NOTE 19 – SUBSEQUENT EVENTS

As of August 14, 2018, the Company’s four short term notes for which the penalty period for shares to be issued has been reached. The Company has recorded 720,000 shares of its common stock as issuable under the terms of those agreements. The shares were valued at approximately $151,200 and are recorded as interest expense. Additional shares will be issued by the Company under the terms of the agreements.

In anticipation of a larger on-going funding program, on May 8, 2018, the Company entered into a $1 million secured promissory note with a third-party lender.  The note provides for interest accruing at 6.5% per annum due May 8, 2025.   For the first six months of the loan, no payments will be made but interest will accrue.  For months seven through twenty-four, interest only payments will be due monthly and commencing on the 25th month of the loan, the remaining unpaid principal and interest will be amortized over the remaining five-year period with equal monthly principal and interest payments.  This note is part of a larger financing arrangement with an international lender who has proposed a second $1 million convertible loan to take place within the next month.  This second note is convertible at $0.80 per share at the election of lender.  As of the date of issuance of this report, the initial funds had not been received by the Company and all documents related to the entire agreement that stipulate details to the loan program will be executed by the parties upon initial proceeds being received by the Company. 

On July 11, 2018, the Company entered into a $500,000 note payable, interest at 20% per annum, unpaid principal and interest maturing 3 years from note date. A one-time payment of 200,000 shares of the Company’s common stock was required at signing. No principal nor interest is due or payable for the first six months of the note, the fees shall accrue and commencing on month seven, the principal and interest shall be amortized over the remaining 30 months. The note is secured by all assets of SEM, including all accounts receivable in favor of SEM and a personal guarantee of an officer of the Company.

On July 12, 2018, the Company issued 140,000 shares of $.001 par value common stock at $.295 per share for accrued interest on a short term note totaling approximately $37,700 and principal totaling approximately $2,000, net of fees.

Effective August 8, 2018, Donald F. Moorehead resigned as Chairman of SEER and CEO of Paragon Waste Solutions (“Paragon”).   Mr. Moorehead will remain as an advisor to the Board and J. John Combs III will resume the role as Chairman of the Board.