VIA EDGAR
March 25, 2013
Securities and Exchange Commission
100 F Street, N.E.
Judiciary Plaza
Washington, D.C. 20549
Attn:Division of Corporation Finance,
Re:SaaSMAX, Inc.
Form 10-Q for the Quarterly Period ended September 30, 2012 filed November 9, 2012
File No. 333-174403
Dear Ladies and Gentlemen:
At the request of SaaSMAX, Inc., (the “Company”), we are again responding to the comments raised by the Staff of the Securities and Exchange Commission (the “Commission”) in the comment letter dated March 1, 2013 from Stephen Krikorian of the Commission to Dina Moskowitz, Chief Executive Officer of the Company, relating to Form 10Q for the Quarterly Period Ended September 30, 2012.
The numbered paragraph below corresponds to the paragraph in which the comment was made. For your convenience, we have included above our response a copy of the comment to which we are responding.
Form 10-Q for the Quarterly Period Ended September 30, 2012
Financial Statements
Note 1. The Company, Basis of Presentation and Summary of Significant Accounting Policies, page 7
1. Please explain how you determine that expenses for goods and services are recorded in the proper period. Tell us how you account for unpaid costs and expenses for which the benefit has been received or the services have been provided. Describe how you ensure that there are no unrecorded liabilities as of the date of your financial statements. Explain whether you are aware of any unprocessed invoices, unrecorded commitments or contingent liabilities for each period presented.
Response
In recording expenses for services received, the invoice is examined to determine when the service was rendered. The expense is then recorded in the period that the service was incurred, regardless of the date on the invoice. Expenses for goods are recorded when the ownership of the goods has passed to the Company whether through payment to the vendor or agreement with the vendor. A monthly accrual is generally made for ongoing, recurring consulting services. If a payment is made for services or goods that have not been accrued for and the date of the payment for either the goods or services falls within the same quarterly reporting period in which the services were rendered or the goods were purchased, we record the expense or capitalize the asset on the date of the payment rather than the exact date of the invoice or month that the service related to. As a small company, our focus is primarily to record the expense in the proper quarterly reporting period rather than the exact date or month. To ensure that unpaid costs and expenses for which the benefit has been received or the services have been provided are properly accrued for, at the end of each quarterly reporting period, if an invoice has not been received but we know that services have been rendered we record an accrual for the expense. Additionally, we continue to review cash disbursements and credit card charges made subsequent to the quarter’s end to determine if any additional accruals should be made. We occasionally make a general accrual at the end of the reporting period to offset any potential unknown liabilities that we may not be aware of at the time of filing. This helps ensure that there are no materially unrecorded liabilities as of the date of the financial statements. Aside from one invoice for $225 and 28,900 options valued at approximately $16,400 that were not properly accrued for as of September 30, 2012, we are not aware of any unprocessed invoices, unrecorded commitments or contingent liabilities as of September 30, 2012 and December 31, 2011. The $225 invoice and $16,400 of stock options were disclosed in our Form 8-K/A-2 filed with the Securities and Exchange Commission on February 12, 2013.
Note 10. Stock Option and Other Benefit Plans, page 20
2. Please provide us with the following information in chronological order for stock option grants and other equity related transactions since January 19, 2011 (inception): (For purposes of convenience, we have numbered each Bullet Point below)
(a) the nature and type of stock option or other equity related transaction;
(b) the date of grant/issuance;
(c) description/name of option or equity holder;
(d) the reason for the grant or equity related issuance;
Response to Bullet Points (a), (b), (c) and (d)
See 12-31-12 SaaS Stock Option Detail and 12-31-12 SaaS Shareholder List Attached hereto
(e) identify any options granted to consultants and the timing of their services as well as any side arrangements made with consultants to grant options;
Response to Bullet Point (e)
All options granted were to consultants. The basis for the issuing of options to consultants is not consistent among all consultants and occasionally consultants will be issued options although they are not specified in their agreements. The following consultants have “Option Terms” in their agreements:
1) Eric Ho - Per 5/1/12 agreement - $1K per month & 1500 options for first 20 hours, 200 options per hour in excess of 20 hours up to 40 hours. Exercisable at $.92 per share.
