by and among STRATEGABIZ, INC., a Delaware corporation (the “Company”), and the undersigned purchase or purchaser’s listed on one or more signature pages attached hereto (each a “Purchaser” and collectively, the “Purchasers”).
 
WHEREAS, the Company desires to issue and sell to the Purchasers, and each Purchaser desires to purchase from the Company, certain shares of the Company’s common stock, par value $0.0001 per share (the “Common Shares”) in accordance with the provisions of this Agreement.
 
NOW THEREFORE, in consideration of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Company and each of the Purchasers, severally and not jointly, hereby agree as follows:
 
ARTICLE I
 
DEFINITIONS
 
Section 1.1 Definitions. As used in this Agreement, and unless the context requires a different meaning, the following terms have the meanings indicated:
 
Affiliate” means, with respect to any Person, any other Person that directly or indirectly through one or more intermediaries controls, is controlled by or is under common control with, the Person in question. As used herein, the term “control” means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.
 
Agreement” has the meaning set forth in the introductory paragraph.
 
 “Closing” has the meaning specified in Section 2.2.
 
Closing Date” has the meaning specified in Section 2.2.
 
Commission” means the United States Securities and Exchange Commission.
 
Common Stock” has the meaning specified in Section 3.2.
 
Company” has the meaning set forth in the introductory paragraph.

Company Financial Statements” has the meaning specified in Section 3.9.
 
 “Common Share Price” means $2.25.
 
Common Shares” has the meaning specified in the recitals.
 
Company SEC Documents” has the meaning specified in Section 3.8.
 
 “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder.
 
GAAP” has the meaning specified in Section 3.9.

 
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Governmental Authority” means, with respect to a particular Person, any country, state, county, city and political subdivision in which such Person or such Person’s Property is located or that exercises valid jurisdiction over any such Person or such Person’s Property, and any court, agency, department, commission, board, bureau or instrumentality of any of them and any monetary authority that exercises valid jurisdiction over any such Person or such Person’s Property. Unless otherwise specified, all references to Governmental Authority herein with respect to the Company mean a Governmental Authority having jurisdiction over the Company, its Subsidiaries or any of their respective Properties.
 
Indemnified Party” has the meaning specified in Section 6.3.
 
Indemnifying Party” has the meaning specified in Section 6.3.
 
Law” means any federal, state, local or foreign order, writ, injunction, judgment, settlement, award, decree, statute, law, rule or regulation.
 
Lien” means any interest in Property securing an obligation owed to, or a claim by, a Person other than the owner of the Property, whether such interest is based on the common law, statute or contract, and whether such obligation or claim is fixed or contingent, and including the lien or security interest arising from a mortgage, encumbrance, pledge, security agreement, conditional sale or trust receipt or a lease, consignment or bailment for security purposes. For the purpose of this Agreement, a Person shall be deemed to be the owner of any Property that it has acquired or holds subject to a conditional sale agreement, or leases under a financing lease or other arrangement pursuant to which title to the Property has been retained by or vested in some other Person in a transaction intended to create a financing.
 
 “Material Adverse Effect” means a material adverse effect on the management, condition (financial or otherwise), results of operations, business or properties of the Company and its Subsidiaries, taken as a whole; providedhowever, that a Material Adverse Effect shall not include any material and adverse effect on the foregoing to the extent such material and adverse effect results from, arises out of, or relates to (x) a general deterioration in the economy or changes in the general state of the industries in which the Company operates, except to the extent that the Company, taken as a whole, is adversely affected in a disproportionate manner as compared to other industry participants, (y) the outbreak or escalation of hostilities involving the United States, the declaration by the United States of a national emergency or war or the occurrence of any other calamity or crisis, including acts of terrorism, or (z) any change in accounting requirements or principles imposed upon the Company and its Subsidiaries or their respective businesses or any change in any applicable Law, or the interpretation thereof.
 
 “Operative Documents” means, collectively, this Agreement and any amendments, supplements, continuations or modifications thereto.
 
Person” means an individual or a corporation, limited liability company, partnership, joint venture, trust, unincorporated organization, association, government agency or political subdivision thereof or other form of entity.
 
Preferred Stock” has the meaning specified in Section 3.2.
 
Property” means any interest in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.
 
Purchase Price” is USD $2.25 per share.
 
Purchased Shares” means, with respect to a particular Purchaser, the number of Common Shares set forth on the Purchaser’s signature page.

 
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Purchaser” and “Purchasers” have the meanings set forth in the introductory paragraph.
 
Purchaser Related Parties” has the meaning specified in Section 6.1.
 
 “Representatives” of any Person means the Affiliates, officers, directors, managers, employees, agents, counsel, accountants, investment bankers, investment advisers and other representatives of such Person.
 
Securities Act” means the Securities Act of 1933, as amended from time to time, and the rules and regulations of the Commission promulgated thereunder.
 
Short Sales” means, without limitation, all “short sales” as defined in Rule 200 promulgated under Regulation SHO under the Exchange Act, whether or not against the box, and forward sale contracts, options, puts, calls, short sales, “put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act) and similar arrangements, and sales and other transactions through non-U.S. broker dealers or foreign regulated brokers.
 
Subsidiary” has the meaning set forth in Rule 405 of the rules and regulations promulgated under the Securities Act.
 
U.S. Persons” as defined Rule 902(k)(1), which are (1) any natural person resident in the United States; (2) any partnership or corporation organized or incorporated under the laws of the United States; (3) any estate of which any executor or administer is a U.S. person; (4) any trust or which any trustee is a U.S. person; (5) any agency or branch of a U.S. person located outside the United States; (6) any  non-discretionary or similar account (other than an estate or trust) held by a dealer or other fiduciary for the benefit or account of a U.S. person; (7) a discretionary or similar account (other than an estate or trust) held by a dealer or other fiduciary organized, incorporated or, if an individual, resident in the United States; and (8) an partnership or corporation if (a) organized or incorporated under the laws of any foreign jurisdiction, and (b) formed by a U.S. person principally for the purpose of investing in securities not registered under the Securities Act, unless it is organized or incorporated and owned by accredited investors under Rule 501(a) of the Securities Act who are not natural persons, estates or trusts.
 
ARTICLE II
 
AGREEMENT TO SELL AND PURCHASE
 
Section 2.1 Sale and Purchase. Subject to the terms and conditions hereof, the Company hereby agrees to issue and sell to each Purchaser and each Purchaser hereby agrees, severally and not jointly, to purchase from the Company, its respective Purchased Shares, and each Purchaser agrees, severally and not jointly, to pay the Company the Common Share Price for each Purchased Share.
 
Section 2.2 Closing. Pursuant to the terms of this Agreement, the consummation of the purchase and sale of the Purchased Shares hereunder (the “Closing”) shall take place at such time and place as the Company and Purchasers determine (the date of such closing, the “Closing Date”). The parties agree that the Closing may occur via delivery of facsimiles, electronic copies or photocopies of the Operative Documents and the closing deliverables contemplated hereby and thereby. Unless otherwise provided herein, all proceedings to be taken and all documents to be executed and delivered by all parties at the Closing will be deemed to have been taken and executed simultaneously, and no proceedings will be deemed to have been taken nor documents executed or delivered until all have been taken.
 
Section 2.3 Each Purchaser’s Conditions. The obligation of each Purchaser to consummate the purchase of its Purchased Shares shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions (any or all of which may be waived by a particular Purchaser on behalf of itself in writing with respect to its Purchased Shares, in whole or in part, to the extent permitted by applicable Law):

 
4

 


(a) the Company shall have performed and complied with the covenants and agreements contained in this Agreement that are required to be performed and complied with by the Company on or prior to the Closing Date;
 
(b) all representations and warranties of the Company shall be true and correct in all material respects when made and as of the Closing Date, in each case as though made at and as of the Closing Date (except that representations and warranties made as of a specific date shall be required to be true and correct as of such date only);
 
(c) the OTC Markets shall have authorized, upon official notice of issuance, the listing of the Purchased Shares;
 
(d) the Company shall have delivered, or caused to be delivered, to such Purchaser at the Closing, the Company’s closing deliveries described in Section 2.5.
 
Section 2.4 Company’s Conditions. The obligation of the Company to consummate the issuance and sale of the Purchased Shares to each Purchaser shall be subject to the satisfaction on or prior to the Closing Date of each of the following conditions with respect to such Purchaser (any or all of which may be waived by the Company in writing, in whole or in part, to the extent permitted by applicable Law):
 
(a) the representations and warranties of such Purchaser contained in this Agreement that are qualified by materiality shall be true and correct when made and as of the Closing Date and all other representations and warranties of such Purchaser shall be true and correct in all material respects as of the Closing Date (except that representations of such Purchaser made as of a specific date shall be required to be true and correct as of such date only);
 
(b) such Purchaser shall have performed and complied with the covenants and agreements contained in this Agreement that are required to be performed and complied with by that Purchaser on or prior to the Closing Date; and
 
(c) such Purchaser shall have delivered, or caused to be delivered, to the Company at the Closing such Purchaser’s closing deliveries described in Section 2.6,
 
Section 2.5 Deliveries by the Company. Upon the terms and subject to the conditions of this Agreement, at the Closing, the Company will deliver (or cause to be delivered) the following:
 
(a) evidence of issuance of a certificate evidencing the Purchased, bearing the legend or restrictive notation set forth in Section 4.10, free and clear of any Liens, other than transfer restrictions under applicable federal and state securities laws; and
 
(b) a copy of the risk factors attached hereto as Exhibit A.
 
Section 2.6 Purchaser Deliveries. Upon the terms and subject to the conditions of this Agreement, each Purchaser is delivering (or causing to be delivered) the following:
 
(a) the Purchase Price payable by such Purchaser by wire transfer of immediately available funds;

Section 2.7 Independent Nature of Purchasers’ Obligations and Rights. The obligations of each Purchaser under any Operative Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Operative Document. Nothing contained herein or in any other Operative Document, and no action taken by any Purchaser pursuant thereto, shall be deemed to constitute the Purchasers as a partnership, an association, a joint venture or any other kind of group or entity, or create a presumption that the Purchasers are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Operative Documents. Each Purchaser shall be entitled to independently protect and enforce its rights, including without limitation, the rights arising out of this Agreement or out of the other Operative Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose. The failure or waiver of performance by any Purchaser does not excuse performance by any other Purchaser.

 
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ARTICLE III
 
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
 
The Company represents and warrants to each Purchaser as follows:
 
Section 3.1 Existence. The Company has been duly incorporated and is existing and in good standing under the laws of the State of Delaware, with corporate power and authority to own its properties and conduct the businesses in which it is currently engaged and the Company is duly qualified to do business as a foreign corporation in good standing in all other jurisdictions in which its ownership or lease of property or the conduct of its business requires such qualification, except where the failure to be duly qualified or in good standing would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
 
Section 3.2 Capitalization. The authorized capital stock of the Company consists of 100,000,000 shares of common stock, par value $0.0001 per share (“Common Stock”) and four hundred thousand (400,000) shares of preferred stock (“Preferred Stock”), having a par value of $0.0001. As of the close of business on June 15, 2015, there were (i) 3,672,236 shares of Common Stock outstanding and (ii) no shares of Preferred Stock outstanding.
 
Section 3.3 Subsidiaries. The Company has no Subsidiaries.
.
Section 3.4 No Conflict. The execution, delivery and performance of this Agreement and the issuance and sale of the Purchased Shares will not result in a breach or violation of any of the terms and provisions of, or constitute, or with the giving of notice or lapse of time, would constitute, a default under, or result in the imposition of any lien, charge or encumbrance upon any property or assets of the Company pursuant to, (i) its certificate of formation, limited liability company agreement, limited partnership agreement, charter, or by-laws or similar organizational documents of the Company, (ii) any statute, rule, regulation or order of any governmental agency or body or any court, domestic or foreign, having jurisdiction over the Company or any of its properties, or (iii) any agreement or instrument to which the Company is a party or by which the Company or any of its Subsidiaries is bound or to which any of the properties of the Company or any of its Subsidiaries is subject, except in the case of clauses (ii) and (iii) as would not reasonably be expected to have a Material Adverse Effect.
 
Section 3.5 Authority.
 
(a) Each of the Operative Documents has been or will be validly executed and delivered by the Company and, assuming due authorization, execution and delivery by each Purchaser or its Affiliate, as applicable (if either such Purchaser or its Affiliate is a party thereto), constitutes, or will constitute, the legal, valid and binding obligations of the Company enforceable in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’ rights and by general principles of equity.
 
(b) The Purchased Shares have been duly authorized and, when the Purchased Shares have been delivered and paid for in accordance with this Agreement on the Closing Date, such Purchased Shares will be validly issued, fully paid and nonassessable; the stockholders of the Company have no preemptive rights with respect to the Purchased Shares; and none of the outstanding shares of capital stock of the Company have been issued in violation of any preemptive or similar rights of any security holder. Except as described or disclosed in the Company SEC Documents there are no outstanding (A) securities or obligations of the Company
 convertible into or exchangeable for any capital stock of the Company, (B) warrants, rights or options to subscribe for or purchase from the Company any such capital stock or any such convertible or exchangeable securities or obligations or (C) obligations of the Company to issue or sell any shares of capital stock, any such convertible or exchangeable securities or obligations or any such warrants, rights or options.

 
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Section 3.6 Approvals. No consent, approval, authorization, or order of, or filing or registration with, any person (including any governmental agency or body or any court) is required to be obtained or made by the Company for the consummation of the transactions contemplated by this Agreement, except (i) such as have been obtained, (ii) where the failure of the Company to obtain or make any such consent, approval, authorization, order, filing or registration would not reasonably be expected to have a Material Adverse Effect, or (iii) such as have been made or as may be required under state or foreign securities laws.
 
Section 3.7 Compliance with Laws. Neither the Company nor any of its Subsidiaries is in violation of any Law applicable to the Company or its Subsidiaries, except as would not, individually or in the aggregate, have a Material Adverse Effect. The Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not, individually or in the aggregate, have a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit, except where such potential revocation or modification would not, individually or in the aggregate, have a Material Adverse Effect.
 
Section 3.8 Periodic Reports. All forms, registration statements, reports, schedules and statements required to be filed by the Company under the Exchange Act or the Securities Act (all such documents, including the exhibits thereto, prior to the date hereof, collectively the “Company SEC Documents”) have been filed with the Commission on a timely basis. The Company SEC Documents, including, without limitation, any audited or unaudited financial statements and any notes thereto or schedules included therein (the “Company Financial Statements”), at the time filed (or in the case of registration statements, solely on the dates of effectiveness) (except to the extent corrected by a subsequent Company SEC Document) (a) did not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, (b) complied as to form in all material respects with the applicable requirements of the Exchange Act and the Securities Act, as the case may be, (c) complied as to form in all material respects with applicable accounting requirements and with the published rules and regulations of the Commission with respect thereto, (d) with respect to the Company Financial Statements, were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in the case of unaudited statements, as permitted by Form 10-Q of the Commission), and (e) with respect to the Company Financial Statements, fairly present (subject in the case of unaudited statements to normal and recurring audit adjustments) in all material respects the consolidated financial position of the Company and its consolidated subsidiaries as of the dates thereof and the consolidated results of its operations and cash flows for the periods then ended. The Company’s auditor is an independent registered public accounting firm with respect to the Company and has not resigned or been dismissed as independent registered public accountants of the Company as a result of or in connection with any disagreement with the Company on any matter of accounting principles or practices, financial statement disclosure or auditing scope or procedures.
 
Section 3.9 Certain Fees. No fees or commissions are or will be payable by the Company to brokers, finders, or investment bankers with respect to the sale of any of the Purchased Shares or the consummation of the transaction contemplated by this Agreement. The Company agrees that it will indemnify and hold harmless the Purchaser from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by the Company in connection with the sale of the Purchased Shares or the consummation of the transactions contemplated by this Agreement.
 
Section 3.10 No Side Agreements. There are no agreements by, among or between the Company or any of its Affiliates, on the one hand, and any Purchaser or any of their Affiliates, on the other hand, with respect to the transactions contemplated hereby other than the Operative Documents nor promises or inducements for future transactions between or among any of such parties.
 
Section 3.11 No General Solicitation; No Advertising. The Company has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(a)(2) of the Securities Act

 
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Section 3.12 No Registration Required. Assuming the accuracy of the representations and warranties of each Purchaser contained in Article IV, the issuance and sale of the Purchased Shares pursuant to this Agreement is exempt from registration requirements of the Securities Act, and neither the Company nor, to the knowledge of the Company, any authorized Representative acting on its behalf has taken or will take any action hereafter that would cause the loss of such exemption.
 
Section 3.13 No Integration. Neither the Company nor any of its Affiliates have, directly or indirectly through any agent, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any “security” (as defined in the Securities Act of 1933, as amended) that is or will be integrated with the sale of the Purchased Shares in a manner that would require registration under the Securities Act.
 
ARTICLE IV
 
REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS
 
Each Purchaser, severally and not jointly, hereby represents and warrants to the Company that:
 
Section 4.1 Existence. Such Purchaser is duly organized and validly existing and in good standing under the Laws of its jurisdiction of organization, with all requisite power and authority to own, lease, use and operate its Properties and to conduct its business as currently conducted.
 
Section 4.2 Authorization, Enforceability. Such Purchaser has all necessary corporate, limited liability company or partnership power and authority to execute, deliver and perform its obligations under this Agreement and to consummate the transactions contemplated thereby, and the execution, delivery and performance by such Purchaser of this Agreement has been duly authorized by all necessary action on the part of such Purchaser; and this Agreement constitute the legal, valid and binding obligations of such Purchaser, enforceable in accordance with their terms, except as such enforceability may be limited by bankruptcy, insolvency, fraudulent transfer and similar laws affecting creditors’ rights generally or by general principles of equity, including principles of commercial reasonableness, fair dealing and good faith.
 
Section 4.3 No Breach. The execution, delivery and performance of this Agreement by such Purchaser and the consummation by such Purchaser of the transactions contemplated hereby and thereby will not (a) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any material agreement to which such Purchaser is a party or by which such Purchaser is bound or to which any of the property or assets of such Purchaser is subject, (b) conflict with or result in any violation of the provisions of the organizational documents of such Purchaser, or (c) violate any statute, order, rule or regulation of any court or governmental agency or body having jurisdiction over such Purchaser or the property or assets of such Purchaser, except in the cases of clauses (a) and (c), for such conflicts, breaches, violations or defaults as would not prevent the consummation of the transactions contemplated by this Agreement.
 
Section 4.4 Certain Fees. No fees or commissions are or will be payable by such Purchaser to brokers, finders, or investment bankers with respect to the purchase of any of the Purchased Shares or the consummation of the transaction contemplated by this Agreement. Such Purchaser agrees that it will indemnify and hold harmless the Company from and against any and all claims, demands, or liabilities for broker’s, finder’s, placement, or other similar fees or commissions incurred by such Purchaser in connection with the purchase of the Purchased Shares or the consummation of the transactions contemplated by this Agreement.
 
Section 4.5 No Side Agreements. There are no other agreements by, among or between such Purchaser and any of its Affiliates, on the one hand, and the Company or any of its Affiliates, on the other hand, with respect to the transactions contemplated hereby other than the Operative Documents nor promises or inducements for future transactions between or among any of such parties.

 
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Section 4.6 Investment. The Purchased Shares are being acquired for such Purchaser’s own account, the account of its Affiliates, or the accounts of clients for whom such Purchaser exercises discretionary investment authority, not as a nominee or agent, and with no present intention of distributing the Purchased Shares or any part thereof, and such Purchaser has no present intention of selling or granting any participation in or otherwise distributing the same in any transaction in violation of the securities laws of the United States or any state or country, without prejudice, however, to such Purchaser’s right at all times to sell or otherwise dispose of all or any part of the Purchased Shares under a registration statement under the Securities Act and applicable state securities laws or under an exemption from such registration available thereunder (including, without limitation, if available, Rule 144 promulgated thereunder).  If such Purchaser should in the future decide to dispose of any of the Purchased Shares, the Purchaser understands and agrees (a) that it may do so only in compliance with the Securities Act and applicable state securities law, as then in effect, including a sale contemplated by any registration statement pursuant to which such securities are being offered, or pursuant to an exemption from the Securities Act, and (b) that stop-transfer instructions to that effect will be in effect with respect to such securities.
 
Section 4.7  Nature of Purchaser.
 
(a)   Purchaser is not a U.S. Person and is and is not acquiring the Shares for the account or benefit of any U.S. person or is a U.S. person who purchased the Shares in a transaction that did not require registration under the Securities Act.  No “directed selling efforts” (as such term is defined under Rule 903 to Regulation S of the Securities Act) to the Purchase has been made within the United States.
 
(b)       Such Purchaser or its Representatives have been furnished with materials relating to the business, finances and operations of the Company and relating to the offer and sale of the Purchased Shares that have been requested by such Purchaser. Such Purchaser or its Representatives has been afforded the opportunity to ask questions of the Company or its Representatives. Neither such inquiries nor any other due diligence investigations conducted at any time by such Purchaser or its Representatives shall modify, amend or affect such Purchaser’s right (i) to rely on the Company’s representations and warranties contained in Article III above or (ii) to indemnification or any other remedy based on, or with respect to the accuracy or inaccuracy of, or compliance with, the representations, warranties, covenants and agreements in this Agreement. Such Purchaser understands and acknowledges that its purchase of the Purchased Shares involves a high degree of risk and uncertainty. Such Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its investment in the Purchased Shares.
 
Section 4.8 Restricted Securities. Such Purchaser understands that the Purchased Shares are characterized as “restricted securities” under the federal securities Laws inasmuch as they are being acquired from the Company in a transaction not involving a public offering and that under such Laws and applicable regulations such securities may be resold without registration under the Securities Act only in certain limited circumstances. In this connection, such Purchaser represents that it is knowledgeable with respect to Rule 144 of the Commission promulgated under the Securities Act.  The Shares have not been registered under the Securities Act or the securities laws of any state of the United States and are subject to certain restrictions on transfer. The sale of the Purchased Shares are offered only to non-U.S. persons (within the meaning of Regulation S under the Securities Act) outside the United States under Regulation S under the Securities Act. We have not authorized its use for any other purpose. Such Purchaser understands that hedging transactions involving the purchased Shares may not be conducted unless in compliance with the Securities Act. In addition,  the offer or sale of the Shares, if made prior to the expiration of the six month distribution compliance period, may not be made to a U.S. person or for the account or benefit of a U.S. person (other than a distributor); and  the offer or sale, if made prior to the expiration of the six-month distribution compliance period, is made pursuant to the following conditions: (a) the purchaser certifies that it is not a U.S. person and is not acquiring the securities for the account or benefit of any U.S. person or is a U.S. person who purchased securities in a transaction that did not require registration under the Securities Act; and (b)the  purchaser agrees to resell such securities only in accordance with the provisions of Regulation S, pursuant to registration under the Securities Act, or pursuant to an available exemption from registration; and agrees not to engage in hedging transactions with regard to such securities unless in compliance with the Securities Act
 

 
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Section 4.9 Reliance Upon such Purchaser’s Representations and Warranties. Such Purchaser understands and acknowledges that the Purchased Shares are being offered and sold in reliance on a transactional exemption from the registration requirements of federal and state securities laws, and that the Company is relying in part upon the truth and accuracy of the representations, warranties, agreements, acknowledgments and understandings of such Purchaser set forth in this Agreement in (i) concluding that the issuance and sale of the Purchased Shares is a “private offering” and, as such, is exempt from the registration requirements of the Securities Act, and (ii) determining the applicability of such exemptions and the suitability of such Purchaser to purchase the Purchased Shares.
 
Section 4.10 Legend; Restrictive Notation. Purchases of the Shares made in reliance upon Regulation S, will, until the expiration of a six month “distribution compliance period” within the meaning of Rule 903 of Regulation S with respect to the Shares.  Purchaser understands that the certificates evidencing the Purchased Shares will bear the following legend or restrictive notation:
 
THIS SECURITY WILL BE OFFERED ONLY OUTSIDE OF THE UNITED STATES TO NON-U.S. PERSONS, PURSUANT TO THE PROVISIONS OF REGULATION S OF THE U.S. SECURITIES ACT OF 1933, AS AMENDED. THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED (“SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION, AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO OR FOR THE ACCOUNT OR BENEFIT OF U.S. PERSONS EXCEPT AS SET FORTH IN THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF, THE HOLDER (1) REPRESENTS THAT IT IS NOT A U.S. PERSON, IS NOT ACQUIRING THIS SECURITY FOR THE ACCOUNT OR BENEFIT OF A U.S. PERSON AND IS ACQUIRING THIS SECURITY IN AN OFFSHORE TRANSACTION, (2) BY ITS ACCEPTANCE HEREOF, AGREES TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY ONLY (A) TO THE ISSUER OR ANY AFFILIATE THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”), TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES IN COMPLIANCE WITH RULE 903 OR 904 UNDER REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT, SUBJECT TO THE RECEIPT BY THE ISSUER OF AN OPINION OF COUNSEL THAT SUCH SALE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT, IN EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION, (3) AGREES THAT IT WILL DELIVER TO EACH PERSON TO WHOM THIS SECURITY IS TRANSFERRED A NOTICE SUBSTANTIALLY TO THE EFFECT OF THIS RESTRICTIVE LEGEND. THIS LEGEND WILL BE REMOVED AFTER SIX CONSECUTIVE MONTHS BEGINNING ON THE DAY ON WHICH THE SECURITIES ARE OFFERED TO PERSONS OTHER THAN DISTRIBUTORS (AS DEFINED IN REGULATION S UNDER THE SECURITIES ACT) AS USED HEREIN, THE TERMS “OFFSHORE TRANSACTION”, “UNITED STATES” AND “U.S. PERSON” HAVE THE MEANINGS GIVEN TO THEM BY REGULATION S UNDER THE SECURITIES ACT”.
 
Section 4.11 Ownership of Securities. Such Purchaser and its Affiliates do not, as of the date hereof, own five percent or more of the Company’s issued and outstanding capital stock.
 
Section 4.12 Company Information. Such Purchaser acknowledges and agrees that the Company has provided or made available to such Purchaser (through EDGAR at www.sec.gov , the Company’s website or otherwise) all Company SEC Documents, as well as all press releases issued by the Company through the date of this Agreement that are included in a filing by the Company on Form 8-K or clearly posted on the Company’s website.

 
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ARTICLE V
 
COVENANTS
 
Section 5.1 Taking of Necessary Action. Each of the parties hereto shall use its commercially reasonable efforts promptly to take or cause to be taken all action and promptly to do or cause to be done all things necessary, proper or advisable under applicable Law and regulations to consummate and make effective the transactions between the Company and the Purchasers contemplated by this Agreement related specifically to the acquisition of the Purchased Shares. Without limiting the foregoing, each of the Company and each Purchaser shall use its commercially reasonable efforts to make all filings and obtain all consents of Governmental Authorities that may be necessary or, in the reasonable opinion of the other parties, as the case may be, advisable for the consummation of the transactions contemplated by the Operative Documents. Each Purchaser agrees that its trading activities, if any, with respect to Company’s securities will be in compliance with all applicable state and federal securities laws, rules and regulations. The Company shall promptly and accurately respond, and shall use its commercially reasonable efforts to cause its transfer agent to respond, to reasonable requests for information (which is otherwise not publicly available) made by a Purchaser or its auditors relating to the actual holdings of such Purchaser or its accounts; provided that, the Company shall not be obligated to provide any such information that could reasonably result in a violation of applicable law or conflict with the Company’s insider trading policy or a confidentiality obligation of the Company.
 
Section 5.2 Non-Public Information. On or before 9:30 a.m., Utah local time, on the Business Day immediately following the date hereof, the Company shall issue a press release (the “Press Release”) announcing the entry into this Agreement and describing the terms of the transactions contemplated by the Operative Documents and any other material, nonpublic information that the Company may have provided any Purchaser at any time prior to the issuance of the Press Release. On or before the fourth Business Day following the date hereof, the Company shall file a Current Report on Form 8-K with the Commission describing the terms of the transactions contemplated by the Operative Documents, and including as an exhibit to such Current Report on Form 8-K the Operative Documents, in the form required by the Exchange Act.
 
ARTICLE VI
 
INDEMNIFICATION
 
Section 6.1 Indemnification by the Company. The Company agrees to indemnify each Purchaser and its Representatives (collectively, “Purchaser Related Parties”) from costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or inquiries), demands, and causes of action, and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of the Company contained herein, provided that such claim for indemnification relating to a breach of the representations or warranties is made prior to the expiration of such representations or warranties to the extent applicable; and provided further, that no Purchaser Related Party shall be entitled to recover special, consequential or punitive damages under this Section 6.1.

 
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Section 6.2 Indemnification by Purchasers. Each Purchaser agrees, severally and not jointly, to indemnify the Company and its respective Representatives (collectively, “Company Related Parties”) from, and hold each of them harmless against, any and all actions, suits, proceedings (including any investigations, litigation or inquiries), demands, and causes of action, and, in connection therewith, and promptly upon demand, pay or reimburse each of them for all costs, losses, liabilities, damages, or expenses of any kind or nature whatsoever, including, without limitation, the reasonable fees and disbursements of counsel and all other reasonable expenses incurred in connection with investigating, defending or preparing to defend any such matter that may be incurred by them or asserted against or involve any of them as a result of, arising out of, or in any way related to the breach of any of the representations, warranties or covenants of such Purchaser contained herein, provided that such claim for indemnification relating to a breach of the representations and warranties is made prior to the expiration of such representations and warranties; and provided further, that no Company Related Party shall be entitled to recover special, consequential or punitive damages.
 
Section 6.3 Indemnification Procedure. Promptly after any Company Related Party or Purchaser Related Party (hereinafter, the “Indemnified Party”) has received notice of any indemnifiable claim hereunder, or the commencement of any action, suit or proceeding by a third person, which the Indemnified Party believes in good faith is an indemnifiable claim under this Agreement, the Indemnified Party shall give the indemnitor hereunder (the “Indemnifying Party”) written notice of such claim or the commencement of such action, suit or proceeding, but failure to so notify the Indemnifying Party will not relieve the Indemnifying Party from any liability it may have to such Indemnified Party hereunder except to the extent that the Indemnifying Party is materially prejudiced by such failure. Such notice shall state the nature and the basis of such claim to the extent then known. The Indemnifying Party shall have the right to defend and settle, at its own expense and by its own counsel who shall be reasonably acceptable to the Indemnified Party, any such matter as long as the Indemnifying Party pursues the same diligently and in good faith. If the Indemnifying Party undertakes to defend or settle, it shall promptly notify the Indemnified Party of its intention to do so, and the Indemnified Party shall cooperate with the Indemnifying Party and its counsel in all commercially reasonable respects in the defense thereof and the settlement thereof. Such cooperation shall include, but shall not be limited to, furnishing the Indemnifying Party with any books, records and other information reasonably requested by the Indemnifying Party and in the Indemnified Party’s possession or control. Such cooperation of the Indemnified Party shall be at the cost of the Indemnifying Party. After the Indemnifying Party has notified the Indemnified Party of its intention to undertake to defend or settle any such asserted liability, and for so long as the Indemnifying Party diligently pursues such defense, the Indemnifying Party shall not be liable for any additional legal expenses incurred by the Indemnified Party in connection with any defense or settlement of such asserted liability; provided, however, that the Indemnified Party shall be entitled (i) at its expense, to participate in the defense of such asserted liability and the negotiations of the settlement thereof and (ii) if (A) the Indemnifying Party has failed to assume the defense or employ counsel reasonably acceptable to the Indemnified Party or (B) if the defendants in any such action include both the Indemnified Party and the Indemnifying Party and counsel to the Indemnified Party shall have concluded that there may be reasonable defenses available to the Indemnified Party that are different from or in addition to those available to the Indemnifying Party or if the interests of the Indemnified Party reasonably may be deemed to conflict with the interests of the Indemnifying Party, then the Indemnified Party shall have the right to select a separate counsel and to assume such legal defense and otherwise to participate in the defense of such action, with the expenses and fees of such separate counsel and other expenses related to such participation to be reimbursed by the Indemnifying Party as incurred. Notwithstanding any other provision of this Agreement, the Indemnifying Party shall not settle any indemnified claim without the consent of the Indemnified Party, unless the settlement thereof imposes no liability or obligation on, and includes a complete release from liability of, and does not include any admission of wrongdoing or malfeasance by, the Indemnified Party. The remedies provided for in this Section 6 are cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise.

 
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ARTICLE VII
 
MISCELLANEOUS
 
Section 7.1 Interpretation and Survival of Provisions. Article, Section, Schedule, and Exhibit references are to this Agreement, unless otherwise specified. All references to instruments, documents, contracts, and agreements are references to such instruments, documents, contracts, and agreements as the same may be amended, supplemented, and otherwise modified from time to time, unless otherwise specified. The word “including” shall mean “including but not limited to.” Whenever any party has an obligation under the Operative Documents, the expense of complying with that obligation shall be an expense of such party unless otherwise specified. Whenever any determination, consent, or approval is to be made or given by any Purchaser, such action shall be in such Purchaser’s sole discretion unless otherwise specified in this Agreement. If any provision in the Operative Documents is held to be illegal, invalid, not binding, or unenforceable, such provision shall be fully severable and the Operative Documents shall be construed and enforced as if such illegal, invalid, not binding, or unenforceable provision had never comprised a part of the Operative Documents, and the remaining provisions shall remain in full force and effect. The Operative Documents have been reviewed and negotiated by sophisticated parties with access to legal counsel and shall not be construed against the drafter.
 
Section 7.2 Survival of Provisions. The representations, warranties, covenants and agreements contained in this Agreement shall survive the Closing for a period of twelve (12) months following the Closing Date regardless of any investigation made by or on behalf of the Company or any Purchaser. All indemnification obligations of the Company and the Purchasers pursuant to this Agreement and the provisions of Article VI shall remain operative and in full force and effect unless such obligations are expressly terminated in a writing by the parties, regardless of any purported general termination of this Agreement.
 
Section 7.3 No Waiver; Modifications in Writing.
 
(a) Delay. No failure or delay on the part of any party in exercising any right, power, or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power, or remedy preclude any other or further exercise thereof or the exercise of any other right, power, or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to a party at law or in equity or otherwise.
 
(b) Amendments and Waivers. Except as otherwise provided herein, no amendment, waiver, consent, modification, or termination of any provision of this Agreement or any other Operative Document shall be effective unless signed by each of the parties hereto or thereto affected by such amendment, waiver, consent, modification, or termination. Any amendment, supplement or modification of or to any provision of this Agreement or any other Operative Document, any waiver of any provision of this Agreement or any other Operative Document, and any consent to any departure by the Company from the terms of any provision of this Agreement or any other Operative Document shall be effective only in the specific instance and for the specific purpose for which made or given. Except where notice is specifically required by this Agreement, no notice to or demand on the Company in any case shall entitle the Company to any other or further notice or demand in similar or other circumstances.
 
Section 7.4 Binding Effect; Assignment.
 
(a) Binding Effect. This Agreement shall be binding upon the Company, the Purchasers, and their respective successors and permitted assigns. Except as expressly provided in this Agreement, this Agreement shall not be construed so as to confer any right or benefit upon any Person other than the parties to this Agreement and their respective successors and permitted assigns.
 
(b) Assignment of Rights. All or any portion of the rights and obligations of any Purchaser under this Agreement may be transferred by such Purchaser to any Affiliate of such Purchaser without the consent of the

 
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Company by delivery of an agreement to be bound to the terms of this Agreement and a revised signature page. No portion of the rights and obligations of any Purchaser under this Agreement may be transferred by such Purchaser to a non-Affiliate without the written consent of the Company (which consent shall not be unreasonably withheld by the Company).
 
Section 7.5 Confidentiality. Notwithstanding anything herein to the contrary, to the extent that any Purchaser has executed or is otherwise bound by a confidentiality agreement in favor of the Company, such Purchaser shall continue to be bound by such confidentiality agreement.
 
Section 7.6 Communications. All notices and demands provided for hereunder shall be in writing and shall be given by registered or certified mail, return receipt requested, telecopy, air courier guaranteeing overnight delivery or personal delivery to the following addresses:
 
(a) If to any Purchaser:
 
To the respective address listed on the applicable signature page
 
(b) If to StrategaBiz, Inc.:

626 East 1820 North
Orem, Utah 84097
Attention: Bob Bench
 
with a copy to:

Carman Lehnhof Israelsen, LLP
299 South Main Street, Suite 1300
Salt Lake City, Utah 84111
Attention: J. Martin Tate
Email: mtate@clilaw.com
 
or to such other address as the Company or such Purchaser may designate in writing. All notices and communications shall be deemed to have been duly given: at the time delivered by hand, if personally delivered; when notice is sent to the sender that the recipient has read the message, if sent by electronic mail; upon actual receipt if sent by certified mail, return receipt requested, or regular mail, if mailed; when receipt acknowledged, if sent via facsimile; and upon actual receipt when delivered to an air courier guaranteeing overnight delivery.
 
