Conversion of preferred stock to common stock

In December, 2018, one preferred stockholder converted all of its 1,300 shares of Series B preferred stock into 12,734,258 shares of common stock; another preferred stockholder converted 10 shares of Series B preferred stock into 74,130 shares of common stock, with a total of 12,808,388 shares of common stock being issued upon conversion of the Series B preferred stock.

With regard to conversions, the Company reversed Series B preferred stock liability relating to the conversion and recorded as Additional paid-in capital at par value. The Company reversed the amount of approximately $963,000 based on the proportion of Series B preferred stock converted relative to the original total issued.

During the three months ended March 31, 2019, one preferred stockholder converted all of its 450 shares of Series B preferred stock into 5,730,883 shares of common stock; another preferred stockholder converted 504 shares of Series B preferred stock into 5,575,574 shares of common stock, with a total of 11,306,457 shares of common stock being issued upon conversion of the Series B preferred stock.