XML 37 R26.htm IDEA: XBRL DOCUMENT v3.24.2.u1
SUBSEQUENT EVENTS
6 Months Ended
Jun. 30, 2024
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

NOTE 18 – SUBSEQUENT EVENTS

 

Subsequent events were evaluated through the issuance date of these financial statements. There were no subsequent events other than those described below:

 

On July 2, 2024 the Company signed four Exchange Subscription Agreements with four of the Company’s lenders. In accordance with the terms of the Exchange Subscription Agreements, an aggregate of $500,000 of principal owed to the lenders was cancelled in exchange for the issuance of 50,453 units which include 50,453 warrants to purchase 100 shares of common stock and 50,453 shares of Series B Convertible Preferred Stock (the “Note Payables Exchange”). Each warrant has a five-year term and an exercise of $0.06 per share.

 

On July 31, 2024, the Company and Michaelson agreed to a Forbearance Agreement that amended the Michaelson Note Payable (the “July Michaelson Amendment”). As a result, the interest rate of the Michaelson Note was increased to 16% per annum beginning on July 1, 2024. Additionally, the principal payment schedule of the Michaelson Note was amended to as follows: a payment of $750,000 is due on or by August 30, 2024, a payment of $457,089 is due on or by September 30, 2024, and a payment of the remaining outstanding principal is due on or by November 30, 2024. The Company also agreed to pay a forbearance fee of $10,000 to Michaelson. The total outstanding principal amount of this loan as of the agreement date is $2,107,089.

 

On August 5, 2024 2,399,577 of Series B share rights were converted to common stock.

 

On August 12, 2024, the Company issued to Cavalary Fund I a promissory note for $500,000 with a 5% original issue discount of $25,000. The note matures on October 12, 2024 and has 0% interest. In conjunction with the promissory note, the Company also issued 10,000,000 warrants that can be exercised into common stock at an exercise price of $0.06. The warrant expires after 5 years.