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Subsequent Events
6 Months Ended
Jun. 30, 2022
Subsequent Events  
Subsequent Events

15. Subsequent Events

License and Services Agreement

On July 1, 2022, the Company issued an aggregate of 966,540 shares of its common stock to Synworld under the License Agreement (See Note 2) entered by both parties with a total net proceeds of $300,000. On August 19, 2022, the Company issued an additional 687,123 shares of its common stock to Synworld with a total net proceeds of $167,000.

Royalty Interest Exchange Agreement

On August 17, 2022, the Company entered into an exchange agreement (the “Royalty Interest Exchange Agreement”) with Streeterville to (i) partition a new royalty interest in the royalty repayment amount of $3.4 million (“Partitioned Royalty”) from the royalty interest of the March 2021 Purchase Agreement and then cause the outstanding balance of the royalty interest to be reduced by an amount equal to the initial outstanding balance of the Partitioned Royalty, and (ii) exchange (“Royalty Exchange”) the Partitioned Royalty for 11,500,000 million shares of the Company’s common stock with a par value of $0.0001 in accordance with term of the Royalty Interest Exchange Agreement. Under the terms of the Royalty Interest Exchange Agreement, the Royalty Exchange will consist of Streeterville surrendering the Partitioned Royalty in exchange for the shares, free of any restrictive securities legend, and Streeterville shall give no consideration of any kind whatsoever to the Company in connection with the Royalty Interest Exchange Agreement.

Securities Purchase Agreement

On August 18, 2022, the Company entered into an agreement (the “Securities Purchase Agreement”) with Synworld to issue 10 Series E Preferred Stock with a par value of $0.0001, amounting to $100. In consideration of the Securities Purchase Agreement, the Company and Synworld agree to amend the existing definition of the term “Service Share Amount” in the License Agreement entered by both parties (See Note 2) and include a subsection for lock-up wherein Synworld agrees not to sell, transfer, loan, grant any option of the purchase of, or otherwise dispose of any shares of common stock acquired pursuant to the License Agreement until after the 90-day period following the date of acquisition.

December 2021 ATM Agreement

Subsequent to June 30, 2022, the Company has issued an additional 17,281,374 shares under the December 2021 ATM Agreement with a total net proceeds of $5.0 million.