The accompanying notes are an integral part
of these condensed consolidated financial statements
The accompanying notes are an integral part
of these condensed consolidated financial statements
The accompanying notes are an integral part
of these condensed consolidated financial statements
The accompanying notes are an integral part
of these condensed consolidated financial statements
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND
2013
1.
BASIS OF PRESENTATION
The accompanying unaudited condensed
consolidated financial statements of Smack Sportswear, Inc. and Subsidiary (the “Company”) have been prepared in accordance
with accounting principles generally accepted in the United States of America for interim financial information and with the instructions
to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by
generally accepted accounting principles for complete financial statements. In the opinion of management, all normal recurring
adjustments considered necessary for a fair presentation have been included. Operating results for the nine months ended March
31, 2014 are not necessarily indicative of the results that may be expected for the year ending June 30, 2014. For further information
refer to the financial statements and footnotes thereto included in the Company's Form 10-K for the year ended June 30, 2013.
History and Organization
SMACK Sportswear, Inc. (“SMACK”)
was originally incorporated in Nevada in October 2007 as Reshoot Production Company (“Reshoot”), which was incorporated
as a subsidiary of Reshoot & Edit, a Nevada corporation. In September 2011, Reshoot entered into an Irrevocable Business Sales
Agreement with Team Sports Superstore, Inc. (“TSS”) to buy 100 percent of the outstanding shares of TSS (owned by one
individual). On the same date, the majority owner of Reshoot entered into a Stock Value Agreement in which he agreed to transfer
29 million of his personal shares to TSS in exchange for 100 percent of its outstanding stock. At the time of the agreement, Reshoot
had 40 million shares outstanding. The sale of the shares to TSS represented approximately 72 percent of the outstanding shares
of Reshoot. In December 2011, Reshoot changed its corporate name from Reshoot Production Company to SMACK Sportswear. In December
2012, SMACK closed the purchase of TSS (“TSS Closing”).
At the TSS Closing, (i) TSS was merged
with and into SMACK; (ii) TSS became SMACK’s wholly-owned subsidiary; (iii) all of TSS’s shares outstanding prior to
the TSS Merger were exchanged for comparable securities of SMACK; and (iv) 72 percent of SMACK’s fully-diluted shares were
owned by TSS’s former shareholder. At the TSS Closing, SMACK issued a total of 29 million shares of its common stock to TSS’s
former shareholder, in exchange for the 40 million shares of TSS’s common stock outstanding prior to the TSS Merger. Upon
the effectiveness of the TSS Merger, 11 million shares of SMACK’s common stock were maintained by its existing stockholders.
Since the former holder of TSS’s
common stock owned, after the Merger, approximately 72% of SMACK’s shares of common stock, and as a result of certain other
factors, including that the Chief Executive Officer (CEO) of TSS is the CEO of SMACK, TSS is deemed to be the acquiring company
for accounting purposes and the Merger was accounted for as a reverse merger and a recapitalization in accordance with generally
accepted accounting principles in the United States (“GAAP”). These consolidated financial statements reflect the historical
results of TSS prior to the merger and that of the combined company following the Merger, and do not include the historical financial
results of Reshoot prior to the completion of the merger.
7
SMACK SPORTSWEAR, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND
2013
1.
BASIS OF PRESENTATION
(Continued)
Going Concern
The accompanying consolidated condensed
financial statements have been prepared on a going concern basis of accounting, which contemplates continuity of operations, realization
of assets and liabilities and commitments in the normal course of business. The accompanying consolidated condensed financial statements
do not reflect any adjustments that might result if the Company is unable to continue as a going concern. During the nine months
ended March 31, 2014, the Company incurred a net loss of $773,372 and cash used in operating activities was $140,438, and as of
that date, is delinquent in payments of $267,983 for payroll and sales taxes. As of March 31, 2014, the Company had a working capital
deficiency of $294,110 and a shareholders’ deficit of $509,710. These factors, among others, raise substantial doubt about
the Company’s ability to continue as a going concern. Our former independent auditors, in their report on our audited financial
statements for the year ended June 30, 2013, expressed substantial doubt about our ability to continue as a going concern.
The ability of the Company to continue
as a going concern and appropriateness of using the going concern basis is dependent upon, among other things, additional cash
infusion. The Company has obtained funds from its debt holders in the nine months ended March 31, 2014, and has obtained additional
funding in the amount of $21,600 from them subsequent to March 31, 2014 (see Note 9). Management also begun the process of initiating
a Private Placement Memorandum (PPM) subsequent to March 31, 2014 and feels the Company will raise additional funding from the
PPM. Management believes this funding will continue from its current investors and also will obtain funding from new investors.
