STOCKHOLDERS’ EQUITY |
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Equity [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCKHOLDERS’ EQUITY | NOTE 4 – STOCKHOLDERS’ EQUITY
Common stock
The common stock confers upon the holders the right to receive notice to participate and vote in general meetings of the Company, and the right to receive dividends, if declared, and to participate in the distribution of the surplus assets and funds of the Company in the event of liquidation, dissolution or winding up of the Company.
Stock-based compensation and options
During the six-month period ended June 30, 2022 and 2021, and options were granted, respectively. The options were granted to employees and board members and were recorded at a fair value and vest over . During the three and six-month period ended June 30, 2022, stock-based compensation expense of $ and $ was recorded for options that vested, respectively. During the three and six-month period ended June 30, 2021, there was stock-based compensation expense of $ and $ , respectively. During the second quarter of 2022 and 2021, and options expired, respectively.
As of June 30, 2022, the total unrecognized estimated compensation cost related to non-vested stock options granted prior to that date was $ , which is expected to be recognized over a weighted average period of approximately years.
Warrant exercises and modification
On December 2, 2020, we entered into a Securities Purchase Agreement with certain institutional and accredited investors pursuant to which the Company issued and sold to such investors in a private placement an aggregate of (i) 6.0 million, and net proceeds of approximately $5.4 million. In January 2021, two investors exercised an aggregate of warrants at $0.001 per share. shares of the Company’s common stock at an offering price of $ per share and (ii) pre-funded warrants to purchase up to shares of common stock at a purchase price of $ per pre-funded warrant, for gross proceeds of approximately $
On January 21, 2021, Company entered into letter agreements (the “Letter Agreements”) with certain existing accredited investors to exercise certain outstanding warrants (the “Existing Warrants”) to purchase up to an aggregate of 1,205,968 shares of the Company’s common stock at an exercise price per share of $1.165 (the “Exercise”). Certain of the Existing Warrants (the “Registered Existing Warrants”) and the shares of common stock underlying the Registered Existing Warrants have been registered pursuant to a registration statement on Form S-3 (File No. 333-251264) and a registration statement on Form S-1 (File No. 333-218871). In consideration for the exercise of the Existing Warrants for cash, the exercising holders received new unregistered warrants to purchase up to an aggregate of 1,205,967 shares of common stock (the “New Warrants”) at an exercise price of $1.04 per share and with an exercise period of seven years from the initial closing date. The gross proceeds to the Company from the Exercise were approximately $1.4 million.
The New Warrants were accounted for in warrant modification expense, which was measured at the amount equal to the incremental value reflecting the change in the fair value of the warrants before and after the Warrant Amendment. Accordingly, warrant modification expense in the amount of $1,627 was recorded with a corresponding increase in additional paid in capital in the second quarter of 2021.
On June 14, 2022, the Company issued warrants to two sales consultants to purchase 250,000 shares of common stock which will expire on June 14, 2029 and have an exercise price of $1.00 per share. Accordingly, expense related to these warrants in the amount of $135,000 was recorded with a corresponding increase in additional paid in capital.
In estimating the warrants’ fair value, the Company used the following assumptions:
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