LexReal LLC and Promotional Containers Inc. (PCI)
Lex Real Co., LLC
3288 Valley View Lane
Lexington, KY 40509
Trade debt 151,147.00
Promotional Containers, Inc.
3288 Valley View Lane
Lexington, KY 40509
Trade debt 500,000.00
As of the date of this filing (April 1, 2006) there were only common shares issued for Plasticon (PLNI). There has never been a securities offering of PLNI shares. The listed companies are the only companies to receive compensation for IR/PR.
* Total amount of the securities outstanding 4,977,740,339
* Big Apple Consulting: 44,006,805
* Equity Link 330,000,000
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4. Related Party Transactions
During the course of normal business, LexReal LLC (LexReal), a Kentucky limited liability company, paid for goods and service for the benefit of the Company. LexReal is owned by the Company's majority shareholder.
During first quarter 2006, $270,499 of debt was forgiven by LexReal. The Company removed the obligation and increased paid-in capital to reflect this transaction.
During 2005 and 2006, the Company raised proceeds for the acquisitions and other operating needs through commitments to issue free trading shares of Company stock.
The proceeds received came to LexReal so the Company recorded a due from related party of $2,645,788 (entire amount recorded in first quarter 2005).
LexReal made operating payments on behalf of the Company of $356,497 during the quarter ended March 31, 2005 which went to reduce the due from related party amount.
During the normal course of business, PCI paid for goods and services for the benefit of the Company.
During the first quarter 2006, $483,942 of debt was forgiven by PCI.
The Company removed the obligation and increased paid-in capital to reflect this transaction.
As of March 31, 2006 and December 31, 2005, the balances owed to PCI (exclusive of the $500,000 note payable included in notes payable) were $0 and $167,832 respectively.
As of March 31, 2006, the Company has a due from PCI of $205,109 stemming from sales from the contract acquired in January 2005 (see Note 1).
During 2005 and 2006, the Company has received approximately $7,200,000 of financing rom LexReal to primarily fund the acquisitions (see Note 2) and to settle the common stock commitment of $2,645,788.
The Company has committed to convert the debt financing to preferred shares. The shares will be issued in 2006.
5. Preferred stock
As of December 31, 2005, the Company has commitments to provide preferred stock to PCI and LexReal (see Notes 1 and 4)
The class B preferred stock ($1 par value) committed to LexReal is convertible up to 7,300,000,000 shares of common stock.
6. Common Stock
During the period ended March 31, 2006, the Company issued 1,270,000,000 shares of common stock to the majority shareholder. The shares were issued for past contributions of the majority shareholder to the Company. Included in general and administrative expenses for the quarter ended March 31, 2006 is approximately $8,679,000 of stock compensation expense. The value for the consideration was based on the fair value of the shares on the date of issue.
During the period ended March 31, 2005, the Company issued 549,513,629 shares of common stock to the majority shareholder and 10,000,000 shares to an outside investor. The shares issued to the majority shareholder were for past contributions to the Company. Included in general and administrative expenses for the quarter ended March 31, 2005 is approximately $1,923,000 of stock compensation expense. The value for the consideration was based on the fair market value of the shares on the date of issue.
Subsequent Events
On April 4, 2006, the Company increased authorized shares of common stock to 13,500,000,000 shares. Also on that date the authorized shares of preferred stock increased to 6,000,000,000 shares.
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