14. SUBSEQUENT
EVENTS
The Company’s management has evaluated subsequent events up to June 29, 2023, the date the consolidated financial statements were
issued, pursuant to the requirements of ASC 855 and has determined the following material subsequent events:
During the
period from April 1 to June 29, 2023, the following events occurred:
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The Company
issued a further $1 million (face value) Series C Notes, which are convertible promissory notes sold under subscription agreements
to accredited investors. The Notes mature one year from the final closing date of the offering and accrue interest at 15% per annum.
For additional information, please see Note 5 – Convertible Promissory Notes and Short Term Loans. |
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The Company entered into
a secured revolving account purchase credit and inventory financing facility with a revolving loan lender, pursuant to which the
lender may from time to time purchase certain discrete account receivables from the Company (with full recourse) or may make loans
and provide other financial accommodations, the payment of which are guaranteed and secured by certain assets of the Company. In
selling accounts receivables to the revolving loan lender, the Company is receiving 85% of their value as an advance of its regular
collection of those receivables, limited to $1 million in financing, and expects to receive the remaining balance as part of normal
collection activities. The inventory financing provided by this facility was limited to the lower of $0.3 million, or a 40% maximum
of inventory balances. On June 29, 2023, the Company had drawn $0.8 million in accounts receivable financing and $0.3 million in
inventory financing. |
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