UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
Form
8-K
CURRENT
REPORT
Pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): November 6, 2015
GLOBAL
EQUITY INTERNATIONAL, INC.
(Exact
name of registrant as specified in its charter)
Nevada |
|
000-54557 |
|
27-3986073 |
(State
or other jurisdiction
of incorporation) |
|
(Commission
File Number) |
|
(I.R.S.
Employer
Identification Number) |
X3
Jumeirah Bay, Office 3305, Jumeirah Lake Towers
Dubai,
UAE
(Address
of Principal Executive Offices) (Zip Code)
Registrant’s
telephone number, including area code: +971 (0) 42767576
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant
under any of the following provisions (see General Instruction A.2., below):
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ]
Pre-commencement communication pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ]
Pre-commencement communication pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.133-4(c))
Item
7.01 Regulation FD Disclosure
On
November 6, 2015, Global Equity International, Inc. (“Company”) provided its shareholders with a letter containing
an analysis by management of certain interesting aspects about the Company’s balance sheet at September 30, 2015, and December
31, 2014, and the Company’s income statement for the three and nine months ended September 30, 2015 and 2014. A copy of
this letter to our shareholders is attached to this Current Report as Exhibit 99. The analysis in the letter to shareholders is
related to the Company’s Form 10-Q Quarterly Report for the Fiscal Quarter Ended September 30, 2015, as previously filed
by the Company with the SEC on November 5, 2015, and should be read in conjunction with such Form 10-Q.
Cautionary
Forward - Looking Statement
The
discussion and analysis of the results of operations and financial condition of the Company contained in the November 6, 2015
letter to shareholders and this Current Report should be read in conjunction with the unaudited financial statements, and the
related notes contained in the Company’s Form 10-Q Quarterly Report filed with the SEC on November 5, 2015. References to
“we,” “our,” or “us” in this Current Report and in the November 6, 2015 letter to shareholders
refer to the Company and its subsidiaries. Our discussion includes forward-looking statements based upon current expectations
that involve risks and uncertainties, such as our plans, objectives, expectations and intentions. We use words such as “anticipate,”
“estimate,” “plan,” “project,” “continuing,” “ongoing,” “expect,”
“believe,” “intend,” “may,” “will,” “should,” “could,”
and similar expressions to identify forward-looking statements.
Certain
matters discussed herein may contain forward-looking statements that are subject to risks and uncertainties. Such risks and uncertainties
include, but are not limited to, the following:
|
● |
the
volatile and competitive nature of our industry, |
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|
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● |
the
uncertainties surrounding the rapidly evolving markets in which we compete, |
|
|
|
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● |
the
uncertainties surrounding technological change of the industry, |
|
|
|
|
● |
our
dependence on its intellectual property rights, |
|
|
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● |
the
success of marketing efforts by third parties, |
|
|
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● |
the
changing demands of customers and |
|
|
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● |
the
arrangements with present and future customers and third parties. |
Should
one or more of these risks or uncertainties materialize or should any of the underlying assumptions prove incorrect, actual results
of current and future operations may vary materially from those anticipated.
Item
9.01 Financial Statements and Exhibits
(d)
Exhibits
|
Exhibit
No. |
|
Description of Exhibit |
|
|
|
|
|
99 |
|
November 6, 2015 Letter to Shareholders of Global Equity International, Inc. |
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Dated:
November 6, 2015
|
GLOBAL
EQUITY INTERNATIONAL, INC. |
|
|
|
|
By: |
/s/
Enzo Taddei |
|
|
Enzo
Taddei |
|
|
Chief
Financial Officer |
Global
Equity International, Inc.
& Subsidiaries. |
![](http://www.sec.gov/Archives/edgar/data/1533106/000149315215005177/image_001.jpg) |
|
Management’s
Analysis
|
November 6, 2015
Dear Shareholders,
Now that we have filed our September
30, 2015 Form 10-Q with the SEC, we would like to take the opportunity to point our certain interesting aspects of our balance
sheet at September 30, 2015 and December 31, 2014 and also our income statement for the three and nine months ended September
30, 2015 and 2014.
The balance
sheet items that we would like to point out are as follows:
Current
assets:
Our current
assets at September 30, 2015 have decreased by $17,564, mainly due our write-off of a small loan receivable and also having less
cash in in the bank at this point in time. When we receive cash fees, we use this cash for operational purposes and also to pay
the third party professionals that we engage on behalf of our clients; hence, we believe that a low balance at any given point
in time is a product of how we do business. Also, depending on the achievement of certain milestones and contractual agreements,
the Company will be due further cash fees from current clients amounting to $1,747,985.
Investments:
At December
31, 2014, the Company had long term investments amounting to $3,000. These long term investments amounted to $1,543,950 as of
September 30, 2015, which represents a substantial increase of 513.65%.
