Quarterly report pursuant to Section 13 or 15(d)

10. Subsequent Events

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10. Subsequent Events
3 Months Ended
Mar. 31, 2018
Subsequent Events [Abstract]  
Subsequent Events

Issuance of Convertible Notes

 

From April 1, 2018 up to April 6, 2018, the Company issued convertible notes in aggregate of $81,000 in exchange for cash of $72,000. The notes are unsecured, convertible into 1 million shares in common stock of the Company at a conversion price of $0.08 per share and mature in one year. In connection with these notes, the Company also issued warrants to purchase 0.5 million shares of common stock of the Company at an exercise price of $0.08 per share and expiring one year from the date of issuance. As a result, the Company will record a note discount of $81,000 to account for the relative fair value of the warrants, the notes’ beneficial conversion feature and original issue discount which will be amortized as interest expense over the life of the notes.

 

Conversion of Convertible Notes

 

From April 1, 2018 up to May 14, 2018, Company issued 1,654,125 shares of common stock upon conversion of previously issued convertible notes in aggregate value of $122,000.

 

Exercise of Warrants

 

From April 1, 2018 up to May 12, 2018, the Company issued 4,698,773 shares of common stock upon the exercise of previously issued warrants for aggregate cash proceeds of $243,000.