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Stockholders' Equity
6 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Stockholders' Equity

4. Stockholders' Equity

 

Common Stock

 

During the three and six months ended June 30, 2020, there were no activities that affected common stock.

 

Preferred Stock

 

As of June 30, 2020, we had one class of preferred stock. There were no activities that affected preferred stock during the three and six months ended June 30, 2020.

 

On August 6, 2020, in connection with the closing of a private placement, the Company designated (i) 365 shares of its authorized and unissued preferred stock as Series C-1 Preferred Shares by filing a Series C-1 Certificate of Designation of Preferences, Rights and Limitations (the "Series C-1 Certificate of Designation") with the Secretary of State of the State of Delaware and (ii) 4,084 shares of its authorized and unissued preferred stock as Series C-2 Preferred Shares by filing a Series C-2 Certificate of Designation of Preferences, Rights and Limitations (the "Series C-2 Certificate of Designation") with the Secretary of State of the State of Delaware.

 

The Series C-1 Preferred Shares and Series C-2 Preferred Shares (together, the "Preferred Shares") are convertible into 684,378 shares of Neonode common stock, subject to adjustment and limitations as provided in the Series C-1 Certificate of Designation and the Series C-2 Certificate of Designation.

 

The holders of the Preferred Shares are entitled to receive dividends at the rate per share of 5% per annum, payable quarterly and on the conversion date. In the event of any liquidation, dissolution or winding-up of the Company, the holders of the Preferred Shares will participate pari passu with the holders of the Company's common stock, on an as-converted basis.

 

Warrants

 

As of June 30, 2020 and December 31, 2019, the Company had 756,368 warrants to purchase common stock outstanding.