NOTE 10 - SUBSEQUENT EVENTS
A holder of convertible debt sold its $80,000 debenture in April, 2012 to third parties who then converted it to equity in exchange for five million and three hundred thousand shares.
From the beginning of the first quarter of our Fiscal Year 2013, our consultants received little or no payment for services previously rendered since we were without the funds to pay them the amounts due. We are in discussions with a number of our creditors, some of whom have threatened to commence collection activities.
At its May 22, 2012 Meeting, the Board approved Mr. Dean Blechman joining as an advisor, with his focusing on Sales and Marketing. Furthermore the Board of Directors appointed Thomas Kelly and Pasquale Petruzzo as Directors of the Company and then Dr. Phillip Forman, Richard Rifenburgh, Boris Rubizhevsky and Barry Saxe resigned as Directors. Mr. Mark Shooman also resigned as Chief Financial Officer. Mr. Hickel has agreed, as of May 22, 2012, as part of the management changes contemplated in the Company, to voluntarily resign at the conclusion of a 90 day period, when a new CEO is in place. FSRs compensation for his services for that 90 day period is $10,000.