2) Donna Olmstead - Per 7/1/12 agreement: 7/1-8/31/12 $1K per month for 20 hours, 175 stock option per hour for each hour over 20 (not to exceed 40).
3) Laura Davis - Per 4/1/12 agreement - $2000 per month payable with $500 in cash and 4285 shares of common stock at $0.35 per share. Appendix B - 6300 options for 4/1-6/30/12 - Appendix C - 3500 option for 7/1-8/30/12
4) Dan Neel - Per 10/5/12 agreement - $500 per month cash plus 700 options per month exercisable at $0.92 per share.
(f) the number of options or equity instruments granted or issued;
(g) the exercise price or conversion price;
(h) the fair value of underlying shares of common stock;
Response to Bullet Points (f), (g), and (h)
See 12-31-12 SaaS Stock Option Detail and 12-31-12 SaaS Shareholder List Attached hereto
(i) adjustments made in determining the fair value of the underlying shares of common stock, such as illiquidity discounts, minority discounts, etc.;
Response to Bullet Point (i)
No adjustments were made.
(j) the total amount of deferred compensation or value assigned to any beneficial conversion feature reconciled to your financial statement disclosures;
Response to Bullet Point (j)
As of September 30, 2012 the Company had entered into three separate Convertible Promissory notes in the amount of $25,000 for a total amount borrowed of $75,000. The Convertible Notes may be converted at any time prior to the Maturity Date (1 year from date entered into) into shares of common stock of the Company on the basis of one share of such stock for each $0.35 in unpaid principal and accrued interest. Utilizing the price per share for which our stock had last been sold in a private placement, the fair market value of our Common Stock at the date these notes were entered into was determined to be $0.92 per share. The resulting beneficial conversion feature (“BCF”) for each of the notes was calculated to be $25,000 (total of $75K beneficial conversion feature). Accordingly, we debited the Discount on Note Payable for $75K and credited Paid in Capital $75,000. At September 30, 2012, we calculated the amortization of the BCF to be $9,726. This amount was debited to Interest Expense and credited to the Discount on Note Payable. The reconciliation at September 30, 2012 is as follows:
| Convertible Notes Payable | $ 75,000 |
| Discount due to BCF | (75,000) |
| Amortization of discount due to BCF | 9,726 |
| 9/30/12 Convertible Notes Payable, net per FS | $ 9,726 |
(k) the amount and timing of expense recognition;
Response to Bullet Point (k)
The vesting schedule for our options granted mirrors the period in which the services have been or will be rendered. See 12-31-12 SaaS Stock Option Detail for timing of stock option expense. We have only issued common stock shares to one consultant. These shares (100,012 to On Demand) were issued on October 21, 2011 with a fair market value of $20,002 and were for services rendered during Q4 2011. Accordingly, the $20,002 was expensed during Q4 2011.
(l) Indicate for each option grant or equity related transaction what valuation methodology used.
Response to Bullet Point (l)
Options are valued using the Black Scholes Option Pricing model. Stock issued for services is valued at the fair market value of the common stock at the time the services are rendered.
We hope that the Staff will be able to accommodate the Company by responding to this response letter as soon as practicable. In the meantime, should members of the Commission Staff have any questions or comments, or require any additional information regarding any of the responses or the attached filing, please contact the undersigned at 760-692-1162 or Stanley M. Moskowitz, who is Of Counsel to this firm at 858 523-0100. We appreciate the courtesies and cooperation of the Staff.
Very truly yours,
The Bingham Law Group.
