|9 Months Ended|
Sep. 30, 2021
NOTE 18– SUBSEQUENT EVENTS
The Company evaluates subsequent events and transactions that occur after the balance sheet date up to the date that the condensed consolidated financial statements are issued.
NOTE 18– SUBSEQUENT EVENTS (CONTINUED)
On October 26, 2021, the Company announced the pricing of its initial public offering of 6,250,000 shares of class A common stock, par value $0.0001 per share (“common stock”) for a price of $4.00 per share, less certain underwriting discounts and commissions. The Company also granted the underwriters a 45-day option to purchase up to 937,500 additional shares of the Company’s common stock on the same terms and conditions for the purpose of covering any over-allotments in connection with the initial public offering. The Company’s underwriters exercised the over-allotment option in full on October 28, 2021. The initial public offering, including the sale of the 937,500 over-allotment option shares, closed on October 29, 2021 and was made pursuant to the Registration Statement, which was declared effective by the Securities and Exchange Commission (the “SEC”) on October 26, 2021. A final prospectus describing the terms of its initial public offering was filed with the SEC on October 28, 2021. The net proceeds to the Company from its initial public offering and the exercise in full of the over-allotment option are approximately $24.8 million, after deducting underwriting commissions and offering expenses. The Company intends to use the net proceeds from its initial public offering to fund research and development which includes hiring new A.I. scientists and acquiring data from third parties, sales and marketing activities, to repay approximately $0.8 million of debt, for working capital, general corporate purposes, and potential acquisitions.
On October 4, 2021 the Company received an additional amount of $1.0 million as part of the short-term promissory note (see Note 11). The short-term loan in a total principal and interest amount of $3,027,083 was repaid on November 2, 2021.
On October 26, 2021, the Company issued 1,712,162 shares of Class A common stock to convertible notes holders for the conversion of notes in the amount of $5,889,811, comprise of $4,950,000 principal and $156,554 of accrued interest. The remaining $783,257 comprised of $430,000 of principal and $353,257 of accrued interest, was repaid in full (see Note 10).
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://www.xbrl.org/2003/role/disclosureRef