On March 9, 2018, we issued a total of 158,100 shares of common stock (or common stock
equivalents) in the form of 119,000 shares of our common stock at a price of $12.65 per share and, for investors who would otherwise hold more than 9.99% of the Companys common stock following the registered offering, we agreed to issue to
such investors pre-funded warrants to purchase 39,100 shares of the Companys common stock at a price of $12.55 per warrant subject to payment of an additional $0.10 upon exercise, which are common stock
equivalents. This registered offering of common stock (and common stock equivalents) provided gross proceeds to us of $2.0 million, and net proceeds to us, after deducting the placement agent fees and our estimated offering expenses, of
$1.7 million. In a concurrent private placement, we issued to the investor unregistered warrants to purchase 158,100 shares of common stock. The warrants have an exercise price of $11.40 per share, and are exercisable immediately and will
expire five years and nine months from the date of issuance.
On April 4, 2018, the 39,100
pre-funded warrants issued in connection with our March 2018 financing noted above were exercised, on a cashless basis, and we issued 38,720 shares of our common stock.
We did not conduct any offerings in 2017.
Pursuant to our Certificate of Incorporation, the Board of Directors is authorized to issue up to 2,000,000 shares of preferred stock (par
value $.001 per share) in one or more series and to fix the rights, preferences, privileges, and restrictions, including the dividend rights, conversion rights, voting rights, redemption price or prices, liquidation preferences, and the number of
shares constituting any series or the designation of such series. There is no beneficial conversion feature related to the conversion or liquidation of any of our preferred shares.
In February 2008, we issued to Hunchun BaoLi Communication Co. Ltd. (BAOLI) and two related purchasers a total of
(a) 3,101,361 shares of our common stock and (b) 611,523 shares of our Series A Preferred Stock . Subject to the terms and conditions of our Series A Preferred Stock and to customary adjustments to the conversion rate, each share of
our Series A Preferred Stock was initially convertible into ten shares of our common stock with any conversion subject to the number of shares of our common stock beneficially owned by BAOLI and affiliates following such conversion not
exceeding 9.9% of our outstanding common stock. At December 31, 2018, 328,925 shares of our Series A Preferred Stock were outstanding which, subject to the foregoing restrictions, are convertible into 1,827 shares of common stock. Except for a
preference on liquidation of $.001 per share, each share of Series A Preferred Stock is the economic equivalent of the number of shares of common stock into which it is convertible. Except as required by law, the Series A Preferred Stock
does not have any voting rights.
As of December 31, 2018, all of our issued Series B, C and D Preferred Stock had been
converted into our common stock.
In late July 2018, we issued 4,135.0015 Series E Convertible Preferred Stock with a stated value of
$1,000 and which are convertible into our common stock at a conversion price equal to $3.50 per share of common stock (see Public Offerings above). At December 31, 2018, 2,273.0015 Series E Convertible Preferred Stock had been converted
into 649,429 shares of common stock and 1,862 Series E Convertible Preferred Stock, convertible into 532,000 shares of common stock, remained unconverted. On March 21, 2019, the remaining 1,862 Series E Convertible Preferred Stock, were
converted into 532,000 shares of common stock.
On October 10, 2019 we issued 11,834,000 shares of our common stock (or common stock equivalents) and coupled with a five year warrant to
purchase one share of common stock at an exercise price of $0.25.
On May 23, 2019 we issued 1,700,000 shares of our common stock at
a price of $1.00 per share. The offering was priced at $1.00 per share of common stock.