By:s/ Brad Bingham
Brad Bingham
| SaaSMax | ||||||||||||||||||||
| 12-31-12 Stock Option Detail | ||||||||||||||||||||
| Non-Qualified Stock Options | ||||||||||||||||||||
| Name | Amount | Exercise Price | Stock Price | Vesting | Grant Date | Black Scholes Value | ||||||||||||||
| Stan Moskowitz | 20,000 | 0.20 | 0.20 | 10K 8/1/11, 10K 10/31/11 | 8/1/2011 | 2,470 | ||||||||||||||
| Jeremy Aber | 20,000 | 0.20 | 0.20 | Qtrly beginning 8/1/11 | 8/1/2011 | 2,470 | ||||||||||||||
| Clinton Gatewood | 20,000 | 0.20 | 0.20 | Qtrly beginning 8/1/11 | 8/1/2011 | 2,470 | ||||||||||||||
| Sean Craft | 10,000 | 0.20 | 0.20 | qtrly beginning 10/31/11 | 10/1/2011 | 1,235 | ||||||||||||||
| Lane Smith | 20,000 | 0.35 | 0.20 | qtrly beginning 1/31/2012 | 1/1/2012 | 2,463 | ||||||||||||||
| Laura Davis | 10,000 | 0.35 | 0.35 | 5K on 1/1/12, 5K on 3/1/12 | 1/1/2012 | 2,155 | ||||||||||||||
| Coastal Data Service | 5,000 | 0.35 | 0.35 | 100% on 1/1/2012 | 1/1/2012 | 1,078 | ||||||||||||||
| Stacey Osibov | 25,000 | 0.35 | 0.35 | 100% on1/1/2012 | 1/1/2012 | 5,389 | ||||||||||||||
| Stan Moskowitz | 50,000 | 0.35 | 0.35 | 50% on 1/1/12, 50% on 7/1/12 | 1/1/2012 | 10,777 | ||||||||||||||
| Janine Soika | 10,000 | 0.35 | 0.35 | 5K on 1/1/12, 5K on 3/1/12 | 1/1/2012 | 2,155 | ||||||||||||||
| Ian Moyse | 10,000 | 0.35 | 0.35 | qtrly beginning 1/31/2012 | 1/16/2012 | 2,154 | ||||||||||||||
| Clinton Gatewood | 10,000 | 0.92 | 0.92 | 100% on 7/1/12 | 7/1/2012 | 5,665 | ||||||||||||||
| Glenn Driban | 5,000 | 0.92 | 0.92 | 100% on 7/1/12 | 7/1/2012 | 2,833 | ||||||||||||||
| Stan Moskowitz | 25,000 | 0.92 | 0.92 | 100% on 7/1/12 | 7/1/2012 | 14,163 | ||||||||||||||
| Randy Stultz | 10,000 | 0.92 | 0.92 | 100% on 7/1/12 | 7/1/2012 | 5,665 | ||||||||||||||
| Coastal Data | 20,000 | 0.35 | 0.92 | 100% on 7/1/12 | 7/1/2012 | 14,357 | ||||||||||||||
| Eric Ho | 7,700 | 0.92 | 0.92 | 100% on 7/1/12 | 7/1/2012 | 4,362 | ||||||||||||||
| On Demand | 40,005 | 0.20 | 0.92 | 100% on 7/1/12 | 7/1/2012 | 31,320 | ||||||||||||||
| Laura Davis | 6,300 | 0.35 | 0.92 | 100% on 7/1/12 | 7/1/2012 | 4,522 | ||||||||||||||
| Eric Ho | 14,900 | 0.92 | 0.92 | 100% on 10/1/12 | 10/1/2012 | 8,435 | ||||||||||||||
| Donna Olmstead | 14,000 | 0.92 | 0.92 | 100% on 10/1/12 | 10/1/2012 | 7,925 | ||||||||||||||
| Bob Eres | 10,000 | 0.92 | 0.92 | qtrly beginning 12/31/12 | 10/1/2012 | 5,661 | ||||||||||||||
| Regina Ciardiello | 10,000 | 0.92 | 0.92 | qtrly beginning 12/31/12 | 10/1/2012 | 5,661 | ||||||||||||||
| Stanley Moskowitz | 15,000 | 0.92 | 0.92 | 100% on 10/1/12 | 10/1/2012 | 8,491 | ||||||||||||||
| Henry Briffel | 10,000 | 0.92 | 0.92 | 100% on 10/1/12 | 10/1/2012 | 5,661 | ||||||||||||||
| Eric Ho | 10,300 | 0.92 | 0.92 | 100% on 12/31/12 | 12/31/2012 | 5,833 | ||||||||||||||
| Donna Olmstead | 21,000 | 0.92 | 0.92 | 100% on 12/31/12 | 12/31/2012 | 11,894 | ||||||||||||||
| Laura Davis | 10,500 | 0.92 | 0.92 | 100% on 12/31/12 | 12/31/2012 | 5,947 | ||||||||||||||
| Dan Neel | 2,100 | 0.92 | 0.92 | 100% on 12/31/12 | 12/31/2012 | 1,189 | ||||||||||||||
| Grand Total | 441,805 | Stock option expense | $ | 184,400 | ||||||||||||||||
