Subsequent Events

12 Months Ended

Dec. 31, 2013

NOTE 10 – Subsequent Events

The Company has evaluated subsequent events from the balance sheet date through the date the financial statements were issued and determined there are the following items to disclose:

In January 2014, the Company issued 43,750,000 shares of stock to an investor for a total purchase price of $3,500,000. In connection with the purchase and sale of the shares, the Company agreed to issue to the investor a warrant to purchase up to 14,259,259 shares of the Company’s common stock, at an exercise price of $0.15 per share. The warrant has a term of nine months from the date of issuance (January 10, 2014). A warrant was also issued to a consultant to purchase up to 2,187,500 shares of common stock at $.08 per share.

In February 2014, the Company issued 375,000 shares of stock to a consultant, subject to restrictions. The shares were valued at $0.126 or $47,250.

In March 2014, Management decided to discontinue servicing the contracts previously held by Sumner. As a result, the intangible asset “customer contacts” has been reduced in value with an offsetting impairment expense.