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Shareholders' Equity
3 Months Ended
Mar. 31, 2020
Equity [Abstract]  
SHAREHOLDERS' EQUITY

17. SHAREHOLDERS' EQUITY

 

For the three months ended March 31, 2020

  

As of March 31, 2020, the Company had 100,000,000 shares of preferred stock authorized for issuance, none of which were issued and outstanding and 300,000,000 shares of common stock authorized for issuance and 128,541,338 shares of common stock issued and outstanding.

 

Consulting Agreement

 

On January 31, 2020, the Company entered into an agreement with a consultant to its subsidiary, Lextrum, to amend a consulting agreement between the consultant and Lextrum to allow the consultant to elect to take from 50% to 100% of his compensation in the form of common stock of the Company. Common stock to be issued to the consultant will be paid on a quarterly basis. On March 12, 2020, the Company issued 165,095 shares of its common stock in satisfaction of $106,238 that was owed by Lextrum to the consultant for services previously rendered. The fair value on the issue date of the 165,095 shares was $193,161. The Company booked the difference between the fair value of the shares issued and the amount owed by Lextrum to the consultant as general and administrative expense in the Company's condensed consolidated financial statements. To date, no additional shares of common stock have been issued pursuant to this agreement.

 

For the period January 10, 2019 (Inception) through March 31, 2019

 

As of March 31, 2019, ComSovereign Corp had 5,000,000 Preferred Series A shares authorized for issuance, 2,600,000 of which were issued and outstanding and 300,000,000 shares of common stock authorized for issuance, 27,970,000 of which were outstanding. All the Preferred Series A shares issued were for the acquisitions of VEO, InduraPower and Silver Bullet during fiscal 2019. On November 15, 2019, each Preferred Series A share was converted into one common share of ComSovereign. These shares ceased to exist when they were converted.

 

As of March 31, 2019, the Company had 100,000,000 shares of preferred stock authorized for issuance, none of which were issued and outstanding and 300,000,000 shares of common stock authorized for issuance and 27,656,121  shares of common stock issued and outstanding.

 

As of March 31, 2019, the Company had outstanding warrants to purchase an aggregate of 2,280,000 shares of common stock. Of those 2,280,000 warrants, 70,000 had an exercise price of $5.00 per share; 60,000 had an exercise price of $2.91 per share; 100,000 had an exercise price of $1.00 per share; and the remaining 2,050,000 had an exercise price of $0.50 per share.

 

Dividends

 

The Company did not pay dividends to holders of its common stock during the three months ended March 31, 2020. The determination to pay dividends on common stock will be at the discretion of the Board of Directors and will depend on applicable laws and the Company's financial condition, results of operations, cash requirements, prospects and such other factors as the Board of Directors may deem relevant. In addition, current or future loan agreements may restrict the Company's ability to pay dividends. The Company does not anticipate declaring or paying any cash dividends on common stock in the foreseeable future.