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11. SUBSEQUENT EVENTS
 9 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS

On November 9, 2020, UWSS entered into agreements to purchase shares of Series A Convertible Preferred Stock (the “Series A Stock”) of Precision Healing Inc. (“Precision”) for an aggregate purchase price of $600,000. The Series A Stock is convertible into 150,000 shares of common stock of Precision and has a senior liquidity preference relative to the common shareholders. UWSS also agreed to invest an additional $600,000 in February 2021 for 150,000 additional shares of Series A Stock. The additional shares of Series A Stock will convert into shares of common stock of Precision at a ratio based on the date Precision delivers a development milestone related to the diagnostic tools, as follows:

 

1. If Precision meets its development milestone by March 31, 2021, the Series A Stock will convert into 150,000 shares of common stock of Precision;

 

2. If Precision meets its development milestone between April 1, 2021 and June 30, 2021, the Series A Stock will convert into 200,000 shares of common stock of Precision; or

 

3. If Precision meets its development milestone after July 1, 2021, the Series A Stock will convert into 300,000 shares of common stock of Precision.

 

The Company estimates that UWSS will own between 11.8% and 16.7% of Precision’s common stock on an as converted basis after its $1.2 million total investment based on when the development milestone is achieved. As part of this transaction, UWSS entered into an exclusive license agreement whereby UWSS obtained an exclusive, perpetual right to use certain Precision technology and diagnostic tools for virtual wound and skin care assessments in the United States in all professional healthcare settings.