Subsequent Events
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3 Months Ended |
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Jan. 31, 2013
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Subsequent Events [Abstract] | |
Subsequent Events |
(15) Subsequent Events
On February 19, 2013 the Company received $50,000 from Shoreline Memory, Inc. and on February 22, 2013 the Company received an additional $200,000 from Shoreline Memory, Inc. as a partial repayment of their loan. The Company has reached an agreement in principle to terminate its relationship with Shoreline. At closing, the Company will receive an additional $225,000 as a partial repayment of the loan in connection with the termination of all agreements with Shoreline. The remaining $275,000 will be repaid in accordance with the proposed amended and restated promissory note that will be due on July 31, 2013. The proposed promissory note bears interest at the rate of 6% and is guaranteed by Shoreline Memory, Inc., Shoreline Capital Management Ltd and Trevor Folk. All agreements with Shoreline Memory, Inc. will be terminated with the exception of the proposed amended and restated promissory note. As a result of the termination with Shoreline, the Company will look to expand its relationship with Advanced Micro Devices, Inc.
On January 31, 2013, the Company filed a proxy statement with the Securities and Exchange Commission for the purpose of calling a special meeting of its stockholders. The Board of Directors is asking the stockholders to approve the Boards action in effecting a reverse split of its common stock at a ratio of no less than 1 for 3 and no greater than 1 for 6. The meeting was held at the Companys offices on March 13, 2013. The stockholders approved the action and immediately following the meeting, the Board of Directors voted to affect a reverse split of its common stock at the ratio of 1 for 6. The split shares were effective with the opening of trading on March 15, 2013. The common stock closed at $.30 on the previous day. In order to regain compliance, the Companys post-split common stock must trade above $1.00 for ten consecutive days. The Company is currently under a delisting notice and the Company has requested a hearing which is scheduled for March 28, 2013 which date would be the tenth trading day. Provided the common stock trades above $1.00 for the previous nine days, NASDAQ would be willing to postpone the hearing for the Company to regain compliance and, as such, the hearing would be canceled. |