Management believes the existing shareholders, the prospective new investors and future sales will provide the additional cash
needed to meet the Company’s obligations as they become due, and will allow the development of its core business operations.
No assurance can be given that any future financing will be available or, if available, that it will be on terms that are satisfactory
to the Company. Even if the Company is able to obtain additional financing, it may contain undue restrictions on our operations,
in the case of debt financing, or cause substantial dilution for our stock holders, in case of equity financing.
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
This summary of significant accounting
policies of the Company is presented to assist in understanding the Company’s financial statements. The financial statements
and notes are representations of the Company’s management, which is responsible for their integrity and objectivity. These
accounting policies conform to accounting principles generally accepted in the United States of America and have been consistently
applied in the preparation of the financial statements.
Basis of Consolidation
The condensed consolidated financial
statements include the accounts of the Company and its wholly owned subsidiary, Team Sports Superstore. All significant intercompany
transactions and balances have been eliminated in consolidation.
Revenue Recognition
The Company recognizes revenue upon
shipment of the Company’s products to its customers, provided that evidence of an arrangement exists, title and risk of loss
have passed to the customer, fees are fixed or determinable, and collection of the related receivable is reasonably assured. Title
to the Company’s products is transferred to the customer once the product is shipped from the Company’s warehouse.
Products are not shipped until there is a purchase agreement signed by the customer with a specified payment arrangement. The Company’s
sales are primarily customized, made to order apparel, where after a deposit is made there are no refunds after the customer has
committed to the sale through a signed contract. Therefore, the company has not recorded an allowance for returned products.
8
SMACK SPORTSWEAR, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND
2013
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
(Continued)
Loss per Share Calculations
Basic earnings per share are computed
by dividing income available to common shareholders by the weighted-average number of common shares available. Diluted earnings
per share is computed similar to basic earnings per share except that the denominator is increased to include the number of additional
common shares that would have been outstanding if the potential common shares had been issued and if the additional common shares
were dilutive. The Company’s diluted loss per share is the same as the basic loss per share for the three and nine months
ended March 31, 2014 and 2013, as the inclusion of any potential shares would have had an anti-dilutive effect due to the Company
generating a loss.
Stock-Based Compensation
The Company periodically issues common
stock to employees and non-employees in non-capital raising transactions for services and for financing costs. The Company accounts
for stock payments to employees by measuring the cost of services received in exchange for equity on the grant date fair value
of the awards, with the cost recognized as compensation expense in the Company’s financial statements over the vesting period
of the awards. The Company accounts for stock grants to non-employees in accordance with the authoritative guidance of the Financial
Accounting Standards Board whereas the value of the stock compensation is based upon the measurement date as determined at either
a) the date at which a performance commitment is reached, or b) at the date at which the necessary performance to earn the equity
instruments is complete. Non-employee stock-based compensation charges generally are amortized over the vesting period on a straight-line
basis. In certain circumstances where there are no future performance requirements by the non-employee, grants are immediately
vested and the total stock-based compensation charge is recorded in the period of the measurement date.
Advertising Costs
The Company expenses all advertising
costs as incurred. Advertising costs included within selling, general and administrative expenses were approximately $24,152 and
$52,039 for the nine months ended March 31, 2014 and 2013, respectively.
Use of Estimates
The preparation of the condensed
financial statements in conformity with accounting principles generally accepted in the U.S requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at
the financial statement date, and reported amounts of revenue and expenses during the reporting period. Significant estimates are
used in valuing our allowances for doubtful accounts, inventory valuations, convertible notes and common stock issued for services,
among others. Actual results could differ from these estimates.
Inventories
Inventories are stated at the lower
of cost or market. Cost is computed using standard cost, which approximates actual cost, on a first-in, first-out basis. The Company
provides inventory write-downs based on excess and obsolete inventories determined primarily by future demand forecasts. The write-down
is measured as the difference between the cost of the inventory and market based upon assumptions about future demand and charged
to the provision for inventory, which is a component of cost of sales. At the point of the loss recognition, a new, lower cost
basis for that inventory is established, and subsequent changes in facts and circumstances do not result in the restoration or
increase in that newly established cost basis. During the nine months ended March 31, 2014, the Company recorded a charge of approximately
$190,000 relating to the mark down of inventories to net realizable value at March 31, 2014.
