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Settlement
3 Months Ended
Sep. 30, 2016
Notes to Financial Statements  
Settlement

NOTE 8 – SETTLEMENT

 

On September 21, 2016, the Company entered into a settlement agreement with an individual who was a former officer of the Company.  The individual had loaned the Company $250,000 in prior years and was also issued 500,000 shares of common stock for services.  The Company alleged that the individual used the Company's intellectual property without approval.   Under the terms of the settlement agreement, the individual agreed to relinquish a convertible note payable and unpaid interest aggregating $361,686 (see Note 4), a note payable of $3,000, and return the 500,000 shares of common stock issued to him.  In turn, the Company agreed to release and discharge the individual against all claims arising on or prior to the date of the settlement agreement.  The Company recorded this as a gain on settlement of $364,686 for the three months ended September 30, 2016. As of September 30, 2016, the shares have not been relinquished. When the Company receives the shares, it will record a cancellation of shares.