| SaaSMax | ||||||||||||||||||||||||||||||||||||||||||||
| 12-31-12 Stock Option Detail - Continued | ||||||||||||||||||||||||||||||||||||||||||||
| Non-Qualified Stock Options | ||||||||||||||||||||||||||||||||||||||||||||
| Expense | ||||||||||||||||||||||||||||||||||||||||||||
| Name | Amount | QE 9/30/11 | QE 12/31/11 | QE 3/31/12 | QE 6/30/12 | QE 9/30/12 | QE 12/31/12 | QE 3/31/13 | QE 6/30/13 | QE 9/30/13 | Total | |||||||||||||||||||||||||||||||||
| Stan Moskowitz | 20,000 | 1,647 | 823 | 2,470 | ||||||||||||||||||||||||||||||||||||||||
| Jeremy Aber | 20,000 | 549 | 823 | 823 | 274 | 2,470 | ||||||||||||||||||||||||||||||||||||||
| Clinton Gatewood | 20,000 | 549 | 823 | 823 | 274 | 2,470 | ||||||||||||||||||||||||||||||||||||||
| Sean Craft | 10,000 | 309 | 309 | 309 | 309 | 1,235 | ||||||||||||||||||||||||||||||||||||||
| Lane Smith | 20,000 | 616 | 616 | 616 | 616 | 2,463 | ||||||||||||||||||||||||||||||||||||||
| Laura Davis | 10,000 | 2,155 | 2,155 | |||||||||||||||||||||||||||||||||||||||||
| Coastal Data Service | 5,000 | 1,078 | 1,078 | |||||||||||||||||||||||||||||||||||||||||
| Stacey Osibov | 25,000 | 5,389 | �� | 5,389 | ||||||||||||||||||||||||||||||||||||||||
| Stan Moskowitz | 50,000 | 5,389 | 5,389 | 10,777 | ||||||||||||||||||||||||||||||||||||||||
| Janine Soika | 10,000 | 2,155 | 2,155 | |||||||||||||||||||||||||||||||||||||||||
| Ian Moyse | 10,000 | 539 | 539 | 539 | 539 | 2,154 | ||||||||||||||||||||||||||||||||||||||
| Clinton Gatewood | 10,000 | 5,665 | 5,665 | |||||||||||||||||||||||||||||||||||||||||
| Glenn Driban | 5,000 | 2,833 | 2,833 | |||||||||||||||||||||||||||||||||||||||||
| Stan Moskowitz | 25,000 | 14,163 | 14,163 | |||||||||||||||||||||||||||||||||||||||||
| Randy Stultz | 10,000 | 5,665 | 5,665 | |||||||||||||||||||||||||||||||||||||||||
| Coastal Data | 20,000 | 14,357 | 14,357 | |||||||||||||||||||||||||||||||||||||||||
| Eric Ho | 7,700 | 4,374 | 4,374 | |||||||||||||||||||||||||||||||||||||||||
| On Demand | 40,005 | 31,320 | 31,320 | |||||||||||||||||||||||||||||||||||||||||
| Laura Davis | 6,300 | 4,530 | 4,530 | |||||||||||||||||||||||||||||||||||||||||
| Eric Ho | 14,900 | 8,435 | 8,435 | |||||||||||||||||||||||||||||||||||||||||
| Donna Olmstead | 14,000 | 7,925 | 7,925 | |||||||||||||||||||||||||||||||||||||||||
| Bob Eres | 10,000 | 1,415 | 1,415 | 1,415 | 1,415 | 5,661 | ||||||||||||||||||||||||||||||||||||||
| Regina Ciardiello | 10,000 | 1,415 | 1,415 | 1,415 | 1,415 | 5,661 | ||||||||||||||||||||||||||||||||||||||
| Stanley Moskowitz | 15,000 | 8,491 | 8,491 | |||||||||||||||||||||||||||||||||||||||||
| Henry Briffel | 10,000 | 5,661 | 5,661 | |||||||||||||||||||||||||||||||||||||||||
| Eric Ho | 10,300 | 5,833 | 5,833 | |||||||||||||||||||||||||||||||||||||||||
| Donna Olmstead | 21,000 | 11,894 | 11,894 | |||||||||||||||||||||||||||||||||||||||||
| Laura Davis | 10,500 | 5,947 | 5,947 | |||||||||||||||||||||||||||||||||||||||||
| Dan Neel | 2,100 | 1,189 | 1,189 | |||||||||||||||||||||||||||||||||||||||||
| — | ||||||||||||||||||||||||||||||||||||||||||||
| — | ||||||||||||||||||||||||||||||||||||||||||||
