Quarterly report pursuant to Section 13 or 15(d)

Stockholders??? Equity

v3.23.1
Stockholders’ Equity
 3 Months Ended
Mar. 31, 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.

 

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 March 31, 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 three months ended March 31, 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    
-
      
-
      
-
      
-
       340,000  
Exercised    
-
      
-
      
-
      
-
       (11,332 )
Cancelled/Expired     (21,688 )     8.33      
-
      
-
      
-
  
Balance at March 31, 2023     1,546,032     $ 1.24       118,388     $ 3.25       2,738,427  
Exercisable at March 31, 2023     1,546,032     $ 1.24       118,388     $ 3.25       2,412,135  

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 March 31, 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 - $20.90          1,546,032       2.35     $ 1.24       1,546,032     $ 1.24      
-
  

 

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       1.44     $ 3.25       118,388     $ 3.25      
-
  

As of March 31, 2023 and December 31, 2022, the total unrecognized expense for unvested stock options and restricted stock awards was approximately $259,000 and $222,000, respectively, to be recognized over a twelve month to three year period from the original grant dates.

 

Stock-based compensation expense for three months ended March 31, 2023 and 2022 was as follows:

  

    For the three months ended  
    March 31,  
    2023     2022  
Stock-based compensation expense   $ 147,873     $ 347,568  

Stock-based compensation expense categorized by the equity components for three months ended March 31, 2023 and 2022 was as follows:

 

    For the three months ended  
    March 31,  
    2023     2022  
Common stock   $ 147,873     $ 347,568  
Total   $ 147,873     $ 347,568