Subsequent Events |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
| Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
| SUBSEQUENT EVENTS | NOTE 12 – SUBSEQUENT EVENTS
Sale of Future Accounts Receivable
On August 16, 2017, the Company entered into a financing agreement whereby it sold $68,000 of future accounts receivable for net cash proceeds of $49,000 represented by a $50,000 gross sales price less a $1,000 origination fee. The Company is required to make daily repayments of $540.
Common Stock Issuances
On various dates through August 21, 2017, the Company issued a total of 2,800,746 common shares for the conversion of outstanding principal on convertible notes payable totaling $55,204 and 388,035 common shares for the conversion of accrued interest on convertible note payable totaling $7,761. All conversions were performed at the contractual terms within each respective convertible note.
Letters of Intent
Effective March 30, 2017, the Company entered into a non-binding letter of intent (“LOI”) with AZUGROUP USA, LLC (“AZUGROUPUSA”), to acquire assets owned or controlled by AZUGROUP USA, LLC and its majority shareholder, Mr. Antonio Faranda. AZUGROUP USA, LLC and Mr. Antonio Faranda own or control the following Italian companies: AZUGROUP SRL Socio Unico, Cardnology S.R.L. and Go Card S.R.L. (collectively “AZUGROUP”). The sole minority partner in AZUGROUP will be compensated $267,000 in exchange for the remaining interest in AZUGROUP. After the buyout of the remaining minority partner, Antonio Faranda will be the sole shareholder of AZUGROUP.
Effective May 16, 2017, the Company entered into a non-binding letter of intent (“LOI”) with LIMECOM INC. (“LIMECOM”), to acquire assets owned or controlled by LIMECOM INC. and its President & CEO, Mr. Orlando Taddeo. Under the terms of the LOI, subject to a definitive agreement and customary due diligence and shareholder approval, the Company will acquire the assets of or merge with LIMECOM.
Redemption Agreements on Convertible Notes Payable
On July 3 and July 5, 2017, the Company signed definitive agreements with three separate convertible noteholders that hold an aggregated value of $1,106,500 in Convertible Notes. These agreements allow the Company to buy back up to 75% of the outstanding notes before Aug 7, 2017. As part of the agreements, the convertible noteholders have agreed to not convert any principal our accrued interest outstanding through August 7, 2017. Effective August 7, 2017, the conversion price floor will increase from $0.02 per share to $0.10 per share if the Company raises between $2,000,000-$2,999,999 and will increase to $0.15 per share if the Company is successful in raising $3 million by August 7, 2017. The Company did not repay any portion of the outstanding notes payable during the periods covered by the agreements. The Company is actively negotiating to enter into an additional amendment to extend the agreements.
The redemption agreements were with the following noteholders:
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