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SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2019
SUBSEQUENT EVENTS  
12. SUBSEQUENT EVENTS

Management has evaluated subsequent events according to the requirements of ASC TOPIC 855, and has reported the following:

 

Reverse Stock Split

 

Effective February 14, 2020, the Company effected a reverse split of its common stock at a ratio of one for two hundred twenty-five shares (1:225) with the filing of a Certificate of Amendment to its Articles of Incorporation with the Secretary of State of Nevada.  Outstanding common shares were increased by 2,605 shares for rounding of shares in the reverse split.

 

Redemption of Series D Preferred Stock

 

The 1,000 shares of Series D preferred stock issued to the Company’s President and Chief Executive Officer on November 27, 2019 were automatically redeemed on January 11, 2020, 45 days after the effective date of the Series D Certificate.

 

Convertible Note Conversions

 

Subsequent to December 31, 2019, two lenders converted a total of $8,600 principal and $1,589 accrued interest payable into 1,645,256 shares of the Company’s common stock.

 

Series B Preferred Shares Conversion

 

Effective February 26, 2020, William Beifuss, Jr., the Company’s President, converted 1,100 shares of Series B preferred stock into 9,777,778 shares of the Company’s common stock. Mr. Beifuss previously acquired the Series B shares from a lender in a private transaction.

 

Subsequent Borrowing

 

Effective March 16, 2020, the Company entered into a 12% convertible note with an institutional investor in the principal amount of $38,000. The note matures March 16, 2021. The lender, at its option after 180 days from the issuance of the note, may convert the unpaid principal balance of, and accrued interest on, the note into shares of the Company’s common stock at a 45% discount from the lowest trading price during the 20 trading days prior to conversion. The Company may prepay the note during the 180 days from the issuance of the note at a redemption premium of 150%. After the expiration of 180 days after issuance, the Company has no right of prepayment.

 

Extension of Maturity Dates of Convertible Promissory Note

 

Subsequent to December 31, 2019, the maturity date of a note payable issued for services with a principal balance of $32,620 at December 31, 2019 was extended from December 31, 2019 to December 31, 2020.