Old Main has converted $473,684 of principal and $28,033 of interest for 283,645 shares ranging in worth per share of $1.17 to $2.55. The Company is attempting to further implement its marketing strategy and generate sufficient income; nevertheless, its cash place will not be enough to support its day by day operations. While the Company believes within the viability of its strategy to further implement its business plan and generate adequate revenue and in its capability to raise extra funds by way of a public or non-public providing, there can be no assurances to that impact.
And Ceyuan Ventures Advisors Fund II, LLC dated July 31, 2009, as amended (the “Investor Notes”), shall be converted into shares of common inventory of Pubco at a conversion worth of $0.80 per share at the Closing Date. During the quarter ended September 30, 2015, the Company issued 28,333 warrants to an investor as a part of their Securities Purchase Agreement in which the investor acquired a Convertible Note. The warrants are handled as spinoff liabilities since the holder has anti-dilution protections that will re-price the warrant upon the issuance of decrease priced fairness linked devices by the Company for the period of 180 days after issuance.
The unpaid quantity of the Note, any interest, charges, expenses and late fees accrued shall be due and payable in full nine months from August 19, 2022. The Note Agreement required that the Company cancel and terminate the prevailing Senior Convertible Note dated March 25, 2022 (the “3i Note”) between the Company and 3i, LP (“3i, LP”) in the unique principal quantity of $1,060,000. This modification was treated as an extinguishment of debt and a resultant loss on extinguishment of debt of $94,030 was realized, and recorded in other expenses in the course of the year ended December 31, 2016. The Company’s by-product instrument liabilities are re-valued at the finish of each reporting period, with changes in the truthful worth of the by-product legal responsibility recorded as expenses or credit to income in the period during which the adjustments occur. For choices, warrants and bifurcated embedded spinoff options that are accounted for as spinoff instrument liabilities, the Company estimates truthful worth using both quoted market prices of economic devices with related characteristics or other valuation techniques.
The following discussion should be learn along side our condensed interim financial statements and the related notes that seem elsewhere on this quarterly report on Form 10-Q. If the assessment of a contingency signifies that it’s probable that a fabric loss has been incurred and the quantity of the legal responsibility may be estimated, then the estimated legal responsibility could be accrued in the Company’s condensed interim financial statements. If the assessment indicates that a possible material loss contingency is not probable but is reasonably attainable, or is possible but cannot be estimated, then the character of the contingent liability, and an estimate of the vary of possible losses, if determinable and material, is disclosed. The truthful value hierarchy gives the very best priority to quoted costs in lively markets for equivalent belongings or liabilities and the bottom priority to unobservable inputs.
The valuation techniques require assumptions associated to the remaining time period of the instruments and risk-free charges of return, the Company’s current widespread inventory worth and expected dividend yield, and the anticipated volatility of the Company’s common inventory value over the life of the instrument. All per share quantities and number of shares within the monetary statements and associated notes have been retroactively restated to reflect the reverse stock cut up. Old Main has the right from and after a 180 day delay from the Date of Issuance, and until any time till the Note is fully paid, to transform any outstanding and unpaid principal portion of the Note, and accrued interest, into absolutely paid and non–assessable shares of Common (par value $.001 per share). The Convertible Notes are convertible at a exhausting and fast fee of $0.07 with no reset provisions.
The decrease in money utilized in operating actions is primarily attributable to our internet loss and derivative liabilities, offset by an increase in our curiosity expense and accounts payable. The Company could redeem the Notes for 150% of the redemption quantity and accrued interest at any time upon ten days written discover to the SBI. The Company accounts for stock-based compensation awards issued in accordance with the provision of ASC 718, which requires that all stock-based compensation issued to amass goods or companies, including paypal to chime grants of employee stock options, be acknowledged in the assertion of operations based mostly on their truthful values, net of estimated forfeitures. ASC 718 requires forfeitures to be estimated at the time of grant and revised, if necessary, in subsequent intervals if precise forfeitures differ from those estimates. Compensation expense related to stock-based awards is recognized over the requisite service period, which is generally the vesting interval.