UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
______________
FORM 10-K
______________
x ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended June 30, 2014
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from ______________ to ______________
Commission File No.000-52488
Infrax Systems, Inc. |
(Exact name of Registrant as specified in its charter) |
Nevada | 20-2583185 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
3637 4th Street North, Suite 330, St. Petersburg, FL | 33704 | |
(Address of principal executive offices) | (Zip Code) |
(Former name, former address, if changed since last report) |
Tel: (727) 498-8514 |
(Issuer’s telephone number) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files Yesx No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | o | Accelerated filer | o | |
Non-accelerated filer (Do not check if a smaller reporting company) | o | Smaller reporting company | x |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o No x
Page Number | ||
PART I | ||
Item 1. | Business | 5 |
Item 1A. | Risk Factors | 17 |
Item 1B. | Unresolved Staff Comments | 19 |
Item 2. | Properties | 19 |
Item 3. | Legal Proceedings | 19 |
Item 4. | Mine Safety Disclosures | 19 |
PART II | ||
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 20 |
Item 6. | Selected Financial Data | 21 |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | 25 |
Item 8. | Financial Statements and Supplementary Data | 27 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | 45 |
Item 9A. | Controls and Procedures | 45 |
Item 9A(T) | Controls and Procedures | 45 |
Item 9B. | Other Information | 46 |
PART III | ||
Item 10. | Directors, Executive Officers and Corporate Governance | 47 |
Item 11. | Executive Compensation | 48 |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | 51 |
Item 13. | Certain Relationships and Related Transactions, and Director Independence | 51 |
Item 14. | Principal Accountant Fees and Services | 52 |
PART IV | ||
Item 15. | Exhibits and Financial Statement Schedules | 52 |
Signatures | 53 |
● | On January 10, 2010, we officially changed the name of the Company from OptiCon Systems, Inc. to Infrax Systems, Inc. and were issued a new trading symbol: "IFXY". |
● | On June 29, 2010, the Company acquired the assets and management of Trimax Wireless Systems, Inc. ("Trimax"), in exchange for equity and a note payable. The Trimax product line is expected to provide an operating platform and enhanced operating effectiveness to the Secure Intelligent Energy Platform. |
● | On May 8, 2011 we acquired a 70% controlling interest in Lockwood Technology Corporation, to supply RFID and asset tracking, among other technology value to our product lines. |
● | On June 30, 2015 the Company sold its 70% controlling interest in Lockwood Technology Corporation to Sam Talari, the Company's Chairman in exchange for approximately $735,000 of accrued compensation and related party debt payable to Mr. Talari. |
· | Mobile Public Safety - Providing public safety workers in the field with timely access to the information they need is reducing crime and saving lives |
· | Video Surveillance - A cost-effective alternative to adding additional people to increase security coverage, cameras are extending the visual reach of police, fire, lifeguards and park rangers |
· | Utility Meter Reading - Centrally connected utility meters are improving customer satisfaction and encouraging conservation while lowering operational costs |
· | Intelligent Transportation Systems (ITS) - Real-time traffic analytics and control is minimizing congestion and improving safety on crowded roadways as well as reducing emissions |
· | Municipal Modernization and Mobility - Extending office IT resources to the field is improving worker efficiency, lowering costs, and raising citizen satisfaction |
