Quarterly report pursuant to Section 13 or 15(d)

SUBSEQUENT EVENTS

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SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2022
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

15. SUBSEQUENT EVENTS

 

On July 1, 2022, under the terms of the Certificate of Designation for the Series A-2 Preferred Stock filed on July 26, 2021, the Company calculated that it is obligated to pay a one-time 6% dividend on the subscription value of the initially issued Series A-2 Preferred Stock. On July 19, 2022, the Company issued shares of common stock to satisfy this dividend requirement and has calculated the number of shares to be issued as 8,810,826 at $0.37 per share.

 

As of July 1, 2022 the Company was late in filing it Quarterly Report on Form 10-Q for the period ended March 31, 2022 and under the terms of the Securities Purchase Agreement signed on July 26, 2021, the Company will incur a late filing penalty. On August 2, 2022, the Company was in compliance with this requirement. There is an additional penalty of $105,000 that will be accrued as of and for the three month period ended September 30, 2022.

 

During the period from July 1, 2022 to August 22, 2022 the Company issued 981,344 shares of restricted common stock in connection with three shareholders converting Series A-2 Preferred Stock into common stock.

 

On August 8, 2022 the Company issued 13,000 shares of restricted common stock to an employee as part of an employment agreement.