Subsequent Events

9 Months Ended

Sep. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Note 14 - Subsequent Events

Private Placement Transaction

On October 21, 2020, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with accredited investors (the “Purchasers”), providing for the offer and sale by the Company to the Purchasers in a private placement of (i) 1,043,000 shares of the Company’s common stock, at a price of $2.85 per share in cash, and (ii) warrants to purchase up to 521,500 shares of common stock, for gross proceeds of $2,973,000 before deducting placement agent fees and other offering expenses (the “Private Placement”). The Private Placement closed, and the net proceeds were received, on October 22, 2020.

The net proceeds of the Private Placement were used by the Company to make the Satisfaction Payment discussed under “SVB Agreement” below.

SVB Agreement

On October 22, 2020, the Company entered into an agreement (the “Satisfaction Agreement”) with certain of its subsidiaries, Oblong Industries, Inc. and GP Communications, LLC (the “Guarantors”), and SVB as lender, pursuant to which SVB agreed to accept a one-time cash payment of $2,500,000 (the “Satisfaction Payment”) in satisfaction of the Company’s outstanding payment obligations under the SVB Loan Agreement, effective immediately, subject to certain terms and conditions. See Note 8 - Debt for further discussion of the SVB Loan Agreement. SVB also agreed to release the security interests and other liens previously granted to or held by SVB as security for the Company’s obligations under the SVB Loan Agreement, as well as the Guarantors’ guarantees thereof. The Company made the Satisfaction Payment on October 22, 2020.