Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.19.1
Subsequent Events
 9 Months Ended
Mar. 31, 2019
Subsequent Events [Abstract]  
Subsequent Events
Note 13. Subsequent Events
 
The Company held its annual meeting of stockholders on April 24, 2019, whereby the Company’s stockholders approved the following resolutions:
 
 
An amendment to the Certificate of Incorporation resulted in a recission of the previous designation of
15,000,000
shares of the Series A Preferred Stock whereby no shares of Series A Preferred Stock had ever been issued. As a result of this action, the Company now has authority to designate
15,000,000
shares of Preferred Stock.
 
The Company’s 2016 Non-Qualified Stock Option Plan was amended to increase the number of shares of Common Stock available for issuance thereunder by
13,000,000
shares of Common Stock resulting in the aggregate of
28,000,000
shares authorized for issuance under the Plan.
 
The authorized number of shares of Common Stock was increased from
200
million shares to
500
million shares. Accordingly, all shares of Series AA Preferred Stock discussed in Note 7 automatically converted to
148,523,540
shares of Common Stock.
 
The change in the authorized shares of Common Stock and recission of the previous designation of 15,000,000 shares of Series AA Preferred Stock are disclosed on the face of the accompanying unaudited condensed consolidated balance sheets. The conversion of Series AA Preferred Stock to Common Stock will be reflected during the fiscal quarter ending June 30, 2019. The following presents the impact of the conversion to common stock on an unaudited pro forma basis as if the Series AA Preferred Stock had converted to Common Stock as of March 31, 2019:
 
 
 
Series AA
 
 
 
 
 
 
 
 
Additional
 
 
 
 
 
 
 
 
 
Preferred Stock
 
 
Common Stock
 
 
Paid-in
 
 
Accumulated
 
 
 
 
 
 
Shares
 
 
Amount
 
 
Shares
 
 
Amount
 
 
Capital
 
 
Deficit
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Historical balances, March 31, 2019
 
 
3,267,519
 
 
$
31,140,117
 
 
 
61,866,319
 
 
$
61,866
 
 
$
97,203,841
 
 
$
(123,756,208
)
 
$
4,649,616
 
Pro forma adjustments for conversion
 
 
(3,267,519
)
 
 
(31,140,117
)
 
 
148,523,540
 
 
 
148,524
 
 
 
30,991,593
 
 
 
-
 
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma balances, March 31, 2019
 
 
-
 
 
$
-
 
 
 
210,389,859
 
 
$
210,390
 
 
$
128,195,434
 
 
$
(123,756,208
)
 
$
4,649,616