Section 7.7 Removal of Legend. In connection with a sale of the Purchased Shares by a Purchaser in reliance on Rule 144, the applicable Purchaser or its broker shall deliver to the transfer agent and the Company a broker representation letter providing to the transfer agent and the Company any information the Company deems necessary to determine that the sale of the Purchased Shares is made in compliance with Rule 144, including, as may be appropriate, a certification that the Purchaser is not an Affiliate of the Company and regarding the length of time the Purchased Shares have been held. Upon receipt of such representation letter, the Company shall promptly direct its transfer agent to remove the notation of a restrictive legend in such Purchaser’s certificates evidencing the Purchased Shares or the book-entry account maintained by the transfer agent, including the legend referred to in Section 4.11, and the Company shall bear all costs associated therewith. After a registration statement under the Securities Act permitting the public resale of the Purchased Shares has become effective or any Purchaser or its permitted assigns have held the Purchased Shares for one year, if the book-entry account of such Purchased Shares still bears the notation of the restrictive legend referred to in Section 4.11, the Company agrees, upon request of the Purchaser or permitted assignee, to take all steps necessary to promptly effect the removal of the legend described in Section 4.11 from the Purchased Shares, and the Company shall bear all costs associated therewith, regardless of whether the request is made in connection with a sale or otherwise, so long as such Purchaser or its permitted assigns provide to the Company any information the Company deems reasonably necessary to determine that the legend is no longer required under the Securities Act or applicable state laws, including (if there is no such registration statement) a certification that the holder is not an Affiliate of the Company (and a covenant to inform the

 
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Company if it should thereafter become an Affiliate and to consent to the notation of an appropriate restriction) and regarding the length of time the Purchased Shares have been held.
 
Section 7.8 Entire Agreement. This Agreement, the other Operative Documents and the other agreements and documents referred to herein are intended by the parties as a final expression of their agreement and intended to be a complete and exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein and therein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein or the other Operative Documents with respect to the rights granted by the Company or any of its Affiliates or any Purchaser or any of its Affiliates set forth herein or therein. This Agreement, the other Operative Documents and the other agreements and documents referred to herein or therein supersede all prior agreements and understandings between the parties with respect to such subject matter.
 
Section 7.9 Governing Law. This Agreement, and all claims or causes of action (whether in contract or tort) that may be based upon, arise out of or relate to this Agreement or the negotiation, execution or performance of this Agreement (including any claim or cause of action based upon, arising out of or related to any representation or warranty made in or in connection with this Agreement), will be construed in accordance with and governed by the laws of the State of Delaware without regard to principles of conflicts of laws. Any action against any party relating to the foregoing shall be brought in any federal or state court of competent jurisdiction located within the State of Delaware, and the parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of any federal or state court located within the State of Delaware over any such action. The parties hereby irrevocably waive, to the fullest extent permitted by applicable Law, any objection that they may now or hereafter have to the laying of venue of any such dispute brought in such court or any defense of inconvenient forum for the maintenance of such dispute. Each of the parties hereto agrees that a judgment in any such dispute may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law.
 
Section 7.10 Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which counterparts, when so executed and delivered, shall be deemed to be an original and all of which counterparts, taken together, shall constitute but one and the same Agreement.
 
Section 7.11 Termination
 
(a) Notwithstanding anything herein to the contrary, this Agreement shall automatically terminate at any time at or prior to the Closing if a statute, rule, order, decree or regulation shall have been enacted or promulgated, or if any action shall have been taken by any Governmental Authority of competent jurisdiction that permanently restrains, permanently precludes, permanently enjoins or otherwise permanently prohibits the consummation of the transactions contemplated by this Agreement or makes the transactions contemplated by this Agreement illegal.
 
(b) Notwithstanding anything herein to the contrary, this Agreement may be terminated at any time by any Purchaser (with respect to the obligations of such Purchaser) or the Company, upon written notice to the other party, if the Closing shall not have occurred on or before June 30, 2015 (the “Outside Date”); provided, however, that the right to terminate this Agreement under this Section 7.11(b) shall not be available to any party whose (i) breach of any provision of this Agreement, (ii) failure to comply with their obligations under this Agreement or (iii) actions not taken in good faith, shall have been the cause of, or shall have resulted in, the failure of the Closing to occur on or prior to the Outside Date or the failure of a condition in Section 2.3 or Section 2.4 to be satisfied at such time;
 
(c) In the event of the termination of this Agreement as provided in this Section 7.11, (1) this Agreement shall forthwith become null and void and (2) there shall be no liability on the part of any party hereto, except as set forth in Article VI of this Agreement and except with respect to the requirement to comply with any confidentiality agreement in favor of the Company; provided that nothing herein shall relieve any party from any liability or obligation with respect to any willful breach of this Agreement.

 
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Section 7.12 Recapitalization, Exchanges, Etc. Affecting the Common Stock. The provisions of this Agreement shall apply to the full extent set forth herein with respect to any and all equity interests of the Company or any successor or assign of the Company (whether by merger, consolidation, sale of assets or otherwise) which may be issued in respect of, in exchange for or in substitution of, the Common Stock, and shall be appropriately adjusted for combinations, recapitalizations and the like occurring after the date of this Agreement and prior to the Closing.
 
[Signature pages follow]
 

 
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IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first above written.
 
     
STRATEGABIZ, INC.
   
By:
   
Name:
 
Brian Palm Svaneeng Mertz
Title:
 
CEO

 
Signature Page to
Common Stock Subscription Agreement

 
 

 


IN WITNESS WHEREOF, the parties hereto execute this Agreement, effective as of the date first above written.

   
[Purchaser]
   
By:
 
Name:
Title:
 
Number of Purchased Shares [_______]
Aggregate Purchase Price USD [$ ]
E-mail Address:
Address: ____________________
___________________________
___________________________
                                                                                                                                       
 
 
Signature Page to
Common Stock Subscription Agreement[Missing Graphic Reference]

 
 

 


Schedule 1

Schedule of Purchasers


 
 

 

 
Exhibit A


The purchase of the Shares involves a high degree of risk including, but not necessarily limited to, the risks described below.  Before subscribing for the Shares, the Purchaser should consider carefully the following risk factors, as well as the other information contained in the Agreement.

No Assurance of Success

There is no assurance that the Company’s activities will be profitable or that it will be able to meet its obligations.  The Purchaser may lose all of its investment.

Past Performance Not a Predictor of Future Results

Past performance of the Company’s key personnel cannot be relied on to predict future success of the Company.  The Company’s future performance is dependent on future events and is subject to a variety of factors not within the control of the Company, including, local and economic circumstances, availability of capital, and varying market conditions, and is therefore inherently uncertain.

No Operating History of Revenue and Minimal Assets Results in No Assurance of Success Which May Result in the Failure of the Business.

The Company has had no operating history nor any revenues or earnings from operations. The Company has no significant assets or financial resources. The Company will, in all likelihood, sustain operating expenses without corresponding revenues, at least until the consummation of a business combination. This may result in the Company incurring a net operating loss which will increase continuously until the Company can consummate a business combination with a profitable business opportunity. This may lessen the possibility of finding a suitable acquisition or merger candidate as such loss would be inherited on their financial statements. There is no assurance that the Company can identify such a business opportunity and consummate such a business combination.

Speculative Nature of Company’s Proposed Operations Results in No Assurance of Success Which May Result in the Failure of the Business.

The success of the Company's proposed plan of operation will depend to a great extent on the operations, financial condition and management of the identified business opportunity. While our officers and directors intend to seek business combinations with entities having established operating histories, there can be no assurance that the Company will be successful in locating candidates meeting such criteria. In the event the Company completes a business combination, of which there can be no assurance, the success of the Company's operations may be dependent upon management of the successor firm or venture partner firm and numerous other factors beyond the Company's control.

Scarcity of and Competition for Business Opportunities and Combinations May Scarcity of and Competition for Business Opportunities and Combinations May Limit Possible Business Combinations Which May Result in the Failure of the Business.

The Company is and will continue to be an insignificant participant in the business of seeking mergers with, joint ventures with and acquisitions of small private entities. A large number of established and well-financed entities, including venture capital firms, are active in mergers and acquisitions of companies which may be desirable target candidates for the Company. Nearly all such entities have significantly greater financial resources, technical expertise and managerial capabilities than the Company and, consequently, the Company will be at a competitive disadvantage in identifying possible business opportunities and successfully completing a business combination. Moreover, the Company will also compete in seeking merger or acquisition candidates with numerous other small public companies.

 
 

 

 

Since There is No Agreement For Business Combination or Other Transaction and No Standards for Business Combination the Purchaser May Not Approve the Transaction Which May Result in the Failure of the Business.

The Company has no arrangement, agreement or understanding with respect to engaging in a merger with, joint venture with or acquisition of, an entity. There can be no assurance the Company will be successful in identifying and evaluating suitable business opportunities or in concluding a business combination. Our sole officer and director has not identified any particular industry or specific business within an industry for evaluations. The Company has been in the start-up stage since inception and has no operations to date. Other than issuing shares to its original shareholder, the Company never commenced any operational activities. There is no assurance the Company will be able to negotiate a business combination on terms favorable to the Company. The Company has not established a specific length of operating history or a specified level of earnings, assets, net worth or other criteria which it will require a target business opportunity to have achieved, and without which the Company would not consider a business combination in any form with such business opportunity. It is a requirement under Rule 419(e) of the Securities Act that the net assets or fair market value of any business to be acquired must represent at least 80% of the maximum offering proceeds. The acquisition may be consummated through the use of the offering proceeds, loans or equity.

The Company’s Reporting Requirements May Delay or Preclude Acquisition Which May Result in the Failure of the Business.

The Company will be required to provide certain information about significant acquisitions, including certified financial statements for the company acquired, covering one or two years, depending on the relative size of the acquisition. The time and additional costs that may be incurred by some target entities to prepare such statements may significantly delay or essentially preclude consummation of an otherwise desirable acquisition by the Company. Acquisition prospects that do not have or are unable to obtain the required audited statements may not be appropriate for acquisition so long as the reporting requirements of the 1934 Act are applicable.

The Company’s Lack of  Market Research or Marketing Organization May Limit Business Combinations Which May Result in the Failure of the Business.

The Company has neither conducted, nor have others made available to it, results of market research indicating that market demand exists for the transactions contemplated by the Company. Moreover, the Company does not have, and does not plan to establish, a marketing organization. Even in the event demand is identified for a merger or acquisition contemplated by the Company, there is no assurance the Company will be successful in completing any such business combination.

The Company’s Lack of Diversification May Limit Future Business Which May Result in the Failure of the Business.

The Company's proposed operations, even if successful, will in all likelihood result in the Company engaging in a business combination with only one business opportunity. Consequently, the Company's activities will be limited to those engaged in by the business opportunity which the Company merges with or acquires. The Company's inability to diversify its activities into a number of areas may subject the Company to economic fluctuations within a particular business or industry and therefore increase the risks associated with the Company's operations.

The Company May Fall Under Possible Investment Company Act Regulation Which May Increase Costs Which May Result in the Failure of the Business.

Although the Company will be subject to regulation under the Securities Exchange Act of 1933, our officers and directors believe the Company will not be subject to regulation under the Investment Company Act of 1940, insofar as the Company will not be engaged in the business of investing or trading in securities. In the event the Company engages in business combinations which result in the Company holding passive investment interests in a number of entities, the Company could be subject to regulation under the Investment Company Act of 1940. In such event, the Company would be required to register as an investment company and could be expected to incur significant registration and compliance costs. The Company has obtained no formal determination from the Securities and Exchange Commission as to the status of the Company under the Investment Company Act of 1940 and, consequently, any violation of such Act would subject the Company to material adverse consequences.

 
 

 

 

The Probable Change in Control And Management Upon a Business Combination May Result in Uncertain Management Future Which May Result in the Failure of the Business.

A business combination involving the issuance of the Company's common stock will, in all likelihood, result in shareholders of a private company obtaining a controlling interest in the Company. The resulting change in control of the Company could result in removal of the present officer and director of the Company and a corresponding reduction in or elimination of his participation in the future affairs of the Company.

The Reduction of Percentage Share Ownership Following a Business Combination May Result in Dilution.

The Company's primary plan of operation is based upon a business combination with a private concern which, in all likelihood, would result in the Company issuing securities to shareholders of such private company. The issuance of previously authorized and unissued common stock of the Company would result in reduction in percentage of shares owned by present and prospective shareholders of the Company and would most likely result in a change in control or management of the Company.

Dependence on Key personnel

The Company is dependent on the services of key personnel.  The loss of the services of these personnel could have an adverse affect on the future operations of the Company.

Qualified personnel

The Company’s ability to realize its objectives shall be dependent on its ability to attract and retain qualified personnel.  Competition for such personnel can be intense, and there can be no assurance that the Company’s results shall be able to attract and retain qualified personnel.

Protection of Intellectual Property

The Company’s success may be dependent in part on protecting its intellectual property, including trade secrets, confidential information and proprietary technology.  Legal protection of such intellectual property may be unavailable and to the extent available, may not adequately protect such intellectual property or may be unenforceable against alleged infringers.  Contractual provisions intended to protect such intellectual property may be breached.  Despite precautions, unauthorized third parties may be able to copy aspects of the Company’s intellectual property and competitors may be able to independently design around legal protections.

Risks related to Technology

The Company cannot guarantee the successful development and utilization intellectual property which is acquired, either through an acquisition or development.  In the event the Company is unable to successfully develop and utilize the technology related thereto, the value of the Purchaser’s investment may be adversely affected.

No Minimum Offering

There is no minimum aggregate principle amount of Shares that must be sold by the Company prior to the initial closing, and the Company expects to accept subscriptions for Shares as they are received.  As a result, there can be no assurance that the Company shall raise sufficient funds in the Offering to carry out its business plan as currently proposed, or that the net proceeds from subscriptions shall be in an amount sufficient to enable the Company to continue operations in any meaningful manner.

We arbitrarily determined the price of the common stock we are offering.
 
 

 
 

 


We determined the offering price of the Shares we are offering. The offering price does not bear any direct relationship to the value of our physical assets, the book value of our common stock, or any other generally accepted criteria of valuation. The price and other terms were based on a number of factors including, without limitation, estimates of our business potential and earnings prospects and the consideration of such potential earnings in relation to market valuations of comparable companies. The offering price is not an indication of the actual value of our common stock at the time of this offering.
 
Furthermore, if a market for our common stock develops, the price of our common stock following this offering may be highly volatile as the securities of emerging businesses often are. Additionally, in recent years, the stock market has experienced a high level of price and volume volatility and market prices for the securities of many companies, particularly of small and emerging growth companies, the common stock of which trade in the over-the-counter market, have experienced wide price fluctuations which have not necessarily been related to the operating performance of these companies.

Need for Additional Financing

There can be no assurances that the Company shall be able to obtain additional funding when needed, or that such funding, if available, shall be available on terms acceptable to the Company.  In the event the Company’s operations do not generate sufficient cash flow, or the Company cannot acquire additional funds if and when needed, the Company may be forced to curtail or cease its activities which likely would result in the loss to the Purchaser of all or a substantial portion of its investment.

Rule 144 Not Available

The Company is a “shell company” and as such, shareholders may not rely upon Rule 144 for the resale of the Company’s shares.  Unless the Company registers the Shares or one year passes after the Company provides the information required under Form 10 and is current in all of its regulatory filings, the Shares will remain restricted and a shareholder will not be able to sell the Shares.

There is Only a Limited Public Trading Market for the Shares.

Purchasers may not be able to resell their Shares in the near future or possibly ever, and thus could lose all or part of their investment. The shares are listed on the OTC Bulletin Board under the symbol SGBZ. Listing on the OTC Bulletin Board does not constitute any endorsement or approval of a listed company or its securities, and the OTC Bulletin Board does not review or monitor an issuer’s activities.   Our common stock is a “penny stock” (as defined in Exchange Act Rule 3a-51) which means that brokers can only buy or sell the common stock on an unsolicited basis. The penny stock rule and similar regulations will reduce the likelihood that a liquid trading market will arise for the common stock. The common stock may trade at less than the offering price. Because our stock is a “penny stock” a shareholder may find it more difficult to dispose of, or to obtain accurate quotations as to the price of, the Company’s common stock.

In the absence of a security being quoted on NASDAQ, or the Company having $2,000,000 in net tangible assets, trading in the Shares is covered by Rule 15c2-6 promulgated under the Securities Exchange Act of 1934 for non-NASDAQ and non-exchange listed securities.  Under such rule, broker/dealers who recommend such securities to persons other than established customers and accredited Purchasers (generally institutions with assets in excess of $5,000,000 or individuals with a net worth in excess of $1,000,000 or an annual income exceeding $200,000 or $300,000 jointly with their spouse) must make a special written suitability determination for the purchaser and receive the purchaser's written agreement to a transaction prior to sale.  Securities are also exempt from this rule if the market price is at least $5.00 per share, or for warrants, if the warrants have an exercise price of at least $5.00 per share.

The Securities Enforcement and Penny Stock Reform Act of 1990 requires additional disclosures related to the market for penny stocks and for trades in any stock defined as a penny stock.  The Commission's regulations under such Act define a penny stock to be any NASDAQ or non-NASDAQ equity security that has a market price or exercise price of less than $5.00 per share and allow for the enforcement against violators of the proposed rules.  In addition, unless exempt, the rules require the delivery, prior to any transaction involving a penny stock, of a disclosure schedule prepared by the Commission explaining important concepts involving the penny stock market, the nature of such market, terms used in such market, the broker/dealer's duties to the customer, a toll-free telephone number for inquiries about the broker/dealer's disciplinary history, and the customer's rights and remedies in case of fraud or abuse in the sale.  Disclosure also must be made about commissions payable to both the broker/dealer and the registered representative, current quotations for the securities, and if the broker/dealer is the sole market-maker, the broker/dealer must disclose this fact and its control over the market.  Finally, monthly statements must be sent disclosing recent price information for the penny stock held in the account and information on the limited market in penny stocks.
 
