Annual report pursuant to Section 13 and 15(d)

Stockholders' Equity

v3.23.1
Stockholders' Equity
 12 Months Ended
Dec. 31, 2022
Stockholders' Equity Note [Abstract]  
Stockholders' Equity

Note 8. Stockholders’ Equity

 

Common Stock

 

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 year ended December 31, 2022 are:

 

    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    
-
      
-
      
-
      
-
       (216,312 )
Cancelled/Expired    
-
      
-
      
-
      
-
      
-
  
Balance at December 31, 2022     1,567,720     $ 1.35       118,388     $ 3.25       2,409,759  
Exercisable at December 31, 2022     1,567,720     $ 1.35       118,388     $ 3.25       2,267,175  

 

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

 

The Company’s outstanding warrants and options at December 31, 2021 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       2.56     $ 1.35       1,567,720     $ 1.35       -  

 

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 - $6.84       118,388       1.69     $ 3.25       118,388     $ 3.25      
-
  

 

As of December 31, 2022 and 2021, the total unrecognized expense for unvested stock options and restricted stock awards was approximately $220,000 and $1.0 million, respectively, to be recognized over a one to three-year period for restricted stock awards and one year for option grants from the date of grant.

 

Stock-based compensation expense for the years ended December 31, 2022 and 2021 was as follows:

 

    For the years ended  
    December 31,  
    2022     2021  
Stock-based compensation expense   $ 1,141,932     $ 2,687,901  

 

Stock-based compensation expense categorized by the equity components for the years ended December 31, 2022 and 2021 is as follows:

 

    For the years ended  
    December 31,  
    2022     2021  
Common stock   $ 1,141,932     $ 2,687,901  
Total   $ 1,141,932     $ 2,687,901  

 

Stock compensation is included in general and administrative expenses on the consolidated statements of operations