Annual report pursuant to Section 13 and 15(d)

11. Subsequent Events

v3.20.1
11. Subsequent Events
12 Months Ended
Dec. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events

11. Subsequent Events

 

Conversion of Convertible Notes

 

In January 2020, Company issued 1,224,347 shares of common stock upon conversion of previously issued convertible notes in aggregate value of $98,000.

 

Exercise of Warrants

 

In January 2020, the Company issued 110,000 shares of common stock upon the exercise of previously issued warrants for aggregate cash proceeds of $6,000.

 

Exercise of Options

 

In January 2020, the Company issued 60,000 shares of common stock to a member of the Board of Directors upon the exercise of previously issued options for aggregate cash proceeds of $3,000.

 

Grant of Stock Options

 

In January 2020, The Company granted members of the Board of Directors stock options to purchase a total of 2,499,998 shares of common stock pursuant to the Board of Directors compensation policy. The stock options vest over one year, are exercisable at $0.15 per share and will expire10 years from the date of grant. Total fair value of the stock options amounted to $3,000 which will be expensed over the vesting period.

 

In February through March 2020, the Company granted an executive officer stock options to purchase 200,000 shares of common stock pursuant to an employment agreement. The stock options vest over one month, are exercisable at $0.03 to $0.10 Per share and will expire 10 years from the date of grant. The total fair value of the stock options amounted to $13,000 which will be expensed over the vesting period.

 

Grant of Warrants

 

In January through March 2020, the Company granted warrants to purchase 99,999 shares of common stock to a contract employee pursuant to a consulting agreement. The warrants vest over one month, are exercisable at $0.04 to $0.14 Per share and will expire 2 years from the date of grant. The total fair value of the warrants amounted to $7,000 which will be expensed over the vesting period.

 

Amendment to Employee Agreements

 

Effective February 15, 2020, the Company amended employment agreements of the Company’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO). Prior these amendments, both employment agreements had been scheduled to terminate on February 15, 2019. As amended, the CFO’s employment agreement is extended on a month-to-month basis with no other terms modified. As amended, the CEO’s employment agreement is extended on a month to month basis, with no cash compensation and options granted each month for the purchase of 100,000 shares of restricted common stock at a purchase price equal to the stock’s closing price on the date of issuance, vesting in one month, and expiring 10 years from the date of grant. No other terms of the CEO’s employment agreement have been modified.