 
 
 

 

While many NASDAQ stocks are covered by the proposed definition of penny stock, transactions in NASDAQ stock are exempt from all but the sole market-maker provision for (i) issuers who have $2,000,000 in tangible assets ($5,000,000 if the issuer has not been in continuous operation for three years), (ii) transactions in which the customer is an institutional accredited Purchaser and (iii) transactions that are not recommended by the broker/dealer.  In addition, transactions in a NASDAQ security directly with the NASDAQ market-maker for such securities, are subject only to the sole market-maker disclosure, and the disclosure with regard to commissions to be paid to the broker/dealer and the registered representatives.

Absence of Merit Review

No state of federal authority has reviewed the accuracy or adequacy of the information contained herein nor has any regulatory authority made a merit review of the Offering or the terms of the Note offered to the Purchaser.  Therefore, the Purchaser must therefore judge for itself the adequacies of the disclosures, the pricing and fairness of the terms of the Offering.

Regulation S

A portion of the Shares are being offered pursuant to an exemption from registration under Regulation S.  Regulation S provides an exclusion from the Section 5 registration requirements of the Securities Act for offerings made outside the United States by both U.S. and foreign issuers.  Regulation S is available only for “offers and sales of securities outside the United States” made in good faith and not as a means of circumventing the registration provisions of the Securities Act. The availability of the issuer (Rule 903) and the resale (Rule 904) safe harbors is contingent on two general conditions (a) the offer or sale must be made in an offshore transaction; and (b) no “directed selling efforts” may be made by the issuer, a distributor, any of their respective affiliates, or any person acting on their behalf.

The Shares will initially be restricted as described under “Book-entry, Delivery and Form” for a period ending six month after the closing date. Before any interest in the Shares may be offered, sold, pledged or otherwise transferred to a purchaser outside the United States in compliance with Rule 904 under the Securities Act, the transferor will be required to provide the fiscal agent with a written certificate (the form of which certification can be obtained from the fiscal agent) as to compliance with the transfer restriction referred to above.

Forward-Looking Statements

The Disclosure Materials contain certain forward-looking statements regarding the plans and objectives of management for future operations, including plans and objectives relating to the development of the Company’s business.  The forward-looking statements included herein are based on current expectations and assumptions that involve numerous risks and uncertainties.  Although the Company believes that its assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate.  As a result, there can be no assurance that the forward-looking statements included in this Agreement shall prove to be accurate.  In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as a representation by the Company or any other entity that the objectives and plans of the Company shall be achieved.

The foregoing list of risk factors does not purport to be complete and does not describe all of the risks relating to an investment in the Company.  Some of the other risks of an investment in the Company are nor foreseen or fully discernable, understood or recognizable by the Company.  Purchasers should read the Disclosure Materials and consult with their own legal and financial advisers before investing in the Company.
 

 
 

 

EX-31.1 3 ex311.htm EXHIBIT 31.1 ex311.htm
 
EXHIBIT 31.1
 
CERTIFICATION
 
      I, Robert K. Bench, certify that:
 
      1.   I have reviewed this annual report on Form 10-K of CryptoSign, Inc.;
 
      2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
      3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;
 
      4.   The small business issuer’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

(a)
 
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)
 
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)
 
Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)
 
Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and
 
      5.   The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

(a)
 
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and
 
(b)
 
Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.
 
 Date: September 30, 2015
 
/s/ ROBERT K. BENCH                                                         
Robert K. Bench, President
CryptoSign, Inc.

 
 

 

EX-31.2 4 ex312.htm EXHIBIT 31.2 ex312.htm
EXHIBIT 31.2
 
CERTIFICATION
 
      I, Robert K. Bench, certify that:
 
      1.   I have reviewed this annual report on Form 10-K of CrytoSign, Inc.;
 
      2.   Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
 
      3.   Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the small business issuer as of, and for, the periods presented in this report;
 
      4.   The small business issuer’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the small business issuer and have:

(a)
 
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the small business issuer, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)
 
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)
 
Evaluated the effectiveness of the small business issuer’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)
 
Disclosed in this report any change in the small business issuer’s internal control over financial reporting that occurred during the small business issuer’s most recent fiscal quarter (the small business issuer’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the small business issuer’s internal control over financial reporting; and
 
      5.   The small business issuer’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the small business issuer’s auditors and the audit committee of the small business issuer’s board of directors (or persons performing the equivalent functions):

(a)
 
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the small business issuer’s ability to record, process, summarize and report financial information; and
 
(b)
 
Any fraud, whether or not material, that involves management or other employees who have a significant role in the small business issuer’s internal control over financial reporting.
 
 Date: September 30, 2015
 
/s/ ROBERT K. BENCH                                                                   
Robert K. Bench, Principal Financial Officer
CryptoSign, Inc.

 

 
 

 

EX-32.1 5 ex321.htm EXHIBIT 32.1 ex321.htm
 
EXHIBIT 32.1
 
CERTIFICATION PURSUANT TO
 
18 U.S.C. §1350,
 
AS ADOPTED PURSUANT TO
 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Annual Report of CryptoSign, Inc. (the “Company”) on Form 10-K for the period ended June 30, 2014 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert K. Bench, Principal Executive Officer and President of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 
1.
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


September 30, 2015
/s/ ROBERT K. BENCH                                                           
Robert K. Bench, Principal Executive Officer, President
CryptoSign, Inc.



 
 

 

EX-32.2 6 ex322.htm EXHIBIT 32.2 ex322.htm
 
EXHIBIT 32.2
 
CERTIFICATION PURSUANT TO
 
18 U.S.C. §1350,
 
AS ADOPTED PURSUANT TO
 
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
 
In connection with the Annual Report of CryptoSign, Inc. (the “Company”) on Form 10-K for the period ended June 30, 2015 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Robert K. Bench, Principal Financial Officer and President of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

 
1.
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

 
2.
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


September 30, 2015
/s/ ROBERT K. BENCH                                                     
Robert K. Bench, Principal Financial Officer
CryptoSign, Inc.


 
 

 

