ORDER ADOPTING REPORT AND RECOMMENDATION Plaintiff LG Capital Funding, LLC (“LG Capital”), commenced this action on June 28, 2016, and served Defendant FLASR, Inc. (“FLASR”), on July 22, 2016. (See Compl., ECF No. 1; Summons, ECF No. 10.) Defendant has since failed to appear or defend itself in this matter in any meaningful way.1 On November 10, 2016, Plaintiff filed a motion for default judgment. (Mot. Default J., ECF No. 19.) On July 27, 2017, Magistrate Judge James Orenstein issued a report and recommendation (the “R&R”) recommending that LG Capital’s motion be granted in part and denied in part. (ECF No. 40.) On August 14, 2017, LG Capital filed an objection challenging Magistrate Judge Orenstein’s recommendation that the Court not award Plaintiff liquidated damages, lost profits, or attorney’s fees. (Pl.’s Objs. July 27, 2017 R. & R. Hon. Magistrate Judge James Orenstein, ECF No. 43 (“Objection”).)STANDARD OF REVIEWThe Court reviews de novo LG Capital’s objections to the R&R. See 28 U.S.C. §636(b)(1)(C); Fed. R. Civ. P. 72(b)(3). As to the remainder of the R&R, the Court “need only satisfy itself that there is no clear error on the face of the record.” Estate of Ellington ex rel. Ellington v. Harbrew Imps. Ltd., 812 F. Supp. 2d 186, 189 (E.D.N.Y. 2011) (internal quotation marks and citation omitted). The R&R is thorough and well-reasoned. However, based on new arguments not before Magistrate Judge Orenstein at the time of its issuance, this Court adopts the R&R in part and modifies it as discussed in detail below.BACKGROUND2On or about April 1, 2015, FLASR issued a convertible redeemable note (the “Note”) to LG Capital in the amount of $78,750. (Compl. 6.) The Note had a maturity date of April 1, 2016, at which point FLASR was obligated to repay LG Capital the principal plus 8 percent interest. (Id. Ex. A (“Note”) at 1, ECF No. 1-1.) The Note also contained a stock-conversion provision permitting LG Capital to convert all or part of the outstanding principal of the Note into shares of FLASR’s common stock. (Compl. 7.) To ensure the availability of shares for conversion, the Note provided that FLASR would initially “issue irrevocable transfer agent instructions reserving 2,900,000 shares of its Common Stock for conversions.” (Id. 11.) The provision required FLASR to “at all times reserve a minimum of four times the [number] of shares required if the [N]ote would be fully converted,” and it permitted that LG Capital “may reasonably request increases from time to time to reserve such amounts.” (Id.) If FLASR failed to pay the principal or interest due on the Note, failed to honor the stock-conversion provision of the Note, or failed to replenish the stock reserve within three business days, FLASR would be in default. (Note §8.) In the event of default, a 24 percent interest rate would apply to FLASR’s payments. (Id.) Additionally, if FLASR failed to honor the stock-conversion provision of the Note, FLASR agreed to pay “$250 per day the shares [were] not issued beginning on the 4th day after the conversion notice was delivered to [FLASR,].…increas[ing] to $500 per day beginning on the 10th day.” (Id.)In October and November 2015, FLASR honored LG Capital’s conversion requests by delivering shares in a timely manner. (Compl.
12-15.) However, FLASR failed to honor LG Capital’s November 3, 2015 and March 1, 2016 requests to increase the share reserve. (Id.
