News,
biz.yahoo.com
This must be the news that Joe was talking about. So Xecom is paying Joe 1.5 million over 5 years (gotten from the 10q excerpt below). He is paying some of that money to someone else. What are we getting from this. Joe would you explain it to me, I don't understand the significance of this and why it is the cause of the stock price going up.
C. PREPAID CONSULTING FEE:
The Company entered into a three year consulting agreement, subsequently
amended to a five year term, commencing January 1, 1996 and expiring
December 31, 2000, with an investment banking company which is a
shareholder of the Company. The investment banking company was issued
1,620,000 shares of Series B preferred stock as consideration in lieu of
monthly payments totaling $1,620,000 for services to be rendered to the
Company over the five year period. The Company recorded a prepaid
consulting fee based on the present value of the monthly payment stream
over the life of the agreement, discounted at 10%. Consulting expense for
the period ended March 31, 1997 and 1996 were $47,242 and $29,072,
respectively. |
