Note 16 – Subsequent Events

Issuances of Common Stock

Subsequent to June 30, 2021 and through August 11, 2021, the Company issued 19,350,000 shares of its common stock upon conversions of 700.57 shares of its Series N Preferred Stock with a stated value of $0.7 million.

Issuances of Series O Preferred Stock

Subsequent to June 30, 2021, the Company issued 1,650 shares of its Series O Preferred Stock with a stated value of $1,650,000 and received proceeds of $1.5 million, bringing the total number of outstanding shares of the Company’s Series O Preferred Stock to 4,400 shares with a stated value of $4.4 million.

Reverse Stock Split

On July 16, 2021, the Company effected a 1-for 1,000 reverse stock split as more fully discussed in Note 1.

Potential Common Stock as of August 11, 2021

The following table presents the potential dilutive effect of our various equity-linked instruments as of August 11, 2021:

 Schedule of Dilutive Effect of Various Potential Common Shares

On August 13, 2020, Mr. Diamantis entered into the Voting Agreement with the Company, Mr. Lagan and Alcimede (of which Mr. Lagan is the sole manager) pursuant to which Mr. Diamantis granted an irrevocable proxy to Mr. Lagan to vote the Series M Preferred Stock held by Mr. Diamantis, Mr. Diamantis has retained all other rights under the Series M Preferred Stock. Regardless of the number of shares of Series M Preferred Stock outstanding and so long as at least one share of Series M Preferred Stock is outstanding, the outstanding shares of Series M Preferred Stock shall have the number of votes, in the aggregate, equal to 51% of all votes entitled to be voted at any meeting of stockholders or action by written consent. This means that the holders of Series M Preferred Stock have sufficient votes, by themselves, to approve or defeat any proposal voted on by the Company’s stockholders, unless there is a supermajority required under applicable law or by agreement. As a result of the Voting Agreement, as of the date of filing this report, the Company believes that it has the ability to ensure that it has and or can obtain sufficient authorized shares of its common stock to cover all potentially dilutive common shares outstanding.