· | Automated Parking Meters - Variable parking rates, and flexible payment options, are improving main street business. |
· | Industrial - Often operating in hostile conditions, industrial site networks are used for a range of activities that improve business operational efficiencies, reduce operating cost, and increase worker and site safety |
· | Public Access - Citywide, campus-wide, and hot zone Wi-Fi networks increase quality of life, educational opportunities, and economic development |
• | Our ability to differentiate our products and services from those of our competitors and thereby win new utility customers; |
• | Our ability to ensure that our products conform to established and evolving industry standards and governmental regulations; |
● | Make a suitability determination prior to selling a penny stock to the purchaser; |
● | Receive the purchaser's written consent to the transaction; |
● | Provide certain written disclosures to the purchaser; |
● | Deliver a disclosure schedule explaining the penny stock market and the risks associated with trading in the penny stock market; |
● | Disclose commissions payable to both the broker-dealer and the registered representative; and |
● | Disclose current quotations for the common stock. |
Ø | Management's ability to maintain the technology skills for our services; |
Ø | The Company's ability to keep abreast of the changes by the government agencies and law; |
Ø | Our ability to attract customers who require the services we offer; and |
Ø | Our ability to generate revenues through the sale of our services to potential clients who need our services. |
High Bid | Low Bid | |||||||
Fiscal Year 2014* | ||||||||
Fourth Quarter Ended June 30, 2014 | $ | 0.022 | $ | 0.01 | ||||
Third Quarter Ended March 31, 2014 | $ | 0.03 | $ | 0.02 | ||||
Second Quarter Ended December 31, 2013 | $ | 0.03 | $ | 0.02 | ||||
First Quarter Ended September 30, 2013 | $ | 0.03 | $ | 0.02 | ||||
Fiscal Year 2015* | ||||||||
Fourth Quarter Ended June 30, 2015 | $ | 0.003 | $ | 0.001 | ||||
Third Quarter Ended March 31, 2015 | $ | 0.007 | $ | 0.001 | ||||
Second Quarter Ended December 31, 2014 | $ | 0.02 | $ | 0.01 | ||||
First Quarter Ended September 30, 2014 | $ | 0.03 | $ | 0.01 |
Equity Compensation Plan
2015 | 2014 | |||||||
Cash | $ | 274 | $ | 547 | ||||
Current assets | 6,474 | 23,920 | ||||||
Total Assets | 248,597 | 1,883,721 | ||||||
Total current liabilities | 506,423 | 2,531,628 | ||||||
Total liabilities | 856,423 | 3,355,319 | ||||||
Total stockholders' equity (deficit) | (607,826 | ) | (1,471,598 | ) | ||||
Working Capital | (499,949 | ) | (2,507,708 | ) | ||||
Net Cash (Used) Provided by Operating Activities | (221,115 | ) | (60,856 | ) |
For the Year Ended June 30, | 2015 | 2014 | ||||||
Revenues | $ | 45,047 | $ | 136,901 | ||||
Direct costs | - | 46,722 | ||||||
Interest exp & Minority Interest | 171,991 | 117,063 | ||||||
Operating expenses: | 1,777,456 | 2,418,793 | ||||||
Net Income (loss) | $ | 94,720 | $ | (2,211,551 | ) |
Page | |
Consolidated Balance Sheets | 27 |
Consolidated Statements of Operations | 28 |
Consolidated Statements of Cash Flows | 29 |
Consolidated Statements of Changes in Stockholders' Equity | 30 |
Notes to Consolidated Financial Statements | 31 |
June 30, 2015 | June 30, 2014 | |||||||
Assets | ||||||||
Current assets | ||||||||
Cash | $ | 274 | $ | 547 | ||||
Accounts receivable | - | 5,000 | ||||||
Inventory | 6,200 | 6,200 | ||||||
Loan receivable from affiliate | - | 12,173 | ||||||
Total current assets | 6,474 | 23,920 | ||||||
Property & equipment, net | 2,160 | 41,338 | ||||||
Intangible property, net | 239,963 | 1,813,963 | ||||||
Deposits | - | 4,500 | ||||||
