Stockholder's Equity

3 Months Ended

Mar. 31, 2022

Stockholder's Equity [Abstract]

STOCKHOLDER’S EQUITY

NOTE 10 – STOCKHOLDER’S EQUITY

Common Stock

During the quarter ended March 31, 2022, shares of common stock were issued as a result of the following transactions:

● On March 18 and March 21, 2022, the Company entered into Subscription Agreements (the “Subscription Agreements”) with an accredited investor and certain members of authID.ai’s management team (the “PIPE Investors”), and, pursuant to the Subscription Agreements, sold to the PIPE Investors a total of 1,063,514 shares of our common stock at prices of $3.03 per share for an outside investor and $3.70 per share for the management investors (the “PIPE”). The aggregate gross proceeds from the PIPE are approximately $3.3 million.

● The Company issued total of approximately 28,500 shares of our common stock to the Note Investors as an additional origination fee.

● Certain warrant and stock option holders exercised their respective warrants and stock options by means of the cashless exercise feature and were issued approximately 186,488 common shares of the Company.

During the quarter ended March 31, 2021, shares of common stock were issued as a result of the following non-cash transactions:

● Convertible notes totaling $120,000 and a portion of their accrued interest at the option of the noteholders were converted into approximately 33,000 shares of common stock of the Company.

● Certain warrant and stock option holders exercised their respective warrants and stock options by means of the cashless exercise feature and were issued approximately 441,000 common shares of the Company.

Warrants

The following is a summary of the Company’s warrant activity for the three months ended March 31, 2022:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Remaining Life
Outstanding at December 31, 2021		1,403,610		$	4.61		3.0 years
Granted		142,690		$	3.70		5.0 Years
Exercised/cancelled		(1,667	)	$	2.64		4.2 years
Outstanding at March 31, 2022		1,544,633		$	4.18		2.91 years

Stock Options

The Company determined the grant date fair value of options granted for the quarter ended March 31, 2022, using the Black Scholes Method and the following assumptions:

Expected volatility	127	%
Expected term	5 years
Risk free rate	2.14	%
Dividend rate	0.00	%

Activity related to stock options for the three months ended March 31, 2022, is summarized as follows:

	Number of Shares			Weighted Average Exercise Price		Weighted Average Contractual Term (Yrs.)		Aggregate Intrinsic Value
Outstanding as of December 31, 2021		8,910,994		$	4.50		7.5	$	8,283,639
Granted		546,204			2.83		10.0	$	-
Exercised		(281,031	)		3.28		8.8		3,485,482
Forfeited/cancelled		(25,000	)		12.93				-
Outstanding as of March 31, 2022		9,151,167		$	6.34		6.7	$	6,233,571
Exercisable as of March 31, 2022		4,676,151		$	5.34		4.3	$	5,271,207

The following table summarizes stock option information as of March 31, 2022:

Exercise Price	Outstanding		Weighted Average Contractual Life (Yrs.)		Exercisable
$.03 - $4.00		3,875,463		5.1		3,041,687
$4.01 - $7.00		151,667		4.5		151,667
$7.01 - $10.00		3,432,802		9.1		416,131
$10.01 - $15.97		1,691,235		5.6		1,066,666
		9,151,167		6.7		4,676,151

During the three months ended March 31, 2022, the Company recognized approximately $1,867,000 of stock option based compensation expense of which approximately $798,000 relates to market condition-based awards of directors and officers. As of March 31, 2022, there was approximately $14,528,000 of unrecognized compensation costs related to stock options outstanding that will be expensed through 2025.