Note 11 - Subsequent Events

3 Months Ended

Jun. 30, 2019

Disclosure Text Block [Abstract]

Note 11 - Subsequent Events

Note 11 – Subsequent Events

Capital Transactions

Subsequent to June 30, 2019, the Company issued 6,030,000 shares of its common stock as the result of the following transactions:

· In order to encourage the exercise of approximately 70.5 million warrants issued to investors in private placements of convertible notes and common stock having exercise prices ranging between $0.65 and $0.30, the Company effected a temporary decrease in the exercise price of the warrants to $0.10 per share until July 11, 2019. On July 12, 2019, the Company extended the repricing of the warrants through August 30, 2019. Subsequent to June 30, 2019, the Company has received notice of the exercise of 5,030,000 warrants and received proceeds of $452,700, net of brokerage fees of $50,300. In connection with the induced exercise of the warrants, the Company anticipates recording an inducement dividend.

· On August 1, 2019, the Company received notice of the conversion of $110,000 of the principal balance of its outstanding 8% Senior Secured Convertible Promissory Note payable to CSW Ventures, L.P. at $0.11 per share and issued 1,000,000 shares of common stock.

Amendment to 8% Senior Secured Convertible Promissory Note dated February 12, 2019

On July 12, 2019, the Company entered into the Amendment to Note Documents and the Amended and Restated 8% Senior Secured Promissory Note (together, “CSW Amendment”). The CSW Amendment increased the balance of the CSW Note by $100,000 to reflect an additional $100,000 advanced to the Company on July 12, 2019, and by $41,863 to add accrued interest to date to the principal balance. The CSW Amendment also decreased the conversion price to $0.11 per share, with the remaining terms unchanged from the original CSW Note (See Note 6).

The Company evaluated the modification under the guidance in ASC 470-50 and determined that the terms of the amended note qualify as “substantially different” from the original CSW Note because the change in the fair value of the conversion feature was greater than 10% of the carrying value of the CSW Note on the amendment date. Accordingly, the Company will record an extinguishment of the CSW Note and we anticipate recording a loss on extinguishment of $294,158 in the quarter ended September 30, 2019.