Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

v3.23.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2023
Stockholders' Equity Note [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.

 

Between June 5, 2023 and June 16, 2023, the Company issued a total of 216,667 shares of common stock to holders of fully vested restricted stock units.

 

Issuance of Shares as Settlement of Accounts Payable

 

On May 24, 2023, the Company issued 102,096 shares of common stock in full settlement of $26,545 of accounts payable. The shares had a fair value of $0.26 per share.

 

On June 22, 2023, the Company issued 48,948 shares of common stock in full settlement of $17,621 of accounts payable. The shares had a fair value of $0.36 per share.

 

Issuance of Shares under Common Stock Purchase Agreement

 

On June 1, 2023, the Company issued 300,000 shares of common stock for net proceeds of $127,053 under its common stock purchase agreement dated June 28, 2022.

 

On June 22, 2023, the Company issued 300,000 shares of common stock for net proceeds of $134,634 under its common stock purchase agreement dated June 28, 2022.

 

Issuance of Shares for the Exercise of Warrants

 

On June 15, 2023, the Company issued 228,568 shares of common stock in a cashless exchange for 823,078 warrants to purchase shares of common stock at $0.65 per share.

 

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 June 30, 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 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     1,567,720     $ 1.35       118,388     $ 3.25       2,409,759  
Granted     -       -      
-
      
-
       491,044  
Exercised     (823,078 )     0.65      
-
      
-
       (379,043 )
Cancelled/Expired     (44,614 )     9.14       (14,441 )     6.75      
-
  
Balance at June 30, 2023     700,028     $ 1.67       103,947     $ 2.76       2,521,760  
Exercisable at June 30, 2023     700,028     $ 1.67       103,947     $ 2.76       2,351,760  

 

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, 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 - $7.08     700,028       0.86     $ 1.67       700,028     $ 1.67      
-
  

 

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 - $5.89     103,947       1.37     $ 2.76       103,947     $ 2.76      
-
  

 

As of June 30, 2023 and December 31, 2022, the total unrecognized expense for unvested stock options and restricted stock awards was approximately $148,240 and $222,000, respectively, to be recognized over a twelve month period from the original grant dates.

 

Stock-based compensation expense for three and six months ended June 30, 2023 and 2022 was as follows:

 

    For the three months ended     For the six months ended  
    June 30,     June 30,  
    2023     2022     2023     2022  
Stock-based compensation expense   $ 147,873     $ 297,981     $ 295,746     $ 645,549  

 

Stock-based compensation expense categorized by the equity components for three and six months ended June 30, 2023 and 2022 was as follows:

 

    For the three months ended     For the six months ended  
    June 30,     June 30,  
    2023     2022     2023     2022  
Common stock   $ 147,873     $ 297,981     $ 295,746     $ 645,549  
Total   $ 147,873     $ 297,981     $ 295,746     $ 645,549