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. SEFE, INC. (1321573) 10-Q published on Dec 13, 2012 at 6:48 am
Reporting Period: Sep 29, 2012
On July 16, 2010, the Company issued 30,000,000 shares of its common stock valued at $30,000 to SEFE, Inc., pursuant to the July 16, 2010 Intellectual Property Assignment Agreement.
On February 1, 2011, the Company authorized an aggregate of 150,000 shares of common stock to three non-affiliated parties for consulting services rendered with a total value of $150,000. See Note 5 for additional details concerning the consulting expense. As of September 30, 2011, the agreements were rescinded and the 150,000 shares were never issued.
On August 3, 2010, the Company entered into a legal services agreement. As a portion of the compensation paid to the law firm, the Company issued options to purchase 125,000 shares of common stock of the Company, with an exercise price of $1.00. During the nine months ended September 30, 2012, the option to purchase the shares expired. See Note 9 – Agreements for additional discussion regarding the legal services agreement.
On November 9, 2012, the Company entered into a debenture with an unrelated third party for $65,000 with interest at 8% per annum and a balloon payment of principal and interest due on November 9, 2013. In connection with the debenture, the Company issued warrants to purchase up to 16,250 shares of the Company’s common stock at an exercise price of $1.00 per share.
In connection with the conversion of debt during 2012, the debt holders forgave all interest accrued thereupon since the creation of the notes. During the three month periods ended September 30, 2012 and 2011, no interest was forgiven; therefore we did not record any income. In the nine months ended September 30, 2012, we realized $39,092 of income on the forgiveness of debt related to the cancelation of accrued interest on notes payable to non-related parties. Accrued interest forgiven by related party note holders in the amount of $57,814 was recorded as additional paid-in capital. Due to the conversion of these notes, we anticipate interest expense to be significantly lower in upcoming reporting periods. During the comparable nine months ended September 30, 2011, we did not record any forgiveness of debt income.