|3 Months Ended|
Mar. 31, 2021
|Subsequent Events [Abstract]|
12. SUBSEQUENT EVENTS
The Company has evaluated subsequent events from the balance sheet date through the date at which the condensed consolidated and combined financial statements were available to be issued, and there are no other items requiring disclosure except the following:
Series 2 Preferred and True-Up Payment
As of the date of this report, the original investors had disposed of all 662 shares of the Series 2 Preferred Stock held at March 31, 2021. The original investors converted 512 shares of the Series 2 Preferred Stock into 1,024,000 common shares. In addition, the original investors sold the remaining 150 Series 2 Preferred Stock to other investors who have not required a True-Up Payment. 50 shares of the remaining 150 Series 2 Preferred Stock sold to other investors were converted to common stock during May 2021. As of the date this repot was filed, the original investors are in the process of selling their common shares upon which the final True-Up payment will be determined, if any.
Employee Retention Credit
On April 1, 2021, the Company applied for a refund of $553,203 of payroll taxes previously paid as well as for the Internal Revenue Service to provide a credit for $275,760 of payroll taxes retained by the Company during the three months ended March 31, 2021. The Company expects to recognize the total Employee Retention Credit of $828,963 during the three months ending June 30, 2021.
The entire disclosure for significant events or transactions that occurred after the balance sheet date through the date the financial statements were issued or the date the financial statements were available to be issued. Examples include: the sale of a capital stock issue, purchase of a business, settlement of litigation, catastrophic loss, significant foreign exchange rate changes, loans to insiders or affiliates, and transactions not in the ordinary course of business.
Reference 1: http://www.xbrl.org/2003/role/disclosureRef