Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

v3.22.2.2
Stockholders’ Equity
 9 Months Ended
Sep. 30, 2022
Stockholders' Equity Note [Abstract]  
Stockholders’ Equity

Note 6. Stockholders’ Equity

 

Authorized Shares

 

The Company has 45,000,000 Common shares and 900,000 Series A convertible preferred shares authorized with a par value of $0.001 per share.

 

Common Stock

 

Issuance of Shares for Vested Restricted Stock Units

 

Between January 20, 2022 and August 9, 2022, the Company issued a total of 107,998 shares of common stock to holders of fully vested restricted stock units.

 

Issuance of Shares Pursuant to Settlement of Accounts Payable

 

On March 31, 2022, the Company issued 12,196 shares of common stock in full settlement of $10,000 of accounts payable. The shares had a fair value of $0.82 per share.

 

On August 11, 2022, the Company issued 69,444 shares of common stock in full settlement of $50,000 of accounts payable. The shares had a fair value of $0.72 per share.

 

On September 27, 2022, the Company issued 21,360 shares of common stock in full settlement of $16,875 of accounts payable. The shares had a fair value of $0.79 per share.

 

Issuance of Shares Pursuant to Legal Settlement

 

Between January 18, 2022 and March 18, 2022, the Company issued an aggregate 71,758 shares of common stock in settlement of $75,000 pursuant to a legal settlement.

 

Issuance of Shares in conjunction with capital raise

 

On June 28, 2022, the Company issued 277,778 shares of common stock as commitment shares pursuant to a capital funding agreement. The shares had a fair value of $200,000 or $0.72 per share.

 

Between September 7, 2022 and September 12, 2022, the Company issued an aggregate 1,153,845 shares of common stock as commitment shares pursuant to a private placement agreement. The shares had a fair value of $750,000 or $0.65 per share. Company received aggregate net proceeds related to this placement of $725,050.

 

Equity Financing

 

During May 2020, the Company received $515,000 of a committed $565,000 from the sale of 135,527 shares of common stock (at a price of $3.80 per share) and warrants to purchase 169,409 shares of common stock, at an exercise price of $4.00 per share. As of September 30, 2022, $415,000 worth of the shares and warrants have been issued. The remaining $125,000 received by the Company is included in equity financing within current liabilities on the consolidated balance sheet.

 

Stock Incentive Plan

 

The number of shares of the Company’s common stock that are issuable pursuant to warrant and stock option grants with time-based vesting as of and for the nine months ended September 30, 2022 were:

 

    Warrant Grants     Stock Option Grants     Restricted Stock Units  
    Number of
shares
subject to
warrants		     Weighted-
average
exercise
price per
share		     Number of
shares
subject to
options		     Weighted-
average
exercise
price per
share		     Number of
shares
subject to
restricted
stock units		  
Balance at December 31, 2021     1,043,525     $ 2.57       118,388     $ 3.25       2,160,757  
Granted     524,195       0.65      
-
      
-
       465,314  
Exercised    
-
      
-
      
-
      
-
       (213,312 )
Cancelled/Expired    
-
      
-
      
-
      
-
      
-
  
Balance at September 30, 2022     1,567,720     $ 1.49       118,388     $ 3.25       2,412,759  
Exercisable at September 30, 2022     1,567,720     $ 1.49       118,388     $ 3.25       2,108,884  

 

The Company has classified the warrant as having Level 2 inputs, and has used the Black-Scholes option-pricing model to value the warrants.

 

The Company’s outstanding warrants and options at September 30, 2022 are as follows:

 

Warrants Outstanding   Warrants Exercisable  
Exercise Price
Range		   Number Outstanding     Weighted
Average
Remaining
Contractual
 Life 
(in years)		     Weighted
Average
Exercise
 Price		     Number
Exercisable		     Weighted
Average
Exercise
 Price		     Intrinsic
Value		  
$0.65 - $20.90     1,567,720       2.81     $ 1.35       1,567,720     $ 1.35       79,478  

 

Options Outstanding   Options Exercisable  
Exercise Price
Range		   Number Outstanding     Weighted
Average
Remaining
Contractual
Life
(in years)		     Weighted
Average
Exercise 
Price		     Number
Exercisable		     Weighted
Average
Exercise
Price		     Intrinsic
Value		  
$2.64 - $28.50     118,388       1.94     $ 3.25       118,388     $ 3.25      
-
  

 

As of September 30, 2022 and December 31, 2021, the total unrecognized expense for unvested stock options and restricted stock awards was approximately $551,000 and $1.0 million, respectively, to be recognized over a twelve month to three year period from the original grant dates.

 

Stock-based compensation expense for three and nine months ended September 30, 2022 and 2021 was as follows:

  

    For the three months ended
     For the nine months ended
  
    September 30,     September 30,  
    2022     2021     2022     2021  
Stock-based compensation expense   $ 261,370     $ 699,084     $ 906,919     $ 1,929,446  

 

Stock-based compensation expense categorized by the equity components for three and nine months ended September 30, 2022 and 2021 was as follows:

 

    For the three months ended
     For the nine months ended
  
    September 30,     September 30,  
    2022     2021     2022     2021  
Common stock   $ 261,370     $ 699,084     $ 906,919     $ 1,929,446  
Total   $ 261,370     $ 699,084     $ 906,919     $ 1,929,446