Commitments and Contingencies
|9 Months Ended|
Sep. 30, 2017
|Commitments and Contingencies Disclosure [Abstract]|
|Commitments and Contingencies||
7. Commitments and Contingencies
In July 2017, the Company vacated its offices in Campbell, California and signed a six-month lease for office space in Cupertino, California effective August 1, 2017 which requires lease payments of $1,767 per month.
Rent expense was $11,691 in the three months ended September 30, 2017 and $27,152 in the three months ended September 30, 2016. Rent expense was $65,994 in the nine months ended September 30, 2017 and $81,455 in the nine months ended September 30, 2016.
The Company entered into an agreement to purchase certain patent assets under which guaranteed payments were required. This agreement originally required a $2,000,000 guaranteed payment due on December 1, 2015. In October 2015, the Company and the other party amended the terms of the original patent purchase agreement, with the amendment providing that the Company make a $550,000 payment on January 31, 2016 and a $1,650,000 payment on July 1, 2016. The total amount of $2,200,000 remains outstanding and accrues interest at 10% per annum, and is expected to be repaid from net monetization revenues generated by INVT SPE under the PRIP (see Note 3).
Previously, on November 21, 2016 and on April 7, 2017, the Company received notice from The NASDAQ Stock Market (“Nasdaq”) indicating that, because the closing bid price for the Company’s common stock had fallen below $1.00 per share for 30 consecutive business days, the Company no longer complied with the minimum bid price requirement (the “Minimum Bid Price Requirement”) and the minimum $2,500,000 stockholders’ equity requirement (the “Stockholders’ Equity Requirement”) for continued listing on the Nasdaq Capital Market under Nasdaq Listing Rule 5550(a)(2) and Rule 5550(b)(1), respectively.
The Company subsequently submitted a notice of appeal to Nasdaq appealing its determination that the Company no longer complied with the Stockholders’ Equity Requirement, which appeal was heard before a hearings panel (the “Panel”) on June 1, 2017.
On May 23, 2017, the Company received notice from Nasdaq that the Company had not regained compliance with the Minimum Bid Price Requirement, which serves as an additional basis for delisting the Company’s common stock from the Nasdaq Capital Market. Nasdaq further advised the Company that the Panel will consider this matter in rendering a determination regarding the Company’s continued listing on the Nasdaq Capital Market.
On June 5, 2017, the Company received notice from Nasdaq that the Panel has determined to delist the shares of the Company from the Nasdaq Stock Market and will suspend trading in the Company’s shares effective at the open of business on June 7, 2017. The Company submitted a request to the Office of Appeals and Review on June 20, 2017, requesting that the Nasdaq Listing and Hearing Review Council (the “Council”) review the Panel’s decision. On July 28, 2017, the Company updated the Council regarding the third party independent valuation that was undertaken to establish the value of INVT SPE and the resulting positive impact on the Company’s stockholders’ equity.
On August 29, 2017, the Company received a notice from Nasdaq stating that it had determined that the Company had failed to comply with Nasdaq’s shareholder approval requirement set forth in Listing Rule 5635(d), which requires shareholder approval of any issuance of shares of common stock greater than 20% of a company’s outstanding shares, as a result of the Exchange Right and Leak-Out Agreement, dated July 26, 2017, entered into between the Company and the holders of its Series E Preferred Stock. The notice provided that this matter would serve as an additional basis for delisting the Company’s common stock from Nasdaq. Subsequent to receipt of the notice, the Company withdrew its appeal of the Panel decision.
The entire disclosure for commitments and contingencies.
Reference 1: http://www.xbrl.org/2003/role/presentationRef