9
SMACK SPORTSWEAR, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND
2013
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
(Continued)
Income Taxes
Income tax expense is based on pretax
financial accounting income. Deferred tax assets and liabilities are recognized for the expected tax consequences of temporary
differences between the tax bases of assets and liabilities and their reported amounts. Valuation allowances are recorded to reduce
deferred tax assets to the amount that will more likely than not be realized.
The Company accounts for uncertainty
in income taxes using a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the
tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that
the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step
is to measure the tax benefit as the largest amount that is more than 50 percent likely of being realized upon settlement. The
Company classifies the liability for unrecognized tax benefits as current to the extent that the Company anticipates payment (or
receipt) of cash within one year. Interest and penalties related to uncertain tax positions are recognized in the provision for
income taxes.
Customer Deposits
In many of its customer agreements,
the Company requires its customers pay a 50 percent deposit upon signing the agreement. At June 30, 2013, there was $14,034 in
customer deposits. There were no customer deposits at March 31, 2014.
Fair Value of Financial Instruments
The Fair Value of Financial Instruments
requires disclosure of fair value information, whether or not recognized in the balance sheet, where it is practicable to estimate
that value. As of March 31, 2014, the balances reported for cash, accounts receivable, accounts payable and accrued expenses approximate
their fair value because of their short maturities. Debt balances are stated at historical amounts less principal payments, which
approximate fair market value. The Company believes interest rates in its debt agreements are commensurate with lender risk profiles
for similar companies.
Recently Issued Accounting Pronouncements
In February 2013, the Financial Accounting
Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-04. This update clarifies how entities measure obligations
resulting from joint and several liability arrangements for which the total amount of the obligation is fixed at the reporting
date. This guidance is effective for fiscal years beginning after December 15, 2013 and interim reporting periods thereafter. This
update is not expected to have an impact on the Company’s financial position or results of operations
In April 2013, the FASB issued ASU
2013-07 to clarify when it is appropriate to apply the liquidation basis of accounting. Additionally, the update provides guidance
for recognition and measurement of assets and liabilities and requirements for financial statements prepared using the liquidation
basis of accounting. Under the amendment, entities are required to prepare their financial statements under the liquidation basis
of accounting when a liquidation becomes imminent. This guidance is effective for annual reporting periods beginning after December
15, 2013, and interim reporting periods thereafter. This update is not expected to have an impact on the Company’s financial
position or results of operations.
10
SMACK SPORTSWEAR, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND
2013
2.
SUMMARY OF SIGNIFICANT ACCOUNTING POLICES
(Continued)
Recently Issued Accounting Pronouncements
(Continued)
In April 2014, the Financial Accounting
Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial
Statements (Topic 205) and Property, Plant and Equipment (Topic 360). This guidance amends the requirements for reporting for discontinued
operations and requires additional disclosures about discontinued operations. Under the new guidance, only disposals representing
a strategic shift in operations or that have a major effect on the Company’s operations and financial results should be presented
as discontinued operations. This guidance is effective for annual periods beginning after December 15, 2014. The Company does not
expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements.
In July 2013, the FASB issued ASU
No. 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Loss,
or a Tax Credit Carryforward Exists. Topic 740, Income Taxes, does not include explicit guidance on the financial statement presented
of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists.
There is diversity in practice in the presentation of unrecognized tax benefits in those instances and the amendments in this update
are intended to eliminate that diversity in practice. The amendments are effective for fiscal years, and interim periods within
those years, beginning after December 15, 2013. The amendments should be applied prospectively to all unrecognized tax benefits
that exist at the effective date. Early adoption is permitted. We do not believe the adoption of this update will have a material
effect on our financial position and results of operations.
Other recent accounting pronouncements
issued by the FASB, including its Emerging Issues Task Force, the American Institute of Certified Public Accountants, and the Securities
and Exchange Commission did not or are not believed by management to have a material impact on the Company’s present or future
consolidated financial statements.
3.
INVENTORIES
Inventories consisted of the following at March 31, 2014
and June 30, 2013:
|
|
March 31, 2014
|
|
|
June 30, 2013
|
|
|
(Unaudited)
|
|
|
|
Raw Materials
|
|
$
|
19,413
|
|
|
$
|
199,896
|
Work-in-progress
|
|
|
-
|
|
|
|
30,944
|
Finished goods
|
|
|
165,220
|
|
|
|
162,996
|
|
|
|
|
|
|
|
|
TOTAL
|
|
$
|
184,633
|
|
|
$
|
393,836
|
|
|
|
|
|
|
|
|
11
SMACK SPORTSWEAR, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND
2013
4.