Current Liabilities:
Our current liabilities at December 31,
2014 totaled $2,475,594. Over the last nine months of 2015, we managed to decrease these current liabilities to $1,646,114, which
represents a decrease of 33.51%.
We now have no more convertible debt
outstanding; hence, the only third party debt is due to three non-convertible note holders, related parties and our operational
day to day creditors.
Also, of the
cash fees paid to date, the Company has deferred a total $500,000. These deferred cash fees will slowly be reflected on the Company´s
income statement once certain milestones and contractual agreements have been completed.
Finally, during
the nine months ended September 30, 2015, the Company renegotiated a non-convertible loan amounting to $1,160,578 (principal and
interest) down to a total of $500,000 (principal and a fixed amount of embedded interest) with payment terms over the next 12
months and no penalty clauses for late payment. This renegotiation with the lender represented a 56.92% discount or cash saving
for the Company.
Global
Equity International, Inc.
& Subsidiaries. |
![](http://www.sec.gov/Archives/edgar/data/1533106/000149315215005177/image_001.jpg) |
|
Management’s
Analysis
|
Long term Liabilities:
During the nine months ended September
30, 2015, the Company paid off all of its long term related party liabilities amounting to $427,310 by way of converting this
debt into restricted common shares issued to our management.
Redeemable Series “A”
Preferred Shares
During the nine months ending on September
30, 2015, management decided to not redeem the Series A Preferred Stock outstanding and returned these shares back to treasury.
The effect of this decision was the elimination of a further $1,020,000 of liabilities.
Stockholder’s Deficit:
At December
31, 2014, the Company had a stockholders´ deficit of $3,841,580, which has now been reduced massively over the first nine
months of 2015, and is now only $48,712. This represents a substantial decrease of $3,792,868 or 98.73%.
The total amount
of common shares issued and outstanding at September 30, 2015, was 771,523,183. The total amount of shares issued and outstanding
at November 4, 2015, was 772,523,183, of which approximately 72% are restricted securities and in the hands of management and
employees. The Company´s trading float at November 4, 2015, was 202,198,715 shares.
The income
statement items that we would like to point out are as follows:
For the three months ended September
30, 2015 and 2014
The Company had revenues amounting to
$1,130,465 and $184,000, for the three months ended September 30, 2015 and 2014, respectively. This represents an increase of
$946,465 or 514%.
The total operating expenses amounted
to $444,577 and $493,788, for the three months ended September 30, 2015 and 2014, respectively. During the three months ended
September 30, 2015, total operating expenses were decreased by $49,211 from the previous three months ended on September 30, 2014.
The Company´s other income and
(expenses) for the three months ended September 30, 2015 and 2014, were $(453,163) and $(140,448), respectively. Our total other
expenses increased mainly due to the increase in loss on derivative liability, amortization of debt discount and loss on conversion
of convertible notes. There was also a gain on debt extinguishment and gain on settlement of liabilities.
Global
Equity International, Inc.
& Subsidiaries. |
![](http://www.sec.gov/Archives/edgar/data/1533106/000149315215005177/image_001.jpg) |
|
Management’s
Analysis
|
The net income (loss) for the three months
ended September 30, 2015 and 2014, were $232,725 and $(450,236), respectively, which represents an increase of $682,961 or 151.69%.
For the nine months ended September
30, 2015 and 2014
The Company had revenues amounting to
$2,285,965 and $345,000, for the nine months ended September 30, 2015 and 2014, respectively. This represents an increase of $1,940,965
or 562.60%.
The total operating expenditures amounted
to $1,284,654 and $1,089,814, for the nine months ended on September 30, 2015 and 2014, respectively. These operating expenses
increased by $194,840 as we had more legal and professional fees to pay on behalf of new clients during the nine months ended
September 30, 2015. We also employed new members of staff, which lead to an increase in salary expenditure.
While the Company had a loss from operations
for the nine months ended September 30, 2014, the Company had a net profit of $1,001,311 for the nine months ended September 30,
2015.. This represents an increase in net operational profit of 234.44%.
The Company´s other income and
(expenses) for the nine months ended September 30, 2015 and 2014, were $(1,191,600) and $(757,791), respectively. This increase
was mainly due to the convertible notes that were converted into our common stock during the nine months ended September 30, 2015.
These note conversions caused an increase in amortization of debt discount and also losses on conversion of notes. The loss on
derivative liabilities also increased due to the change in fair values of the derivative liabilities at each conversion and reporting
date. There was also a gain on debt extinguishments and gains on settlement of liabilities.
The net loss for the nine months ended
September 30, 2015 and 2014, was $190,289 and $1,502,605, respectively. This represents a decrease in net losses amounting to
$1,312,316 or 87.34%.
Yours sincerely,
Enzo
Taddei – CFO |
|
Global
Equity International Inc. |
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