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Note 5 - Stockholders' Equity
9 Months Ended
Sep. 30, 2020
Notes to Financial Statements  
Stockholders' Equity Note Disclosure [Text Block]
Note
5.
Stockholders' Equity
 
Stock Warrants
: On
August 21, 2018,
the Company issued University FanCards, LLC a warrant to purchase
150,000
shares of the Company's common stock.
30,000
warrants vested immediately upon the date on which the
first
financial transaction was processed on a card account issued under the prepaid agreement, which occurred on
October 5, 2018.
120,000
warrants will vest annually over
4
years in
30,000
warrant increments beginning on
July 31, 2019
and becoming fully vested on
July 31, 2022.
The exercise price for the
30,000
warrants that vested immediately on
October 5, 2018
was
$1.80
per share. The exercise price for the remaining
120,000
warrants will be the lesser of
$2.00
per share or
one hundred
and
twenty
percent (
120%
) of the market price of the Company's common stock on the vesting date of the warrant. The warrants were valued using the Black-Scholes option pricing model. Assumptions used were as follows: (i) the fair value of the underlying stock was
$0.94
for the
30,000
warrants and
$0.90
for the
120,000
warrants; (ii) the risk-free interest rate is
2.77%;
(iii) the contractual life is
5
years; (iv) the dividend yield is
0%;
and (v) the volatility is
64.6%.
The fair value of the warrants was
$135,764
which will be amortized over the life of the warrants as a reduction of revenues. The reduction of revenues recorded for the
nine
months ended
September 30, 2020
and
2019
was
$26,958
 and
$26,955
, respectively.
 
On
August 12, 2020,
the Company issued
27,051
shares of common stock to University FanCards, LLC in a cashless exercise at
$3.46
per common share in exchange for
60,000
warrants exercised by FanCards, LLC.
 
Equity Transactions
: On
February 14, 2019,
the Company entered into a placement agency agreement with Maxim Group LLC for the issuance and sale of an aggregate of
769,230
shares of common stock at an offering price of
$2.60
per share in a public offering. The Company agreed to pay Maxim a cash fee of equal to
6%
of the aggregate gross proceeds raised in the offering as well as legal fees and expenses of up to
$40,000.
The net proceeds to the Company from the public offering were
$1.8
million, after deducting the offering expenses and fees payable by the Company.
 
On
April 1, 2020,
the Company granted
1,444,000
shares of common stock with a
10
-year vesting period and
103,000
restricted stock units (RSUs) with a
3
-year vesting period to employees and Directors as a performance bonus at an issue price of
$1.08
per share. Executive officers and Directors included in the grant were Louis Hoch (
300,000
shares), Vaden Landers (
150,000
shares), Tom Jewell (
200,000
shares), Blaise Bender (
10,000
RSUs), Brad Rollins (
30,000
RSUs) and Miguel Chapa (
30,000
RSUs).
 
On
July 1, 2020,
Topline Capital Partners, LP purchased
1,796,407
unregistered shares of common stock at an offering price of
$1.67
 per share in a private offering. The gross proceeds to the Company from the private offering were 
$3.0
 million.
 
On
September 
25,
2020,
the Company entered into a placement agency agreement with Ladenburg Thalmann & Company Inc. for the issuance and sale of an aggregate of
4,705,883
shares of common stock at an offering price of
$1.70
 per share in a public offering. The Company agreed to pay Ladenburg a cash fee of equal to
$0.12325
 per share of common stock sold in the offering as well as legal fees and expenses of up to
$100,000.
The net proceeds to the Company from the public offering were
$7.4
 million, after deducting the offering expenses and fees payable by the Company.