Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
9 Months Ended
Sep. 30, 2018
Subsequent Events [Abstract]  
Subsequent Events

Note 20 – Subsequent Events


Common Stock


As of November 9, 2018, the Company has outstanding 15.2 million shares of its common stock. Since September 30, 2018, the Company has issued 7,925,985 shares of common stock through November 9, 2018 as follows:


  482.21 shares of its Series I-2 Preferred Stock were converted into 7,365,985 shares of common stock;
  200,000 shares of common stock were issued upon conversion of $25,500 of the principal amount of the March 2017 Debentures; and
  360,000 shares of common stock were issued for the cashless exercise of 2,400,000 March 2017 Series B warrants.


On November 5, 2018, the Board of Directors of the Company approved an amendment to the Company’s Certificate of Incorporation, to effect a 1-for-500 reverse stock split of the Company’s shares of common stock. As a result of the reverse stock split, every 500 shares of the Company’s pre-reverse split common stock were combined and reclassified into one share of the Company’s common stock. Proportionate voting rights and other rights of common stockholders will not be affected by the reverse stock split, other than as a result of the cash payment for any fractional shares that would have otherwise been issued. Stockholders who would otherwise hold a fractional share of common stock will receive a cash payment in respect of such fraction of a share of common stock. No fractional shares will be issued in connection with the reverse stock split.


After the reverse stock split, effective at 5:00 p.m., Eastern Time, on November 12, 2018, the Company’s common stock trades on a post-split basis. The par value and other terms of the common stock was not be affected by the reverse stock split. The authorized capital of the Company of 10,000,000,000 shares of common stock and 5,000,000 shares of preferred stock, also will not be affected by the reverse split.


All outstanding preferred shares, stock options, warrants, and equity incentive plans immediately prior to the reverse stock split will generally be appropriately adjusted by dividing the number of shares of common stock into which the preferred shares, stock options, warrants and equity incentive plans of the common stock are exercisable or convertible by 500 and multiplying the exercise or conversion price by 500, as a result of the reverse stock split.


The Company’s transfer agent, Computershare Inc., is acting as exchange agent for the reverse stock split and will send instructions to stockholders of record regarding the exchange of certificates for common stock.


The following table presents the dilutive effect of our various potential common shares as of November 9, 2018:


    November 9, 2018  
Common shares outstanding     15,291,866  
Dilutive potential shares:        
Stock options     77  
Warrants     1,318,592,863  
Convertible debt     269,272,606  
Convertible preferred stock     194,943,417  
Total dilutive potential common shares, including outstanding common stock     1,798,100,829  


As of November 9, 2018, the Company had sufficient authorized shares of its common stock to cover all potentially dilutive common shares outstanding.