Note 13 – Subsequent Events

The Company has evaluated all events that occurred after the balance sheet date of September 30, 2020, through November 17, 2020, the date when condensed financial statements were issued to determine if they must be reported.

On November 13, 2020, the Company entered into a Securities Purchase Agreement with certain institutional and accredited investors to sell to the investors senior convertible debentures, convertible into the Company's common stock at a conversion price of $1.25 per share, subject to adjustment as set forth in the debenture. The debentures have a maturity of one year, accrue interest at the rate of 7% per year, and are subject to 12.5% original issue discount. Each investor also received a warrant to purchase a number of share of the Company's common stock equal to 50% of the number of shares the debenture is convertible into. The warrants have a five year term, and an exercise price of $1.55 per share, subject to adjustment as set forth therein. The securities were issued in a private placement transaction in reliance upon exemptions from registration under the Securities Act of 1933, as amended, and Regulation D promulgated thereunder, for gross proceeds of approximately $750,000.

Stock Options

On October 12, 2020, the Company granted 150,000 options to purchase shares of the Company's common stock in exchange for consulting services. The options have a strike price equal to the lower of the price per share on October 12, 2020 or $1.48 per share, and vest on November 12, 2020. The options have a fair value of $77,000 based on a stock price of $1.19 per share.

On October 15, 2020, the Company granted 25,000 options to purchase shares of the Company's common stock in exchange for consulting services. The options have a fair value of approximately $11,000 and fully vest on grant date.