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CAPITAL STOCK
12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
CAPITAL STOCK

NOTE 7—CAPITAL STOCK

 

Common Stock - At-the-Market Offerings

 

In November 2022, the Company entered into an At-the-Market Sales Agreement (the “Sales Agreement”) with Univest Securities, LLC) (“Univest”) pursuant to which the Company could sell (the “2022 ATM Offering”), at its option, up to an aggregate of $3.5 million in shares of its common stock through Univest, as sales agent. Sales of shares under the Sales Agreement (the “2022 ATM Offering”) were made, in accordance with placement notices delivered to Univest, which notices set parameters under which shares could be sold. The 2022 ATM Offering was made pursuant to a shelf registration statement by methods deemed to be “at the market,” as defined in Rule 415 promulgated under the Securities Act of 1933. The Company paid Univest a commission in cash equal to 3% of the gross proceeds from the sale of shares in the 2022 ATM Offering. The Company reimbursed Univest for $25,000 of expenses incurred in connection with the 2022 ATM Offering.

 

In 2022, the Company sold an aggregate of 394,678 shares in connection with the 2022 ATM Offering and received proceeds, net of commissions and expenses, of $1.5 million. In 2023, the Company sold an aggregate of 578,707 shares in connection with the 2022 ATM Offering and received proceeds, net of commissions and expenses, of $1.7 million.

 

 

Warrants

 

Bridge Loan Warrants. In September 2019, the Company issued the warrants in conjunction with a bridge loan. The Bridge Loan Warrants are exercisable, for a period of ten years, expiring September 18, 2029, to purchase an aggregate of 94,400 shares of common stock of the Company at $2.50 per share. The relative fair value of the warrants was determined on the date of grant at $144,948 using the Black Scholes option-pricing model with the following parameters: (1) risk free interest rate of 1.80% based on the applicable US Treasury bill rate; (2) expected life in years of 10.0; (3) expected stock volatility of 82.9% based on the trading history of the Company; and (4) expected dividend yield of 0%. The relative fair value of the warrants was recorded as debt discount on the Bridge Loan Notes and was amortized as additional interest expense over the term of the notes.

 

A summary of warrant activity and related information for 2023 and 2022 is presented below:

 

   Warrants  

Weighted-Average

Exercise Price

  

Aggregate

Intrinsic Value

 
             
Outstanding at December 31, 2021   94,400   $2.50      
Issued             
Exercised             
Expired      $                                        
Outstanding at December 31, 2022   94,400   $2.50      
Issued             
Exercised             
Expired             
Outstanding at December 31, 2023   94,400   $2.50   $ 
Exercisable at December 31, 2023   94,400   $2.50   $