NOTES PAYABLE AND OTHER DEBT
Notes payable and other debt consist of the following
as of March 31, 2014 and June 30, 2013:
|
|
March 31, 2014
|
|
|
June 30, 2013
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Loan payable – related party (a)
|
|
$
|
19,508
|
|
|
$
|
19,508
|
Note payable (b)
|
|
|
15,200
|
|
|
|
14,000
|
Convertible note (c)
|
|
|
-
|
|
|
|
279,943
|
Unsecured promissory note (d)
|
|
|
130,000
|
|
|
|
-
|
Unsecured promissory note (e)
|
|
|
93,600
|
|
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
258,308
|
|
|
|
279,943
|
|
|
|
|
|
|
|
|
Less: Debt discounts
|
|
|
-
|
|
|
|
(77,691)
|
|
|
|
|
|
|
|
|
|
|
|
258,308
|
|
|
|
235,760
|
|
|
|
|
|
|
|
|
Less: Current portion
|
|
|
(34,708
|
)
|
|
|
(235,760)
|
|
|
|
|
|
|
|
|
TOTAL
|
|
$
|
223,600
|
|
|
$
|
-
|
|
|
|
|
|
|
|
|
a.
As of June 30, 2013, the Company has a loan payable to family member of the CEO amounting
to $19,508. The loan is unsecured, non-interest bearing and due upon demand. As of March 31, 2014, the balance of the loan remained
at $19,508.
b.
As of June 30, 2013, the Company had advances from an individual which amounted to $14,000.
In February 2014, the advance amount, plus one time interest of $5,000, was converted into a short-term note payable. The note
calls for the Company to make five $3,800 payments beginning in March 2014 and ending in July 2014. If the Company is late in making
any of its required payments, the note becomes in default and the Company is required to pay interest at the rate of 10 percent
on any outstanding balances until the note is fully repaid. At March 31, 2014, the outstanding balance of the short-term note was
$15,200. The short-term note is unsecured.
12
SMACK SPORTSWEAR, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND
2013
4.
NOTES PAYABLE AND OTHER DEBT
(Continued)
c.
In 2012, the Company entered into a $250,000 promissory note payable to Bill Kotlar, a related
party. The note was payable in full at maturity on March 31, 2014 and bore interest at a rate of 10 percent per annum payable quarterly
commencing September 30, 2012. The note was convertible into common stock of the Company at any time until the note is paid in
full at a 75 percent of the average market price 30 days immediately prior to the conversion date. On October 19, 2012, the note
was amended to increase the revolving credit limit from $250,000 to $300,000. The loan holder had 70 days from October 19, 2012
to loan additional funds to the Company. Concurrently, the note holder forgave all accrued and future interest in exchange for
the right to convert the note into common stock of the Company at a conversion price of $0.06 per share. As the conversion price
of the note is less than the market price of the Company’s common stock at the date of issuance, the Company determined that
the note contained a beneficial conversion feature of $141,940. The note’s beneficial conversion feature was considered as
debt discount and was being amortized over the life of the note. As of June 30, 2013, $279,943 was outstanding on the note and
the amount of the unamortized note discount was $77,691.
During the nine month period ended
March 31, 2014, an aggregate amount of $200,000 of the note was converted into 13,333,330 shares of the Company’s common
stock. The fair value of the shares at the date of conversion was $266,667 (based on a trading price of $0.02 per share). This
resulted in a loss on conversion of $66.667. In February 2014, the remaining outstanding balance of $79,943 was paid off and all
remaining unamortized note discount was recorded as interest expense.
d.
In February 2014, the Company entered into an unsecured promissory note agreement. The agreement
allows for the Company to borrow up to $150,000 at an interest rate of 10 percent per year, of which $80,000 was advanced at closing.
During the nine months ended March 31, 2014, the Company borrowed an additional $50,000 on the note. As of March 31, 2014, the
outstanding balance of the note was $130,000. The outstanding principal amount and all accrued and unpaid interest is due by December
2016.
e.
In February 2014, the Company entered into an unsecured promissory note agreement. The agreement
allows for the Company to borrow up to $150,000 at an interest rate of 10 percent per year. During the nine months ended March
31, 2014, the Company borrowed $93,600 on the note which was outstanding as of March 30, 2014. The outstanding principal amount
and all accrued and unpaid interest is due by January 2016.
5.
