Note 13 - Subsequent Events
|3 Months Ended|
Aug. 31, 2017
|Subsequent Events [Abstract]|
|Subsequent Events [Text Block]||
Note 13 – Subsequent Events
On September 20, 2017, the Company entered into an Exchange Agreement, whereby it agreed to exchange the April 2015 Note in the original principal balance of $200,000 for 1,500,000 shares of its common stock. The holder of the April 2015 Note had previously sold it for $105,219, which represented the balance due by the Company, to StarForce Media, Inc., an entity that is not affiliated with the Company.
On September 25, 2017, the Company entered into an Exchange Agreement, whereby it agreed to exchange the 8% Note in the original principal balance of $200,000 for up to 4,500,000 shares of its common stock. Old Main, the original holder of the 8% Note, had previously sold it for $382,496. The balance due by the Company under the 8% Note at the time it was sold was approximately $325,000.
On October 1, 2017, the Company and Mr. Alan Bonsett, the Company’s Chief Operating Officer, mutually agreed to end his employment with the Company following the expiration of Mr. Bonsett’s employment agreement. Mr. Bonsett may provide consulting services to the Company in the future on an as needed basis.
On October 9, 2017, Mr. Binder, an officer and director of the Company, exchanged $39,521 in principal of Binder Funding Notes for the Binder Convertible Note 7. This amount included $12,500 of accrued but unpaid salary due by the Company to Mr. Binder. On the same date, Newcan, an entity wholly owned by Mr. Koretsky, a director of the Company, exchanged $30,000 in principal of Newcan Funding Notes for the Newcan Convertible Note 6. These notes bear interest at the rate of 10% per annum. No payments are required until January 2, 2019, at which time all accrued interest becomes due and payable. Commencing on April 1, 2019, the first of eight principal payments will become due; subsequent principal payments will become due on the first day of each July, October, January and April until paid in full. These notes and accrued interest under these notes may be converted, in whole or in part, into one share of common stock for each $0.25 converted.
We evaluated subsequent events after the balance sheet date through the date the financial statements were issued. We did not identify any additional material events or transactions occurring during this subsequent event reporting period that required further recognition or disclosure in these financial statements.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/presentationRef