18. Subsequent Events
Management has evaluated subsequent events, in accordance with FASB ASC Topic 855, “Subsequent Events,” through May 29, 2020, the date which the financial statements were available to be issued and there are no material subsequent events, except as noted below:
COVID-19 - The challenges posed by the COVID-19 pandemic on the global economy increased significantly as the first quarter of 2020 progressed. COVID-19 has spread across the globe during 2020 and is impacting economic activity worldwide. In response to COVID-19, national and local governments around the world have instituted certain measures, including travel bans, prohibitions on group events and gatherings, shutdowns of certain businesses, curfews, shelter-in-place orders and recommendations to practice social distancing. Based on management’s assessment as of March 31, 2020, the ultimate impact of COVID-19 on the Company’s business, results of operations, financial condition and cash flows is dependent on future developments, including the duration of the pandemic and the related length of its impact on the global economy, which are uncertain and cannot be predicted at this time.
On April 13, 2020, the Company issued 1,083,500 shares of common stock related to a conversion notice received from an investor. On April 28, 2020, the Company issued 228,694 shares of common stock related to a conversion notice received from an investor. On May 22, 2020, the Company issued 962,275 shares of common stock related to a conversion notice received from an investor.
On April 14, 2020, the Company entered into a Forbearance Agreement with Investor in which Investor agreed to rescind its prior declaration of an Event of Default under the May 20, 2019 Note Purchase Agreement and the Company agreed to pay certain monthly and quarterly redemptions of the May 20, 2019 Note through 2022. Specifically, the Company has agreed to pay $900,000 during 2020, $2,400,000 during 2021 and $500,000 delivered during each quarter of 2022 until the Note is converted or redeemed in full.
On April 17, 2020, the Company received $100,000 in the form of a loan through the CARES Act Paycheck Protection Program.
On May 20, 2020, the Company’s Board of Directors approved an increase to the Company’s authorized shares to 800,000,000 shares authorized. The Company will be filing an information statement and will file an Amendment to the Articles twenty days after the mailing.
The above information was disclosed in a filing to the SEC. To see the filing, click here.
To receive a free e-mail notification whenever INCEPTION MINING INC. makes a similar move, sign up!
Other recent filings from the company include the following:
Other definitive information statements - June 10, 2020