Total Assets | $ | 248,597 | $ | 1,883,721 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 156,205 | $ | 164,040 | ||||
Accrued expenses | 224,159 | 1,589,760 | ||||||
Deferred revenue | - | 53,328 | ||||||
Notes payable, net | 105,099 | 724,500 | ||||||
Notes payable, affiliates | 20,960 | - | ||||||
Total current liabilities | 506,423 | 2,531,628 | ||||||
Non-Current liabilities | ||||||||
Notes payable to shareholder | 350,000 | 823,691 | ||||||
Total liabilities | 856,423 | 3,355,319 | ||||||
Stockholders' Equity | ||||||||
Preferred Stock, 100,000,000 authorized, $.001 par value: | ||||||||
Series A Convertible: 5,000,000 shares designated; 2,523,624 and 2,523,624 issued and outstanding | 2,525 | 2,525 | ||||||
Series B Convertible: 10,000,000 shares designated; 0 and 13,540 issued and outstanding | - | 13 | ||||||
Common Stock, $.001 par value, 900,000,000 shares authorized; 325,544,568 and 110,592,793 shares issued and outstanding, respectively | 325,545 | 110,593 | ||||||
Additional paid-in capital | 13,993,618 | 13,783,942 | ||||||
Minority interest in subsidiary | - | (344,437 | ) | |||||
Accumulated deficit | (14,929,514 | ) | (15,024,234 | ) | ||||
Total stockholders' equity | (607,826 | ) | (1,471,598 | ) | ||||
Total Liabilities and Stockholders' Equity | $ | 248,597 | $ | 1,883,721 |
For the Year Ended June 30, | ||||||||
2015 | 2014 | |||||||
Revenues | $ | 45,047 | $ | 136,901 | ||||
Direct costs | - | 46,722 | ||||||
45,047 | 90,179 | |||||||
Operating expenses: | ||||||||
Salaries and benefits | 171,864 | 491,230 | ||||||
Stock based compensation | 15,000 | 110,702 | ||||||
Professional fees | 68,135 | 76,593 | ||||||
General and administrative | 98,990 | 78,266 | ||||||
Amortization and depreciation | 1,423,467 | 1,662,002 | ||||||
Total operating expenses | 1,777,456 | 2,418,793 | ||||||
Other income (expense): | ||||||||
Interest expenses | (171,991 | ) | (44,341 | ) | ||||
Gain on sale of subsidiary | 1,127,674 | - | ||||||
Gain on debt settlement | 871,446 | - | ||||||
Total other income (expense) | 1,827,129 | (44,341 | ) | |||||
Loss from operations before income taxes | 94,720 | (2,372,955 | ) | |||||
Provision for income taxes | - | - | ||||||
94,720 | (2,372,955 | ) | ||||||
Minority Interest | - | 161,404 | ||||||
Net loss | $ | 94,720 | $ | (2,211,551 | ) | |||
Earnings (loss) per share: | ||||||||
Basic and dilutive | $ | - | $ | (0.02 | ) | |||
Weighted average shares outstanding | ||||||||
Basic and dilutive | 136,148,493 | 108,627,578 |
Preferred | Common | Additional Paid in | Minority | Accumulated Deficit Development | Stock- holders' | |||||||||||||||||||||||||||
shares | $.001 par | shares | $.001 par | Capital | Interest | Stage | Equity | |||||||||||||||||||||||||
Balance at June 30, 2013 | 2,537,164 | $ | 2,538 | 103,212,682 | $ | 103,213 | $ | 13,680,620 | $ | (183,033 | ) | $ | (12,812,683 | ) | $ | 790,655 | ||||||||||||||||
Shares for services | 7,380,111 | 7,380 | 103,322 | 110,702 | ||||||||||||||||||||||||||||
Net loss | (161,404 | ) | (2,211,551 | ) | (2,372,955 | ) | ||||||||||||||||||||||||||
Balance at June 30, 2014 | 2,537,164 | $ | 2,538 | 110,592,793 | $ | 110,593 | $ | 13,783,942 | $ | (344,437 | ) | $ | (15,024,234 | ) | $ | (1,471,598 | ) | |||||||||||||||
Settlement of debt | 2,325581 | 2,326 | 37,674 | 40,000 | ||||||||||||||||||||||||||||
Shares for services | 1,500,000 | 1,500 | 13,500 | 15,000 | ||||||||||||||||||||||||||||
Shares for accrued compensation | 5,000,000 | 5,000 | 45,000 | 50,000 | ||||||||||||||||||||||||||||
Conversion of preferred shares | (11,500 | ) | (13 | ) | 22,996,000 | 22,996 | (22,983 | ) | - | |||||||||||||||||||||||
Discount on debt | 195,488 | 195,488 | ||||||||||||||||||||||||||||||
