Quarterly report pursuant to Section 13 or 15(d)

Safe Agreements

Safe Agreements
6 Months Ended
Jun. 30, 2020
Safe Agreements [Abstract]  
SAFE Agreements

Note 6. SAFE Agreements


In December 2018, the Company entered into SAFE agreements (the "SAFE Financing") with five investors pursuant to which the Company received funding of $535,000 in exchange for agreement to issue the investors shares of preferred stock upon occurrence of a subsequent financing of preferred stock.


The number of shares to be received by the SAFE agreement investors was based on 80% of the pricing in the triggering equity financing. In a liquidity or dissolution event, the investors' right to receive cash out was junior to payment of outstanding indebtedness and creditor claims, on par for other SAFEs and preferred stock, and senior to common stock. The SAFE agreements had no interest rate or maturity date, and the SAFE investors had no voting right prior to conversion.


The SAFE agreements were converted to equity in March 2019 and the Company issued 213,510 shares of Series A Preferred Stock in full satisfaction of these agreements.