EX-101.INS 7 cpsn-20150630.xml 10500 393750 128657 406556 132285 406556 132285 31672 8503 11901 6652 206207 115225 330497 115225 330497 385 109 6889818 5577675 -5775996 406556 132285 0.0001 100000000 3847236 1088667 1088667 0.0001 400000 350002 1638666 81667 373391 44424 3648 50833 257414 10500 23169 432390 11901 -54031 -199555 562430 -189446 128657 98804 128657 98804 487000 125000 115787 17500 65000 18000 436213 89500 -1322 -1142 4770 2306 3628 476926 58800 665700 838835 393750 13319 9544 804488 2658712 804488 2658712 -804488 -2658712 2931 21196 21319 104825 -18388 -83629 -822876 -2742341 -0.28 -4.56 -1.27 -0.28 -5.83 2942468 601160 62 2036130 -2277385 -241193 623529 3 24997 27 838808 838835 273205 16 665684 1638666 1638666 373391 -3498611 -3498611 109 5577675 -5775996 -198212 1088568 234 486766 487000 2337000 18 393733 393750 175000 5 81663 81667 46667 20 349982 350002 200001 -822876 385 6889818 -6598872 291331 3847236 143109 75000 536687 780035 267109 <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 1 &#151; THE COMPANY AND BASIS OF PRESENTATION</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Principles of Consolidation &#151; </i></b>The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America and include operations and balances of CryptoSign Inc. (formerly StrategaBiz Inc., Agricon Global Corporation, and BayHill Capital Corporation) and its wholly-owned subsidiaries Canola Properties Ghana Limited, (&#147;CPGL&#148;), and Agricon SH Ghana Limited (&#147;ASHG&#148;), both Ghanaian limited liability companies collectively &#147;CryptoSign&#148; or the &#147;Company.&#148; CPGL and ASHG were incorporated under the laws of Ghana on July 5, 2011 and November 7, 2012, respectively. Intercompany balances and transactions have been eliminated in consolidation. In December 2013, CPGL discontinued its agricultural activities and transferred its remaining assets to ASHG. On June 20, 2014, ASHG was sold. The operations of CPGL and ASHG are included in the consolidated statements of operations up to the date of discontinued activities and sale, respectively, and are classified as discontinued operations.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Nature of Operations </i></b>&#151; All of the Company&#146;s business for the year ended June 30, 2014 was conducted through its two wholly-owned subsidiaries CPGL and ASHG. The Company&#146;s business activities prior to June 20, 2014 were organizing the Company, locating appropriate land that might be leased or purchased for cultivating and harvesting agricultural products. The Company discontinued all business activities on June 20, 2014 and has been since that time a &#147;shell corporation&#148; under SEC regulations.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Change in Corporate Name and Equity Structure </i></b>&#151; Effective December 15, 2015, the Company filed an Amended and Restated Certificate of Incorporation (&#147;Restated Certificate&#148;) with the Delaware Secretary of State whereby the Company (a) changed its name to StrategaBiz, Inc. and (b) effected a reverse stock split to reduce the number of shares of outstanding common stock at a rate of 1 share for every 30 shares of common stock then outstanding (&#147;Reverse Split&#148;). The approval of the Restated Certificate to change the Company's name was approved by written consent of holders of a majority of the Company&#146;s common stock. Each stockholder owning fewer than 30 shares of common stock immediately before the effective time of the Reverse Stock Split received from the Company $0.10 in cash, without interest, for each of such shares of common stock; and (b) each stockholder owning of record 30 or more shares of common stock immediately before the effective time of the Reverse Split held, after the Reverse Split, the number of shares of common stock equal to 1/30th of the number held prior to the Reverse Split. On November 25, 2014 the Company filed with the Securities and Exchange Commission, and the Company&#146;s stockholders were furnished with a Definitive Information Statement filed on Schedule 14(c) to advise the stockholders of the corporate actions. The Company&#146;s common stock began trading on January 15, 2015 on a post-split basis under the symbol &#147;SGBZ.&#148; All share and per-share amounts included in these consolidated financial statements have been restated to reflect the 1 for 30 reverse stock split.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Effective June 18, 2015, the Company changed its name to CryptoSign, Inc. by filing a Certificate of Amendment to the Amended and Restated Certificate of Incorporation with the Delaware Secretary of State. In connection with the name change, the Company changed its trading symbol to &#147;CPSN.&#148; The name and symbol change were done in anticipation of a merger with an operating company in the crypto currency industry.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Changes in Management and Directors </i></b>&#151; On October 22, 2014, the Company filed an Information Statement pursuant to Section 14(f) of the Securities Exchange Act of 1934 and Rule 14f-1 thereunder, with a proposed change in the majority of the board of directors and an addition to management. The proposed change included the resignation of Rene Mikkelsen, Alan Kronborg, Robert Bench, and Peter Opata as directors, the appointment of Brian Mertz and Ole Sigetty as directors and the appointment of Brian Mertz as Chief Executive Officer. These changes became effective on November 5, 2014.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 2 &#150; GOING CONCERN</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>The accompanying consolidated financial statements have been prepared with the recognition that the Company is a shell corporation and that there is considerable doubt about whether the Company can continue as a going concern. As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $822,876 for the year ended June 30, 2015 and has an accumulated deficit of $6,598,872at June 30, 2015. The Company also used cash in operating activities of $566,192 during the year ended June 30, 2015. At June 30, 2015, the Company had working capital of $291,331. These factors raise substantial doubt about the Company&#146;s ability to continue as a going concern.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><font style='background:white'>In order for us to continue as a going concern, we will need to obtain additional debt or equity financing. We </font>are regularly and continually seeking additional funding from investors and from time to time we are in various stages of negotiations. Nonetheless, to date we have not accomplished a financing of the size needed to put the Company on a stable operating basis. <font style='background:white'>There can be no assurance that we will be able to secure additional debt or equity financing, that we will be able to attain positive cash flow operations, or that, if we are successful in any of those actions, those actions will produce adequate cash flow to enable us to meet our future obligations. All of our existing financing arrangements are short-term. If we are unable to obtain additional debt or equity financing, we may be required to cease operations.</font></p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 3 &#150; SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Use of Estimates</i></b> &#150; The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure on contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include estimated future value of leased properties, realizability of notes receivable, and realizability of deferred tax assets. Actual results could differ from those estimates.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Business Condition</i></b> &#150; The Company discontinued all business activities on June 20, 2014 and as of June 30, 2015 was a &#147;shell corporation&#148; under SEC regulations. The Company has begun to look for operating companies or other business opportunities to acquire. The ability of the Company to continue as a going concern is dependent on the success of that plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern (see Note 2&#151;Going Concern).</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Cash</i></b>&#150;The balance in cash consists of cash reserves held in checking accounts.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Notes Receivable </i></b>&#150; The Company had one note receivable, which arose from the sale of Commission River, a prior subsidiary. The note was paid during the year ended June 30, 2015. See further discussion and disclosure in <i>Note 4</i>.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Subscriptions Receivable </i></b>&#150; The Company recognizes subscriptions receivable as an asset when the cash is received subsequent to the balance sheet date but prior to the filing of the financial statements. See further discussion and disclosure in <i>Note 11</i>.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Income Taxes</i></b> &#150; The Company accounts for income taxes pursuant to Accounting Standards Codification (ASC) 740, Income Taxes, which requires the use of the asset and liability method of accounting for deferred income taxes. We recognize deferred tax liabilities and assets based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>All allowances against deferred income tax assets are recorded in whole or in part, when it is more likely than not those deferred income tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>A valuation allowance is required to the extent it is more-likely-than-not that a deferred tax asset will not be realized. ASC 740 also requires reporting of taxes based on tax positions that meet a more-likely-than-not standard and are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. ASC 740 also provides guidance on the presentation of tax matters and the recognition of potential IRS interest and penalties. The Company classifies penalty and interest expense related to income tax liabilities as an income tax expense. The Company did not recognize interest or penalties in the consolidated statements of operations for the years ended June 30, 2015 and 2014 and no accrued interest or penalties are included in the consolidated balance sheets as of June 30, 2015 and 2014. See further discussion and disclosures in <i>Note 10</i>.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Basic and Diluted Loss Per Share</i></b> &#150; Basic loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period giving no effect to potentially dilutive issuable common shares. As of June 30, 2015 the Company had no options or potentially issuable shares outstanding.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Share-Based Compensation</i></b> &#150; The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a lattice model that values the options based on probability weighted projections of the various potential outcomes. The intrinsic value, stock performance, stock volatility, vesting or exercise factors, and forfeiture variables, are all considerations under this model. If stock grants are related to a future performance condition, the Company recognizes compensation expense when the performance condition, leading to the issuance, becomes probable of occurring.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Recently Enacted Accounting Standards</i></b><i> </i>&#150; In June 2014, the Financial Accounting Standards Board (the &#147;FASB&#148;) issued Accounting Standards Update No. 2014-10, <i>Development Stage Entities and Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Consolidation </i>(&#147;ASU 2014-10&#148;), which removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. generally accepted accounting principles. In addition, the amendments eliminated the requirements for development stage entities to: (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments also clarify that the guidance for risks and uncertainties is applicable to entities that have not yet commenced planned principal operations.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements pertaining to development stage entities are to be applied retrospectively. The amendments related to the disclosure of risks and uncertainties are to be applied prospectively. ASU 2014-10 is effective for the Company for annual reporting periods beginning July 1, 2015, and for the interim periods therein, with early application of each of the amendments permitted for any annual reporting period or interim period for which the entity&#146;s financial statements have not yet been issued. As a result, management adopted ASU 2014-10 as of June 30, 2014, and the effects of the adoption are reflected in the accompanying financial statements and related notes. As described above, the adoption of ASU 2014-10 eliminated certain disclosures of information formerly required of development stage entities, including inception-to-date information in the accompanying statements of operations, cash flows, and stockholders&#146; deficit. The adoption of ASU 2014-10 also combined the amounts of deficit accumulated during the development stage and prior to the development stage into one amount for accumulated deficit in stockholders&#146; deficit. The elimination of these disclosure requirements had no other effect on the amounts reported for total assets, liabilities, stockholders&#146; deficit, net loss, or loss per common share.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In May 2014, the FASB issued Accounting Standards Update No. 2014-09, <i>Revenue from Contracts with Customers </i>(&#147;ASU 2014-09&#148;), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 will be effective for the Company retrospectively beginning July 1, 2017, with early adoption not permitted. Management is currently evaluating the impact of the pending adoption of ASU 2014-09 on the Company&#146;s financial statements.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 4 &#150; NOTES RECEIVABLE</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>On August 31, 2010, the Company sold its wholly-owned subsidiary, Commission River Corporation. As part of the payment for the sale, the Company was issued a secured negotiable promissory note receivable, in the amount of $490,000, with varying interest rates beginning at 6% and required monthly payments of $10,000 until its maturity on September 12, 2014. The note was secured by all of the assets of Commission River Corporation. On September 12, 2014, Commission River Corporation paid all of the remaining principal balance and accrued interest.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 5 &#150; SECURED AND UNSECURED NOTES PAYABLE TO RELATED PARTIES</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>The Company previously issued unsecured notes to affiliates (officers and directors) for accrued salaries and fees and accrued interest. On June 20, 2014, the Company completed a series of settlements whereby the majority of notes were converted to the Company&#146;s common stock. At June 30, 2014, there were three secured notes payable and one unsecured note payable, with annual interest rates of 15% and maturity dates of September 30, 2014, to present and past affiliates of the Company which related to legal fees, director fees, and unpaid salaries. The notes were all paid during the year ended June 30, 2015. On May 30, 2015, an officer advanced $65,000 to the Company for which an unsecured note payable was issued with an annual interest rate of 18% and maturity date of December 31, 2015. The note and all accrued interest was paid in July 2015. The notes are classified as current liabilities and consist of the following:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Note Holder</b></p> </td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>June 30, 2015</b></p> </td> <td width="1%" valign="bottom" style='width:1.18%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>June 30, 2014</b></p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Brian Mertz</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$65,000</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:#CCEEFF;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>ClearWater Law and Governace Group, LLC</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>* </p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>32,001 </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>James U Jensen</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>* </p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>25,954 </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Robert K Bench</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>* </p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>29,546 </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Robyn Farnsworth</p> </td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="1%" valign="bottom" style='width:1.18%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>28,286</p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Total</p> </td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$65,000</p> </td> <td width="1%" valign="bottom" style='width:1.18%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$115,787</p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'></td> <td width="1%" valign="bottom" style='width:1.18%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'></td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>*Secured with all Company assets</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'></td> <td width="1%" valign="bottom" style='width:1.18%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'></td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 6 &#150; SETTLEMENT OF LIABILITIES</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>On June 20, 2014, the Company issued 267,108 shares of common stock in settlement of various liabilities owed to present and past affiliates of the Company as follows:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td colspan="7" valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Nature and Amount of Liability</b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Accounts</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Accrued</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Accrued</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Notes</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Total</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Number</p> </td> </tr> <tr align="left"> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Name</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Payable</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Interest</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Liabilities</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Payable</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>liabilities</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>of shares</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Stephen Abu</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$116,609</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$116,609</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>116,667</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Robert Bench</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,450</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>190,455</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>196,905</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>46,574</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Alan Kronborg</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>60,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>60,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>120,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>30,038</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Clearwater Law Group</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,795</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>48,001</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>50,796</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>12,731</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Robyn Farnsworth</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,613</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>42,430</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>45,043</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11,289</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Rene Mikkelsen</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,353</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>36,462</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>41,315</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>10,355</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>James Jensen</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,272</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>4,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>33,305</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>40,077</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>10,049</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Soren Jonassen</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,109</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>30,754</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>35,363</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>8,863</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Peter Moller</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>20,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>20,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,667</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Lars Nielsen</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,323</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>75,780</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>79,103</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5,274</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Peter Opata</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>120</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>8,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11,620</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,912</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>John Thomas</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,715</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>8,715</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,184</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>John Knab</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,489</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>7,989</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,002</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Andrew Goodman</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,504</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Totals</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$143,109</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$25,239</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$75,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$536,687</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$780,035</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>267,109</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'> </p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In addition to the settlement of the above liabilities all option holders cancelled all granted and outstanding options effective June 20, 2014. The shares of common stock were valued at $4.20 per share on June 20, 2014. The Company recognized additional share-based compensation of $400,249 on the 26,858 shares issued and $373,391 in stock expense for settlement of these liabilities for the fair value of the stock issued stock in excess of the fair value of the liabilities given up. The Company also recognized additional paid in capital of $58,431 for the fair value of the liabilities that were in excess of the fair value of the common stock issued.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 7 &#150; DISCONTINUED OPERATIONS</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In December 2013, all operations in CPGL were transferred to ASHG and all operations in CPGL ceased.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>On June 20, 2014, the Company sold ASHG to Ghana Journeys Limited (&#147;Ghana Journeys&#148;), a company owned by Stephen Abu, a former affiliate of the Company. The fair value of ASHG on the date of sale was $665,700. Ghana Journeys did not pay anything for ASHG other than assuming the remaining liabilities including the capital lease obligation. In addition, the Company issued 158,500 shares of the Company&#146;s common stock to Ghana Journeys valued at $4.20 per share or $665,700. The Company recognized a loss on sale of ASHG of $86,822, which has been included in the discontinued operations on the statement of operations.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Since the Company no longer operates in Ghana after the sale of ASHG on June 20, 2014 and CPGL in the prior year, the operations of both subsidiaries have been classified as discontinued operations for both years presented. The loss from discontinued operations for the year ended June 30, 2015 and 2014 was $0 and $756,270, respectively as set forth below:</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'></td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>For the Years Ended June 30,</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'></td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2015</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2014</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Professional services</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$24,001</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Interest expense</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>165,501</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Rent expense</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>4,200</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Lease acquisition expenses</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>105,750</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Depreciation</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,648</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Salaries</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>104,700</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Travel</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,950</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Impairment expenses</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>256,398</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Other expenses</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,300</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Loss on sale</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>86,822</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Loss from discontinued operations</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$756,270</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'></td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <!--egx--> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 8 &#150; STOCKHOLDERS&#146; EQUITY</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>The Company's capitalization is 100,000,000 common shares authorized, with a par value of $0.0001 per share. At June 30, 2015, the Company had 3,847,236 common shares outstanding.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Preferred shares of 400,000 with a par value of $0.0001 have been authorized and no shares are issued or outstanding at June 30, 2015.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In May 2014, the Company issued 33,333 shares of common stock for $25,000 of cash.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In June, 2014, the Company issued 267,108 shares of common stock for settlement of liabilities of $780,035 (<i>Note 6</i>). The Company also issued 158,500 shares of the Company&#146;s common stock to Ghana Journeys valued at $4.20 per share or $665,700 in conjunction with the sale of ASHG (<i>Note 7</i>).</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In August 2014 the company issued 314,252 shares of common stock for $50,000 of cash.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In October 2014 the company issued 1,885,714 shares of common stock for $300,000 of cash.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Effective December 15, 2014, the company, effected a 30 for 1 reverse stock split of its authorized and outstanding common stock by filing an Amended and Restated Certificate of Incorporation with the Delaware Secretary of State. As a result, the previously issued and outstanding number of shares of common stock at that time decreased from 98,660,002 shares of common stock to 3,288,280. Stockholders holding less than 30 shares of common stock prior to the reverse stock split will receive cash rather than fractional shares. There was no change in the number of authorized shares nor was there a change in the par value.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In December 2014 the company issued 46,667 shares of common stock for the purchase of website domain names for a purchase price of $81,667 which reflects the market price ($1.75 per share) of the Company&#146;s stock at the time the shares were issued.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In December 2014 the company issued 200,001 of common stock for payment of $150,001 of compensation to three of its directors (<i>Note 9</i>).</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In February and March of 2015 the company issued 137,000 shares of common stock for $137,000 of cash.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>On June 30, 2015 the company issued 175,000 shares of common stock for subscription agreements in the amount of $393,750 that was paid in cash in July 2015.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 9 &#150; SHARE BASED COMPENSATION</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>As part of the &#147;Settlement of Liabilities&#148; as discussed in <i>Note 6</i>, all outstanding options were cancelled as of June 20, 2014. As of June 30, 2015 and 2014, there were no options granted or outstanding.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>On November 5, 2014 the board of directors approved a one-time payment of $50,000 to Messrs. Soren Jonassen and Ole Sigetty, the Company&#146;s outside board members and to Mr. Brian Mertz, the Company&#146;s Chief Executive Officer for their services through the end of the Company&#146;s fiscal year 2015. These amounts were paid by the issuance of 66,667 restricted shares of the Company&#146;s common stock on December 27, 2014, which were priced by the directors at $0.75 per share, which they deemed the appropriate market value at the time of issuance. The shares granted were not subject to vesting; the Company expensed the $350,002 as compensation expense during the year ended June 30, 2015, which reflected the market price ($1.75 per share) of the Company&#146;s stock at the time of issuance.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 10 &#150; INCOME TAXES</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Operating losses for the years ended June 30, 2015 and 2014 were $822,876 and $2,829,163 relating to domestic operations and $0 and $669,448 relating to foreign operations, respectively.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>We had $6,467,305 and $7,240,785 of net operating loss carry forwards as of June 30, 2015 and June 30, 2014, respectively, which are comprised of $2,540,382 and $1,945,797 of U.S. federal and $3,926,923 and $3,425,640 state net operating losses, respectively, which expire in varying amounts beginning 2032, if unused. The Company also has net operating losses related to its Ghana operations of $0 and $1,869,348 as of June 30, 2015 and 2014, which begin to expire in 2018; however, there is a tax holiday for our agriculture operations in Ghana and therefore there is no future tax benefit for the losses. The Company ceased operations in Ghana so this portion of the net operating losses will expire unused and was reduced to zero as of June 30, 2015.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>A change in our ownership of more than 50% occurred during the year ended June 30 2015. The annual utilization of the net operating carry forwards is subject to certain limitations under Section 382 of the Internal Revenue Code of 1986, as amended, and other limitations under state tax laws. As a result, the provisions of Section 382 caused net operating losses $0 U.S. federal and $1,274,626 state to become permanently restricted.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>The temporary differences and carry forwards which give rise to the deferred income tax assets are as follows:</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'></td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>For the Years Ended June 30,</p> </td> </tr> <tr align="left"> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2015</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2014</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Accrued compensation</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$22,380</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$43,189</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Debt discount &amp; benefical conversion feature</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(4,075)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Other</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,516</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Net operating loss carry forwards</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>993,318</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>774,617</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Valuation allowance</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(1,015,698)</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(820,247)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Net long-term deferred tax asset</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>A reconciliation of income taxes at the federal statutory rate to actual income tax expense is as follows:</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'></td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>For the Years Ended June 30,</p> </td> </tr> <tr align="left"> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2015</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2014</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Income tax benefit at the statutory rate</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$(191,029)</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$(1,189,528)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>State income taxes, net of federal benefit</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(18,641)</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(93,462)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Foreign rate differential</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>227,613</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Change in valuation allowance</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>195,451</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>381,991</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Change in net operating loss carry forwards</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>12,489</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(2,057)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Cancelation of stock options</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>643,059</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Loss on sale of subsidiary</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>32,384</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Other</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,730</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Income tax expense (benefit)</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b>NOTE 11 &#150; Subsequent Events</b></p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>On June 30, 2015, the Company received subscriptions for the purchase of 175,000 shares of its common stock totaling $393,750. The Company received cash for the full subscriptions in July 2015.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Use of Estimates</i></b> &#150; The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure on contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include estimated future value of leased properties, realizability of notes receivable, and realizability of deferred tax assets. Actual results could differ from those estimates.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Business Condition</i></b> &#150; The Company discontinued all business activities on June 20, 2014 and as of June 30, 2015 was a &#147;shell corporation&#148; under SEC regulations. The Company has begun to look for operating companies or other business opportunities to acquire. The ability of the Company to continue as a going concern is dependent on the success of that plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern (see Note 2&#151;Going Concern).</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Cash</i></b>&#150;The balance in cash consists of cash reserves held in checking accounts.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Notes Receivable </i></b>&#150; The Company had one note receivable, which arose from the sale of Commission River, a prior subsidiary. The note was paid during the year ended June 30, 2015. See further discussion and disclosure in <i>Note 4</i>.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Subscriptions Receivable </i></b>&#150; The Company recognizes subscriptions receivable as an asset when the cash is received subsequent to the balance sheet date but prior to the filing of the financial statements. See further discussion and disclosure in <i>Note 11</i>.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Income Taxes</i></b> &#150; The Company accounts for income taxes pursuant to Accounting Standards Codification (ASC) 740, Income Taxes, which requires the use of the asset and liability method of accounting for deferred income taxes. We recognize deferred tax liabilities and assets based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>All allowances against deferred income tax assets are recorded in whole or in part, when it is more likely than not those deferred income tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>A valuation allowance is required to the extent it is more-likely-than-not that a deferred tax asset will not be realized. ASC 740 also requires reporting of taxes based on tax positions that meet a more-likely-than-not standard and are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. ASC 740 also provides guidance on the presentation of tax matters and the recognition of potential IRS interest and penalties. The Company classifies penalty and interest expense related to income tax liabilities as an income tax expense. The Company did not recognize interest or penalties in the consolidated statements of operations for the years ended June 30, 2015 and 2014 and no accrued interest or penalties are included in the consolidated balance sheets as of June 30, 2015 and 2014. See further discussion and disclosures in <i>Note 10</i>.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Basic and Diluted Loss Per Share</i></b> &#150; Basic loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period giving no effect to potentially dilutive issuable common shares. As of June 30, 2015 the Company had no options or potentially issuable shares outstanding.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Share-Based Compensation</i></b> &#150; The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a lattice model that values the options based on probability weighted projections of the various potential outcomes. The intrinsic value, stock performance, stock volatility, vesting or exercise factors, and forfeiture variables, are all considerations under this model. If stock grants are related to a future performance condition, the Company recognizes compensation expense when the performance condition, leading to the issuance, becomes probable of occurring.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'><b><i>Recently Enacted Accounting Standards</i></b><i> </i>&#150; In June 2014, the Financial Accounting Standards Board (the &#147;FASB&#148;) issued Accounting Standards Update No. 2014-10, <i>Development Stage Entities and Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Consolidation </i>(&#147;ASU 2014-10&#148;), which removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. generally accepted accounting principles. In addition, the amendments eliminated the requirements for development stage entities to: (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments also clarify that the guidance for risks and uncertainties is applicable to entities that have not yet commenced planned principal operations.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements pertaining to development stage entities are to be applied retrospectively. The amendments related to the disclosure of risks and uncertainties are to be applied prospectively. ASU 2014-10 is effective for the Company for annual reporting periods beginning July 1, 2015, and for the interim periods therein, with early application of each of the amendments permitted for any annual reporting period or interim period for which the entity&#146;s financial statements have not yet been issued. As a result, management adopted ASU 2014-10 as of June 30, 2014, and the effects of the adoption are reflected in the accompanying financial statements and related notes. As described above, the adoption of ASU 2014-10 eliminated certain disclosures of information formerly required of development stage entities, including inception-to-date information in the accompanying statements of operations, cash flows, and stockholders&#146; deficit. The adoption of ASU 2014-10 also combined the amounts of deficit accumulated during the development stage and prior to the development stage into one amount for accumulated deficit in stockholders&#146; deficit. The elimination of these disclosure requirements had no other effect on the amounts reported for total assets, liabilities, stockholders&#146; deficit, net loss, or loss per common share.</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>In May 2014, the FASB issued Accounting Standards Update No. 2014-09, <i>Revenue from Contracts with Customers </i>(&#147;ASU 2014-09&#148;), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 will be effective for the Company retrospectively beginning July 1, 2017, with early adoption not permitted. Management is currently evaluating the impact of the pending adoption of ASU 2014-09 on the Company&#146;s financial statements.</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Note Holder</b></p> </td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>June 30, 2015</b></p> </td> <td width="1%" valign="bottom" style='width:1.18%;border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>June 30, 2014</b></p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>&nbsp;</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>&nbsp;</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>&nbsp;</p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Brian Mertz</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$65,000</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:#CCEEFF;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>ClearWater Law and Governace Group, LLC</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>* </p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>32,001 </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>James U Jensen</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>* </p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>25,954 </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Robert K Bench</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="1%" valign="bottom" style='width:1.18%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>* </p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>29,546 </p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Robyn Farnsworth</p> </td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="1%" valign="bottom" style='width:1.18%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>28,286</p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Total</p> </td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$65,000</p> </td> <td width="1%" valign="bottom" style='width:1.18%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$115,787</p> </td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'></td> <td width="1%" valign="bottom" style='width:1.18%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'></td> </tr> <tr align="left"> <td width="73%" valign="bottom" style='width:73.62%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>*Secured with all Company assets</p> </td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'></td> <td width="1%" valign="bottom" style='width:1.18%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.6%;background:white;padding:0'></td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td colspan="7" valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'><b>Nature and Amount of Liability</b></p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'></td> </tr> <tr align="left"> <td valign="bottom" style='padding:0'></td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Accounts</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Accrued</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Accrued</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Notes</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Total</p> </td> <td valign="bottom" style='padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Number</p> </td> </tr> <tr align="left"> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Name</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Payable</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Interest</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Liabilities</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>Payable</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>liabilities</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>of shares</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Stephen Abu</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$116,609</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$116,609</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>116,667</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Robert Bench</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,450</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>190,455</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>196,905</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>46,574</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Alan Kronborg</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>60,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>60,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>120,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>30,038</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Clearwater Law Group</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,795</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>48,001</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>50,796</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>12,731</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Robyn Farnsworth</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,613</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>42,430</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>45,043</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11,289</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Rene Mikkelsen</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,353</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>36,462</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>41,315</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>10,355</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>James Jensen</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,272</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>4,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>33,305</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>40,077</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>10,049</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Soren Jonassen</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,109</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>30,754</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>35,363</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>8,863</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Peter Moller</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>20,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>20,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,667</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Lars Nielsen</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,323</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>75,780</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>79,103</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5,274</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Peter Opata</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>120</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>8,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>11,620</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,912</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>John Thomas</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,715</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>8,715</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,184</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>John Knab</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,489</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>5,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>7,989</p> </td> <td width="9%" valign="bottom" style='width:9.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>2,002</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0in 0in 1.5pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Andrew Goodman</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,500</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,504</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:#CCEEFF;padding:0in 0in 3.0pt 0in'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Totals</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$143,109</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$25,239</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$75,000</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$536,687</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$780,035</p> </td> <td width="9%" valign="bottom" style='width:9.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>267,109</p> </td> </tr> <tr align="left"> <td width="28%" valign="bottom" style='width:28.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> <td width="9%" valign="bottom" style='width:9.0%;background:white;padding:0'></td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'></td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>For the Years Ended June 30,</p> </td> </tr> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'></td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2015</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2014</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Professional services</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$24,001</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Interest expense</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>165,501</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Rent expense</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>4,200</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Lease acquisition expenses</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>105,750</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Depreciation</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,648</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Salaries</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>104,700</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Travel</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>3,950</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Impairment expenses</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>256,398</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Other expenses</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,300</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Loss on sale</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>86,822</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Loss from discontinued operations</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$756,270</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'></td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'></td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>The temporary differences and carry forwards which give rise to the deferred income tax assets are as follows:</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'></td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>For the Years Ended June 30,</p> </td> </tr> <tr align="left"> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2015</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2014</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Accrued compensation</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$22,380</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$43,189</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Debt discount &amp; benefical conversion feature</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(4,075)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Other</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>6,516</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Net operating loss carry forwards</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>993,318</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>774,617</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Valuation allowance</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(1,015,698)</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(820,247)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Net long-term deferred tax asset</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> </tr> </table> </div> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>&nbsp;</p> <!--egx--><p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>A reconciliation of income taxes at the federal statutory rate to actual income tax expense is as follows:</p> <div align="center"> <table border="0" cellspacing="0" cellpadding="0" width="90%" style='line-height:115%;width:90.0%'> <tr align="left"> <td valign="bottom" style='padding:0in 0in 1.5pt 0in'></td> <td colspan="2" valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>For the Years Ended June 30,</p> </td> </tr> <tr align="left"> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'></td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2015</p> </td> <td valign="bottom" style='border:none;border-bottom:solid black 1.5pt;padding:0'> <p align="center" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:center;line-height:normal'>2014</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Income tax benefit at the statutory rate</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$(191,029)</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$(1,189,528)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>State income taxes, net of federal benefit</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(18,641)</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(93,462)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Foreign rate differential</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>227,613</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Change in valuation allowance</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>195,451</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>381,991</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Change in net operating loss carry forwards</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>12,489</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>(2,057)</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Cancelation of stock options</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>643,059</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Loss on sale of subsidiary</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>32,384</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Other</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>1,730</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:solid black 1.5pt;background:white;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>-</p> </td> </tr> <tr align="left"> <td width="70%" valign="bottom" style='width:70.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;line-height:normal'>Income tax expense (benefit)</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p align="right" style='margin-top:0in;margin-right:0in;margin-bottom:10.0pt;margin-left:0in;line-height:115%;margin-bottom:0in;margin-bottom:.0001pt;text-align:right;line-height:normal'>$-</p> </td> <td width="12%" valign="bottom" style='width:12.0%;border:none;border-bottom:double black 2.25pt;background:#CCEEFF;padding:0'> <p 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Issuance of stock related to sale of ASHG, Shares Issuance of stock for settlement of liabilities, Value Additional Paid-in Capital Equity Components [Axis] Loss from continuing operations Loss from continuing operations Document Period End Date Document Type Entity Central Index Key Subsequent Event Type Geographical [Axis] Lease Acquisition Expenses Amount of lease acquisition expenses attributable to the disposal group, including a component of the entity (discontinued operation), during the reporting period. John M Knab ClearWater Law and Governance Group, LLC Note 10 - Income Taxes Depreciation Depreciation Accumulated Deficit Preferred Stock Preferred Stock, shares authorized Preferred Stock, par or stated value Current Assets Amendment Flag Change in valuation allowance Income tax benefit at the statutory rate NOL Carryforwards to Become Permanently Restricted Operating Loss Carryforwards to Become Permanently Restricted Range Hugo Svaneeng Holdings ApS Interest Expense {1} Interest Expense Policies Note 3 - Summary of Significant Accounting Policies Cash Flows From Operating Activities Statement Of Cash Flows Issuance of stock for Compensation, Shares Share-based compensation, stock issued Total Operating Expenses Total Operating Expenses Subscriptions receivable ASSETS Entity Filer Category Issuance of stock for payment of expenses, Shares {1} Issuance of stock for payment of expenses, Shares Lars Nielsen Adjustment To Additional Paid In Capital Fair Value Of Liabilities in Excess of Common Stock Issued The adjustment of additional paid in capital due to the declaration of the fair value of liabilities to be in excess of the fair value of common stock issued. Reconciliation of income taxes at the federal statutory rate to actual income tax expense Noncash Investing and Financing activities: Principal payments on notes receivable Stock expense for settlement in stock in excess of liability {1} Stock expense for settlement in stock in excess of liability Total current liabilities Total current liabilities Statement Of Financial Position Document Fiscal Year Focus Entity Common Stock, Shares Outstanding Document And Entity Information Other {1} Other Percentage change of ownership during the period Percentage change of ownership during the period Operating Loss Carryforwards, Expiration Date Other expenses Accured Interest Robyn Farnsworth Note 9 - Share Based Compensation Proceeds from issuance of unsecured notes payable, related parties Issuance of stock for cash, Value Total stockholders' equity (deficit) Total stockholders' equity (deficit) Stockholders' Equity, beginning of period, Value Stockholders' Equity, end of period, Value Common stock $.0001 par value, 100,000,000 shares authorized; 3,847, 236 shares issued and outstanding at June 30, 2015 and 1,088,667 shares issued and outstanding at June 30, 2014 Cash Cash at Beginning of Period Cash at End of Period Is Entity a Well-known Seasoned Issuer? 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Note 8 - Stockholder's Equity (Details) - USD ($)
1 Months Ended 2 Months Ended 12 Months Ended
Dec. 28, 2014
Dec. 31, 2015
Jun. 30, 2015
Dec. 31, 2014
Oct. 31, 2014
Aug. 31, 2014
Dec. 31, 2015
Mar. 31, 2015
Dec. 31, 2014
Jun. 30, 2015
Jun. 30, 2014
Dec. 15, 2015
Dec. 27, 2014
Dec. 14, 2014
Jun. 20, 2014
Common Stock, shares authorized     100,000,000             100,000,000 100,000,000        
Common Stock, par or stated value     $ 0.0001             $ 0.0001 $ 0.0001        
Common Stock, shares outstanding     3,847,236             3,847,236 1,088,667 3,288,280   98,660,002  
Preferred Stock, shares authorized     400,000             400,000 400,000        
Preferred Stock, par or stated value     $ 0.0001             $ 0.0001 $ 0.0001        
Issuance of stock for cash, Value     $ 393,750   $ 300,000 $ 50,000   $ 137,000   $ 487,000 $ 25,000        
Issuance of stock for settlement of liabilities, Value                     838,835        
Value of Issuance of stock related to sale of ASHG                     665,700        
Stockholders' Equity, Reverse Stock Split                   1 for 30 reverse stock split          
Issuance of stock for payment of expenses, Value                   $ 81,667          
Allocated Share-based Compensation Expense   $ 150,001         $ 50,000     $ 350,002          
Hugo Svaneeng Holdings ApS                              
Issuance of stock for payment of expenses, Value $ 81,667                            
Affiliated Entity                              
Issuance of stock for settlement of liabilities, Value                     $ 780,035        
Common Stock                              
Issuance of stock for cash, Shares     175,000   1,885,714 314,252   137,000   2,337,000 33,333        
Issuance of stock for cash, Value                   $ 234 $ 3        
Issuance of stock for settlement of liabilities, Shares                     273,205        
Issuance of stock for settlement of liabilities, Value                     $ 27        
Issuance of stock related to sale of ASHG, Shares                     158,500        
Share Price     $ 1.75             $ 1.75 $ 4.20   $ 0.75   $ 4.20
Value of Issuance of stock related to sale of ASHG                     $ 16        
Issuance of stock for payment of expenses, Shares                   46,667          
Issuance of stock for payment of expenses, Value                   $ 5          
Issuance of stock for payment of expenses, Shares       200,001         66,667            
Common Stock | Hugo Svaneeng Holdings ApS                              
Issuance of stock for payment of expenses, Shares 46,667                            
Common Stock | Settlement of liabilities with present and past affiliates of the Company                              
Issuance of stock for settlement of liabilities, Shares                     267,108        
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Note 2 - Going Concern (Details) - USD ($)
12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Details    
Net loss $ (822,876) $ (3,498,611)
Accumulated deficit (6,598,872) (5,775,996)
Net Cash Used in Operating Activities (566,192) $ (189,446)
Working Capital $ 291,331  
XML 17 R37.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 10 - Income Taxes: Reconciliation of income taxes at the federal statutory rate to actual income tax expense (Details) - USD ($)
12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Details    
Income tax benefit at the statutory rate $ (191,029) $ (1,189,528)
State income taxes, net of federal benefit (18,641) (93,462)
Foreign rate differential 0 227,613
Change in valuation allowance 195,451 381,991
Change in net operating loss carry forwards 12,489 (2,057)
Cancellation of stock options 0 643,059
Loss on sale of subsidiary 0 32,384
Other 1,730 0
Income tax expense (benefit) $ 0 $ 0
XML 18 R9.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 3 - Summary of Significant Accounting Policies
12 Months Ended
Jun. 30, 2015
Notes  
Note 3 - Summary of Significant Accounting Policies

