Subsequent Events |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subsequent Events [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Subsequent Events | Subsequent Events The Company has evaluated subsequent events through November 14, 2019.
In October 2019, the Company’s board of directors authorized the issuance of $20 million of promissory notes (the “Notes”), which may be paid by investors in the form of cash or, in the Company’s sole discretion, cryptocurrency, such as Bitcoin or Ethereum. The Notes will be sold in reliance on an exemption from registration provided by Section 4(a)(2) of the Securities Act, and Rule 506 of Regulation D promulgated thereunder. The Notes will not be and have not been registered under the Securities Act and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. The Notes are subordinated in the right of payment to all current and future indebtedness of the Company for borrowed money to banks, commercial finance lenders or other institutions regularly engaged in the business of lending money, including but not limited to the Company’s factoring arrangement with Bay View. As of the date noted above, the Company has not issued any Notes; therefore, the initial closing has yet to occur.
On November 12, 2019, the Company entered into a lease amendment with Promontory Associates to extend its current lease in San Diego, California (the "Amendment"). The Amendment commences on February 1, 2020, and terminates on July 31, 2025, with one renewal option for an additional five years. Under the Amendment, the Company will pay monthly rent of
approximately $146 for the first year, with such rent increasing by a specified amount every year thereafter. The Amendment also obligates the Company to pay its proportionate share of certain cost increases incurred by the landlord.
Future minimum annual lease payments under the Amendment are as follows:
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