| Grand Total | 441,805 | $ | 2,744 | $ | 2,779 | $ | 19,275 | $ | 10,916 | $ | 80,855 | $ | 59,360 | $ | 2,831 | $ | 2,831 | $ | 2,831 | $ | 184,421 | |||||||||||||||||||||||
| SaaSMax | ||||||||
| 12-31-12 Stock Option Detail - continued | ||||||||
| Non-Qualified Stock Options | ||||||||
| Name | Amount | Period in Which Service Provided | Reason for Grant | |||||
| Stan Moskowitz | 20,000 | 8/1/11 for services through 12/31/11 | legal counsel- advisory - corporate, SEC | |||||
| Jeremy Aber | 20,000 | 8/1/11-7/31/12 | legal- saas licensing - Strategic Advisory Board | |||||
| Clinton Gatewood | 20,000 | 8/1/11-7/31/12 | Strategic Advisory Board- channel expertise/operations/marketing | |||||
| Sean Craft | 10,000 | 10/1/11-9/30/12 | Strategic Advisory Board-SaaS expertise | |||||
| Lane Smith | 20,000 | 1/1/12-12/31/12 | Strategic Advisory Board- channel expertise/MSP recruitment | |||||
| Laura Davis | 10,000 | for services in Q1 2012 | channel expertise, app vendor contract expert/liason | |||||
| Coastal Data Service | 5,000 | for services in Q1 2012 | System adminstration | |||||
| Stacey Osibov | 25,000 | for services in Q1 2012 | Drupal development | |||||
| Stan Moskowitz | 50,000 | for services provided in Q-1 & Q-3 2012 | legal counsel- advisory - corporate, SEC, SaaS licensing, contractor agreements etc | |||||
| Janine Soika | 10,000 | for services and counsel in Q1 2012 | Channel Marketing expertise - app vendor onboarding/recruiting/channel marketing expertise | |||||
| Ian Moyse | 10,000 | for services provided throughout 2012 | Strategic Advisory Board - UK provided many warm introductions | |||||
| Clinton Gatewood | 10,000 | for services to be provided in Q3 | Strategic Advisory Board- channel expertise/operations/marketing | |||||
| Glenn Driban | 5,000 | for services/counsel in Q3 2012 | Software development advice - participation in team discussions/strategy | |||||
| Stan Moskowitz | 25,000 | for additional services Q3 2012 | legal counsel- advisory - corporate, SEC, SaaS licensing, contractor agreements etc | |||||
| Randy Stultz | 10,000 | for services in Q3 2012 | To incentive performance despite low cash compensation- provides Channel Sales expertise - Solution Provider coaching and Biz Dev at discount | |||||
| Coastal Data | 20,000 | for services in Q3 2012 | System adminstration- going over and above expected effort | |||||
| Eric Ho | 7,700 | for services in Q2 2012 | Software development/architecture and Project management, part of contract to compensate for hours | |||||
| On Demand | 40,005 | for services in Q3 2012 | per contract and achieving milestones related to app vendors and resellers in SaaSMAX- critical to success of SaaSMAX | |||||
| Laura Davis | 6,300 | for services in Q2 2012 | per contract in lieu of cash compensation over certain # hours worked | |||||
| Eric Ho | 14,900 | for services in Q3 2012 | per contract in lieu of cash compensation over certain # hours worked | |||||
| Donna Olmstead | 14,000 | for services in Q3 2012 | per contract in lieu of cash compensation over certain # hours worked | |||||
