|9 Months Ended|
Sep. 30, 2022
|Stockholders' Equity Note [Abstract]|
Note 6. Stockholders’ Equity
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.
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.
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:
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:
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:
Stock-based compensation expense categorized by the equity components for three and nine months ended September 30, 2022 and 2021 was as follows:
The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income.
Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef