Stockholders Equity

3 Months Ended

Mar. 31, 2023

Stockholders Equity

Stockholders' Equity

3. Stockholders’ Equity

Reverse Stock Split

On April 29, 2022, the Company’s board of directors and on May 16, 2022 our shareholders approved a 1-for-15 reverse stock split (the “Reverse Stock Split”) of the Company’s common stock and each series of its redeemable convertible notes to be consummated prior to the effectiveness of the Company’s underwritten public offering (“Offering”) on August 9, 2022. The par value and authorized shares of the Company’s common stock were not adjusted as a result of the Reverse Stock Split. All issued and outstanding common stock, RSUs, warrants and options to purchase common stock and per share amounts contained in the financial statements have been retroactively adjusted to give effect to the Reverse Stock Split for all periods presented.

The Company filed an amended Restated Certificate of Formation with the Secretary of State of Texas on August 8, 2022, that effectuated the Reverse Stock Split.

Preferred Stock

We have 10,000,000 shares of preferred stock authorized for issuance. No shares of preferred stock were outstanding as of March 31, 2023 and none are outstanding as of the date of the Balance Sheet in this report.

Common Stock

The Company has reserved authorized shares of common stock for future issuance as of March 31, 2023, and December 31, 2022 as follows:

	March 31, 2023		December 31, 2022
Conversion of convertible notes		814,337		145,355
Unvested RSUs		732,668		800,000
Vested RSU		29,332		-
Stock options		36,666		36,666
Warrants		966,174		966,174
		2,579,177		1,948,195

Warrants

A summary of the status of the Company’s warrants for the three months ended March 31, 2023 and 2022 are presented in the following table:

	March 31,
	2023				2022
	Shares		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
Warrants outstanding at beginning of year		966,174	$	4.26		30,174	$	3.98
Issued		-		-		-		-
Warrants outstanding at the end of quarter		966,174		4.26		30,174	$	3.98
Exercisable at the end of quarter		966,174		4.26		30,174	$	3.98