SUBSEQUENT EVENTS |
12 Months Ended |
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Dec. 31, 2021 | |
| Subsequent Events [Abstract] | |
| SUBSEQUENT EVENT | SUBSEQUENT EVENTS Subsequent to December 31, 2021, holders of the convertible notes converted amounts payable under such notes into 6,804,281 shares of common stock at a weighted average conversion price of $0.10 per share, resulting in reduction of the convertible note balance of $0.7 million and the recognition of additional interest expense of $0.6 million. On March 25, 2022, the Company issued an additional $1.06 million principal amount of convertible notes (the "Second Tranche"). As a result, the Company received gross proceeds of $1.06 million, before OID of 6% and other debt issuance costs. The Second Tranche matures on September 25, 2022.
On March 30, 2022, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with an institutional investor, pursuant to which the Company agreed to issue and sell 700 shares of the Company’s preferred stock which has supervoting rights of 170,000 votes per share of preferred stock on certain stockholder proposals and warrants to purchase an aggregate of 10,000,000 shares of common stock. The preferred stock has a stated value of $1,000 per share and is convertible into an 10,000,000 shares of common stock at a conversion price of $0.07 per share. The Company received aggregate gross proceeds of $0.7 million before deducting placement agent’s fees and other offering expenses.
The CARES Act provides an employee retention credit (“CARES Employee Retention credit”), which is a refundable tax credit against certain employment taxes of up to 70% of qualified wages up to $10,000 paid to employees during a quarter ended March 31, 2021, June 30, 2021 and September 30, 2021. The Company determined that it qualifies for the tax credit under the CARES Act, it filed its amended tax returns in March 2022 and expects to receive $2.0 million of tax credits under the relief provisions.
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