Subsequent Events |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9 – Subsequent Events
The Company has evaluated events that have occurred after the balance sheet and through the date the financial statements were issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements, except as disclosed below.
Convertible Notes Payable - Related Parties
Subsequent to June 30, 2022, Mr. Verstraete advanced the Company an additional $1,500,000 under a convertible promissory note dated March 10, 2022. See Note 5, Notes Payable – Convertible Notes Payable – Related Parties for additional details. The Company also issued -year immediately vested warrants to purchase an aggregate of 800,000 shares of common stock at an exercise price $1.25 per share.
Additionally, subsequent to June 30, 2022, the Company and Darlene Soave, a Director of the Company, entered into an agreement to amend a previously issued convertible note dated October 28, 2019 in the aggregate principal amount of up to $6,000,000, whereby the maturity date of the note was extended from October 28, 2022 to April 28, 2023.
Convertible Notes Payable - Issuances
Subsequent to June 30, 2022, the Company issued convertible notes payable in the aggregate principal amount of $250,000 which have maturity dates ranging from December 31, 2022 through June 1, 2023. The notes accrue interest at 8% per annum and are convertible at any time at the option of the holder into the Company’s Series C Convertible Preferred Stock at a conversion price of $7.50 per share. The notes automatically convert into Series C Convertible Preferred Stock on the maturity date. In connection with the issuances, the Company issued -year immediately vested warrants to purchase an aggregate of 200,000 shares of common stock at an exercise price $1.25 per share.
Convertible Notes Payable - Conversions
Subsequent to June 30, 2022, an aggregate of $245,000 of principal outstanding under convertible notes automatically converted into an aggregate of shares of Series C Convertible Preferred Stock at a conversion price of $7.50 per share and the Company elected to pay an aggregate of $9,540 of interest accrued under such notes by the issuance of an aggregate of shares of common stock at $ per share.
Litigation
In August 2022, a holder of shares of the Company’s common stock filed a complaint against the Company, its President and legal counsel in the United States District Court, Southern District of New York, claiming unspecified damages for an alleged wrongful refusal to authorize the Company’s transfer agent to remove restrictive legends from the shares held by the shareholder. The Company has filed a motion to dismiss the complaint which is pending. The complaint against the Company’s legal counsel was dismissed by the Court and the Company’s President has not been served.
Stock Options
Subsequent to June 30, 2022, the Company granted -year immediately vested stock options to purchase an aggregate of shares of common stock at an exercise price of $ per share to two directors of the Company. |