Get Started for Free Contexxia identifies hard-to-find pieces of information in SEC filings. No more highlighters, no more redlining, no more poring over huge documents. BigString CORP (1335282) 10-Q published on May 21, 2012 at 2:18 pm
Reporting Period: Mar 30, 2012
As of March 31, 2012 and December 31, 2011, the Company held certain financial assets that are measured at fair value on a recurring basis. These consisted of cash and cash equivalents and investments. The fair value of the cash and cash equivalents is determined based on quoted market prices in public markets and is categorized as Level 1. The fair value of BigString’s investment in PeopleString at March 31, 2012 and December 31, 2011 was determined based on quoted market prices in public markets and is categorized as Level 1. The fair value of BigString’s investment in FindItAll, Inc. was determined based on cost and was categorized as Level 3. There were no transfers in or out of Level 3 during three months ended March 31, 2012 and the year ended December 31, 2011.
On February 13, 2012, BigString repriced options to purchase 5,125,000 shares of BigString’s common stock under its Equity Incentive Plan. The exercise price of the repriced options was reduced to $0.02 per share and the term extended. As a result of this repricing, the original options were deemed cancelled and new options with an exercise price of $0.02 per share were deemed issued. In addition, the Company granted new options to certain of the Company’s employees and consultants. Options were granted at an exercise price of $0.02 per underlying share with 25% vesting every three months for one year.
In March, 2009, BigString announced the launch of the PeopleString incentive-based social network that pays users to receive regular direct mail and perform internet activities, such as email, instant messaging, video mail, online file storage, search and shopping.
On January 31, 2011, BigString entered into a separate Agreement and Release with each of the Releasors, who are the holders of the Notes and the Warrants (see Note 10 to BigString’s unaudited consolidated financial statements contained herein). Pursuant to the terms of each Agreement and Release, the Releasors have each agreed to forfeit the Warrants held by each of them to BigString for cancellation and to enter into amendments to each of the Notes held by each of them whereby the term of each Note will be extended by two years. In addition, the Releasors have each agreed to release any claims they each had or may have had against BigString through the date of their respective Agreement and Release. In consideration of the foregoing, BigString has transferred 500,000 shares of PeopleString common stock to Alpha Capital Anstalt and 1,500,000 shares of PeopleString common stock to Whalehaven Capital Fund Limited.
* The certifications attached as Exhibit 32.1 and Exhibit 32.2 accompanying this quarterly report on Form 10-Q are not deemed filed with the Securities and Exchange Commission and are not to be incorporated by reference into any filing of BigString Corporation, under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended, whether made before or after the date of this quarterly report on Form 10-Q, irrespective of any general incorporation language contained in such filing.
** Furnished herewith. XBRL (Extensible Business Reporting Language) information is furnished and not filed or a part of a registration statement or prospectus for purposes of Sections 11 or 12 of the Securities Act of 1933, as amended, is deemed not filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and otherwise is not subject to liability under these sections.