|9 Months Ended|
Sep. 30, 2022
Note 14 - Subsequent Events
See Note 9 for information on (i) the short term extension executed on September 28, 2022, which extended the maturity date of the AC Midwest Unsecured Note and AC Midwest Secured Note from September 30, 2022 to October 31, 2022, and (ii) the execution of Amendment No. 1 to Unsecured Note Financing Agreement and Amendment No. 4 to Secured Note Financing Agreement, both of which were executed on October 28, 2022, which, among other things, extended the maturity date of the AC Midwest Unsecured Note and AC Midwest Secured Note to August 25, 2025.
In addition, see Note 9 for information on the execution of a Termination Agreement on October 28, 2022 which terminated the Debt Repayment Agreement among the Company, MES and AC Midwest.
On October 28, 2022, the Company and AC Midwest also entered into a Repurchase Option Agreement pursuant to which the Company shall have the option to repurchase a portion of the shares of common stock of the Company owned by AC Midwest at a purchase price of $0.50 per share until the earlier of (i) the date AC Midwest’s beneficial ownership reaches 5.0% of the Company’s issued and outstanding common stock, or (ii) August 25, 2025.
See Note 9 for information on a $250,000 short-term loan provided by the Company’s Chairman of the Board of Directors in June 2022. On October 11, 2022, such loan, together with all accrued interest, was repaid in full by the Company.
On November 8, 2022, the Company granted a retention stock bonus award to the Company’s Chief Executive Officer in the amount of 3,000,000 shares of common stock. So long as the Chief Executive Officer remains in the continuous employ of the Company, the shares shall vest according to the following: 25.0% shall vest six months from the date of grant, and another 25.0% shall vest on each subsequent six-month anniversary of the date of grant so that the stock award is fully vested two years from the date of grant. Any unvested shares shall be forfeited immediately when the Chief Executive Officer is no longer in the continuous employ of the Company, unless due to death, disability or a change in control.
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