Subsequent Events

12 Months Ended

Dec. 31, 2019

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

Except for the event(s) discussed below, there were no subsequent events that required recognition or disclosure. The Company evaluated subsequent events through the date the financial statements were issued and filed with the Securities and Exchange Commission.

Lease

On February 1, 2020, the Company terminated its office lease agreement for the space located at 4815 Emperor Boulevard, Suite 100, Durham, North Carolina 27703 for a one-time payment of $10,000.

Bridge Loan

On February 5, 2020, the Company entered into a Securities Purchase Agreement pursuant to which accredited investors agreed to purchase: (i) original issue discount unsecured Convertible Promissory Notes, issued at a 10% original issue discount, for a total purchase price of $499,950, and (ii) warrants to purchase up to such number of shares of the common stock of the Company as is equal to the product obtained by multiplying 1.75 by the quotient obtained by dividing (A) the principal amount of the Notes by (B) the then applicable conversion price of the Notes as defined in the agreement.

The Notes mature on August 5, 2020, or such earlier date as the Note is required or permitted to be repaid. Interest shall accrue to the holders on the aggregate unconverted and then outstanding principal amount of the Notes at the rate of 10% per annum, calculated on the basis of a 360-day year.  

On or after May 5, 2020 until the Notes are no longer outstanding, the Notes may be convertible into shares of Common Stock at the option of the note holder. The conversion price shall be the lower of: (i) $0.50 per share of Common Stock and (ii)

70% of the volume weighted average price of the Common Stock on the trading market on which the Common Stock is then listed or quoted for trading for the prior ten (10) trading days (as adjusted for stock splits, stock combinations and similar events); provided, that if the Notes are not prepaid on or before May 5, 2020, then the conversion price shall be the lower of (x) 60% of the conversion price as calculated above or (y) $0.05 (as adjusted for stock splits, stock combinations and similar events).

The exercise price of the Warrants shall be equal to the conversion price of the Notes, provided, that on the date that the Notes are no longer outstanding, the exercise price shall be fixed at the conversion price of the Notes on such date, with the exercise price of the Warrants thereafter (and the number of shares of Common Stock issuable upon the exercise thereof) being subject to adjustment as set forth in the Warrants.