Note 9 – Stockholders' Deficit

Preferred Stock

As of June 30, 2020 and March 31, 2020, there were no shares of the Company's par value $0.0001, 50,000,000 shares, of authorized preferred stock outstanding.

Common Stock and Warrants

During the three months ended June 30, 2020, the Company issued 10 shares of common stock and 4,000,000 shares of fully vested restricted common stock to its Chief Executive Officer. The Company purchased 500,000 shares of the restricted stock, at a fair value of approximately $0.5 million, to reimburse the Company's Chief Executive Officer for amounts previously lent to the Company, to pay deferred compensation to the Chief Executive Officer and to cover the withholding taxes related to the restricted stock.

During the three months ended June 30, 2020, the Company issued 310,010 shares of its common stock with a fair value of approximately $0.3 million to consultants.

During the three months ended June 30, 2020, the Company issued 2,364,244 shares of its common stock with a fair value of $2.2 million or $0.91 per share, upon conversion of its senior secured convertible notes (See Note 8).

During the three months ended June 30, 2020, the Company issued 825,000 shares of its common stock with a fair value of approximately $0.8 million in connection with its convertible notes (see Note 8).

On April 27, 2020, the Company issued 162,447 shares of its common stock in satisfaction of accounts payable of approximately $122,000 owed for advisory services.

On June 6, 2020, the Company issued a warrant to purchase 350,000 shares of the Company's common stock with a fair value of approximately $0.1 million. The warrant was exercised on a cashless basis on June 30, 2020, and the Company issued 291,667 shares of its common stock.