NOTE 3 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure on contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include estimated future value of leased properties, realizability of notes receivable, and realizability of deferred tax assets. Actual results could differ from those estimates.

 

Business Condition – The Company discontinued all business activities on June 20, 2014 and as of June 30, 2015 was a “shell corporation” under SEC regulations. The Company has begun to look for operating companies or other business opportunities to acquire. The ability of the Company to continue as a going concern is dependent on the success of that plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern (see Note 2—Going Concern).

 

Cash–The balance in cash consists of cash reserves held in checking accounts.

 

Notes Receivable – The Company had one note receivable, which arose from the sale of Commission River, a prior subsidiary. The note was paid during the year ended June 30, 2015. See further discussion and disclosure in Note 4.

 

Subscriptions Receivable – The Company recognizes subscriptions receivable as an asset when the cash is received subsequent to the balance sheet date but prior to the filing of the financial statements. See further discussion and disclosure in Note 11.

 

 

Income Taxes – The Company accounts for income taxes pursuant to Accounting Standards Codification (ASC) 740, Income Taxes, which requires the use of the asset and liability method of accounting for deferred income taxes. We recognize deferred tax liabilities and assets based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years.

 

All allowances against deferred income tax assets are recorded in whole or in part, when it is more likely than not those deferred income tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

A valuation allowance is required to the extent it is more-likely-than-not that a deferred tax asset will not be realized. ASC 740 also requires reporting of taxes based on tax positions that meet a more-likely-than-not standard and are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. ASC 740 also provides guidance on the presentation of tax matters and the recognition of potential IRS interest and penalties. The Company classifies penalty and interest expense related to income tax liabilities as an income tax expense. The Company did not recognize interest or penalties in the consolidated statements of operations for the years ended June 30, 2015 and 2014 and no accrued interest or penalties are included in the consolidated balance sheets as of June 30, 2015 and 2014. See further discussion and disclosures in Note 10.

 

Basic and Diluted Loss Per Share – Basic loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period giving no effect to potentially dilutive issuable common shares. As of June 30, 2015 the Company had no options or potentially issuable shares outstanding.

 

Share-Based Compensation – The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a lattice model that values the options based on probability weighted projections of the various potential outcomes. The intrinsic value, stock performance, stock volatility, vesting or exercise factors, and forfeiture variables, are all considerations under this model. If stock grants are related to a future performance condition, the Company recognizes compensation expense when the performance condition, leading to the issuance, becomes probable of occurring.

 

Recently Enacted Accounting Standards – In June 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-10, Development Stage Entities and Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Consolidation (“ASU 2014-10”), which removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. generally accepted accounting principles. In addition, the amendments eliminated the requirements for development stage entities to: (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments also clarify that the guidance for risks and uncertainties is applicable to entities that have not yet commenced planned principal operations.

 

The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements pertaining to development stage entities are to be applied retrospectively. The amendments related to the disclosure of risks and uncertainties are to be applied prospectively. ASU 2014-10 is effective for the Company for annual reporting periods beginning July 1, 2015, and for the interim periods therein, with early application of each of the amendments permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued. As a result, management adopted ASU 2014-10 as of June 30, 2014, and the effects of the adoption are reflected in the accompanying financial statements and related notes. As described above, the adoption of ASU 2014-10 eliminated certain disclosures of information formerly required of development stage entities, including inception-to-date information in the accompanying statements of operations, cash flows, and stockholders’ deficit. The adoption of ASU 2014-10 also combined the amounts of deficit accumulated during the development stage and prior to the development stage into one amount for accumulated deficit in stockholders’ deficit. The elimination of these disclosure requirements had no other effect on the amounts reported for total assets, liabilities, stockholders’ deficit, net loss, or loss per common share.

 

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 will be effective for the Company retrospectively beginning July 1, 2017, with early adoption not permitted. Management is currently evaluating the impact of the pending adoption of ASU 2014-09 on the Company’s financial statements.

XML 19 R29.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 6 - Settlement of Liabilities (Details) - USD ($)
12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 27, 2014
Jun. 20, 2014
Share-based compensation $ 350,002 $ 1,638,666    
Stock expense for settlement in stock in excess of liability   373,391    
Adjustment To Additional Paid In Capital Fair Value Of Liabilities in Excess of Common Stock Issued   58,431    
Affiliated Entity        
Share-based compensation   $ 400,249    
Common Stock        
Issuance of stock for settlement of liabilities, Shares   273,205    
Share Price $ 1.75 $ 4.20 $ 0.75 $ 4.20
Share-based compensation, stock issued 200,001      
Common Stock | Affiliated Entity        
Share-based compensation, stock issued   26,858    
Common Stock | Settlement of liabilities with present and past affiliates of the Company        
Issuance of stock for settlement of liabilities, Shares   267,108    
XML 20 R28.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 5 - Secured And Unsecured Notes Payable To Related Parties: Schedule of Secured And Unsecured Notes Payable to Related Parties (Details) - USD ($)
Jun. 30, 2015
Jun. 30, 2014
Jun. 20, 2014
Notes payable, related parties $ 65,000 $ 115,787 $ 536,687
Brian Mertz      
Notes payable, related parties 65,000 0  
ClearWater Law and Governance Group, LLC      
Notes payable, related parties 0 32,001 48,001
James U Jensen      
Notes payable, related parties 0 25,954 33,305
Robert K. Bench      
Notes payable, related parties 0 29,546 190,455
Robyn Farnsworth      
Notes payable, related parties $ 0 $ 28,286 $ 42,430
XML 21 R30.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 6 - Settlement of Liabilities: Schedule of Settlement Of Liabilities (Details) - USD ($)
Jun. 30, 2015
Jun. 30, 2014
Jun. 20, 2014
Jun. 30, 2013
Accounts payable, related parties $ 11,901   $ 143,109  
Accrued liabilities 6,652 $ 206,207 75,000  
Notes Payable 65,000 115,787 536,687  
Total Liabilities 115,225 330,497 780,035  
Settlement of liabilities with present and past affiliates of the Company        
Accounts payable, related parties     143,109  
Accured Interest     25,239  
Accrued liabilities     75,000  
Notes Payable     536,687  
Total Liabilities     780,035  
Stephen Abu        
Accounts payable, related parties     116,609  
Accured Interest     0  
Accrued liabilities     0  
Notes Payable     0  
Total Liabilities     116,609  
Robert K. Bench        
Accounts payable, related parties     0  
Accured Interest     6,450  
Accrued liabilities     0  
Notes Payable 0 29,546 190,455  
Total Liabilities     196,905  
Alan Kronborg        
Accounts payable, related parties     0  
Accured Interest     0  
Accrued liabilities     60,000  
Notes Payable     60,000  
Total Liabilities     120,000  
ClearWater Law and Governance Group, LLC        
Accounts payable, related parties     0  
Accured Interest     2,795  
Accrued liabilities     0  
Notes Payable 0 32,001 48,001  
Total Liabilities     50,796  
Robyn Farnsworth        
Accounts payable, related parties     0  
Accured Interest     2,613  
Accrued liabilities     0  
Notes Payable 0 28,286 42,430  
Total Liabilities     45,043  
Rene Mikkelsen        
Accounts payable, related parties     0  
Accured Interest     1,353  
Accrued liabilities     3,500  
Notes Payable     36,462  
Total Liabilities     41,315  
James U Jensen        
Accounts payable, related parties     0  
Accured Interest     2,272  
Accrued liabilities     4,500  
Notes Payable $ 0 $ 25,954 33,305  
Total Liabilities     40,077  
Soren Jonassen        
Accounts payable, related parties     0  
Accured Interest     1,109  
Accrued liabilities     3,500  
Notes Payable     30,754  
Total Liabilities     35,363  
Peter Moller        
Accounts payable, related parties     20,000  
Accured Interest     0  
Accrued liabilities     0  
Notes Payable     0  
Total Liabilities     20,000  
Lars Nielsen        
Accounts payable, related parties     0  
Accured Interest     3,323  
Accrued liabilities     0  
Notes Payable     75,780  
Total Liabilities     79,103  
Peter Opata        
Accounts payable, related parties     0  
Accured Interest     120  
Accrued liabilities     3,500  
Notes Payable     8,000  
Total Liabilities     11,620  
John D Thomas        
Accounts payable, related parties     0  
Accured Interest     2,715  
Accrued liabilities     0  
Notes Payable     6,000  
Total Liabilities     8,715  
John M Knab        
Accounts payable, related parties     0  
Accured Interest     2,489  
Accrued liabilities     0  
Notes Payable     5,500  
Total Liabilities     7,989  
Andrew Goodman        
Accounts payable, related parties     6,500  
Accured Interest     0  
Accrued liabilities     0  
Notes Payable     0  
Total Liabilities     $ 6,500  
Common Stock        
Number of shares 3,847,236 1,088,568 267,109 623,529
Common Stock | Settlement of liabilities with present and past affiliates of the Company        
Number of shares     267,109  
Common Stock | Stephen Abu        
Number of shares     116,667  
Common Stock | Robert K. Bench        
Number of shares     46,574  
Common Stock | Alan Kronborg        
Number of shares     30,038  
Common Stock | ClearWater Law and Governance Group, LLC        
Number of shares     12,731  
Common Stock | Robyn Farnsworth        
Number of shares     11,289  
Common Stock | Rene Mikkelsen        
Number of shares     10,355  
Common Stock | James U Jensen        
Number of shares     10,049  
Common Stock | Soren Jonassen        
Number of shares     8,863  
Common Stock | Peter Moller        
Number of shares     6,667  
Common Stock | Lars Nielsen        
Number of shares     5,274  
Common Stock | Peter Opata        
Number of shares     2,912  
Common Stock | John D Thomas        
Number of shares     2,184  
Common Stock | John M Knab        
Number of shares     2,002  
Common Stock | Andrew Goodman        
Number of shares     1,504  
XML 22 R31.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 7 - Discontinued Operations (Details) - USD ($)
12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Dec. 27, 2014
Jun. 20, 2014
Value of Issuance of stock related to sale of ASHG   $ 665,700    
Loss from discontinued operations $ 0 (756,270)    
Sale of Subsidiary Gain (Loss)        
Loss from discontinued operations   86,822    
Common Stock        
Value of Issuance of stock related to sale of ASHG   $ 16    
Issuance of stock related to sale of ASHG, Shares   158,500    
Share Price $ 1.75 $ 4.20 $ 0.75 $ 4.20
XML 23 R8.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 2 - Going Concern
12 Months Ended
Jun. 30, 2015
Notes  
Note 2 - Going Concern

NOTE 2 – GOING CONCERN

 

The accompanying consolidated financial statements have been prepared with the recognition that the Company is a shell corporation and that there is considerable doubt about whether the Company can continue as a going concern. As shown in the accompanying consolidated financial statements, the Company incurred a net loss of $822,876 for the year ended June 30, 2015 and has an accumulated deficit of $6,598,872at June 30, 2015. The Company also used cash in operating activities of $566,192 during the year ended June 30, 2015. At June 30, 2015, the Company had working capital of $291,331. These factors raise substantial doubt about the Company’s ability to continue as a going concern.

 

In order for us to continue as a going concern, we will need to obtain additional debt or equity financing. We are regularly and continually seeking additional funding from investors and from time to time we are in various stages of negotiations. Nonetheless, to date we have not accomplished a financing of the size needed to put the Company on a stable operating basis. There can be no assurance that we will be able to secure additional debt or equity financing, that we will be able to attain positive cash flow operations, or that, if we are successful in any of those actions, those actions will produce adequate cash flow to enable us to meet our future obligations. All of our existing financing arrangements are short-term. If we are unable to obtain additional debt or equity financing, we may be required to cease operations.

