Quarterly report pursuant to Section 13 or 15(d)

Note 17 - SUBSEQUENT EVENTS

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Note 17 - SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2014
Notes to Financial Statements  
Note 17 - SUBSEQUENT EVENTS

On April 5, 2013, the Company issued a Convertible Debenture (the “Original Note”) to various holders in the principal sum of $425,000, convertible into common stock of the Company. On July 7, 2014, the Company executed various Amended and Restated Promissory Notes (the “Amended Notes to the holders of the Note, in the aggregate principal amount of $545,217.81 (“Amended Principal”), which is equal to the principal sum of the Original Note, plus the interest accrued thereon as of the date of the Amended Notes. Pursuant to the Amended Notes, the Amended Principal, plus interest thereon at a rate of twelve percent (12%) per annum payable in equal monthly installments, with the balance payable on or before July 15, 2016. The Amended Notes are not convertible into shares of common stock. In the event that the Company fails to make a timely payment or to perform any term of the Amended Notes, the holders thereof shall have the right to declare the full, unpaid balance thereof immediately payable.

 

On April 5, 2013, the Company issued a Series A Warrant for the Purchase of Shares of Common Stock (the “Warrant”) to various holders for the purchase of an aggregate of 1,275,000 shares of common stock of the Company at the purchase price of $1.00 per share. On July 7, 2014, the Company executed an Amendment and Restatement of Warrant for the Purchase of Shares of Common Stock (the “Amended Warrant”), which provided that the number of common shares that the holder has the right to purchase equals 1,275,000 at $0.25 per share.

 

On July 16, 2014, the Company entered into a sublicense agreement with Addiction Recovery Centers Inc.(“ARC”). In accordance with the agreement the Company granted ARC an exclusive sublicense within the Territory of Nevada. The agreement is for a perpetual period of time and remains effective as long as annual milestones are achieved.