Quarterly report pursuant to Section 13 or 15(d)

Subsequent Events

v3.19.2
Subsequent Events
6 Months Ended
Feb. 28, 2019
Notes to Financial Statements  
Note 9: Subsequent Events

The Company granted 836,234 incentive stock options to employees with a weighted average grant-date exercise price of $1.30, which vest over a service period of 48 months. The stock options were valued using the Black-Scholes option-pricing model.

 

The Company issued 2,571,180 shares of common stock as repayment of $2,716,707 in principal and $189,245 in accrued interest of convertible notes.

 

On March 11, 2019, the Company entered into a securities purchase Agreement with certain institutional investors for the sale by the Company of $4,750,000 of senior convertibles notes due September 12, 2020. Concurrently with the sale of the notes, pursuant to the purchase agreement, the Company also sold warrants to purchase 2,840,909 shares of common stock. The Company sold the notes and the warrants for $3,750,000. The net proceeds from the transaction was approximately $3.4 million after deducting certain fees due to the placement agents and legal fees and other estimated transaction expenses. The net proceeds received by the Company from the transaction will be used to finalize the key features of our mobile application, working capital and for general corporate purposes.

 

On March 1, 2019, a total of 2,190,413 warrants with an average exercise price of 2.89 expired unexercised.

 

Management has evaluated subsequent events pursuant to the issuance of the interim unaudited consolidated financial statements and has determined that other than listed above, no other subsequent events exist through the date of this filing.