Annual report pursuant to Section 13 and 15(d)

SUBSEQUENT EVENTS

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SUBSEQUENT EVENTS
12 Months Ended
Dec. 31, 2020
SUBSEQUENT EVENTS  
SUBSEQUENT EVENTS

NOTE 11 – SUBSEQUENT EVENTS

The Company has evaluated events that have occurred after the balance sheet and through the date the financial statements were issued. Based upon the evaluation, the Company did not identify any recognized or non-recognized subsequent events that would have required adjustment or disclosure in the financial statements, except as disclosed below.

Warrant Exercises

Subsequent to December 31, 2020, warrants to purchase an aggregate of 2,171,021 shares of the Company’s common stock was exercised at prices between $4.20 and $6.25 per share, resulting in gross cash proceeds to the Company of $9,719,038 and the issuance of an aggregate of 2,049,469 shares of the Company’s common stock.

Andrews Separation

On January 28, 2021, the Company entered into a Separation Agreement and General Release (the “Andrews Agreement”) concluding Christopher Andrews’ tenure as Chief Digital Officer of the Company.  The Andrews Agreement, which supersedes and replaces Mr. Andrews’ employment agreement with the Company, provides that, among other things:

·

Mr. Andrews’s last date of employment with the Company was January 31, 2021;

·

the Company shall pay Mr. Andrews a lump sum of $90,000, less applicable taxes and withholding and other legal deductions, in severance pay;

·

the Company shall pay Mr. Andrews a lump sum of $9,212, which is equivalent of the cost of six months’ COBRA continuation healthcare coverage; and

·

the Company may reimburse Mr. Andrews $2,500 to cover attorneys’ fees he may incur due to obtaining an attorney for review of the Andrews Agreement.

Mr. Andrews’ receipt of the aforementioned payments and benefits is conditioned upon the fulfillment of his obligations under the Andrews Agreement, consideration for the waiver and release of claims set forth in the Andrews Agreement, and Mr. Andrews’ compliance with the non-solicitation, non-disparagement, and other standard covenants set forth in the Andrews Agreement.