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Subsequent Events
9 Months Ended
Aug. 31, 2014
Subsequent Events [Abstract]  
Subsequent Events

Note 16 - Subsequent Events

 

Sale of assets and liabilities of a wholly-owned subsidiary of the Company

On September 30, 2014, a wholly-owned subsidiary of the Company entered into a contract of sale to transfer certain assets and liabilities, including a copy of internally developed mobile content delivery software to Vaxstar LLC (the “Buyer”). The Buyer simultaneously assigned the contract of sale to Valuesetters, Inc. (the “Assignee”).

 

The Buyer agreed to pay the Company 40,000,000 shares of common stock, par value $0.001, of the Assignee. If annual revenues in the second year of operations of the business exceed $1,000,000, the Company will receive an additional 9,900,000 shares of Assignee’s common stock.

 

The Company and the Assignee signed a license agreement that allows the Company a non-exclusive right to use the software. In addition, the Company agreed to become a wholesale customer of the Assignee, and the Assignee agreed to provide technical and customer support services for the Company’s customers.

 

  

Debt matters

 

On September 4, 2014, a lender converted $5,025 of debt into 50,250,000 shares of common stock.

 

 

On September 8, 2014, a default judgment in the amount of $70,000 was filed in Nassau County New York against the Company for failure to pay promissory notes owed to a lender.

 

On September 11, 2014, a lender converted $2,190 of debt into 36,500,000 shares of common stock.

 

On September 11, 2014, Factor Fund converted $10,000 of debt into 50,000,000 shares of common stock.

 

On September 23, 2014, the Company issued its CEO one share of Series E Preferred Stock for the conversion of a note and accrued interest of $14,721. The Series E Preferred Stock provides a voting right of 4 times the value of the total number of common stock issued and outstanding at the time of voting. As a result, the shareholder of the Series E Preferred share has voting control of the company.

 

On October 6, 2014, a lender converted $3,015 of debt into 50,250,000 shares of common stock.