SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

NOTE 5 - SHARE CAPITAL AND OTHER EQUITY INSTRUMENTS

Offerings

On January 14, 2021, the Company completed an offering of 2,221,334 shares of Common Stock and pre-funded warrants at approximately $4.50 per share and a concurrent private placement of warrants to purchase 1,666,019 shares of Common Stock at $4.95 per share, exercisable immediately and terminating five years after the date of issuance for gross proceeds of approximately $10,000,000. The net proceeds to the Company after deducting financial advisory fees and other costs and expenses were approximately $8,806,087.

On February 11, 2021, the Company completed an offering of 3,007,026 shares of Common Stock and a concurrent private placement of warrants to purchase 1,503,513 shares of Common Stock at $4.90 per share, exercisable immediately and terminating five year from the date of issuance for gross proceeds of approximately $12,800,000. The net proceeds to Enveric from the offering after deducting financial advisory fees and other costs and expenses were approximately $11,624,401.

Stock Options

	Number of Shares			Weighted Average Exercise Price (USD)		Weighted Average Grant Date Fair Value (USD)		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (USD)
Outstanding – January 1, 2021		929,765		$	1.53	$	2.50
Exercised		(143,796	)	$	0.23	$	5.69
Expired forfeited, or cancelled		(560,404	)	$	1.65	$	1.66
Outstanding – June 30, 2021		225,565		$	2.06	$	2.59		5.9	$	82,420
Exercisable at June 30, 2021		225,565		$	2.06	$	2.59		5.9	$	82,420

The Company’s stock based compensation expense related to stock options for the three months ended June 30, 2021 and 2020 was $0 and $0, respectively. The Company’s stock based compensation expense related to stock options for the six months ended June 30, 2021 and 2020 was $0 and $0, respectively. As of June 30, 2021, the Company had $0 in unamortized stock option expense.

During the first quarter 2021, the Company exchanged options to purchase 560,404 shares of common stock for 325,410 restricted stock units and 42,125 restricted stock awards. In connection with this exchange, the Company recognized $298,714 in inducement expense related to the increase in fair value of the new awards over the old awards, which is included in other expenses on the Company’s statement of operations and comprehensive loss.

Enveric Biosciences, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

Restricted Stock Awards 

The Company’s activity in restricted common stock was as follows for the six months ended June 30, 2021:

	Number of shares			Weighted average grant date fair value
Non–vested at January 1, 2021		-		$	-
Granted		70,986		$	4.18
Vested		(57,688	)	$	4.32
Non–vested at June 30, 2021		13,298		$	3.61

For the three months ended June 30, 2021 and 2020, the Company recorded $24,003 and $0, in stock-based compensation expense related to restricted stock awards, respectively. For the six months ended June 30, 2021 and 2020, the Company recorded $56,114 and $0, in stock-based compensation expense related to restricted stock awards, respectively. As of June 30, 2021, unamortized stock-based compensation costs related to restricted share awards was $48,006, which will be recognized over a weighted average period of 0.50 years. 

Issuance of Restricted Stock Units

The Company’s activity in restricted stock units was as follows for the six months ended June 30, 2021:

	Number of shares			Weighted average grant date fair value
Non–vested at January 1, 2021		-		$	-
Granted		3,804,284		$	4.13
Vested		(1,207,825	)	$	4.46
Non–vested at June 30, 2021		2,596,459		$	3.97

For the three months ended June 30, 2021 and 2020, the Company recorded $748,603 and $0, respectively, in stock-based compensation expense related to restricted stock units. For the six months ended June 30, 2021 and 2020, the Company recorded $4,307,826 and $0, respectively, in stock-based compensation expense related to restricted stock units, which is a component of general and administrative expenses in the condensed consolidated statement of operations. As of June 30, 2021, the Company had unamortized stock-based compensation costs related to restricted stock units of $2,950,612 which will be recognized over a weighted average period of 3.2 years and unamortized stock based costs related to restricted stock units of $6,966,721 which will be recognized upon achievement of specified milestones.

Enveric Biosciences, Inc. and Subsidiary

Notes to Unaudited Condensed Consolidated Financial Statements

Warrants

The following table summarizes information about shares issuable under warrants outstanding at June 30, 2021:

	Warrant shares outstanding			Weighted average exercise price (USD)		Weighted average remaining life		Intrinsic value
Outstanding at January 1, 2021		3,661,178		$	1.98		5.0	$	8,040,836
Issued		4,146,146		$	4.20
Exercised		(3,253,714	)	$	1.10
Outstanding at June 30, 2021		4,553,610		$	4.63		4.7	$	365,421
Exercisable at June 30, 2021		4,553,610		$	4.63		4.7	$	365,421