XML 24 R32.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 7 - Discontinued Operations: Schedule of Loss from Discontinued Operations (Details) - USD ($)
12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Details    
Professional services $ 0 $ 24,001
Interest Expense 0 165,501
Rent Expense 0 4,200
Lease Acquisition Expenses 0 105,750
Depreciation 0 3,648
Salaries 0 104,700
Travel 0 3,950
Impairment of Long-Lived Assets Held-for-use 0 256,398
Other expenses 0 1,300
Gain (Loss) on Disposition of Stock in Subsidiary 0 (86,822)
Loss from discontinued operations $ 0 $ 756,270
XML 25 R2.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED BALANCE SHEETS - USD ($)
Jun. 30, 2015
Jun. 30, 2014
Current Assets    
Cash $ 2,306 $ 3,628
Prepaid expenses 10,500  
Subscriptions receivable 393,750  
Notes receivable   128,657
Total current assets 406,556 132,285
Total Assets 406,556 132,285
Current Liabilities    
Accounts payable 31,672 8,503
Accounts payable, related parties 11,901  
Accrued liabilities 6,652 206,207
Notes payable, related parties 65,000 115,787
Total current liabilities 115,225 330,497
Total Liabilities $ 115,225 $ 330,497
Commitments and Contengiencies
STOCKHOLDERS' EQUTY (DEFICIT)    
Preferred stock, $.0001 par value, 400,000 shares authorized; no shares issued and outstanding
Common stock $.0001 par value, 100,000,000 shares authorized; 3,847, 236 shares issued and outstanding at June 30, 2015 and 1,088,667 shares issued and outstanding at June 30, 2014 $ 385 $ 109
Additional paid-in capital 6,889,818 5,577,675
Accumulated deficit (6,598,872) (5,775,996)
Total stockholders' equity (deficit) 291,331 (198,212)
Total Liabilities and Stockholders' Deficit $ 406,556 $ 132,285
XML 26 R6.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Cash Flows From Operating Activities    
Net loss $ (822,876) $ (3,498,611)
Adjustments to reconcile net loss to net cash used in operating activities:    
Share-based compensation 350,002 1,638,666
Stock issued for expenses 81,667  
Stock expense for settlement in stock in excess of liability   373,391
Accretion of debt discount   44,424
Depreciation   3,648
Bad debt expense-notes receivable   50,833
Impairment of land under capital lease   257,414
Changes in operating assets and liabilities:    
Prepaid expenses (10,500)  
Accounts payable 23,169 432,390
Accounts payable, related parties 11,901 (54,031)
Accrued liabilities (199,555) 562,430
Net Cash Used in Operating Activities (566,192) (189,446)
Cash Flows From Investing Activities    
Principal payments on notes receivable 128,657 98,804
Net Cash Provided by Investing Activities 128,657 98,804
Cash Flows From Financing Activities    
Proceeds from issuance of common stock for cash 487,000 125,000
Principal payments on unsecured notes payable, related parties (115,787) (17,500)
Proceeds from issuance of unsecured notes payable, related parties 65,000  
Principal payments on secured convertible notes payable, related parties   (18,000)
Net Cash Provided by Financing Activities 436,213 89,500
Net Decrease in Cash (1,322) (1,142)
Cash at Beginning of Period 3,628 4,770
Cash at End of Period 2,306 3,628
Noncash Investing and Financing activities:    
Conversion of accounts payable and accrued liabilities to notes payable   476,926
Shares issued to pay principal and accrued interest of secured convertible notes payable   58,800
Shares issued to sale Agricon SH Ghana   665,700
Shares issued for settlement of liabilities   838,835
Shares issued for subscriptions receivable 393,750  
Cash paid for interest $ 13,319 $ 9,544
XML 27 R35.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 10 - Income Taxes (Details) - USD ($)
12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Operating Losses relating to Domestic Operations $ 822,876 $ 2,829,163
Operating Losses relating to Foreign Operations 0 669,448
Net Operating Loss Carryforwards 6,467,305 7,240,785
Loss from Operations $ (804,488) (2,658,712)
Percentage change of ownership during the period 50.00%  
GHANA    
Loss from Operations $ 0 (1,869,348)
Minimum    
Operating Loss Carryforwards, Expiration Date Dec. 31, 2032  
Internal Revenue Service (IRS)    
Net Operating Loss Carryforwards $ 2,540,382 1,945,797
NOL Carryforwards to Become Permanently Restricted 0  
State and Local Jurisdiction    
Net Operating Loss Carryforwards 3,926,923 $ 3,425,640
NOL Carryforwards to Become Permanently Restricted $ 1,274,626  
XML 28 R22.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 10 - Income Taxes: Deferred income tax assets, temporary differences and carry forwards (Tables)
12 Months Ended
Jun. 30, 2015
Tables/Schedules  
Deferred income tax assets, temporary differences and carry forwards

The temporary differences and carry forwards which give rise to the deferred income tax assets are as follows:

For the Years Ended June 30,

2015

2014

Accrued compensation

$22,380

$43,189

Debt discount & benefical conversion feature

-

(4,075)

Other

-

6,516

Net operating loss carry forwards

993,318

774,617

Valuation allowance

(1,015,698)

(820,247)

Net long-term deferred tax asset

$-

$-

 

XML 29 R36.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 10 - Income Taxes: Deferred income tax assets, temporary differences and carry forwards (Details) - USD ($)
Jun. 30, 2015
Jun. 30, 2014
Details    
Accrued compensation $ 22,380 $ 43,189
Debt Discount & Beneficial conversion on debt 0 (4,075)
Other 0 6,516
Net operating loss carry forwards 993,318 774,617
Valuation allowance (1,015,698) (820,247)
Deferred Tax Assets, Net of Valuation Allowance, Total $ 0 $ 0
XML 30 R24.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 1 - The Company and Basis of Presentation (Details)
12 Months Ended
Jun. 30, 2015
Details  
Stockholders' Equity, Reverse Stock Split 1 for 30 reverse stock split
Entity Information, Date to Change Former Legal or Registered Name Jun. 18, 2015
XML 31 Show.js IDEA: XBRL DOCUMENT /** * Rivet Software Inc. * * @copyright Copyright (c) 2006-2011 Rivet Software, Inc. All rights reserved. * Version 2.4.0.3 * */ var Show = {}; Show.LastAR = null, Show.hideAR = function(){ Show.LastAR.style.display = 'none'; }; Show.showAR = function ( link, id, win ){ if( Show.LastAR ){ Show.hideAR(); } var ref = link; do { ref = ref.nextSibling; } while (ref && ref.nodeName != 'TABLE'); if (!ref || ref.nodeName != 'TABLE') { var tmp = win ? win.document.getElementById(id) : document.getElementById(id); if( tmp ){ ref = tmp.cloneNode(true); ref.id = ''; link.parentNode.appendChild(ref); } } if( ref ){ ref.style.display = 'block'; Show.LastAR = ref; } }; Show.toggleNext = function( link ){ var ref = link; do{ ref = ref.nextSibling; }while( ref.nodeName != 'DIV' ); if( ref.style && ref.style.display && ref.style.display == 'none' ){ ref.style.display = 'block'; if( link.textContent ){ link.textContent = link.textContent.replace( '+', '-' ); }else{ link.innerText = link.innerText.replace( '+', '-' ); } }else{ ref.style.display = 'none'; if( link.textContent ){ link.textContent = link.textContent.replace( '-', '+' ); }else{ link.innerText = link.innerText.replace( '-', '+' ); } } }; XML 32 R7.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 1 - The Company and Basis of Presentation
12 Months Ended
Jun. 30, 2015
Notes  
Note 1 - The Company and Basis of Presentation

NOTE 1 — THE COMPANY AND BASIS OF PRESENTATION

 

Principles of Consolidation — The accompanying consolidated financial statements are presented in conformity with accounting principles generally accepted in the United States of America and include operations and balances of CryptoSign Inc. (formerly StrategaBiz Inc., Agricon Global Corporation, and BayHill Capital Corporation) and its wholly-owned subsidiaries Canola Properties Ghana Limited, (“CPGL”), and Agricon SH Ghana Limited (“ASHG”), both Ghanaian limited liability companies collectively “CryptoSign” or the “Company.” CPGL and ASHG were incorporated under the laws of Ghana on July 5, 2011 and November 7, 2012, respectively. Intercompany balances and transactions have been eliminated in consolidation. In December 2013, CPGL discontinued its agricultural activities and transferred its remaining assets to ASHG. On June 20, 2014, ASHG was sold. The operations of CPGL and ASHG are included in the consolidated statements of operations up to the date of discontinued activities and sale, respectively, and are classified as discontinued operations.

 

Nature of Operations — All of the Company’s business for the year ended June 30, 2014 was conducted through its two wholly-owned subsidiaries CPGL and ASHG. The Company’s business activities prior to June 20, 2014 were organizing the Company, locating appropriate land that might be leased or purchased for cultivating and harvesting agricultural products. The Company discontinued all business activities on June 20, 2014 and has been since that time a “shell corporation” under SEC regulations.

Change in Corporate Name and Equity Structure — Effective December 15, 2015, the Company filed an Amended and Restated Certificate of Incorporation (“Restated Certificate”) with the Delaware Secretary of State whereby the Company (a) changed its name to StrategaBiz, Inc. and (b) effected a reverse stock split to reduce the number of shares of outstanding common stock at a rate of 1 share for every 30 shares of common stock then outstanding (“Reverse Split”). The approval of the Restated Certificate to change the Company's name was approved by written consent of holders of a majority of the Company’s common stock. Each stockholder owning fewer than 30 shares of common stock immediately before the effective time of the Reverse Stock Split received from the Company $0.10 in cash, without interest, for each of such shares of common stock; and (b) each stockholder owning of record 30 or more shares of common stock immediately before the effective time of the Reverse Split held, after the Reverse Split, the number of shares of common stock equal to 1/30th of the number held prior to the Reverse Split. On November 25, 2014 the Company filed with the Securities and Exchange Commission, and the Company’s stockholders were furnished with a Definitive Information Statement filed on Schedule 14(c) to advise the stockholders of the corporate actions. The Company’s common stock began trading on January 15, 2015 on a post-split basis under the symbol “SGBZ.” All share and per-share amounts included in these consolidated financial statements have been restated to reflect the 1 for 30 reverse stock split.

 

Effective June 18, 2015, the Company changed its name to CryptoSign, Inc. by filing a Certificate of Amendment to the Amended and Restated Certificate of Incorporation with the Delaware Secretary of State. In connection with the name change, the Company changed its trading symbol to “CPSN.” The name and symbol change were done in anticipation of a merger with an operating company in the crypto currency industry.

 

Changes in Management and Directors — On October 22, 2014, the Company filed an Information Statement pursuant to Section 14(f) of the Securities Exchange Act of 1934 and Rule 14f-1 thereunder, with a proposed change in the majority of the board of directors and an addition to management. The proposed change included the resignation of Rene Mikkelsen, Alan Kronborg, Robert Bench, and Peter Opata as directors, the appointment of Brian Mertz and Ole Sigetty as directors and the appointment of Brian Mertz as Chief Executive Officer. These changes became effective on November 5, 2014.

XML 33 R3.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Jun. 30, 2015
Jun. 30, 2014
Statement Of Financial Position    
Common Stock, par or stated value $ 0.0001 $ 0.0001
Common Stock, shares authorized 100,000,000 100,000,000
Common Stock, shares issued 3,847,236 1,088,667
Common Stock, shares outstanding 3,847,236 1,088,667
Preferred Stock, par or stated value $ 0.0001 $ 0.0001
Preferred Stock, shares authorized 400,000 400,000
Preferred Stock, shares issued
Preferred Stock, shares outstanding
XML 34 R17.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 11 - Subsequent Events
12 Months Ended
Jun. 30, 2015
Notes  
Note 11 - Subsequent Events

NOTE 11 – Subsequent Events

 

On June 30, 2015, the Company received subscriptions for the purchase of 175,000 shares of its common stock totaling $393,750. The Company received cash for the full subscriptions in July 2015.

XML 35 R1.htm IDEA: XBRL DOCUMENT v3.3.0.814
Document and Entity Information - USD ($)
12 Months Ended
Jun. 30, 2015
Sep. 30, 2015
Dec. 31, 2014
Document And Entity Information      
Entity Registrant Name STRATEGABIZ, INC.    
Entity Central Index Key 0000726293    
Document Type 10-K    
Document Period End Date Jun. 30, 2015    
Amendment Flag false    
Current Fiscal Year End Date --06-30    
Is Entity a Well-known Seasoned Issuer? No    
Is Entity a Voluntary Filer? No    
Is Entity's Reporting Status Current? Yes    
Entity Filer Category Smaller Reporting Company    
Entity Public Float     $ 2,405,603
Entity Common Stock, Shares Outstanding   3,847,236  
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2015    
Trading Symbol cpsn    
Entity Information, Date to Change Former Legal or Registered Name Jun. 18, 2015    
XML 36 R18.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 3 - Summary of Significant Accounting Policies (Policies)
12 Months Ended
Jun. 30, 2015
Policies  
Use of Estimates

Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure on contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include estimated future value of leased properties, realizability of notes receivable, and realizability of deferred tax assets. Actual results could differ from those estimates.

Business Condition

Business Condition – The Company discontinued all business activities on June 20, 2014 and as of June 30, 2015 was a “shell corporation” under SEC regulations. The Company has begun to look for operating companies or other business opportunities to acquire. The ability of the Company to continue as a going concern is dependent on the success of that plan. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern (see Note 2—Going Concern).

Cash

Cash–The balance in cash consists of cash reserves held in checking accounts.

Notes Receivable

Notes Receivable – The Company had one note receivable, which arose from the sale of Commission River, a prior subsidiary. The note was paid during the year ended June 30, 2015. See further discussion and disclosure in Note 4.

Subscriptions Receivable

Subscriptions Receivable – The Company recognizes subscriptions receivable as an asset when the cash is received subsequent to the balance sheet date but prior to the filing of the financial statements. See further discussion and disclosure in Note 11.

Income Taxes

Income Taxes – The Company accounts for income taxes pursuant to Accounting Standards Codification (ASC) 740, Income Taxes, which requires the use of the asset and liability method of accounting for deferred income taxes. We recognize deferred tax liabilities and assets based on the differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements that will result in taxable or deductible amounts in future years.

 

All allowances against deferred income tax assets are recorded in whole or in part, when it is more likely than not those deferred income tax assets will not be realized. Deferred tax assets and liabilities are measured using enacted tax rates expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.

 

A valuation allowance is required to the extent it is more-likely-than-not that a deferred tax asset will not be realized. ASC 740 also requires reporting of taxes based on tax positions that meet a more-likely-than-not standard and are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits. ASC 740 also provides guidance on the presentation of tax matters and the recognition of potential IRS interest and penalties. The Company classifies penalty and interest expense related to income tax liabilities as an income tax expense. The Company did not recognize interest or penalties in the consolidated statements of operations for the years ended June 30, 2015 and 2014 and no accrued interest or penalties are included in the consolidated balance sheets as of June 30, 2015 and 2014. See further discussion and disclosures in Note 10.

Basic and Diluted Loss Per Share

Basic and Diluted Loss Per Share – Basic loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted loss per common share is calculated by dividing net loss by the weighted-average number of common shares outstanding during the period giving no effect to potentially dilutive issuable common shares. As of June 30, 2015 the Company had no options or potentially issuable shares outstanding.

Share-based Compensation

Share-Based Compensation – The Company recognizes compensation expense for share-based awards expected to vest on a straight-line basis over the requisite service period of the award based on their grant date fair value. The Company estimates the fair value of stock options using a lattice model that values the options based on probability weighted projections of the various potential outcomes. The intrinsic value, stock performance, stock volatility, vesting or exercise factors, and forfeiture variables, are all considerations under this model. If stock grants are related to a future performance condition, the Company recognizes compensation expense when the performance condition, leading to the issuance, becomes probable of occurring.

Recently Enacted Accounting Standards

Recently Enacted Accounting Standards – In June 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update No. 2014-10, Development Stage Entities and Elimination of Certain Financial Reporting Requirements, Including an Amendment to Variable Interest Entities Guidance in Consolidation (“ASU 2014-10”), which removed the definition of a development stage entity from the Master Glossary of the Accounting Standards Codification, thereby removing the financial reporting distinction between development stage entities and other reporting entities from U.S. generally accepted accounting principles. In addition, the amendments eliminated the requirements for development stage entities to: (1) present inception-to-date information in the statements of income, cash flows, and shareholder equity, (2) label the financial statements as those of a development stage entity, (3) disclose a description of the development stage activities in which the entity is engaged, and (4) disclose in the first year in which the entity is no longer a development stage entity that in prior years it had been in the development stage. The amendments also clarify that the guidance for risks and uncertainties is applicable to entities that have not yet commenced planned principal operations.

 

The amendments related to the elimination of inception-to-date information and the other remaining disclosure requirements pertaining to development stage entities are to be applied retrospectively. The amendments related to the disclosure of risks and uncertainties are to be applied prospectively. ASU 2014-10 is effective for the Company for annual reporting periods beginning July 1, 2015, and for the interim periods therein, with early application of each of the amendments permitted for any annual reporting period or interim period for which the entity’s financial statements have not yet been issued. As a result, management adopted ASU 2014-10 as of June 30, 2014, and the effects of the adoption are reflected in the accompanying financial statements and related notes. As described above, the adoption of ASU 2014-10 eliminated certain disclosures of information formerly required of development stage entities, including inception-to-date information in the accompanying statements of operations, cash flows, and stockholders’ deficit. The adoption of ASU 2014-10 also combined the amounts of deficit accumulated during the development stage and prior to the development stage into one amount for accumulated deficit in stockholders’ deficit. The elimination of these disclosure requirements had no other effect on the amounts reported for total assets, liabilities, stockholders’ deficit, net loss, or loss per common share.

 

In May 2014, the FASB issued Accounting Standards Update No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-09”), which stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2014-09 will be effective for the Company retrospectively beginning July 1, 2017, with early adoption not permitted. Management is currently evaluating the impact of the pending adoption of ASU 2014-09 on the Company’s financial statements.

