Annual report pursuant to Section 13 and 15(d)

SUBSEQUENT EVENTS

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SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2015
Notes to Financial Statements  
Note 21 - SUBSEQUENT EVENTS

On February 1, 2016, the Company issued 500,000 shares of its common stock for services rendered.

 

On February 3, 2016 the Company issued 750,000 shares of its common stock for services rendered.

 

Litigation

 

On March 9, 2016, Jorge Andrade (former Company's Chief Executive Officer) and Terranautical Global Investments, Inc. filed with the Eighth Judicial District Court in Clark County, Nevada a lawsuit claiming unpaid compensation, bonuses and previous loans in aggregate of $316,000 plus accrued interest and damages.

 

On March 21, 2016, the Plaintiff and the Company entered into a settlement agreement whereby the Company agreed to settle for a cash payment of $250,000 due December 16, 2016. As of December 31, 2015, the Company has an aggregate accrual of $250,000 comprised of accounts payable and accrued expenses of $195,845 and notes payable, related party of $54,155.

 

Operating leases

 

On March 9, 2016, the Company entered into a lease for its new corporate location in Anaheim, California, commencing July 1, 2016 and expiring on July 1, 2019 with a monthly base rent of $4,212 and with an annual escalation clause. In connection with the lease, the Company is obligated to pay security deposit of $13,422

 

Future minimum lease payments under the lease agreement is as follows:

 

Year Ending December 31,        
2016   $ 25,272  
2017     51,330  
2018     52,902  
2019     26,844  
    $ 156,348