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. Face Up Entertainment Group, Inc. (1479919) 10-K published on Apr 16, 2013 at 4:31 pm
Reporting Period: Dec 30, 2012
The Company does not own any real estate or other properties. The Company's office is located at 20 East Sunrise Highway, Suite 202, Valley Stream, New York 11581, in office space provided by Yitz Grossman, who was formerly a consultant of the Company, at no charge. It is currently sufficient for our operations.- Company will find and will look but has not found or even looked yet- will do so in the coming weeks
Notwithstanding the foregoing, on April 4, 2013 the United States Attorney and the Federal Bureau of Investigation announced charges against seven individuals for their roles in a conspiracy to commit securities fraud and the extortion of a con-conspirator. The complaint alleges that the defendants worked to fraudulently inflate the prices and trading volumes of publicly traded stock of small companies, including our company. One of the defendants was a consultant to the Company since February 2011 and has resigned effective April 10, 2013.
As of December 31, 2012 we had a total of $1,666,000 owed to nine entities and individuals, of which $416,000 are due upon demand and $1,250,000 are due on May 1, 2013 with the exception of one Note in the amount of $25,000 which was due on March 15, 2013 and is currently in default. Of the $1,666,000 outstanding as of December 31, 2012, $466,000 is owed to affiliates of the company.
During the first quarter of 2013, the Company borrowed $97,000 of additional funds nonaffiliated lenders. On January 24, 2013 the Company canceled three of the notes totaling $125,000 and issued a note in the amount of $134,414 to an unrelated party. The Note issued included $9,414 of accrued interest due to holders of the cancelled Notes. The note payable has a conversion factor whereby the note holder may convert the principal amount and accrued unpaid interest into common stock equal to a price which is a 32.5% discount from the lowest “VWAP in the 3 days prior to the day that the holder requests conversion.
In addition to the outstanding Notes, as of April 14, 2013, we also currently owe $311,000 in cash and non cash prizes to our site members. the break down of that amount is as follows, As of Dec 31, 2012 the amount of the cash prizes owed was $151,000 and a $80,000 in non cash prizes, equaling a total of $231,000 owed on 12-31-12. For the period of 1-1-2013 to April 14, 2013 we owe an additional $45,000 in cash prizes and $35,000 in no cash prizes.
On January 24, 2013 the Company canceled three of the notes totaling $125,000 to related parties and issued a note for $134,414 to an unrelated party. The note issued included $9,414 of accrued interest due to the related parties. The note payable has a conversion factor whereby the note holder may convert the principal amount and accrued unpaid interest into common stock equal to a price which is a 32.5% discount from the lowest “VWAP in the 3 days prior to the day that the holder requests conversion.
Notwithstanding the foregoing, on April 4, 2013 the United States Attorney and the Federal Bureau of Investigation announced charges against seven individuals for their roles in a conspiracy to commit securities fraud and the extortion of a con-conspirator. The complaint alleges that the defendants worked to fraudulently inflate the prices and trading volumes of publicly traded stock of small companies, including our company. One of the defendants was an unpaid consultant to the Company since February 2011 and resigned effective April 10, 2013.