Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

v3.24.3
Stockholders’ Equity
 6 Months Ended
Jun. 30, 2024
Stockholders’ Equity [Abstracf]  
Stockholders’ Equity

Note 7. 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.

 

On October 6, 2023, following stockholder approval at the Company’s annual meeting, the Company amended its certificate of incorporation to implement a 1 for 15 reverse split of its common stock. The effect of the reverse stock split was to combine every 15 shares of outstanding common stock into one share of common stock. The reverse stock split was effective at the opening of the trading day on October 11, 2023. The effects of the reverse stock split have been reflected in this quarterly report on form 10/Q for all periods presented.

 

Common Stock

 

Issuance of Shares for Vested Restricted Stock Units

 

March 27, 2024, the Company issued 1,667 shares of common stock to a holder of fully vested restricted stock units.

 

Issuance of Shares as Settlement of Accounts Payable

 

Between February 6, 2024 and June 12, 2024, the Company issued an aggregate 94,711 shares of common stock in full settlement of $183,644 of accounts payable. The shares had fair values ranging from $1.20 to $2.65 per share.

 

Issuance of Shares as Settlement of Accounts Payable

 

On May 30, 2024, the Company issued 37,500 shares of common stock valued at $67,200 or $1.79 per share to fulfill its obligation under a previous legal settlement. See Note 6. Commitments and Contingencies for further information.

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 six months ended June 30, 2024 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, 2023     11,394     $ 58.72       3,333     $ 39.60       165,663  
Granted    
-
      
-
      
-
      
-
       88,362  
Exercised    
-
      
-
      
-
      
-
       (90,029 )
Cancelled/Expired     (2,293 )     53.64      
-
      
-
      
-
  
Balance at June 30, 2024     9,101     $ 60.00       3,333     $ 39.60       163,996  
Exercisable at June 30, 2024     9,101     $ 60.00       3,333     $ 39.60       163,996  

 

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 six months ended June 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     104,515     $ 20.25       7,889     $ 48.75       160,650  
Granted     -       -      
-
      
-
       32,736  
Exercised     (54,872 )     9.75      
-
      
-
       (25,269 )
Cancelled/Expired     (2,974 )     137.10       (959 )     101.25      
-
  
Balance at June 30, 2023     46,669     $ 25.05       6,930     $ 41.40       168,117  
Exercisable at June 30, 2023     46,669     $ 25.05       6,930     $ 41.40       168,117  

 

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 June 30, 2024 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  
$ 60.00       9,101       1.51     $ 60.00       9,101     $ 60.00      
      -
  

 

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  
$ 39.60       3,333       0.41     $ 39.60       3,333     $ 39.60      
      -
  

 

As of June 30, 2024 and December 31, 2023, there was no unrecognized expense for unvested stock options and restricted stock awards.

 

Stock-based compensation expense for three and six months ended June 30, 2024 is 2023 was as follows:

 

    For the three months ended     For the six months ended  
    June 30,     June 30,  
    2024     2023     2024     2023  
Stock-based compensation expense   $
    -
     $ 147,873     $
     -
     $ 295,746