| Bob Eres | 10,000 | for services 10/1/12-9/30/13 | Strategoc Advisory Board member- sales and engagement strategist | |||||
| Regina Ciardiello | 10,000 | for services 10/1/12-9/30/13 | Moved from paid consultant to Strategic Advisory Board member in fall 2012- marketing communications in the SMB channel | |||||
| Stanley Moskowitz | 15,000 | for additional services in Q4 2012 | legal counsel- advisory - corporate, SEC, SaaS licensing, contractor agreements etc | |||||
| Henry Briffel | 10,000 | for services in Q4 2012 | for social media consulting services to incentive performance despite low cash compesnation | |||||
| Eric Ho | 10,300 | for services in Q4 2012 | per contract in lieu of cash compensation over certain # hours worked | |||||
| Donna Olmstead | 21,000 | for services in Q4 2012 | per contract in lieu of cash compensation over certain # hours worked | |||||
| Laura Davis | 10,500 | for services in Q4 2012 | per contract in lieu of cash compensation over certain # hours worked | |||||
| Dan Neel | 2,100 | for services in Q4 2012 | per contract, in lieu of cash compensation | |||||
| Grand Total | 441,805 | |||||||
| SaaSMax Shareholder List | ||||||||||||||||||||
| As of December 31, 2012 | ||||||||||||||||||||
| Date | Name | Reason for Issuance | # of Shares | Price per share | Value | 144 or Registered? | ||||||||||||||
| 01/31/2011 | Dina Moskowitz | Issued to founders as "Founder Shares" at par value. | 2,599,988 | 0.001 | 2,600 | 144 | ||||||||||||||
| 01/31/2011 | Tony Osibov | Issued to founders as "Founder Shares" at par value. | 300,000 | 0.001 | 300 | 144 | ||||||||||||||
| 02/17/2011 | Shana Saichek | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 02/17/2011 | Fu, LLC | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 500,000 | 0.20 | 100,000 | Registered | ||||||||||||||
| 02/17/2011 | Jeffrey Fink | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 02/17/2011 | Ivy Gordon | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 02/23/2011 | Rodney Moskowitz | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 02/23/2011 | Wendy Moskowitz | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 02/23/2011 | Steven Bellach | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 10,000 | 0.20 | 2,000 | Registered | ||||||||||||||
| 02/23/2011 | Gregory Robin | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 25,000 | 0.20 | 5,000 | Registered | ||||||||||||||
| 02/23/2011 | Nikolas Souris | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,500 | 0.20 | 1,100 | Registered | ||||||||||||||
| 02/23/2011 | Walter Straub | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 02/25/2011 | Robert A. Strahl Trustee | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 02/25/2011 | Lee Cunningham | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 7,500 | 0.20 | 1,500 | Registered | ||||||||||||||
| 02/25/2011 | Robert A. Strahl Trustee | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 7,500 | 0.20 | 1,500 | Registered | ||||||||||||||
| 02/25/2011 | Alan Altman | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 25,000 | 0.20 | 5,000 | Registered | ||||||||||||||
