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Stockholders' Deficit
 3 Months Ended
Jun. 30, 2020
Equity [Abstract]  
Stockholders' Deficit

Note 14 — Stockholders' Deficit 

 

Issuance of Common Stock in the Public Offering

 

On July 25, 2019, in a registered direct public offering, the Company entered into securities purchase agreements with certain institutional investors pursuant to which the Company sold a total of 5,000,000 shares of its common stock at a price per share of $2.10. The gross proceeds to the Company were $10.5 million. The net proceeds of the offering to the Company were $9.5 million, after deducting placement agent fees and other offering expenses totaling $1.0 million paid by the Company.

 

Issuance of Restricted Shares of Common Stock for Services to Consultants and Vendors

 

During the three months ended June 30, 2020, the Company issued 559,857 shares of its common stock valued at $1.5 million to certain Company consultants and vendors. Additionally, the Company incurred $0.5 million in accounts payable and accrued liabilities for stock earned by its consultants, but not yet issued. During the three months ended June 30, 2020, the Company recorded $1.1 million of expense related to stock issuances to its consultants. The remaining unrecognized compensation cost of $0.2 million is expected to be recorded over the next year as the shares vest.

 

During the three months ended June 30, 2019, the Company issued 102,897 shares of its common stock valued at $0.8 million to certain Company consultants. During the three and nine months ended June 30, 2019, the Company recorded $0.2 million of expense related to stock issuances to consultants.

 

Warrants

 

The table below summarizes the Company's warrant activities during the three month's ended June 30, 2020:

 

   Number of
Warrants		   Weighted
Average
Exercise
Price		   Weighted-
Average
Remaining
Contractual
Term
(in years)		 
Balance outstanding, March 31, 2020   167,363   $4.01    0.94 
Granted   -    -    - 
Exercised   -    -    - 
Forfeited/expired   -    -    - 
Balance outstanding, June 30, 2020   167,363   $4.01    0.69 
Exercisable, June 30, 2020   167,363   $4.01    0.69 

 

At June 30, 2020, the intrinsic value of warrants outstanding and exercisable was $0.

 

 Issuance of Common Stock to Certain Music Partner

 

In June 2020, the Company entered into a new two-year license agreement with a certain music partner which owns and license rights to Slacker to certain sound recordings. Pursuant to this agreement, the Company agreed to certain minimum yearly guarantee payments and issued 264,000 shares of its common stock to such music partner in consideration of all payments due to the music partner prior the date of the agreement.