Conversion of debt | 183,130,194 | 183,130 | (59,003 | ) | 124,127 | |||||||||||||||||||||||||||
Sale of Subsidiary | 344,437 | 344,437 | ||||||||||||||||||||||||||||||
Net loss | 94,720 | 94,720 | ||||||||||||||||||||||||||||||
Balance at June 30, 2015 | 2,525,664 | 2,525 | 325,544,568 | 325,545 | 13,993,618 | - | (14,929,514 | ) | (607,826 | ) | ||||||||||||||||||||||
For the Year Ended June 30, | ||||||||
2015 | 2014 | |||||||
Cash Flows from Operating Activities: | ||||||||
Net loss | $ | 94,720 | $ | (2,211,551 | ) | |||
Adjustment to reconcile Net Income to net cash provided by operations: | ||||||||
Depreciation and amortization | 1,423,467 | 1,662,003 | ||||||
Stock based compensation | 15,000 | 110,702 | ||||||
Amortization of deferred revenue | (45,047 | ) | (94,888 | ) | ||||
Amortization of debt discount | 145,541 | - | ||||||
Gain on sale of subsidiary | (1,127,674 | ) | - | |||||
Gain on debt settlement | (871,946 | ) | ||||||
Minority interest | - | (161,404 | ) | |||||
Changes in assets and liabilities: | ||||||||
Accounts receivable | 1,000 | 14,256 | ||||||
Inventory | - | 25,338 | ||||||
Due from affiliate | - | (9,952 | ) | |||||
Prepaid and other | 12,173 | - | ||||||
Accounts payable | 28,721 | 26,411 | ||||||
Accrued expenses | 80,166 | 498,171 | ||||||
Customer deposits and deferred revenue | 22,764 | 80,058 | ||||||
Net Cash (Used) in Provided by Operating Activities | (221,115 | ) | (60,856 | ) | ||||
Cash Flows from Investing Activities: | ||||||||
Purchase of property and equipment | (2,173 | ) | - | |||||
Net Cash (Used) in Investing Activities | (2,173 | - | ||||||
Cash Flows from Financing Activities: | ||||||||
Cash of subsidiary sold | (646 | ) | - | |||||
Proceeds from new deb | 279,050 | - | ||||||
Related party advances (payments) | (55,389 | ) | 61,103 | |||||
Net Cash (Used) Provided by Financing Activities | 223,015 | 61,103 | ||||||
Net increase/decrease in Cash | (273 | ) | 247 | |||||
Cash at beginning of period | 547 | 300 | ||||||
Cash at end of period | $ | 274 | $ | 547 | ||||
Supplemental cash flow information: | ||||||||
Interest paid | $ | - | $ | - | ||||
Taxes paid | $ | - | $ | - | ||||
Supplemental Schedule of Noncash Investing and Financing Activities | ||||||||
Issuance of common stock in satisfaction of accrued compensation | $ | 50,000 | $ | |||||
Issuance of common stock in satisfaction of payables | $ | 15,000 | $ |
· | Level 1 - Quoted prices in active markets for identical assets or liabilities. | |
· | Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities, which include certificates of deposits and money market funds. | |
· | Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
June 30, 2015 | June 30, 2014 | |||||||
Earnings (Loss) per share: | ||||||||
Net Loss | $ | 94,720 | $ | (2,211,551 | ) | |||
Common shares | 325,544,568 | 110,592,793 | ||||||
Common share equivalents | 915,415,206 | |||||||
Dilutive common shares | 1,026,007,999 | |||||||
Earnings (loss) per share, basic | $ | 0.00 | $ | (0.02 | ) | |||
Earnings (loss) per share, dilutive | $ | $ | (0.00 | ) |
June 30, 2015 | June 30, 2014 | |||||||
Office and computer equipment | $ | 85,246 | $ | 120,636 | ||||
Furniture and fixtures | 55,163 | 54,703 | ||||||
Computer software | 5,468 | 5,468 | ||||||
145,877 | 180,807 | |||||||
Accumulated depreciation | (143,717 | ) | (139,469 | ) | ||||
$ | 2,160 | $ | 41,338 |
June 30, 2015 | June 30, 2014 | |||||||
Opticon fiber optic management software | $ | $ | 189,862 | |||||
Trademarks | 1,000 | |||||||
TriMax intellectual property | 6,329,342 | |||||||
TriMax software | 180,020 | |||||||
Lockwood customer list | 394,550 | |||||||
Lockwood licensing and technology | 920,600 | |||||||
8,015,374 | ||||||||
Accumulated amortization | 6,201,411 | |||||||
$ | $ | 1,813,963 |
