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Subsequent Events
3 Months Ended
Mar. 31, 2017
Subsequent Events [Abstract]  
Subsequent Events

Note 14. Subsequent events

 

The Company has evaluated events that occurred subsequent to March 31, 2017, and through the date of the Consolidated Financial Statements.

 

In April 2017, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”) with accredited investors (the “Investors”) relating to the issuance and sale of 1,250,000 shares of the Company’s common stock, par value $0.001 per share (the “Shares”) at a purchase price of $0.40 per Share. In addition, for every Share purchased, the Investors shall receive detachable warrants, as follows (i) one Series A Warrant; (ii) one Series B Warrant; and (iii) one Series C Warrant (collectively the “Warrants”).

 

Each Series A Warrant is exercisable for one (1) Share, for a period of three (3) years at a price of $0.50 per Share. Each Series B Warrant is exercisable for one (1) Share, for a period of three (3) years at a price of $0.75 per Share, and each Series C Warrant is exercisable is exercisable for one (1) Share, for a period of three (3) years at a price of $1.00 per Share.

 

The gross and net proceeds from the Purchase Agreements were $500.

 

In May 2017, the Company entered into Securities Purchase Agreements (the “Purchase Agreements”) with accredited investors (the “Investors”) relating to the issuance and sale of $330 principal value in 10% Amortizing Notes, due October 1, 2018. Beginning on October 1, 2017 the Company is required to make monthly payments of interest and principal to pay off the Note on maturity. Under certain circumstances, including default, the Investors have the right to convert the Note into common shares of the Company at a 35% discount to the then current market price. In addition, Investors received 360,000 detachable warrants exercisable for a period of five (5) years at a price of $0.50 per Share.

 

The Note carried an original issue discount of $30 and expense reimbursement of $35, providing net proceeds to the Company of $265.