Stockholders’ Equity

6 Months Ended

Jun. 30, 2022

Equity [Abstract]

Stockholders’ Equity

Note 8 – Stockholders’ Equity

The Company has authorized 100,000,000 shares of capital stock, which consists of 90,000,000 shares of Common Stock, $0.000001 par value per share, and 10,000,000 shares of preferred stock, $0.000001 par value per share.

Series B Preferred Stock

Pursuant to the Exchange Agreement (see Note 5- “Notes Payable”), the Holder agreed to exchange the Prior Notes for 230,375 shares of Series B Preferred Stock, and a warrant (the “Exchange Warrant”). The Exchange Warrant granted the Holder the right to purchase 93,750 shares of Common Stock at an exercise price of $3.00, subject to adjustment as set forth therein. The Exchange Warrant is exercisable in full at any time within five years of the date of issuance. Additional warrants on substantially identical terms as the Exchange Warrant were issued by the Company to the Holder monthly until all of the outstanding Series B Preferred Stock was either converted or redeemed in full, upon which a final warrant was issued.

Pursuant to its Certificate of Designation and the Exchange Agreement, as applicable, the Series B Preferred Stock had the following features:

● The Series B Preferred Stock was convertible at any time at the option of the holder thereof into shares of Common Stock at an initial conversion price of $3.00 per share, subject to adjustment as set forth in the Certificate of Designation;

● The Series B Preferred Stock was subject to mandatory redemption in full at a redemption price initially equal to $10.00 per share, within 15 business days after the date on which the Company completed an equity financing resulting in total proceeds of at least $10 million. At any time after January 12, 2022, provided that the Company had paid in full all obligations outstanding under the Term Loan Agreement, the holders of a majority of the outstanding shares of Series B Preferred Stock were entitled to require the Company to redeem the Series B Preferred Stock at the then applicable redemption price, and any such redemption of Series B Preferred Stock would be prior and superior to the redemption of any and all other equity securities of the Company duly tendered for redemption; and

● If, at any time while the Series B Preferred Stock is outstanding, the Company completed any single public offering or private placement of its equity, equity-linked or debt securities (each, a “Future Transaction”), the Holder could, in its sole discretion, elect to apply all, or any portion, of the then outstanding Preferred Stock and any accrued but unpaid dividends, as purchase consideration for such Future Transaction. The conversion price applicable to such conversion would equal seventy percent (70%) of the cash purchase price paid per share, unit or other security denomination for the securities of the Company issued to other investors in the Future Transaction.

On January 22, 2022, 110,325 of Series B Preferred Stock was converted to 3,152,143 of Common Stock at $0.35 per share. On March 22, 2022, 110,525 of Series B Preferred Stock was converted to 3,157,857 of Common Stock at $0.35 per share. The remaining outstanding Series B Preferred Stock, 9,525 shares, was redeemed and a final warrant was issued to the Holder for 128,125 common shares at an exercise price of $0.50 per share.

Common Stock

During the six months ended June 30, 2022, the Company:

● issued 27,400,000 shares of Common Stock through an equity capital raise at $0.50 per share;

● issued 3,152,143 shares of Common Stock at $0.35 per share to redeem 110,325 shares of Series B preferred stock;

● issued 3,157,857 shares of Common Stock at $0.35 per share to redeem 110,525 shares of Series B preferred stock; and issued 196,875 of shares of Common Stock from exercises of stock options granted to employees.

EVmo, Inc.

Notes to Consolidated Financial Statements

For the Six Months Ended June 30, 2022 and 2021 (unaudited)

Stock Options

The following is a summary of stock option activity:

	Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding, December 31, 2021		766,750		$	0.53		3.76	$	98,937
Granted		40,000			0.47		4.89
Forfeited		-			-
Exercised		-
Outstanding, March 31, 2022		806,750		$	0.44		3.71	$	162,791
Exercisable, March 31, 2022		619,750		$	0.50		3.86	$	98,937
Granted		20,000			0.39		4.77		2,400
Forfeited		(52,125	)
Exercised		(196,875	)		0.22
Outstanding, June 30, 2022		662,000			0.59		4.44		166,962
Exercisable, June 30, 2022		569,250			0.56		4.01		139,601

The exercise price for options outstanding and exercisable at June 30, 2022:

Outstanding				Exercisable
Number of		Exercise		Number of		Exercise
Options		Price		Options		Price
	20,000	$	0.21		20,000	$	0.21
	352,000		0.215		292,375		0.215
	15,000		0.22		10,000		0.22
	155,000		0.53		126,875		0.53
	20,000		0.94		20,000		0.94
	20,000		2.12		20,000		2.12
	20,000		3.8		20,000		3.8
	20,000		0.39		20,000		0.39
	20,000		0.55		20,000		0.55
	20,000		0.39		20,000		0.39
	662,000				569,250

For options granted during the six months ended June 30, 2022 where the exercise price equaled the stock price at the date of the grant, the weighted-average fair value of such options was $0.59 and the weighted-average exercise price of such options was $0.56. No options were granted during the six months ended June 30, 2022 where the exercise price was less than the stock price at the date of grant or the exercise price was greater than the stock price at the date of grant.

EVmo, Inc.

Notes to Consolidated Financial Statements

For Year Six Months Ended June 30, 2022 and 2021 (unaudited)

The fair value of the stock options is being amortized to stock option expense over the vesting period. The Company recorded stock option expense of $49,088 and $212,694 during the six months ended June 30, 2022 and 2021, respectively. At June 30 2022, the unamortized stock option expense was $50,179.

Warrants

The following is a summary of warrant activity:

	Warrants Outstanding		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
Outstanding, December 31, 2021		3,918,750	$	2.87		3.17	$	-
Granted		664,092
Forfeited		-
Exercised		-
Outstanding, March 31, 2022		4,582,842	$	2.47		3.48	$	-
Exercisable, March 31, 2022		4,582,842	$	2.47		3.48	$	-
Granted		625,000
Forfeited		-
Exercised		-
Outstanding June 30, 2022		5,207,842	$	2.22		3.21
Exercisable, June 30, 2022		5,207,842	$	2.22		3.21

The exercise price for warrants outstanding at June 30, 2022:

Outstanding and Exercisable
	Number of Warrants		Exercise Price
	1,500,000	$	4.00
	65,625	$	5.00
	65,625	$	5.00
	187,500	$	3.00
	93,750	$	3.00
	93,750	$	3.00
	711,656	$	1.33
	93,750	$	3.00
	93,750	$	3.00
	93,750	$	3.00
	1,174,311	$	0.71
	93,750	$	3.00
	93,750	$	3.00
	93,750	$	3.00
	128,125	$	0.50
	625,000	$	0.40
	5,207,842

EVmo, Inc.

Notes to Consolidated Financial Statements

For Year Six Months Ended June 30, 2022 and 2021 (unaudited)