NOTE 6 - SHAREHOLDERS EQUITY (DEFICIT):
On August 30, 1995, the board of directors declared a one for ten reverse stock split to holders of record on September 11, 1995. The stock split reduced the number of shares issued and outstanding at that time from 4,910,000 to 491,000. See subsequent event Note 10b for additional reverse stock split.
my insert: of course we know the additional reverse stock split was that 30:1 reverse split, further reducing the # of shares.
As discussed in Note 1, the Company's books and records prior to January 1, 1996 are unavailable. As a result, management had to rely upon records received from the Company's stock transfer agent to account for share activity. These records indicated (i) that the transfer agent's share balance as of July 1, 1995 showed 30,601 more shares issued than the Company's financial statements, (ii) that 5,430,833 shares were issued for consulting services, (iii) that 7,400 shares were issued pursuant to a private placement, (iv) that 66,630 shares were issued under other issuances, the details of which are not available, and (v) that $1,000,000 of debt was exchanged for 1,000,000 shares of common stock. Additional issuances were made pursuant to acquisitions as described in Note 1.
My insert: Anyone think Mork may have anything to with these shares?
Current management has been unable to determine whether the share transactions indicated above were made at "arms length" and therefore, whether amounts recorded in the financial statements properly reflect the transactions indicated. |
