Annual report pursuant to Section 13 and 15(d)

Note 20 - Subsequent Events

v3.21.1
Note 20 - Subsequent Events
12 Months Ended
Dec. 31, 2020
Notes to Financial Statements  
Subsequent Events [Text Block]
20.
Subsequent Events
 
The Company has evaluated events and transactions subsequent to
December 31, 2020 
and through the date these consolidated financial statements were included in this Annual Report on Form
10
-K and filed with the SEC.
 
 
a.
Series D 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, approximately
$1.8
million was received and the related
17,750
shares of Series D Preferred Stock were issued during
2020.
These
17,750
shares were subsequently converted into
827,280
shares of Common Stock during
2020.
An additional
$2.9
million was received and the related
29,250
shares of Series D Preferred Stock were issued during the period beginning on
January 1, 2021
and ending on the date of filing of this Annual Report on Form
10
-K. These
29,250
shares of Series D Preferred Stock were subsequently converted into
1,375,089
shares of Common Stock during the period beginning on
January 1, 2021
and ending on the date of filing of this Annual Report on Form
10
-K. In accordance with current accounting guidance,
$2.9
million of stock subscriptions receivable was included in stock subscriptions and other receivables, and approximately
$10.3
million was included in preferred stock subscriptions receivable in the consolidated balance sheet as of
December 31, 2020.
See Notes
2
and
14.
 
 
b.
Series E Preferred Stock:
  On
March 2, 2021,
the Company entered into a Stock Purchase Agreement and Letter of Investment Intent with an existing accredited investor, John K. Scott, Jr. pursuant to which the Company issued to Mr. Scott in a private placement transaction
50,000
shares of newly-designated Series E Preferred Stock for an aggregate purchase price of
$5.0
million. The Series E Preferred Stock will be convertible into a maximum of
2,173,913
shares of Common Stock. See Note
2.