EQUITY |
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EQUITY | 8. EQUITY
Authorized Capital Stock
The Company’s authorized capital stock currently consists of 205,000,000 shares, consisting of 200,000,000 shares of common stock, par value $0.001 per share, and 5,000,000 shares of preferred stock, par value $0.001 per share, of which 1,785,715 shares have been designated as series C convertible preferred stock, 1,016,014 shares have been designated as series D convertible preferred stock, and 500 shares have been designated as series F preferred stock.
Securities Subject to Price Adjustments
If in the future, the Company sells its common stock at a price below $0.25 per share, the conversion price of our outstanding shares of series C convertible preferred stock and series D convertible preferred stock would adjust below $0.25 per share pursuant to the documents governing such instruments. In addition, the conversion price of the convertible promissory notes referred to above and the exercise price of certain outstanding warrants to purchase 10,074,381 shares of common stock would adjust below $0.25 per share pursuant to the documents governing such instruments. Warrants totaling 4,439,707 would adjust below $1.20 per share and warrants totaling 4,424,425 would adjust below $2.40 per share, in each case pursuant to the documents governing such instruments.
Common Stock
Each share of common stock entitles its holder to one vote on each matter submitted to the stockholders for a vote, and no cumulative voting for directors is permitted. Stockholders do not have any preemptive rights to acquire additional securities issued by the Company.
Six Months Ended March 31, 2023
The Company issued 50,000 shares of common stock related to the exercise of warrants and received $12,500.
The Company issued 1,875 shares related to the exercise of stock option grants and received $2,343.
Warrants to Purchase Common Stock
Six Months Ended March 31, 2023
On December 7, 2022, the Company signed an Extension of Warrant Agreement with Clayton Struve, extending the exercise dates as follows:
The Company recorded interest expense of $194,019 during the six months ended March 31, 2023 related to the extension of the warrants. The Company recorded the original value of warrants in equity and as such, the Company recorded the extension value as an expense with an offset to additional paid in capital.
On January 19, 2023, the Company signed an Extension of Warrant Agreements with Ronald P. Erickson and an entity controlled by Mr. Erickson, extending the exercise dates from January 30, 2023 to January 30, 2024. A summary of the warrants outstanding as of March 31, 2023 were as follows:
The following table summarizes information about warrants outstanding and exercisable as of March 31, 2023:
The significant weighted average assumptions relating to the valuation of the Company’s warrants for the three months ended March 31, 2023 were as follows:
There were vested warrants of 21,736,313 with an aggregate intrinsic value of $6,522,016. |