01/21/2026 | Press release | Distributed by Public on 01/21/2026 16:30
Item 3.02 Unregistered Sales of Equity Securities.
The Company issued these shares to accredited Institutional investors in a transaction not involving a public offering pursuant to section 4(a)(2) of the United States Securities Act of 1933, as amended.
Series X Preferred Stock dividend payments for Q4 FY2025
The Company has 42,103 shares of its Series X Preferred stock whose total face value is $1,052,575, and which bears interest at 10% annually. The interest can be paid through the issuance of restricted common stock priced using the closing price per share on the 15th of each month. The Company has issued a total of 157,061 shares of restricted common stock for the payment of its dividends on its Series X Preferred shares for Q4 FY2025. The issuances were as follows: Leath - 8,787 shares, Balencic - 8,787 shares, Mitchell - 8,787, Clifton - 2,941shares, Anglo Irish - 70,035 shares.
Series A Preferred Stock redemptions for Q4 FY2025
As a part of its FY2024 Restructuring Plan the Company issued to certain holders of its notes and other securities a newly created a new Series A Amortizing Convertible Preferred Stock (the "Series A Shares" or "Series A Preferred Stock") whose stated value is $25 per share. The Series A Shares may be converted into shares of common stock by dividing the stated value by $4.00 (the "Conversion Price"). The Series A Shares may be converted at the option of the holder at any time, or mandatorily by the Company if certain conditions set forth in the certificate of designation are met. As stipulated in the certificate of designation, unless converted, shares of Series A Preferred Stock will be redeemed by the Company, using common stock, or cash, 1/36th of the remaining amounts monthly beginning in January 2025. The cash redemption shall be 105% of the original price of the Series A Preferred Stock (as adjusted) and common stock redemption shall be at a 10% discount to the average of the five lowest closing prices over a 30-trading day period. The Company intends to accrue the redemption shares monthly and issue any shares to be used thereunder quarterly to reduce its expense. Each of the holders has agreed not to hold at any point in time more than 4.9% of the Company's common stock, which has served to reduce the rate of redemption for the Series A Preferred shares.
The Company issued a total of 2,228,147 shares in redemption of $257,700 of its Series A Preferred Stock for Q4. The issuances were as follows: Pinz Capital - 254,468 shares, GS Capital - 437,393 shares (reduced from allowable to stay under 5% in total holdings), Jefferson Street - 122,917 shares, AJB - 751,810 shares (reduced from allowable to stay under 5% in total holdings), Cavalry/Mercer/CM - 661,560 shares in aggregate (reduced from allowable to stay under 5% total holdings). These issuances resulted in the reduction of Series A Preferred stock of $184,695, and the remaining outstanding face value, after giving effect to these issuances of the Series A Preferred shares, is $13,156,724.
Issuances related to consultants
The Company has issued 125,000 shares of restricted common stock to an individual who was involved with the development of its Robo Agent software application as consideration for their services. It has also issued 250,000 shares to a firm involved with the planned "uplist" of its common stock to a senior exchange.
These shares of restricted stock were issued to accredited investors in a transaction not involving a public offering pursuant to Regulation D of the United States Securities Act of 1933, as amended. The securities described have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.
As a result of these issuances, the total number of shares outstanding after these issuances is approximately 17,321,203.
Item 8.01 Other Events.
The Company has been notified that one of its Directors will be resigning not later than March 31, 2026 due to a lack of time on their part to contribute to the needs of the Company. A number of candidates are being considered for his replacement and a formal announcement will be made when a selection decision has been made.