SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2020

Subsequent Events [Abstract]

Subsequent Events [Text Block]

NOTE 17 – SUBSEQUENT EVENTS

Paycheck Protection Program Loan  - Second Draw

On February 25, 2021 the Company entered into a second promissory note (“Second PPP Loan”) in the amount of $264,472 from Bank of America, N.A. under the Paycheck Protection Program. The terms of the Second PPP Loan are similar to the PPP Loan the Company entered into on May 5, 2020.

On March 1, 2021, the Company applied for and was granted full forgiveness of the PPP Loan it entered into on May 5, 2020 in the amount of $223,075. 

Series B Convertible Preferred Stock

On February 17, 2021 the Company issued 95,000 shares of Series B Preferred Stock at a stated price of $1.0842 per share for cash proceed of $100,000, net of $3,000 of legal fees. Each share of Series B Preferred Shares carry an annual dividend in the amount of twelve percent (12%) of the stated value ($95,000), which shall be cumulative and compounded daily, payable solely upon redemption, liquidation or conversion. The Company has the right to redeem all or any portion of the shares within 180 days following the issuance day.

The Holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the Issuance Date, to convert all or any part of the outstanding Series B Preferred Stock into fully paid and non-assessable shares of Common Stock. The conversion price shall equal the 61% multiplied by the Market Price (representing a discount rate of 39%). “Market Price” means the lowest trading price for the common stock during the twenty (20) trading day period ending on the latest complete trading day prior to the date upon which the Series B Preferred Stock is converted.

Conversion of Series B Preferred Stock

On August 21, 2020 the Company issued 128,000 shares of Series B Preferred Stock. On February 22, 2021 the holder of the Series B Preferred Stock, issued in August of 2020, sent a notice of conversion to the Company. The holder requested the conversion of 50,000 shares of Series B Preferred Stock plus 3,000 shares of Series B Preferred Stock representing accrued dividends. The Company issued 2,409,091 shares upon conversion per the terms of the Series B Preferred Stock.

On February 25, 2021 the holder of the Series B Preferred Stock, issued in August of 2020 sent a notice of conversion to the Company. The holder requested the conversion of 78,000 shares of Series B Preferred Stock plus 4,680 shares of Series B Preferred Stock representing accrued dividends. The Company issued 3,758,182 shares upon conversion per the terms of the Series B Preferred Stock.

As of February 25, 2021 there were no shares outstanding of the Series B Preferred Stock issued in August 2020.

In January 2021 a former employee exercised on a net basis options to purchase 2,000,000 shares of common stock for $0.06 per share. The Company issued 800,000 shares of common stock upon the exercise of the options.

In January 2021 an employee exercised options on a net basis to purchase 250,000 shares of common stock at $0.05 per share. The Company issued 125,000 shares of common stock upon the exercise of the options.

In February 2021 a former employee exercised options, on a net basis, to purchase 7,278,689 shares of common stock for $0.06 per share. The Company issued 2,911,475 shares of common stock upon the exercise of the options.

In March 2021 the Company issued 1,162,792 shares of common stock to an employee as a bonus per the terms of an employment agreement.