Item 2. Unregistered Sales of Equity Securities
Item
2. Unregistered Sales of Equity Securities and Use Of Proceeds
The
Company had the following unregistered sale of equity securing during the three months ended September 30, 2024. All shares were issued
under Section 4(a)(2) of the Securities Act of 1933 as follows:
●
On
July 1, 2024 the Company sold 6,459,985 shares to GHS at approximately $0.0066 per share for gross proceeds of approximately $43,000
●
On
July 12, 2024 the Company issued 10,000,000 shares to Streeterville to settle a $90,000 obligation that was partitioned from the
restructured senior note outstanding.
●
On
July 25, 2024 the Company issued 12,289,157 shares to GHS to satisfy the conversion of 85 Series E preferred shares
●
On
August 13, 2024 the Company sold 14,646,861 shares to GHS at approximately $0.0042 per share for gross proceeds of approximately
$62,000
●
On
August 24, 2024 the Company sold 21,276,661 shares to GHS at approximately $0.0031 per share for gross proceeds of approximately
$66,000
Item
3. Defaults upon Senior Securities
As
of the date of the filing the Company has defaulted on the following debt obligations with a total outstanding balance including interest
of approximately $29.9 million:
●
January
2023 Note with a balance due of approximately $221,000
●
Restructured
August Note Payable with a balance due of approximately $27 million
●
Restructured
Senior Note Payable with a balance due of approximately $2.6 million
Further,
the Company’s Series G preferred shares, which had a redemption value of $820,000 were required to be redeemed as of December of
2024.
Item
4. Mine Safety Disclosures
Not
Applicable.
Text extracted from the filing as submitted to EDGAR. Formatting, tables and exhibits are simplified for reading; the original document is authoritative for anything you rely on.