|12 Months Ended|
Dec. 31, 2021
|Subsequent Events [Abstract]|
Note 18 – Subsequent Events
Conversions of Series N Preferred Stock
Subsequent to December 31, 2021 and through April 8, 2022, the Company issued million shares of its common stock upon conversions of shares of its Series N Preferred Stock with a stated value of $766,959.
Reverse Stock Split
Effective March 15, 2022, the Company filed an amendment to its Certificate of Incorporation, as amended, to effect a reverse stock split of all of the outstanding shares of our Common Stock, at a ratio from 1-for-10,000, as more fully discussed in Note 1.
Increase in Authorized Shares of Common Stock
Effective March 15, 2022, the Company filed an Amendment to its Certificate of Incorporation, as amended, with the Secretary of State of Delaware to increase the authorized shares of Common Stock of the Company frombillion shares to billion shares. (See Note 1.)
Potential Common Stock as of April 8, 2022
Schedule of Dilutive Effect of Various Potential Common Shares
As a result of the Voting Agreement discussed in Note 12, the November 5, 2021 Amendment to its Certificate of Incorporation, as amended, providing for the affirmative vote of the holders of a majority in voting power of the stock of the Company to authorize an increase in the number of authorized shares of the Company’s common stock, as more fully discussed in Note 1, the recent increase in authorized shares of common stock and the recent reverse common stock split, the Company believes that it has the practical ability to ensure that it has a sufficient number of authorized shares of its common stock to accommodate all potentially dilutive instruments.
On January 18, 2022, notes payable due to Mr. Diamantis increased by $750,000 due to his payment of a like amount to Mr. Anthony O’Killough in connection with a forbearance agreement related to amounts owed to Mr. O’Killough by the Company and personally guaranteed by Mr. Diamantis. Amounts owed to Mr. O’Killough are more fully discussed in Notes 8 and 14. Loans from Mr. Diamantis are more fully discussed in Note 8.
Securities Purchase Agreement Dated January 31, 2022
On January 31, 2022, the Company entered into the Securities Purchase Agreement (the “Purchase Agreement”), among the Company and certain existing institutional investors of the Company. The Purchase Agreement provided for the issuance of up to shares of Series P Preferred Stock at a series of closings. The first closing occurred on March 11, 2022 where shares were issued for $1.0 million in proceeds. The second closing occurred on April 1, 2022 where 0.5 million in proceeds. The Purchase Agreement restricts the Company’s use of the proceeds from the issuances of the Series P Preferred Stock. shares were issued for $
Forgiveness of PPP Notes
In January 2022, $0.3 million of then outstanding PPP Notes were forgiven. PPP Notes are more fully discussed in Note 8.
Receipt of HHS Provider Relief Funds
On April 13, 2022, the Company received $0.3 million in HHS Provider Relief Funds. HHS Provider Relief Funds are more fully discussed in Note 1.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef