Note 9 – Amendments to Notes and Warrants

Warrants

On March 10, 2020, the Company entered into amendments (the “Amendments”) with certain holders of the 2018 Notes and Nontransferable Common Stock Purchase Warrants (the “2018 Warrants”). Pursuant to the Amendments, the maturity date of the applicable 2018 Notes was extended and the expiration date of the applicable 2018 Warrants was extended from March 29, 2021 to March 29, 2022. The terms of the applicable 2018 Notes were also amended to grant the holders of such 2018 Notes a right to participate in the Private Offering and to grant resale registration rights in connection therewith. Three officers of the Company signed Amendments extending the maturity date of their 2018 Notes and the expiration date of their 2018 Warrants. The Company recognized in Other Expenses, $209,810 of costs relating to the 2018 Warrants extension in the accompanying condensed statements of operations. On August 10, 2020, the 2018 Notes and the 2018 Warrants were further amended.

The Company determined the proper classification of the loan modification based on ASC 470-50, Debt Modifications and Extinguishments. Because the change in present value of cash flows of the modified debt is less than 10% when compared to the present value of the cash flows of the original debt, no change is required to be made to the debt in the accompanying condensed financial statements.

Also, on March 10, 2020, the Company entered into an amendment with certain holders of the Company’s Common Stock Purchase Warrants (the “2017 Warrants”) pursuant to which the expiration date of the applicable 2017 Warrants was extended from June 30, 2020 to September 30, 2021. The Company recognized in Other Expenses, $592,590 of costs relating to the 2017 Warrants extension in the accompanying condensed statements of operations.