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Note 16 - Subsequent Events
3 Months Ended
Dec. 31, 2022
Notes to Financial Statements  
Subsequent Events [Text Block]

NOTE 16  SUBSEQUENT EVENTS

 

In January, the Company issued  175,000 RSUs and 105,000 Options to a group of employees.  The RSUs vested upon issuance, having a fair market value upon issuance of $40,950. The stock options awards vested at issuance, had a strike price of $0.234, five-year term and a fair market value upon issuance of $15,225.

 

In January the Company issued 100,000 shares of common stock to Twenty Two Capital as the final obligation under the 2021 acquisition agreement upon the expiration of the indemnification period.

 

On February 1, 2023, the Company entered into an Agreement for Advertising Placement with a360 Media, LLC (“a360”) in which a360 will provide professional media support and advertising placement in exchange for up to 6,060,606 shares of the Company’s common stock valued at $0.33 per share. A360 will receive the shares by providing the Company with a credit in the amount of $2,000,000 to be used for media support and advertising placement to the Company. The shares are 70% fully vested; 15% of the Shares shall vest upon each advertising placement accrue pro-rata as percentage of the total advertising placement; and 15% of the shares shall vest provided there are no restrictions in product categories that the Company is able to market with a360 while the Company utilizes the advertising placement. Any shares which do not vest within the term of the agreement shall be forfeited. The advertising Placement must be used by the Company prior to December 30, 2023, unless otherwise agreed in writing by both parties.

 

Adara shareholders approved the proxy vote for the proposed business combination and closed on February 10, 2023, resulting in the Company receiving back it's $1 million investment in Adara Sponsor LLC.