Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.5.0.2
Subsequent Events
9 Months Ended
Sep. 30, 2016
Subsequent Events [Abstract]  
Subsequent Events

Note 16 – Subsequent Events

 

 

Sales of Common Stock

 

On October 5, 2016, the Company issued 1,666,667 units at a price of $0.06 per unit for proceeds of $100,000. Each unit is comprised of one share and one-quarter warrant to acquire a second share at a price of $0.20 per share acquired, with a two-year term on the attached warrant.

 

On October 11, 2016, the Company issued 4,299,689 shares at a price of $0.031 per share for the settlement of convertible notes payable with a total value of $134,150. After this settlement the balance of principal and interest due under this convertible note at October 13, 2016 was nil.

 

On October 14, 2016, the Company issued 116,447 shares at a price of $0.05 per share for the settlement of convertible notes payable with a total value of $5,822. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 was nil. 

 

On October 20, 2016, the Company returned to treasury 1,000,000 issued shares at a price of $0.12 per share for services paid in cash with a total value of $120,000.

 

On October 31, 2016, the Company issued 315,836 shares at a price of $0.07 per share for the settlement of convertible notes payable with a total value of $22,108. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 was nil. 

 

On November 1, 2016, the Company issued 416,446 shares at a price of $0.084 per share for the settlement of convertible notes payable with a total value of $35,000. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 was $48,000. 

 

On November 1, 2016, the Company issued 389,910 shares at a price of $0.077 per share for the settlement of convertible notes payable with a total value of $30,023. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 was $158,476.

 

On November 3, 2016, the Company issued 300,114 shares at a price of $0.07 per share for the settlement of convertible notes payable with a total value of $21,008. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 was $84,033. 

 

On November 3, 2016, the Company issued 360,886 shares at a price of $0.07 per share for the settlement of convertible notes payable with a total value of $25,262. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 was $51,694. 

 

On November 3, 2016, the Company issued 184,775 shares at a price of $0.08 per share for the settlement of convertible notes payable with a total value of $14,782. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 was $83,733. 

 

On November 8, 2016, the Company issued 2,000,000 shares at a price of $0.06872 per share for services with a total value of $137,440.

 

On November 8, 2016, the Company issued 405,259 shares at a price of $0.068 per share for the settlement of convertible notes payable with a total value of $27,355. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 was $82,064. 

  

Settlement of Convertible Promissory Notes:

 

 

On October 11, 2016, the Company issued, by court order, 4,299,689 shares at a price of $0.08 per share for the outstanding convertible note payable with a total value of $343,975. The Company also agreed to pay $25,000 in conjunction with the settlement agreement. The Company will record a loss from settlement of $240,998 after the completion of the settlement. After this settlement the balance of principal and interest due under this convertible note was nil. See notes payable note 7(i).

 

On October 14, 2016, the Company received a notice of conversion and issued 116,447 shares at a price of $0.05 per share for the settlement of convertible notes payable with a total value of $5,822. The company recorded interest of $671 at November 11, 2016. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 will be nil. See note 7(p).

 

On October 27, 2016, the company entered into settlement agreement for the issuance of 184,775 shares due upon agreement completion and three subsequent payments of $27,911. On November 3, 2016 the Company issued 184,775 shares at a price of $0.08 per share for the settlement of convertible notes payable with a total value of $14,782. The company recorded interest of $7,451 at November 11, 2016. After this settlement, the balance of principal and interest due under this convertible note at November 11, 2016 was $83,733. See note 7(h).

 

On October 31, 2016, the Company issued 315,836 shares at a price of $0.07 per share for the settlement of convertible notes payable with a total value of $22,108. After this settlement, the balance of principal and interest due under the February 26, 2016 convertible note settlement at November 11, 2016 was nil. See note 7(n).

 

On November 1, 2016, the Company issued 416,446 shares at a price of $0.084 per share for the settlement of convertible notes payable with a total value of $35,000. After this settlement, the balance of principal and interest due under the June 30, 2016 convertible note settlement at November 11, 2016 was $48,000. See note 7(f).

 

On November 1, 2016, the Company issued 389,910 shares at a price of $0.077 per share for the settlement of convertible notes payable with a total value of $30,023. After this settlement, the balance of principal and interest due under the August 31, 2016 convertible note settlement at November 11, 2016 was $158,476. See note 7(m).

 

On November 3, 2016, the Company issued 300,114 shares at a price of $0.07 per share for the settlement of convertible notes payable with a total value of $21,008. After this settlement, the balance of principal and interest due under the August 5, 2016 convertible note settlement at November 11, 2016 was $84,033. See note 7(o).

 

On November 3, 2016, the Company issued 360,886 shares at a price of $0.07 per share for the settlement of convertible notes payable with a total value of $25,262. After this settlement, the balance of principal and interest due under the August 11, 2016 convertible note settlement at November 11, 2016 was $51,694. See note 7(q).

 

On November 8, 2016, the Company issued 405,259 shares at a price of $0.068 per share for the settlement of convertible notes payable with a total value of $27,355. After this settlement, the balance of principal and interest due under the May 31, 2016 convertible note settlement at November 11, 2016 was $82,064. See note 7(r).

 

 

Financing Agreement

 

On September 22, 2016, 5BARz International, Inc., 5BARz Pte Ltd. in Singapore and Daniel Bland, collectively referred to as the 5BARz Group, entered into a memorandum of understanding agreement with RRM Resources Pte. Ltd. in Singapore, whereby RRM Resources agreed to lend to the 5BARz Group, $3.5 million USD for working capital requirements in Singapore and India. The 5BARz Group have paid margin monies to be returned in full along with interest at Libor + 4% in the amount of $250,000 USD on September 21, 2016 with a commitment to pay a further amount of $110,000 USD, 5 days from release of the initial $1.5 million loan from RRM Resources. The loan is to be funded in two parts, the initial traunche of $1.5 million is to be funded within 12 days of the payment of the first tranche of the margin money, and the second tranche of $2.0 million to be funded, with 25 days of payment of the initial margin monies. The loan term is 11 months from receipt of the first $1.5 million, with an interest rate the greater of 4% on the outstanding principal, or 6 month LIBOR +2%.  The loan was not yet funded by November 21, 2016.

 

On November 29, 2016 the Company and RRM Resources agreed to an extension of the $3.5 million to be funded in December, 2016, as one installment or on a ballet basis. Per the extension agreement, the financing agreement will be cancelled if not funded in 15-30 days as extension agreement suggested.