XML 37 R4.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
12 Months Ended
Jun. 30, 2015
Jun. 30, 2014
Operating Expenses:    
Selling, general and administrative $ (804,488) $ (2,658,712)
Total Operating Expenses (804,488) (2,658,712)
Loss from Operations (804,488) (2,658,712)
Other Income and Expense:    
Interest income 2,931 21,196
Interest expense (21,319) (104,825)
Total Other Income and Expense (18,388) (83,629)
Loss from continuing operations (822,876) (2,742,341)
Loss from discontinued operations 0 (756,270)
Net Loss $ (822,876) $ (3,498,611)
Basic and diluted loss per common share    
From continuing operations $ (0.28) $ (4.56)
From discontinued operations   (1.27)
Total $ (0.28) $ (5.83)
Basic and diluted weighted average number of common shares outstanding 2,942,468 601,160
XML 38 R12.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 6 - Settlement of Liabilities
12 Months Ended
Jun. 30, 2015
Notes  
Note 6 - Settlement of Liabilities

NOTE 6 – SETTLEMENT OF LIABILITIES

 

On June 20, 2014, the Company issued 267,108 shares of common stock in settlement of various liabilities owed to present and past affiliates of the Company as follows:

 

Nature and Amount of Liability

Accounts

Accrued

Accrued

Notes

Total

Number

Name

Payable

Interest

Liabilities

Payable

liabilities

of shares

Stephen Abu

$116,609

$-

$-

$-

$116,609

116,667

Robert Bench

-

6,450

-

190,455

196,905

46,574

Alan Kronborg

-

-

60,000

60,000

120,000

30,038

Clearwater Law Group

-

2,795

-

48,001

50,796

12,731

Robyn Farnsworth

-

2,613

-

42,430

45,043

11,289

Rene Mikkelsen

-

1,353

3,500

36,462

41,315

10,355

James Jensen

-

2,272

4,500

33,305

40,077

10,049

Soren Jonassen

-

1,109

3,500

30,754

35,363

8,863

Peter Moller

20,000

-

-

-

20,000

6,667

Lars Nielsen

-

3,323

-

75,780

79,103

5,274

Peter Opata

-

120

3,500

8,000

11,620

2,912

John Thomas

-

2,715

-

6,000

8,715

2,184

John Knab

-

2,489

-

5,500

7,989

2,002

Andrew Goodman

6,500

-

-

-

6,500

1,504

Totals

$143,109

$25,239

$75,000

$536,687

$780,035

267,109

In addition to the settlement of the above liabilities all option holders cancelled all granted and outstanding options effective June 20, 2014. The shares of common stock were valued at $4.20 per share on June 20, 2014. The Company recognized additional share-based compensation of $400,249 on the 26,858 shares issued and $373,391 in stock expense for settlement of these liabilities for the fair value of the stock issued stock in excess of the fair value of the liabilities given up. The Company also recognized additional paid in capital of $58,431 for the fair value of the liabilities that were in excess of the fair value of the common stock issued.

XML 39 R11.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 5 - Secured And Unsecured Notes Payable To Related Parties
12 Months Ended
Jun. 30, 2015
Notes  
Note 5 - Secured And Unsecured Notes Payable To Related Parties

NOTE 5 – SECURED AND UNSECURED NOTES PAYABLE TO RELATED PARTIES

 

The Company previously issued unsecured notes to affiliates (officers and directors) for accrued salaries and fees and accrued interest. On June 20, 2014, the Company completed a series of settlements whereby the majority of notes were converted to the Company’s common stock. At June 30, 2014, there were three secured notes payable and one unsecured note payable, with annual interest rates of 15% and maturity dates of September 30, 2014, to present and past affiliates of the Company which related to legal fees, director fees, and unpaid salaries. The notes were all paid during the year ended June 30, 2015. On May 30, 2015, an officer advanced $65,000 to the Company for which an unsecured note payable was issued with an annual interest rate of 18% and maturity date of December 31, 2015. The note and all accrued interest was paid in July 2015. The notes are classified as current liabilities and consist of the following:

 

Note Holder

June 30, 2015

June 30, 2014

 

 

 

 

Brian Mertz

$65,000

$-

ClearWater Law and Governace Group, LLC

-

*

32,001

James U Jensen

-

*

25,954

Robert K Bench

-

*

29,546

Robyn Farnsworth

-

28,286

Total

$65,000

$115,787

*Secured with all Company assets

 

XML 40 R23.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 10 - Income Taxes: Reconciliation of income taxes at the federal statutory rate to actual income tax expense (Tables)
12 Months Ended
Jun. 30, 2015
Tables/Schedules  
Reconciliation of income taxes at the federal statutory rate to actual income tax expense

A reconciliation of income taxes at the federal statutory rate to actual income tax expense is as follows:

For the Years Ended June 30,

2015

2014

Income tax benefit at the statutory rate

$(191,029)

$(1,189,528)

State income taxes, net of federal benefit

(18,641)

(93,462)

Foreign rate differential

-

227,613

Change in valuation allowance

195,451

381,991

Change in net operating loss carry forwards

12,489

(2,057)

Cancelation of stock options

-

643,059

Loss on sale of subsidiary

-

32,384

Other

1,730

-

Income tax expense (benefit)

$-

$-

 

XML 41 R19.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 5 - Secured And Unsecured Notes Payable To Related Parties: Schedule of Secured And Unsecured Notes Payable to Related Parties (Tables)
12 Months Ended
Jun. 30, 2015
Tables/Schedules  
Schedule of Secured And Unsecured Notes Payable to Related Parties

 

Note Holder

June 30, 2015

June 30, 2014

 

 

 

 

Brian Mertz

$65,000

$-

ClearWater Law and Governace Group, LLC

-

*

32,001

James U Jensen

-

*

25,954

Robert K Bench

-

*

29,546

Robyn Farnsworth

-

28,286

Total

$65,000

$115,787

*Secured with all Company assets

 

XML 42 R15.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 9 - Share Based Compensation
12 Months Ended
Jun. 30, 2015
Notes  
Note 9 - Share Based Compensation

NOTE 9 – SHARE BASED COMPENSATION

 

As part of the “Settlement of Liabilities” as discussed in Note 6, all outstanding options were cancelled as of June 20, 2014. As of June 30, 2015 and 2014, there were no options granted or outstanding.

 

On November 5, 2014 the board of directors approved a one-time payment of $50,000 to Messrs. Soren Jonassen and Ole Sigetty, the Company’s outside board members and to Mr. Brian Mertz, the Company’s Chief Executive Officer for their services through the end of the Company’s fiscal year 2015. These amounts were paid by the issuance of 66,667 restricted shares of the Company’s common stock on December 27, 2014, which were priced by the directors at $0.75 per share, which they deemed the appropriate market value at the time of issuance. The shares granted were not subject to vesting; the Company expensed the $350,002 as compensation expense during the year ended June 30, 2015, which reflected the market price ($1.75 per share) of the Company’s stock at the time of issuance.

XML 43 R13.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 7 - Discontinued Operations
12 Months Ended
Jun. 30, 2015
Notes  
Note 7 - Discontinued Operations

NOTE 7 – DISCONTINUED OPERATIONS

 

In December 2013, all operations in CPGL were transferred to ASHG and all operations in CPGL ceased.

 

On June 20, 2014, the Company sold ASHG to Ghana Journeys Limited (“Ghana Journeys”), a company owned by Stephen Abu, a former affiliate of the Company. The fair value of ASHG on the date of sale was $665,700. Ghana Journeys did not pay anything for ASHG other than assuming the remaining liabilities including the capital lease obligation. In addition, the Company issued 158,500 shares of the Company’s common stock to Ghana Journeys valued at $4.20 per share or $665,700. The Company recognized a loss on sale of ASHG of $86,822, which has been included in the discontinued operations on the statement of operations.

 

Since the Company no longer operates in Ghana after the sale of ASHG on June 20, 2014 and CPGL in the prior year, the operations of both subsidiaries have been classified as discontinued operations for both years presented. The loss from discontinued operations for the year ended June 30, 2015 and 2014 was $0 and $756,270, respectively as set forth below:

 

 

 

For the Years Ended June 30,

2015

2014

Professional services

$-

$24,001

Interest expense

-

165,501

Rent expense

-

4,200

Lease acquisition expenses

-

105,750

Depreciation

-

3,648

Salaries

-

104,700

Travel

-

3,950

Impairment expenses

-

256,398

Other expenses

-

1,300

Loss on sale

-

86,822

Loss from discontinued operations

$-

$756,270

 

XML 44 R14.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 8 - Stockholder's Equity
12 Months Ended
Jun. 30, 2015
Notes  
Note 8 - Stockholder's Equity

NOTE 8 – STOCKHOLDERS’ EQUITY

 

The Company's capitalization is 100,000,000 common shares authorized, with a par value of $0.0001 per share. At June 30, 2015, the Company had 3,847,236 common shares outstanding.

Preferred shares of 400,000 with a par value of $0.0001 have been authorized and no shares are issued or outstanding at June 30, 2015.

 

In May 2014, the Company issued 33,333 shares of common stock for $25,000 of cash.

 

In June, 2014, the Company issued 267,108 shares of common stock for settlement of liabilities of $780,035 (Note 6). The Company also issued 158,500 shares of the Company’s common stock to Ghana Journeys valued at $4.20 per share or $665,700 in conjunction with the sale of ASHG (Note 7).

 

In August 2014 the company issued 314,252 shares of common stock for $50,000 of cash.

 

In October 2014 the company issued 1,885,714 shares of common stock for $300,000 of cash.

 

Effective December 15, 2014, the company, effected a 30 for 1 reverse stock split of its authorized and outstanding common stock by filing an Amended and Restated Certificate of Incorporation with the Delaware Secretary of State. As a result, the previously issued and outstanding number of shares of common stock at that time decreased from 98,660,002 shares of common stock to 3,288,280. Stockholders holding less than 30 shares of common stock prior to the reverse stock split will receive cash rather than fractional shares. There was no change in the number of authorized shares nor was there a change in the par value.

 

In December 2014 the company issued 46,667 shares of common stock for the purchase of website domain names for a purchase price of $81,667 which reflects the market price ($1.75 per share) of the Company’s stock at the time the shares were issued.

 

In December 2014 the company issued 200,001 of common stock for payment of $150,001 of compensation to three of its directors (Note 9).

 

In February and March of 2015 the company issued 137,000 shares of common stock for $137,000 of cash.

 

On June 30, 2015 the company issued 175,000 shares of common stock for subscription agreements in the amount of $393,750 that was paid in cash in July 2015.

XML 45 R16.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 10 - Income Taxes
12 Months Ended
Jun. 30, 2015
Notes  
Note 10 - Income Taxes

NOTE 10 – INCOME TAXES

 

Operating losses for the years ended June 30, 2015 and 2014 were $822,876 and $2,829,163 relating to domestic operations and $0 and $669,448 relating to foreign operations, respectively.

 

We had $6,467,305 and $7,240,785 of net operating loss carry forwards as of June 30, 2015 and June 30, 2014, respectively, which are comprised of $2,540,382 and $1,945,797 of U.S. federal and $3,926,923 and $3,425,640 state net operating losses, respectively, which expire in varying amounts beginning 2032, if unused. The Company also has net operating losses related to its Ghana operations of $0 and $1,869,348 as of June 30, 2015 and 2014, which begin to expire in 2018; however, there is a tax holiday for our agriculture operations in Ghana and therefore there is no future tax benefit for the losses. The Company ceased operations in Ghana so this portion of the net operating losses will expire unused and was reduced to zero as of June 30, 2015.

 

A change in our ownership of more than 50% occurred during the year ended June 30 2015. The annual utilization of the net operating carry forwards is subject to certain limitations under Section 382 of the Internal Revenue Code of 1986, as amended, and other limitations under state tax laws. As a result, the provisions of Section 382 caused net operating losses $0 U.S. federal and $1,274,626 state to become permanently restricted.

 

 

 

The temporary differences and carry forwards which give rise to the deferred income tax assets are as follows:

For the Years Ended June 30,

2015

2014

Accrued compensation

$22,380

$43,189

Debt discount & benefical conversion feature

-

(4,075)

Other

-

6,516

Net operating loss carry forwards

993,318

774,617

Valuation allowance

(1,015,698)

(820,247)

Net long-term deferred tax asset

$-

$-

 

 

A reconciliation of income taxes at the federal statutory rate to actual income tax expense is as follows:

For the Years Ended June 30,

2015

2014

Income tax benefit at the statutory rate

$(191,029)

$(1,189,528)

State income taxes, net of federal benefit

(18,641)

(93,462)

Foreign rate differential

-

227,613

Change in valuation allowance

195,451

381,991

Change in net operating loss carry forwards

12,489

(2,057)

Cancelation of stock options

-

643,059

Loss on sale of subsidiary

-

32,384

Other

1,730

-

Income tax expense (benefit)

$-

$-

 

XML 46 R34.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 9 - Share Based Compensation (Details) - USD ($)
1 Months Ended 2 Months Ended 12 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Dec. 31, 2014
Jun. 30, 2015
Dec. 27, 2014
Jun. 30, 2014
Jun. 20, 2014
Allocated Share-based Compensation Expense $ 150,001   $ 50,000   $ 350,002      
Common Stock                
Issuance of stock for payment of expenses, Shares   200,001   66,667        
Share Price         $ 1.75 $ 0.75 $ 4.20 $ 4.20
XML 47 R21.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 7 - Discontinued Operations: Schedule of Loss from Discontinued Operations (Tables)
12 Months Ended
Jun. 30, 2015
Tables/Schedules  
Schedule of Loss from Discontinued Operations

 

For the Years Ended June 30,

2015

2014

Professional services

$-

$24,001

Interest expense

-

165,501

Rent expense

-

4,200

Lease acquisition expenses

-

105,750

Depreciation

-

3,648

Salaries

-

104,700

Travel

-

3,950

Impairment expenses

-

256,398

Other expenses

-

1,300

Loss on sale

-

86,822

Loss from discontinued operations

$-

$756,270

 

XML 48 R26.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 4 - Notes Receivable (Details) - Commission River Corporation - USD ($)
12 Months Ended
Jun. 30, 2015
Aug. 31, 2010
Debt Instrument, Face Amount   $ 490,000
Debt Instrument, Interest Rate, Stated Percentage 6.00%  
Debt Instrument, Frequency of Periodic Payment monthly  
Required monthly payments $ 10,000  
XML 49 R5.htm IDEA: XBRL DOCUMENT v3.3.0.814
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' DEFICIT - USD ($)
Preferred Stock
Common Stock
Additional Paid-in Capital
Accumulated Deficit
Total
Stockholders' Equity, beginning of period, Value at Jun. 30, 2013 $ 62 $ 2,036,130 $ (2,277,385) $ (241,193)
Stockholders' Equity, beginning of period, Shares at Jun. 30, 2013 623,529      
Issuance of stock for cash, Value   $ 3 24,997   25,000
Issuance of stock for cash, Shares   33,333      
Issuance of stock for settlement of liabilities, Value   $ 27 838,808   838,835
Issuance of stock for settlement of liabilities, Shares   273,205      
Issuance of stock related to sale of ASHG, Value   $ 16 665,684   665,700
Issuance of stock related to sale of ASHG, Shares   158,500      
Share-based compensation from issuance of options and stock     1,638,666   1,638,666
Stock expense for settlement in stock in excess of liability     373,391   373,391
Net loss       (3,498,611) (3,498,611)
Stockholders' Equity, end of period, Value at Jun. 30, 2014   $ 109 5,577,675 (5,775,996) (198,212)
Stockholders' Equity, end of period, Shares at Jun. 30, 2014   1,088,568      
Issuance of stock for cash, Value   $ 234 486,766   487,000
Issuance of stock for cash, Shares   2,337,000      
Issuance of stock for subscriptions receivable, Value   $ 18 393,733   393,750
Issuance of stock for subscriptions receivable, Shares   175,000      
Issuance of stock for payment of expenses, Value   $ 5 81,663   81,667
Issuance of stock for payment of expenses, Shares   46,667      
Issuance of stock for Compensation, Value   $ 20 349,982   350,002
Issuance of stock for Compensation, Shares   200,001      
Net loss       (822,876) (822,876)
Stockholders' Equity, end of period, Value at Jun. 30, 2015   $ 385 $ 6,889,818 $ (6,598,872) $ 291,331
Stockholders' Equity, end of period, Shares at Jun. 30, 2015   3,847,236      
XML 50 R10.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 4 - Notes Receivable
12 Months Ended
Jun. 30, 2015
Notes  
Note 4 - Notes Receivable

NOTE 4 – NOTES RECEIVABLE

 

On August 31, 2010, the Company sold its wholly-owned subsidiary, Commission River Corporation. As part of the payment for the sale, the Company was issued a secured negotiable promissory note receivable, in the amount of $490,000, with varying interest rates beginning at 6% and required monthly payments of $10,000 until its maturity on September 12, 2014. The note was secured by all of the assets of Commission River Corporation. On September 12, 2014, Commission River Corporation paid all of the remaining principal balance and accrued interest.

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Note 5 - Secured And Unsecured Notes Payable To Related Parties (Details) - USD ($)
12 Months Ended
Jun. 30, 2015
May. 30, 2015
Jun. 30, 2014
Unsecured Debt      
Debt Instrument, Interest Rate, Stated Percentage   18.00%  
Debt Instrument, Face Amount   $ 65,000  
Debt Instrument, Maturity Date Dec. 31, 2015    
PresentAndPastAffiliatesMember      
Debt Instrument, Interest Rate, Stated Percentage     15.00%
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Note 11 - Subsequent Events (Details)
12 Months Ended
Jun. 30, 2015
USD ($)
shares
Issuance of stock for subscriptions receivable, Value $ 393,750
Subsequent Event  
Issuance of stock for subscriptions receivable, Shares | shares 175,000
Issuance of stock for subscriptions receivable, Value $ 393,750
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Note 6 - Settlement of Liabilities: Schedule of Settlement Of Liabilities (Tables)
12 Months Ended
Jun. 30, 2015
Tables/Schedules  
Schedule of Settlement Of Liabilities

 

Nature and Amount of Liability

Accounts

Accrued

Accrued

Notes

Total

Number

Name

Payable

Interest

Liabilities

Payable

liabilities

of shares

Stephen Abu

$116,609

$-

$-

$-

$116,609

116,667

Robert Bench

-

6,450

-

190,455

196,905

46,574

Alan Kronborg

-

-

60,000

60,000

120,000

30,038

Clearwater Law Group

-

2,795

-

48,001

50,796

12,731

Robyn Farnsworth

-

2,613

-

42,430

45,043

11,289

Rene Mikkelsen

-

1,353

3,500

36,462

41,315

10,355

James Jensen

-

2,272

4,500

33,305

40,077

10,049

Soren Jonassen

-

1,109

3,500

30,754

35,363

8,863

Peter Moller

20,000

-

-

-

20,000

6,667

Lars Nielsen

-

3,323

-

75,780

79,103

5,274

Peter Opata

-

120

3,500

8,000

11,620

2,912

John Thomas

-

2,715

-

6,000

8,715

2,184

John Knab

-

2,489

-

5,500

7,989

2,002

Andrew Goodman

6,500

-

-

-

6,500

1,504

Totals

$143,109

$25,239

$75,000

$536,687

$780,035

267,109