Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

Subsequent Events
3 Months Ended
Mar. 31, 2022
Subsequent Events [Abstract]  
Subsequent Events

Note 15 – Subsequent Events


Conversions of Series N Preferred Stock


Subsequent to March 31, 2022 and through May 20, 2022, the Company issued an aggregate of 1,212,145,066 shares of its common stock upon conversions of 1,092.052 shares of its Series N Preferred Stock with a stated value of $1,092,052 and 58.05 shares of its Series O Preferred Stock with a stated value of $58,050.


Potential Common Stock as of May 20, 2022


The following table presents the dilutive effect of our various potential shares of common stock as of May 20, 2022:


    May 20, 2022  
Shares of common stock outstanding    


Dilutive potential shares:        
Stock options    


Warrants     255,666,675,553  
Convertible debt    


Convertible preferred stock    


Total dilutive potential shares of common stock, including outstanding common stock     467,303,282,159  


As a result of: (i) the Voting Agreement discussed in Note 10; (ii) 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; (iii) the recent increase in authorized shares of common stock; and (iv) the recent reverse common stock split discussed in Note 1, 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.


Issuances of Series P Preferred Stock Under Securities Purchase Agreement Dated January 31, 2022


On April 1, 2022, under the terms of a securities purchase agreement dated January 31, 2022, which is more fully discussed in Note 10, the Company issued 550 shares of its Series P Preferred Stock for $0.5 million in proceeds. The securities purchase agreement restricts the Company’s use of the proceeds from the issuances of the Series P Preferred Stock.


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 Notes 2 and 5.


O’Killough Note Payable


In February 2020, Mr. O’Killough sued the Company and Mr. Diamantis, as guarantor, in New York State Supreme Court for the County of New York, for approximately $2.0 million relating to the promissory note issued by the Company in September 2019. In May 2020, the Company, Mr. Diamantis, as guarantor, and Mr. O’Killough entered into a Stipulation providing for a payment of a total of $2.2 million (which included accrued “penalty” interest as of that date) in installments through November 1, 2020. The Company made payments totaling $450,000 in 2020. On January 18, 2022, Mr. Diamantis paid $750,000 and the remaining balance was due 120 days thereafter. Mr. O’Killough agreed to forebear from any further enforcement action until then. The Company is obligated to repay Mr. Diamantis the $750,000 payment as well as any further payments that may be made by him. As of March 31, 2022, $1.6 million remained past due under the note payable to Mr. O’Killough (see Note 6). Subsequent to March 31, 2022, the Company repaid Mr. Diamantis $118,500 and paid $250,000 to Mr. Diamantis for further payment to Mr. O’Killough by May 18, 2022 to continue the forbearance of any further enforcement action by him.