CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT |
3 Months Ended |
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Mar. 31, 2023 | |
| Equity [Abstract] | |
| CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT |
Note 9. CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS’ DEFICIT
In June 2022, the Company completed a 1-for-7 reverse stock split of its Common Stock. All share and per share amounts have been adjusted on a retroactive basis in these condensed consolidated financial statements to reflect the effect of the reverse stock split. The Company made a cash payment to stockholders for all fractional shares that it would otherwise be required to issue as a result of the stock split. In addition, the stock split resulted in the par value of the Company’s Common Stock increasing to $ per share.
Convertible Preferred Stock
The Company has authorized a total of shares of preferred stock, $ par value per share. Prior to the initial public offering (“IPO”), the Company issued shares of preferred stock, designated as Series A. In July 2017, the Company completed a private placement of securities in which million shares of Series A Preferred Stock were sold, resulting in net proceeds of $1.5 million. As part of the closing, the Company issued million shares of Series A Preferred Stock in exchange for $2.6 million of the Company’s convertible notes payable and related accrued interest.
In accordance with the Certificate of Designation of the Series A Preferred Stock, all of the shares of Series A Preferred Stock that were issued and outstanding at the time of the IPO closing were automatically converted into fully paid and nonassessable shares of Common Stock at a 1-for-7 conversion rate (as adjusted for the 1-for-7 reverse stock split). The shares of Series A Preferred Stock that were so converted ceased to be part of the Company’s authorized stock and will never again be issued by the Company. As of March 31, 2023, and December 31, 2022, Preferred Stock was outstanding.
Common Stock
The Company has authorized a total of shares of Common Stock, $ par value per share. In November 2021, the Company received stockholder approval to increase the number of authorized shares from shares to shares. The Company has issued shares of Common Stock as of March 31, 2023, and shares of Common Stock as of December 31, 2022.
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