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Subsequent Events
6 Months Ended
Jun. 30, 2020
Subsequent Events [Abstract]  
Subsequent Events

Note 11 – Subsequent Events:

 

In early 2020, an outbreak of the novel strain of coronavirus (COVID-19) emerged globally. In March 2020, the World Health Organization declared the COVID-19 outbreak to be a global pandemic, which continues to spread throughout the United States. The COVID-19 has significantly impacted the communities in which Company employees live and work. As a result, federal, state and local authorities have issued mandates for social distancing and working from home to delay the spread of the coronavirus, resulting in an overall decline in economic activity.  The ultimate impact of COVID-19 on the Company is not reasonably estimable at this time.  Management is currently evaluating the recent introduction of the COVID-19 virus and the related government mandates, and their impact on the software industry and has concluded that while it is reasonably possible that the virus and the associated government mandates restricting activity could have a negative effect on the ability of the Company to meet with potential customers and to raise additional capital, the specific impact is not readily determinable as of the date of these financial statements.  The financial statements do not include any adjustments that might result from the outcome of this uncertainty.

 

In July 2020, the Company offset an invoice for business development and investor relations services performed under a consulting agreement with one of the Initial Investors in the amount of $100,000, as payment in full of a promissory note from the Initial Investor which was issued in payment for a promissory note from Convergent to the Initial Investor, which has also been assumed by the Company in exchange for a Convertible Promissory Note in the amount of $100,000, convertible to Company common shares at a conversion price of $0.10 per share. Accordingly, the Company's Convertible Promissory Note held by this Initial Investor has been deemed fully satisfied and the subscription receivable cancelled. Additionally, in July 2020, the Initial Investor converted 5,000 of its Promissory Note into 50,000 shares of common stock.

 

In July 2020, one of the Company's Initial Investors, and a member of the Board of Directors, converted their Promissory Note in the amount of $100,000, convertible at $0.10 per share, into one million (1,000.000) shares of stock.

 

On July 28, 2020, the Company consummated the initial closing of the 2020 Equity Offering, whereby the Company entered into a Subscription Agreement (the "Subscription Agreement") with two accredited investors (the "Investors"), pursuant to which the Investors purchased shares of the Company's common stock, par value $0.0001 per share, in the aggregate amount of $330,000, for a total of 330,000 shares of Common Stock (the "Common Stock"), and Warrants to purchase 165,000 shares of Common Stock (the "Warrants", and together with the Common Stock, the "Units") at a purchase price of $1.00 per Unit (the "Purchase Price"). Pursuant to the Subscription Agreements, each Investor is entitled to 50% Warrant coverage, such that the Investors received one Warrant for every two shares of Common Stock purchased. The Warrants are exercisable at a price of $2.00 per share, subject to adjustment from the date of issuance through July 28, 2025.

 

There are no other events of a subsequent nature that in management's opinion are reportable.