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PREFERRED STOCK LIABILITY | 3 Months Ended
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Mar. 31, 2023
Equity [Abstract] |
PREFERRED STOCK LIABILITY | 14. PREFERRED STOCK LIABILITY March 28, 2023 Security Purchase Agreement On March 28, 2023, the Company entered into a Securities Purchase Agreement (the “Purchase Agreement”) with certain institutional investors (the “Investors”), pursuant to which the Company sold in a private placement (the “Offering”), an aggregate of 100,000 shares of its preferred stock, with each such share having a stated value of $100.00 and consisting of (i) 83,000 shares of Series E Convertible Preferred Stock (the “Series E Preferred Stock”), (ii) 1,000 shares of Series F Convertible Preferred Stock (the “Series F Preferred Stock”) and (iii) 16,000 shares of Series G Convertible Preferred Stock (the “Series G Preferred Stock” and collectively, the “Preferred Shares”). The Preferred Shares are convertible into shares of the Company’s common stock at the option of the holders and, in certain circumstances, by the Company. Preferred stock liability at March 31, 2023 was comprised of the following:
Schedule of preferred stock liability |  |  |  |  |  |  |  |  |  |  |  |  |  |
Preferred Type |  | Shares |  |  | Conversion Price |  | Stated Value |  |  | Fair Value |
Series E Convertible Preferred Liability |  |  | 83,000 |  |  | See below* |  | $ | 8,300,000 |  |  | $ | 7,055,000 |
Series F Convertible Preferred Liability |  |  | 1,000 |  |  | See below* |  |  | 100,000 |  |  |  | 82,000 |
Series G Convertible Preferred Liability |  |  | 16,000 |  |  | See below* |  |  | 1,600,000 |  |  |  | 1,360,000 |
Total |  |  | 100,000 |  |  |  |  | $ | 10,000,000 |  |  | $ | 8,500,000 |
| * | Each Preferred Share is convertible into such number of shares of the Company’s common stock equal to the stated value per share divided by the conversion price, which is equal to 85% of the closing sale price of the common stock on the trading day prior to the date of conversion, subject to a floor price of $0.10, which floor price is not affected by the recently consummated reverse split.
The purchase price of the Series E Preferred Stock and the Series F Preferred Stock was paid for by the Investors’ canceling outstanding secured promissory notes in the principal amount of $8.4 million, whereas the purchase price of the shares of Series G Preferred Stock consisted of accrued but unpaid interest on these notes, as well as other good and valuable consideration. The Company recorded a loss on extinguishment of debt of $0.1 million related to the transaction. The Preferred Shares have been classified as a liability as they embody an unconditional obligation to transfer a variable number of shares, based on a fixed monetary amount known at inception. The Company elected the fair value option to record the Preferred Shares with changes in fair value recorded through earnings.

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- Definition The entire disclosure for terms, amounts, nature of changes, rights and privileges, dividends, and other matters related to preferred stock. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//505/tableOfContent + Details
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