Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.20.2
Stockholders' Equity
 3 Months Ended
Mar. 31, 2020
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

Note 7. Stockholders’ Equity


Authorized Shares


The Company has 45,000,000 common shares authorized with a par value of $0.001 per share.


Common Stock


On January 8, 2020, the Company issued 50,000 shares of common stock to a former employee per the terms of a settlement agreement. 


On January 17, 2020, the Company issued 5,264 shares of common stock to a holder of its Series A Convertible Preferred Stock upon the conversion of 2,000 of such shares of Series A Convertible Preferred Stock.


On February 5, 2020, the Company issued 13,158 shares of common stock to a holder of its Series A Convertible Preferred Stock upon the conversion of 5,000 of such shares of Series A Convertible Preferred Stock. 


On February 21, 2020, the Company issued an aggregate of 100,000 shares of common stock to a holder of its Series A Convertible Preferred Stock upon the conversion of 38,000 of such shares of Series A Convertible Preferred Stock.


On February 22, 2020, the Company issued an aggregate of 39,474 shares of common stock to two holders of its Series A Convertible Preferred Stock upon the conversion of 15,000 of such shares of Series A Convertible Preferred Stock.


On February 26, 2020, the Company issued 19,737 shares of common stock to a holder of its Series A Convertible Preferred Stock upon the conversion of 7,500 of such shares of Series A Convertible Preferred Stock.


On March 12, 2020, the Company issued 16,667 shares of common stock to an employee pursuant to a vesting schedule.


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 three months ended March 31, 2020 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     Weighted-average exercise price per share  
Balance at December 31, 2019     1,311,916     $ 9.35       338,595     $ 5.96       630,303     $           -  
Granted     -       -       -       -       395,000       -  
Exercised     -       -       -       -       -       -  
Cancelled/Forfeited     -       -       -       -       (250,000 )     -  
Balance at March 31, 2020     1,311,916     $ 9.35       338,595     $ 5.96       775,303     $ -  
Exercisable at March 31, 2020     1,311,916     $ 9.35       338,595     $ 5.96      

41,667

     $ -  

As of March 31, 2020 and December 31, 2019, the total unrecognized expense for unvested stock options and restricted stock awards, net of actual forfeitures, was approximately $1.9 million and $3.2 million, respectively, to be recognized over a one-year period for restricted stock awards and one year for option grants from the date of grant. 


Stock-based compensation expense for the three months ended March 31, 2020 and 2019 was as follows:


    For the three months ended  
    March 31,  
    2020     2019  
Stock-based compensation expense   $ 367,600     $ 5,629,833  

Stock-based compensation expense categorized by the equity components for the three months ended March 31, 2020 and 2019 was as follows:


    For the three months ended  
    March 31,  
    2020     2019  
Common stock   $ 367,600     $ 257,885  
Stock option awards     -       49,018  
Transfer of common stock by founders to contractors     -       5,322,930  
Total   $ 367,600     $ 5,629,833