Item 2. Unregistered Sales of Equity Securities
Item 2.
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS.
On May 19, 2022, the Company issued 5.6 million warrants with an exercise price of $0.18 and a 0.25-year term as part of the financing terms associated with the C6 investors. On June 8, 2022, the
Company issued 167 thousand warrants with an exercise price of $0.18 and a 2.0 year term as part of the NFS financing terms. Such warrants were issued pursuant to the exemption from registration contained in Section 4(a)(2) of the Securities Act,
as they were issued pursuant to a private placement to an accredited investor.
In June of 2022, the Company issued 12,097,500 shares of corporate stock to different individuals in exchange for services rendered to the company. The Company recorded $100 thousand of non-cash
general and administrative expense and $788 thousand as a prepaid expense that is being amortized on a monthly basis over the next twelve months. Such shares were issued pursuant to the exemption from registration contained in Section 4(a)(2) of
the Securities Act, as they were issued pursuant to a private placement to an accredited investor.
Item 3.
DEFAULTS UPON SENIOR SECURITIES.
Not applicable.
Item 4.
MINE SAFETY DISCLOSURES.
Not applicable.
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