| 02/25/2011 | Sterling Lapinski | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 37,500 | 0.20 | 7,500 | Registered | ||||||||||||||
| 02/25/2011 | Amy Lapinski | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 37,500 | 0.20 | 7,500 | Registered | ||||||||||||||
| 02/28/2011 | Michael Gencarella | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 100,000 | 0.20 | 20,000 | Registered | ||||||||||||||
| 03/02/2011 | Scott Bowbrow | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 03/02/2011 | Derik Cahill | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 2,500 | 0.20 | 500 | Registered | ||||||||||||||
| 03/02/2011 | Michelle Cahill | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 2,500 | 0.20 | 500 | Registered | ||||||||||||||
| 03/03/2011 | Ian Mausner | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 50,000 | 0.20 | 10,000 | Registered | ||||||||||||||
| 03/03/2011 | Howard Robin | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 50,000 | 0.20 | 10,000 | Registered | ||||||||||||||
| 03/03/2011 | Richard Rogers | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 03/03/2011 | Jason Galea | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 2,500 | 0.20 | 500 | Registered | ||||||||||||||
| 03/07/2011 | Ryan Neely | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 03/11/2011 | Carole Robin | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 5,000 | 0.20 | 1,000 | Registered | ||||||||||||||
| 03/11/2011 | Dalia Cohen | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 2,500 | 0.20 | 500 | Registered | ||||||||||||||
| 03/16/2011 | Viviane Moskowitz | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 2,500 | 0.20 | 500 | Registered | ||||||||||||||
| 03/16/2011 | Denmoss | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 12,500 | 0.20 | 2,500 | Registered | ||||||||||||||
| 03/16/2011 | Phoenix International Apparel | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 12,500 | 0.20 | 2,500 | Registered | ||||||||||||||
| 03/16/2011 | Stanley Moskowitz | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 2,500 | 0.20 | 500 | Registered | ||||||||||||||
| 03/25/2011 | Glickman Family Trust | Purchased in private placement and included in Registration Statement that went effective on 10/14/11 | 50,000 | 0.20 | 10,000 | Registered | ||||||||||||||
| 10/21/2011 | On Demand | Shares issued for services rendered during Q4 2011 | 100,012 | 0.20 | 20,002 | 144 | ||||||||||||||
| 01/31/2012 | Fu, LLC | Purchased shares | 214,286 | 0.35 | 75,000 | 144 | ||||||||||||||
| 03/10/2012 | Derik Cahill | Transferred from Dina Moskowitz's Founder Shares. Value does not change. | 100,012 | 0.001 | 100 | 144 | ||||||||||||||
| 04/04/2012 | Michael Gancarella | Purchased shares | 71,428 | 0.35 | 25,000 | 144 | ||||||||||||||
| 05/01/2012 | Robert A. Strahl Trustee | Purchased pursuant to 4/5/12 private placement | 5,435 | 0.92 | 5,000 | 144 | ||||||||||||||
| 05/15/2012 | Evolution Lending | Purchased pursuant to 4/5/12 private placement | 38,043 | 0.92 | 35,000 | 144 | ||||||||||||||
| Total Common Stock | O/S at 12/31/12 | 4,429,704 | 363,102 | |||||||||||||||||
