Subsequent event |
9 Months Ended |
|---|---|
Sep. 28, 2024 | |
| Subsequent Events [Abstract] | |
| Subsequent event | Subsequent event On November 8, 2024, the Company entered into an agreement with a vendor of services to its Canadian subsidiary, pursuant to which the Company acquired certain assets of the vendor that the subsidiary has been using, which assets consist of the vendor’s cryptocurrency exchange software, related mobile apps (certain of which are currently deployed and
the remainder are in development), a “futures trading module” that is approximately 50% developed, and all related source code, documentation, data, and bug repositories, as well as all of the trademarks of the vendor.
In consideration of the purchase of the assets, the Company issued to the selling vendor seven hundred seventy-one thousand ten (771,010) shares of its Series Q Convertible Preferred Stock, which is convertible on a one-for-one basis into shares of the Company’s common stock. The shares are convertible ratably during the eight quarters following the closing of the acquisition. In the event that the sole owner of the selling vendor fails or refuses to perform and provide, timely and competently, in any material respect, the transition services required by the Company in connection with the acquisition, the Company may cancel any then-unconverted shares of Preferred Stock.
The Company also entered into two-year consulting agreements with two of the selling entities’ consultants. One consultant will be issued one hundred fifty-four thousand two hundred two (154,202) shares of Series Q Convertible Preferred Stock and receive a monthly consulting fee of $10,000 and the other consultant will receive a monthly consulting fee of $9,000. The conversion features of the preferred stock and the payment of the consulting fees are subject to cancellation provisions equivalent to the cancellation provisions of the unconverted preferred stock that was issued to the selling vendor.
Due to the timing of the asset acquisition, the accounting for this business combination is incomplete. As a result, it is impracticable for the Company to disclose substantially all required disclosures of Accounting Standards Codification 805, Business Combinations, for this acquisition.
The Company has evaluated subsequent events through the filing of this Quarterly Report on Form 10-Q and determined that, other than as disclosed above, there have been no events that have occurred that would require adjustments to disclosures in its condensed consolidated financial statements.
|