NOTE 9 – SUBSEQUENT EVENTS

On October 11, 2016, the Company received an $8,000 prepayment from a shareholder to invest into Series A Convertible Preferred Shares pending filing of the Articles of Amendment with the state of Florida.  This is in addition to $140,000 received during the reporting period for a total of $148,000.  In accordance with the articles, the Company will repurchase an equivalent dollar amount of shares from the investor such that the aggregate proceeds from the Series A will be $296,000 or 29,600 Preferred Shares as discussed in Note 7.  The Company will record Temporary Equity in the amount of $296,000 as the transactions are finalized. The Common Stock repurchased will be held on the Company’s balance sheet.

As of October 28, 2016, the Company was current with the $25,000 monthly installment plan with the IRS. (See Note 5)

On October 31, 2016, the Company filed Articles of Amendment Designating Preferences, Rights and Limitations of Series A Convertible Preferred Stock with the state of Florida. (See Note 2) 

On November 4, 2016, the Company was notified by its attorneys that motions were granted against the Company in a legal matter previously disclosed concerning Greentree Financial.  The motions were “without prejudice” and the Company intends to amend both our affirmative defenses and counterclaim to set forth additional information which we intend to submit to the court by November 21, 2016.  The Company continues to seek ways to settle the matter in order to avoid protracted litigation. (See Note 5)