STOCKHOLDERS EQUITY

6 Months Ended

Jun. 30, 2022

STOCKHOLDERS' EQUITY

10. STOCKHOLDERS' EQUITY

NOTE 10 – STOCKHOLDERS’ EQUITY

During the six months ended June 30, 2021, the Company sold shares of its common stock in two separate transactions: on February 3, 2021, 15,300,000 shares were sold at $0.70 for gross proceeds of $10,710,000; and on February 18, 2021, 10,990,000 shares were sold at $1.30 for gross proceeds of $14,287,000. A total of $1,654,820 of issuance costs were incurred on these sales.

During the six months ended June 30, 2021, the Company issued 3,765,477 shares of common stock and received $1,790,703 in cash from the exercise of warrants.

During the three months ended June 30, 2022 and June 30, 2021, the Company expensed $46,875 and $28,125, respectively, in directors’ fees payable that are anticipated to be paid in common stock. During the six months ended June 30, 2022 and June 30, 2021, the Company expensed $75,000 and $28,125, respectively in directors’ fees payable

At June 30, 2022 and December 31, 2021, the accrued balance of stock payable to directors fees for services was $187,500 and $112,500, respectively.

The Company issued no shares of common stock during the three or six months ended June 30, 2022. During the three and six months ended June 30, 2022, no warrants were exercised.

Common stock warrants

In February 2021, concurrent with sale of common stock, the Company issued warrants to purchase 7,650,000 shares of common stock at an exercise price of $0.85 per share. The warrants are initially exercisable six months following issuance and expire five and one-half years from the issuance date. In connection with the February 2021 sales of common stock, the Company also issued 1,606,500 warrants with an exercise price of $0.85 and 804,000 warrants with an exercise price of $0.46 as commission to the placement agent. There were no warrants exercised during the three or six months ended June 30, 2022.

The Company issued no warrants to purchase common stock during the three or six months ended June 30, 2022.

The following is a summary of the Company’s warrants to purchase shares of common stock activity:

	Number of warrants			Exercise prices
Balance outstanding at December 31, 2020		6,194,899		$	0.65
Issued		10,060,500		$0.46 - $0.85
Exercised		(3,765,477	)	$0.46 - $0.65
Balance outstanding at December 31, 2021 and June 30, 2022		12,489,922		$	0.75

The composition of the Company’s warrants outstanding at June 30, 2022 is as follows:

Number of warrants		Exercise Price		Expiration Date	Remaining life (years)
	143,707	$	0.65	8/12/2022		0.12
	2,285,715		0.46	7/31/2025		3.09
	804,000		0.46	1/27/2026		3.58
	7,650,000		0.85	8/3/2026		4.10
	1,606,500		0.85	2/1/2026		3.59
	12,489,922