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Subsequent Events
9 Months Ended
Sep. 30, 2021
Subsequent Events [Abstract]  
Subsequent Events

Note 16 – Subsequent Events

 

On October 1, 2021, the Company and certain institutional and accredited investors and members of the Company’s management team (the “Investors”) entered into a securities purchase agreement (the “Securities Purchase Agreement”) pursuant to which the Company agreed to issue and sell to the Investors 1,240,737 shares (the “Shares”) of its common stock, par value $0.0001 per share (the “Common Stock”), in a registered direct offering (the “ Offering”) for aggregate gross proceeds of $4,044,802.62. The purchase price for each share in the Offering was $3.26. Steve Shum and Andrea Goren, the CEO and CFO of the Company, respectively, each purchased 30,674 shares in the Offering for gross proceeds of $199,994.48. The net proceeds to the Company from the Offering, after deducting placement agent fees and the Company’s estimated offering expenses, were approximately $3.65 million. Paulson Investment Company served as a placement agent for the Offering and received a fee for its role in the amount of $323,584.21, as   well as warrants to purchase 37,222 shares of the Company’s common stock at an exercise price of $3.912 per share. Trent Davis, one of the Company’s directors, is president of Paulson Investment Company. Mr. Davis did not receive any compensation related to the fees and warrants received by Paulson in the Offering.

 

On October 1, 2021, the Company entered into a Stock Purchase Agreement (the “Paradigm Purchase Agreement’) with Paradigm Opportunities Fund, LP an accredited institutional investor, pursuant to which the Company will issue to such investor 600,703 shares (the “Paradigm Shares”) of the Company’s common stock, for a purchase price of $3.329 per share for an aggregate purchase price of $1,999,740.29. This transaction is set to close on November 30, 2021. The Paradigm Purchase Agreement contains a $250,000 break-up fee whereby if either party fails to close, it will be required to pay the non-breaching party a fee of $250,000. The investor under the Purchase Agreement also agreed to a 1-year lock up period with respect to the Paradigm Shares.

 

On November 2, 2021, Ferring notified the Company of its intention to terminate the Ferring Agreement. Ferring gave notice of termination for convenience under Section 14.2(b) of the Ferring Agreement which requires 90-days prior written notice. Accordingly, the Ferring Agreement will officially terminate on January 31, 2022. Pursuant to the terms of the Ferring Agreement, for ninety (90) days after the expiration or termination, Ferring shall use commercially reasonable efforts to transition any customers to the Company and otherwise facilitate the orderly transition of the distribution from Ferring to the Company. In addition, Ferring shall provide the Company with a list of all then-existing customers. By its terms, the Company’s Supply Agreement with Ferring terminates upon termination of the Ferring Agreement on January 31, 2022.

 

In October 2021, the Company issued 20,000 shares of common stock to consultants under the 2019 Stock Incentive Plan.

 

In October 2021, the Company issued 10,000 shares of its common stock to consultants and employees in consideration of services rendered. There shares were issued pursuant to the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, as amended. The Company did not receive any proceeds from this issuance.