For the year ended June 30,: | ||||
2016 | 209,837 | |||
2017 | 25,718 | |||
thereafter | 188,527 | |||
$ | 484,082 |
June 30, 2015 | June 30, 2014 | |||||||
Accrued salaries and related expenses | $ | 125,870 | $ | 1,291,700 | ||||
Accrued interest | 6,089 | 203,042 | ||||||
Accrued expenses | 92,200 | 95,018 | ||||||
$ | 224,159 | $ | 1,589,760 |
June 30, 2015 | June 30, 2014 | |||||||
Note payable to Trimax Wireless in the original amount of $712,500. Interest only payments 6% due December 29, 2010. The note was settled in November 2014. | $ | - | $ | 712,500 | ||||
Convertible note to LG Capital Funding in the amount of $32,500. Interest at 8% and principle are due on August 28, 2015. Convertible at 55% of market. Balance is net of discounts of $5,199 and $0, respectively. | 6,686 | - | ||||||
Convertible note to KBM Worldwide in the amount of $53,500. Interest at 8% and principle are due on August 17, 2015. Convertible at 40% of market. Balance is net of discounts of $3,801 and $0, respectively. | 11,759 | - | ||||||
Convertible note to Typenex Investments in the amount of $52,000. Interest at 10% and principle are due on October 3, 2015. Convertible at 40% of market. Balance is net of discounts of $20,800 and $0 respectively. | 31,200 | - | ||||||
Convertible note to KBM Worldwide in the amount of $43,000. Interest at 8% and principle are due on September 21, 2015. Convertible at 40% of market. Balance is net of discounts of $6,109 and $0, respectively. | 36,891 | - | ||||||
Convertible note to KBM Worldwide in the amount of $43,000. Interest at 8% and principle are due on March 21, 2016. Convertible at 40% of market. Balance is net of discounts of $24,437 and $0, respectively. | 18,563 | |||||||
Demand note to an unrelated party from the Lockwood acquisition. Non-interest bearing. | - | 6,000 | ||||||
Demand note to an unrelated party from the Lockwood acquisition. Non-interest bearing. | - | 6,000 | ||||||
105,099 | 724,500 | |||||||
Less current portion | (105,099 | ) | (724,500 | ) | ||||
Long-term portion | - | - | ||||||
Year Ended June 30, | ||||||||
2015 | 2014 | |||||||
Federal at federal statutory rate | (34.0) | % | (34.0) | % | ||||
State, net of federal deduction | (3.3) | % | (3.3) | % | ||||
Change in valuation allowance | 37.3 | % | 37.3 ' | % | ||||
Effective tax rate | 0.0 | % | 0.0 ' | % |
Year Ended June 30, | ||||||||
2015 | 2014 | |||||||
Income tax benefit at statutory rate | $ | $ | (824,909 | ) | ||||
Increase (decrease) in income taxes due to: | ||||||||
Change in valuation allowance | 824,909 | |||||||
$ | - | $ | - |
Year Ended June 30, | ||||||||
2015 | 2014 | |||||||
Deferred tax asset (liability) | ||||||||
Net operating loss | 5,076,035 | 5,140,865 | ||||||
Valuation allowance | (5,076,035) | (5,140,865) | ||||||
- | - |
Shares | Conversion | |||||||
Outstanding | Rate to Common | |||||||
Preferred Series A | 2,400,000 | 375 | ||||||
Preferred Series A1 | 8,889 | 89 | ||||||
Preferred Series A2 | 88,889 | 20 | ||||||
Preferred Series A3 | 25,846 | 16 | ||||||
Preferred Series B1 | 830 | 300 | ||||||
Preferred Series B2 | 1,210 | 300 | ||||||
2,525,664 |
● | We do not have adequate personnel and other resources to assure that significant and complex transactions are timely analyzed and reviewed. |
● | We have limited personnel and financial resources available to plan, develop, and implement disclosure and procedure controls and other procedures that are designed to ensure that information required to be disclosed in our periodic reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission's rules and forms. |
● | Our limited financial resources restrict our employment adequate personnel needed and desirable to separate the various receiving, recording, reviewing and oversight functions for the exercise effective control over financial reporting. |
