|6 Months Ended|
Jun. 30, 2017
|Notes to Financial Statements|
On July 14, 2017, the Company entered into a Securities Purchase Agreement with selected accredited investors whereby the Company sold an aggregate of 2,956,043 shares of common stock and 1,478,022 warrants to purchase common stock. The Offering resulted in $2,657,000 in net proceeds to the Company. The common stock shares were sold at $0.91 per share which was the closing price of the Company's common stock on July 13, 2017, the day prior to the agreement. Each warrant has an exercise price of $1.15 and is exercisable for a period of five years commencing six months from the date of issuance.
Nasdaq continues to monitor the Company’s ongoing compliance with the stockholders’ equity requirement after a deficiency notice was received in August 2016 for non-compliance with listing rule 5550(b), which requires a minimum $2,500,000 stockholders’ equity for continued listing on the Nasdaq capital market. The Company’s stockholders’ equity of $794,212, as reported in this current quarterly report on form 10-Q for the quarter ended June 30, 2017, evidenced non-compliance with the listing rule. However, as reported in the Form 8-K dated August 4, 2017, after receiving net proceeds of approximately $2,657,000 in a private placement of equity, the Company received a letter from the Nasdaq hearings panel which determined to grant the Company’s request for continued listing on The Nasdaq Stock Market subject to the conditions described therein.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/presentationRef