Annual report pursuant to Section 13 and 15(d)

Subsequent Events

v2.4.1.9
Subsequent Events
12 Months Ended
Dec. 31, 2014
Subsequent Events [Abstract]  
Subsequent Events

NOTE 9 - SUBSEQUENT EVENTS

 

On December 22, 2014 the Company entered into an employment Agreement with James R. Thompson as Chief Executive Officer of the Company, effective February 1, 2015. The Company agreed to compensate Mr. Thompson with a base salary of $180,000 and 1,000,000 shares of the Company’s common stock at the beginning of each employment year. All common stock issued to Mr. Thompson was agreed to be restricted pursuant to Rule 144, and contained additional restrictions on Mr. Thompson’s re-sale limiting his sales to no more than 10,000 shares per day, plus an additional 10,000 shares per day for every 250,000 shares of daily trading volume. The Company also agreed to pay Mr. Thompson a signing bonus in the amount of $360,000 and 5,000,000 shares of the Company’s restricted common stock with a fair value of $900,000, all of which were recorded in the accompanying 2014 statements of operations and comprehensive income as part of professional fees, as such amounts were contractually due as of that date.

 

On December 29, 2014 the Company entered into an employment Agreement with Jennifer Duettra as Vice President and Assistant General Counsel. The Company agreed to compensate Ms. Duettra with an annual base salary of $120,000 and 250,000 shares of the Company’s common stock at the beginning of each employment year. All common stock issued to Ms. Duettra was agreed to be restricted pursuant to Rule 144, and contained additional restrictions limiting Ms. Duettra’s sales to no more than 5,000 shares per day for every 250,000 shares of daily trading volume. The Company also agreed to pay Ms. Duettra a signing bonus in the amount of $25,000 and 500,000 shares of the Company’s restricted common stock with a fair value of $87,500, all of which were recorded in the accompanying 2014 statements of operations and comprehensive income as part of professional fees, as such amounts were contractually due as of that date.

 

In February 2015, the Company’s name was changed from Eat at Joe’s, Ltd. to SPYR, Inc., pursuant to the approval of the Company’s Board of Directors and majority shareholders; and it obtained a new ticker symbol “SPYR,” which was effective March 12 2015.

 

On February 23, 2015 the Company entered into a material definitive agreement whereby, the Company issued an aggregate of 2.5 million shares of the its restricted common stock valued at $1,700,000, in exchange for all of the issued and outstanding shares of Franklin Networks, Inc., a Tennessee corporation (“Franklin”). By virtue of the agreement, the Company acquired the assets and business of Franklin including, but not limited to: employment contracts, consulting contracts, customer lists, customer relationships, trade secrets, trade designs, technical expertise, know how, proposals, internet web domains, internet web sites, trade names, and other intellectual property, and contractual relationships with Ad Service providers. This acquisition will be accounted for using the purchase method of accounting. The Company will amend its Form 8-K filed on February 27, 2015 to include audited financial statements and pro forma information for Franklin.

 

Effective March 2, 2015, the Company entered into an employment contract with Mark McGarrity in which Mr. McGarrity agreed to oversee and guide the Company’s information technologies related to the development and maintenance of the Company’s web sites, mobile applications, games, and advertising in connection to software development. The Company agreed to compensate Mr. McGarrity with an annualized base salary of $120,000 and a signing bonus of 250,000 shares of restricted common stock with a fair value of $145,000. The shares of common stock contain provisions restricting Mr. McGarrity to selling no more than 5,000 shares daily for every 250,000 shares of daily trading volume after Mr. McGarrity complies with Rule 144.