● | Our limited resources restrict our ability to ensure that information required to be disclosed in our periodic reports filed under the Exchange Act is accumulated and communicated to management to allow timely decisions regarding required disclosure. |
Name | Age | Position (s) | Director since | |||
Sam Talari | 50 | Chairman | 2004 | |||
Paul Aiello | 53 | Director | 2010 |
● | 1994 – 1999 – Mr. Talari ran Compusite Corporation, one of the first Internet solutions providers in the nation to offer large spectrum of value added services to companies seeking greater presence on the Internet. He assisted Compusite to grow from no revenue to a multi-million dollar company. |
● | 1999 to Present – Mr. Talari founded FutureWorld Energy, Inc., (formerly Isys Medical, Inc.) and serves since inception as one of FutureWorld Energy's directors. FutureWorld Energy is a diversified energy holding company, owning and seeking disrupted technologies in the renewable and alternative energy industry globally. |
● | 2001 to Present – Mr. Talari founded and manages FutureTech, a venture capital firm that invests in high technology start up enterprises. |
· | December 2005 to September 2009 – Mr. Aiello served as COO of GoVertical, a technology design and deployment company. | |
· | July 2002 to November 2006 – Mr. Aiello served as Vice President of Sales and Business Operations for Progress Telecom, a major telecommunications carrier. | |
· | 1994 – 2002 _ Mr. Aiello served in a variety of executive positions for The Williams Companies communications units (WilTel, Williams Communications, etc) including Vice President of Global Sales, Vice President of Strategic & Government Accounts and General Manager. |
Name and principal position | Year | Salary | Bonus | Stock Award | All other compensation | Total | |||||||||||||||
Sam Talari, | 2015 | $ | 180,000 | -0- | -0- | -0- | $ | 180,000 | |||||||||||||
Acting CEO & Co-Chairman | 2014 | $ | 164,000 | -0- | -0- | -0- | $ | 164,000 | |||||||||||||
— | each of our directors and executive officers, at September 19, 2015; |
— | our directors and executive officers as a group, at September 19, 2015; and |
— | other persons, including their addresses, and groups, if any, we have learned own or control more than five percent of our issued and outstanding common stock as of a recent date. |
Name | Number of Shares (a) | Percent of Ownership | ||||||
Sam Talari (b) | 73,329,455 | 66.3 | % | |||||
Paul J. Aiello | 8,058,438 | 7.29 | % | |||||
Malcolm F. Welch | 274,127 | 0.25 | % | |||||
John Verghese | 6,121,200 | 5.53 | % | |||||
All directors and officers as a group (4 persons) | 87,783,220 | 79.37 | % |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted- average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a) | |||||
(a) | (b) | (c) | ||||||
Equity compensation plan approved by security holders | None | Not applicable | None | |||||
Equity compensation plan not approved by security holders | None | Not applicable | None |
Service | 2015 | 2014 | ||||||
Audit | $ | $ | 0 | |||||
Review of unaudited financial statements | $ | $ | 6,000 | |||||
Audit-related fees | $ | $ | 0 | |||||
Tax compliance, tax advice and tax planning | $ | $ | 0 | |||||
All other services | $ | $ | 0 |
(a)(1) FINANCIAL STATEMENTS | ||
See index in Item 8 | ||
(a)(2) FINANCIAL STATEMENT SCHEDULES | ||
None | ||
(a)(3) OTHER EXHIBITS | ||
(c) FINANCIAL STATEMENT SCHEDULES: | |
None | |
Infrax Systems, Inc. | ||
Signature, Name and Position: | Date: | |
/s/ Sam Talari | October 14, 2015 | |
Sam Talari, Principal Executive Officer | ||
/s/ Sam Talari | October 14, 2015 | |
Principal Financial Officer and Principal Accounting Officer and Director |