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Related Party Transactions
12 Months Ended
Dec. 31, 2019
Related Party Transactions [Abstract]  
Related Party Transactions

Note 4 — Related Party Transactions:

 

On August 14, 2019, the Company entered into an exchange agreement (the "Exchange Agreement") with Manchester Securities Corp. ("Manchester"), an existing institutional investor and a wholly owned subsidiary of Elliott Associates, L.P. (together with Manchester, "Elliott"), who collectively beneficially own the largest portion of the Company's common stock, pursuant to which Elliott agreed to exchange all of its outstanding warrants, its 10% senior secured convertible note and its shares of Series C-2 preferred stock, Series D preferred stock and Series F preferred stock, and make a cash payment of $2.0 million to the Company, for 100,000 shares of Series G preferred stock (see Notes 6 and 8). On September 6, 2019, the Company completed the transactions contemplated by the Exchange Agreement.

 

On December 31, 2018, the Company entered into a securities purchase agreement with Elliott, for the purchase and sale of a 10% senior secured convertible note in the aggregate principal amount of $7,500,000 and a warrant to purchase up to an aggregate of 90,000 shares of the Company's common stock, for gross proceeds of $7,500,000 (see Note 6). The warrant with a grant date fair value of $433,365, is immediately exercisable, has an exercise price of $7.50 per share, subject to adjustment in the event of stock dividends and distributions, stock splits, stock combinations, or reclassifications affecting our common stock, and has a term of five years. The note has a conversion price of $7.50 per share. The conversion price is subject to appropriate adjustment in the event of stock dividends and distributions, stock splits, stock combinations, or reclassifications affecting our common stock. As of December 31, 2019, this note is no longer outstanding as a result of the Exchange Agreement (see Notes 6 and 8).

 

In May 2013, the Company issued a warrant to purchase up to 100,000 shares of the Company's common stock to Elliott. The warrant had an expiration date of May 30, 2019. In May 2019, to allow the Company and Elliott time to discuss and possibly conclude the Exchange Agreement, the Company extended the expiration date of the warrant to July 1, 2019, which was subsequently extended to August 16, 2019. The warrant, which was canceled in connection with the terms of the Exchange Agreement, had an exercise price of $0.005 (see Note 6). The incremental value of the warrant extended was immaterial.