Quarterly report pursuant to Section 13 or 15(d)

11. SUBSEQUENT EVENTS

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11. SUBSEQUENT EVENTS
9 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
NOTE 11 - SUBSEQUENT EVENTS

As discussed in Note 3 and 6, in October 2015, pursuant to the Securities purchase agreement with CJY Holdings, the Company issued to CJY additional convertible promissory notes in the aggregate principal amount of $300,000, for total outstanding CJY convertible promissory notes of $1,050,000. The October 2015 issuance contain the same terms as the CJY Note agreement detailed in Note 3 above.

 

On October 1, 2015, the Company notified its Manchester, New Hampshire landlord that they wished to enter into a cease-use agreement surrounding the Company's Manchester headquarters. The Company is currently in negotiations with the landlord regarding a potential settlement of all future lease obligations.

 

On October 1, 2015 the Company entered into a lease agreement for office space in Newton, Massachusetts to serve as the Company's new headquarters. The term of the lease is 6 months and is renewable upon the agreement of the Company and the landlord.  The minimum monthly lease payment is $1,500 per month.

 

On November 2, 2015, the Company's Board of Directors voted to approve an increase in authorized common stock shares outstanding from 200,000,000 shares to 400,000,000 shares of the Company's common stock.

 

On November 12, 2015, the Company entered into a modification of a previously issued warrant agreement to CJY Holdings, LLC. (CJY) as discussed in Note 6. The Board approved the reduction in the common stock warrant exercise prices from $0.50 to $1.00 per share to $0.17 per share. In connection with the June 2015 proceeds of $200,000 previously received by the Company, discussed in Note 6, and the reduction in the warrant exercise price, the Board approved the issuance of 1,194,440 shares of Common Stock to CJY in connection with the modified warrant agreement.

 

The Company has evaluated events and transactions that occurred from September 30, 2015 through the date of filing, for possible disclosure and recognition in the financial statements.  Except as discussed below, the Company did not have any material subsequent events that impacts its financial statements or disclosures.