|12 Months Ended|
Dec. 31, 2019
|Subsequent Events [Abstract]|
Note 19 – Subsequent Events
On May 4, 2020, the Company, through its wholly-owned subsidiary OWP Ventures, Inc., borrowed $119,274 from Customers Bank (“Lender”), pursuant to a Promissory Note issued by OWP Ventures to Lender (the “PPP Note”). The loan was made pursuant to the Payroll Protection Program established as part of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Note bears interest at 1.00% per annum, payable monthly beginning December 4, 2020, and is due on May 4, 2022. The PPP Note may be repaid at any time without penalty.
Under the Payroll Protection Program, the Company will be eligible for loan forgiveness up to the full amount of the PPP Note and any accrued interest. The forgiveness amount will be equal to the amount that the Company spends during the 8-week period beginning May 4, 2020 on payroll costs, payment of rent on any leases in force prior to February 15, 2020 and payment on any utility for which service began before February 15, 2020. The maximum amount of loan forgiveness for non-payroll expenses is 25% of the amount of the PPP Note. No assurance is provided that the Company will obtain forgiveness under the PPP Note in whole or in part.
The PPP Note contains customary events of default relating to, among other things, payment defaults, breach of representations and warranties, or provisions of the promissory note. The occurrence of an event of default may result in a claim for the immediate repayment of all amounts outstanding under the PPP Note.
On various dates between January 29, 2020 and May 4, 2020, the Company received total proceeds of $112,000 on seven aggregate demand notes, bearing 6% interest per annum.
Preferred Stock Sales on Subscriptions Payable
On various dates between April 14, 2020 and May 7, 2020, the Company received total proceeds of $155,000 on the anticipated sale of 15,500 units, consisting of 15,500 shares of Series A Preferred Stock and warrants to acquire an aggregate 775,000 shares of common stock at an exercise price of $0.25 per share over five years from the origination dates, to six accredited investors. Each share of Preferred Stock is expected to be convertible into 50 shares of the Company’s common stock once the preferred stock is designated.
Common Stock Issued on Subscriptions Payable
On January 6, 2020, the Company issued 500,000 shares of common stock on a Subscriptions Payable for the December 31, 2019 sale of common stock at $0.50 per share for proceeds of $25,000.
Common Stock Issued for Services
On various dates between January 4, 2020 and January 30, 2020, the Company awarded an aggregate 406,000 shares of common stock to four consultants for services provided. The aggregate fair value of the common stock was $398,000 based on the closing price of the Company’s common stock on the date of grant.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef