Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.23.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2023
Stockholders' Equity [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 10, 2023 and January 26, 2023, the Company issued a total of 11,332 shares of common stock to holders of fully vested restricted stock units.

 

Between June 5, 2023 and June 16, 2023, the Company issued a total of 216,667 shares of common stock to holders of fully vested restricted stock units.

 

Between July 5, 2023 and July 19, 2023, the Company issued a total of 14,340 shares of common stock to holders of fully vested restricted stock units.

 

Issuance of Shares as Settlement of Accounts Payable

 

On May 24, 2023, the Company issued 102,096 shares of common stock in full settlement of $26,545 of accounts payable. The shares had a fair value of $0.26 per share.

 

On June 22, 2023, the Company issued 48,948 shares of common stock in full settlement of $17,621 of accounts payable. The shares had a fair value of $0.36 per share.

 

On July 26, 2023, the Company issued 72,548 shares of common stock in full settlement of $16,686 of accounts payable. The shares had a fair value of $0.23 per share.

 

On August 18, 2023, the Company issued 131,000 shares of common stock in full settlement of $32,750 of accounts payable. The shares had a fair value of $0.25 per share.

 

On September 27, 2023, the Company issued 118,643 shares of common stock in full settlement of $22,542 of accounts payable. The shares had a fair value of $0.19 per share.

 

Issuance of Shares under Common Stock Purchase Agreement

 

On June 1, 2023, the Company issued 300,000 shares of common stock for net proceeds of $127,053 under its common stock purchase agreement dated June 28, 2022.

 

On June 22, 2023, the Company issued 300,000 shares of common stock for net proceeds of $134,634 under its common stock purchase agreement dated June 28, 2022.

 

On Between July 7, 2023 and September 28, 2023, the Company issued a total of 1,410,807 shares of common stock for aggregate net proceeds of $311,220 under its common stock purchase agreement dated June 28, 2022.

 

Issuance of Shares for the Exercise of Warrants

 

On June 15, 2023, the Company issued 228,568 shares of common stock in a cashless exchange for 823,078 warrants to purchase shares of common stock at $0.65 per share.

 

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, 2023, $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, 2023 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, 2022   1,567,720     $ 1.35       118,388     $ 3.25       2,409,759  
Granted  
-
      
-
      
-
      
-
       871,568  
Exercised   (823,078 )     0.65      
-
      
-
       (715,574 )
Cancelled/Expired   (72,180 )     8.05       (18,388 )     6.57       (69,166 )
Balance at September 30, 2023   672,462     $ 1.48       100,000     $ 2.64       2,496,587  
Exercisable at September 30, 2023   672,462     $ 1.48       100,000     $ 2.64       2,439,087  

 

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, 2023 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 - $4.00     672,462       0.64     $ 1.48     672,462   $ 1.48      
-
  

 

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     100,000       1.16     $ 2.64     100,000   $ 2.64      
-
  

 

As of September 30, 2023 and December 31, 2022, the total unrecognized expense for unvested stock options and restricted stock awards was approximately $25,070 and $222,000, respectively, to be recognized over a twelve month period from the original grant dates.

  

Stock-based compensation expense for three and nine months ended September 30, 2023 and 2022 was as follows:

 

    For the three months ended     For the nine months ended  
    September 30,     September 30,  
    2023     2022     2023     2022  
Stock-based compensation expense   $ 40,547     $ 261,370     $ 336,293     $ 906,919  

 

Stock-based compensation expense categorized by the equity components for three and nine months ended September 30, 2023 and 2022 was as follows:

 

    For the three months ended     For the nine months ended  
    September 30,     September 30,  
    2023     2022     2023     2022  
Common stock   $ 40,547     $ 261,370     $ 336,293     $ 906,919  
Total   $ 40,547     $ 261,370     $ 336,293     $ 906,919