Subsequent Events

6 Months Ended

Jun. 30, 2020

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

Office Lease

The Carson City, Nevada office lease expired on June 30, 2020 and a new lease was signed effective July 1, 2020. The office lease is for a term of three years with total future expenditures of $473,647.

Tax Benefit Preservation Plan

Effective as of July 24, 2020, the Company’s Board of Directors adopted a tax benefit preservation plan (the “Plan”) designed to preserve the Company’s ability to utilize its net operating loss carryforwards as a result of certain stock ownership changes. Consequently, any person or group, together with its affiliates and associates (the “Acquiring Person”), acquiring beneficial ownership of 4.99% or more of the Company’s common stock after August 4, 2020 without approval of the Company’s Board of Directors would be subjected to significant dilution in its holdings. Such dilution would occur as a consequence of each holder of a right, other than rights that are beneficially owned by the Acquiring Person, obtaining the right to purchase, upon exercise of a right and payment of the purchase price, a number of shares of the Company’s commons stock having a market value of two times the exercise price of the right. Pursuant to the Plan, the Company issued one right for each outstanding share of the Company’s common stock to shareholders of record at the close of business on August 4, 2020. Prior to exercise, such right does not give its holder any rights as a shareholder of the Company, including any dividend, voting or liquidation rights. The Plan will expire on July 24, 2023 or at the 2021 annual meeting of shareholders, if shareholders do not ratify the adoption of the Plan. The previous tax benefit preservation plan adopted by the Company’s Board of Director on July 24, 2017, and subsequently ratified by stockholders, expired on July 24, 2020.