Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.21.2
Subsequent Events
6 Months Ended
Jun. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

 

  11. Subsequent Events

 

From July 1, 2021, through September 10, 2021, the Company issued and sold to accredited US investors and non-U.S. investors an aggregate of $191,000 in principal amount Convertible Promissory Notes (the “Notes”) and warrants to purchase an aggregate of 3,342,163 shares of common stock (the “Warrants”). The Company received proceeds from the closing of the private placement of $173,000, which funds were used, and are being used, for general corporate purposes and working capital.

 

The Notes are due twelve (12) months from their respective issuance dates (the “Maturity Date”). The Notes do not bear interest and were issued in the face amount equal to 110% of the purchasers’ commitments. The Notes are convertible into shares of the Company’s common stock at a rate of $0.02 to $0.03 per share. If the Notes are not paid in full by the Maturity Date, the balance remaining on the Maturity Date shall be increased by 10% and the Company shall be required to pay interest at a rate of 10% per annum thereon until all sums thereunder are paid in full.

 

The Warrants are exercisable into shares of the Company’s common stock for a term of one (1) year at an exercise price of $0.03 to $0.04 per share. The Warrants also contain provisions that protect the holders against dilution by adjustment of the conversion price in certain events involving a reduction or increase in the Company’s shares.