Borrowings: From time to time, the Company has received short-term, non-interest bearing loans from Tandon Enterprises, Inc. for the purpose of funding temporary working capital needs. For the year ended December 31, 2016, the Company borrowed $24,000, net of repayments. The $346,100 owed to Tandon Enterprises at June 30, 2016 was converted into 7,691 shares of common stock and warrants at the effective date of the Offering.

 

On June 7, 2017, GSB Holdings, Inc., a family owned company of David Clarke, the Company’s then CEO and Chairman of the Board, loaned the Company $100,000 further to a promissory note and issued 10,204 three-year warrants at an exercise price of $20.00 in lieu of interest. On June 23, 2017, the Company issued 17,241 shares of common stock at $5.80 per share in exchange for the promissory note. The issuance price was $0.50 greater than the closing price of the Company’s common stock on the issuance date.

 

Restricted Shares: In November 2016, the Company issued 15,152 shares of restricted common stock to its Chairman of the Board at a purchase price of $16.50 per share in a private placement transaction.

 

In March 2017, the Company issued 7,000 shares of restricted common stock to its Chairman of the Board at a purchase price of $15.00 per share in a private placement transaction. The Company issued 10,000 shares of restricted common stock to its Chairman of the Board in November 2017 and 2,500 shares of restricted stock in January 2018.