OTHER NOTE
Effective July 2013, the Company
entered into a convertible note payable agreement in the principal amount of $53,000. The note had an interest rate of 8 percent
and was due on March 19, 2014. Per the agreement, if the note was not repaid by March 19, 2014, the note would convert into shares
of the Company’s common stock at a conversion rate of 58 percent of the market price of the average of the three lowest closing
prices of the common stock for the ten trading days prior to the date of conversion. As the conversion price of the note was less
than the market price of the Company’s common stock at the date of issuance, the Company determined that the note contained
a beneficial conversion feature of $ $38,380. The note’s beneficial conversion feature was considered as debt discount and
was being amortized over the life of the note. In February 2014, the note was paid off and all remaining unamortized note discount
was recorded as interest expense.
13
SMACK SPORTSWEAR, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND
2013
6.
RELATED PARTY TRANSACTIONS
As of March 31, 2014 and June 30,
2013, the Company owed $64,597 and $80,063, respectively, to its Chief Executive Officer for accrued, but unpaid compensation.
These amounts are reflected as Due to Officer on the accompanying condensed consolidated Balance Sheets.
7.
CAPITAL STOCK
During the nine month period ended
March 31, 2014, the Company issued 800,000 shares of common stock to a former officer for services valued at $40,000. The shares
issued were valued at the trading price at the date of the agreement.
In 2012, the Company entered into
an employment agreement with an officer with a term of three years. Under the agreement, the officer was entitled to receive up
to 3,000,000 shares of the Company’s common stock, subject to vesting at rate of 500,000 shares, commencing June 30, 2013
through December 31, 2015. The officer resigned in March 2014. During the nine month period ended March 31, 2014, the Company issued
500,000 shares of common stock to the Officer valued at $80,000. A total of 500,000 shares vested in December 2013, was forgone
by the officer in lieu of receiving cash amounted to $17,200, which is included in accounts payable in the accompanying condensed
consolidated balance sheet as of March 31, 2014. The remaining 2,000,000 shares of common stock were forfeited upon resignation
of the Officer.
During the nine month period ended
March 31, 2014, the Company issued 450,000 shares to a former officer valued at $22,500 upon conversion of $9,000 accounts payable
owed to the officer. The shares issued were valued at the trading price at the conversion date. As a result, the Company recorded
a loss on conversion of accounts payable of $13,500 which has been included in the accompanying condensed consolidated statement
of operations for the nine months ended March 31, 2014.
During the nine month period ended
March 31, 2014, the Company issued 13,333,330 shares of common stock, with market value of $266,667 (or at $0.02 per share), for
the settlement of convertible notes payable in the aggregate principal amount of $200,000. As a result, the Company recorded a
loss of $66,667 which has been reflected on the accompanying condensed consolidated statement of operations for the nine months
ended March 31, 2014.
Preferred Stock
The Company has two Series of preferred
stock. The Series A Voting preferred stock consists of 2,000,000 authorized shares, par value $0.001, of which 1,000,000 shares
were issued and outstanding at March 31, 2014. The holders of the Series A Voting preferred stock are not entitled to receive any
dividends and do not have any liquidation rights. The holders of Series A Voting preferred stock shall be entitled to (a) notice
of any meeting of the shareholders of the Corporation; and (b) have the power to vote each share at any shareholder meeting, where
each share of Series A Voting preferred stock carries the weight of 20 votes for each share of common stock.
On December 4, 2012, the Company
agreed to issue 1,000,000 shares of its unregistered Series A Voting preferred stock to the Company’s CEO in exchange for
the transfer of 2,500,000 restricted common shares from his personal holdings to the Company’s Employee Stock Option Plan,
which transfer had not occurred at March 31, 2014.
At March 31, 2014, the Company had
3,000,000 undesignated authorized preferred shares of which there are no shares issued or outstanding. The designation of these
shares has yet to be determined by the Board of Directors.
14
SMACK SPORTSWEAR, INC. AND SUBSIDIARY
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
FOR THE NINE MONTHS ENDED MARCH 31, 2014 AND
2013
8.
COMMITMENTS AND CONTINGENCIES
Legal Matters
The Company is, from time to time,
involved in legal proceedings, regulatory actions, claims and litigation arising in the ordinary course of business. Reserves are
established for specific liabilities in connection with legal actions when they can be deemed probable and estimable. These matters
are not expected to have a material adverse effect upon the Company’s financial condition.
9.
SUBSEQUENT EVENTS
In March 2014, the Company entered
into an agreement with its new Chief Financial Officer to begin on April 1, 2014. Under the agreement, the officer was granted
700,000 shares of the Company’s common stock, which has vesting provisions based on the completion of certain performance
objectives. The agreement is for a one year term expiring on March 31, 2015.
In April 2014, the Company borrowed
additional funds under one of its promissory note payable agreements in the amount of $21,600.
15