Preferred Stock:
On
August 31, 2020,
the Company entered into the Series D Preferred Stock Purchase Agreement with Keystone pursuant to which the Company agreed to issue to Keystone
150,000
shares of newly-designated Series D Preferred Stock for an aggregate purchase price of
$15.0
million. Of this amount,
$150,000
was received and the related
1,500
shares of Series D Preferred Stock were issued during the
third
quarter of
2020.
These
1,500
shares were subsequently converted into
56,497
shares of Common Stock during the
third
quarter of
2020.
An additional
$700,000
was received and the related
7,000
shares of Series D Preferred Stock were issued during the period beginning on
October 1, 2020
and ending on the date of filing of this Quarterly Report on Form
10
-Q. These
7,000
shares of Series D Preferred Stock were subsequently converted into
313,290
shares of Common Stock during the period beginning on
October 1, 2020
and ending on the date of filing of this Quarterly Report on Form
10
-Q. In accordance with current accounting guidance,
$700,000
of stock subscriptions receivable was included in stock subscriptions and other receivables, and approximately
$14.2
million was included in preferred stock subscriptions receivable in the consolidated balance sheet as of
September 30, 2020.
See Notes
2
and
11.