Stockholders’ Equity

12 Months Ended

Dec. 31, 2021

Equity [Abstract]

Stockholders’ Equity

(6) Stockholders’ Equity

(a) Preferred Stock

The Company is authorized to issue 5,000,000 shares of $0.01 par value preferred stock with such designations, rights and preferences as may be determined by the Board of Directors. Of our authorized preferred stock, 250,000 shares have been designated as Series A Junior Participating Preferred Stock and 8,000 shares have been designated as Series B Convertible Preferred Stock. The Series B Convertible Preferred Stock has a stated value $1,000 per share.

The Company is authorized to issue 8,000 Series B Convertible Preferred Stock, no par value, stated value $1,000 per share. As of December 31, 2021, and December 31, 2020, the Company had 715 and 732 shares of Series B Convertible Preferred Stock outstanding, respectively. Holders shall be entitled to receive, and the Company shall pay, dividends on shares of Series B Preferred Stock equal (on an as-if-converted-to-Common-Stock basis) to and in the same form as dividend actually paid on shares of Common Stock when as and if such dividends are paid on shares of the Common Stock. Each such Preferred Share is convertible into 114 shares of common stock. Upon any liquidation, dissolution or winding-up of the Company, whether voluntary or involuntary, the Holders shall be entitled to receive out of the assets, whether capital or surplus of the Company the same amount that a holder of Common Stock would receive if the Preferred Stock was fully converted. The Series B Convertible Preferred Stock shall no voting Rights.

Pursuant to a registration statement relating to a rights offering declared effective by the SEC on February 14, 2019, AIM distributed to its holders of common stock and to holders of certain options and warrants as of February 14, 2019, at no charge, one non-transferable subscription right for each share of common stock held or deemed held on the record date. Each right entitled the holder to purchase one unit, at a subscription price of $1,000 per unit, consisting of one share of Series B Convertible Preferred Stock with a face value of $1,000 (and immediately convertible into common stock at an assumed conversion price of $8.80) and 114 warrants with an assumed exercise price of $8.80. The warrants are exercisable for five years after the date of issuance. The net proceeds realized from the rights offering were approximately $4,700,000. During the twelve months ending December 31, 2021, 17 shares of Series B Convertible Preferred Stock were converted into common stock.

(b) Common Stock

The Company has authorized shares of 350,000,000 with specific limitations and restrictions on the usage of 8,000,000 of the 350,000,000 authorized shares.

On July 7, 2020, the board of directors approved a plan pursuant to which all directors, officers, and employees could purchase from the Company up to an aggregate of $500,000 worth of shares at the market price. Pursuant to NYSE American rules, this plan was effective for a sixty-day period commencing upon the date that the NYSE American approved the Company’s Supplemental Listing Application. The Company issued 10,730 shares of its common stock at a price of $2.33 for a total of $25,000 under this plan. When this plan expired, the board of directors approved subsequent similar $500,000 plans for all directors, officers and employees to buy Company shares from the Company at the market price. Subsequent plans were approved by the board of directors upon the expiration of prior plans. The latest plan was approved by the board of directors on September 14, 2021.

During the fiscal year ended December 31, 2020, the Company issued a total of 27,501 shares of its common stock at prices ranging from $1.72 to $2.03 for a total of $50,000.

During the twelve months ended December 31, 2021, the Company issued a total of 132,238 shares of its common stock at prices ranging from $1.16 to $2.35 for a total of $205,000.

On September 27, 2019, the Company closed a public offering underwritten by A.G.P./Alliance Global Partners, LLC (the “Offering”) of (i) 1,740,550 shares of Common Stock; (ii) pre-funded warrants exercisable for 7,148,310 shares of Common Stock (the “Pre-funded Warrants”), and (iii) warrants to purchase up to an aggregate of 8,888,860 shares of Common Stock (the “Warrants”). In conjunction with the Offering, a Representative’s Warrant to purchase up to an aggregate of 266,665 shares of common stock (the “Representative’s Warrant”). The shares of Common Stock and Warrants were sold at a combined Offering price of $0.90, less underwriting discounts and commissions. Each Warrant sold with the shares of Common Stock represents the right to purchase one share of Common Stock at an exercise price of $0.99 per share. The Pre-Funded Warrants and Warrants were sold at a combined Offering price of $0.899, less underwriting discounts and commissions. The Pre-Funded Warrants were sold to purchasers whose purchase of shares of Common Stock in the Offering would otherwise result in the purchaser, together with its affiliates and certain related parties, beneficially owning more than 4.99% of the Company’s outstanding Common Stock immediately following the consummation of the Offering, in lieu of shares of Common Stock. Each Pre-Funded Warrant represents the right to purchase one share of Common Stock at an exercise price of $0.001 per share. The Pre-Funded Warrants are exercisable immediately and may be exercised at any time until the Pre-Funded Warrants are exercised in full. A registration statement on Form S-1, relating to the Offering was filed with the SEC and was declared effective on September 25, 2019, the net proceeds were approximately $7,200,000. During the year ending December 31, 2020, 1,870,000 of the Pre-funded Warrants were exercised and 8,873,960 Warrants were exercised. In addition, on March 25, 2020, the Representative’s Warrant was amended to permit exercise of such warrant to commence on March 30, 2020. These warrants were exercised on March 31, 2020 and an aggregate of 266,665 shares were issued upon exercise of this warrant for gross proceeds of approximately $264,000 and a $46,000 expense for the warrant modification. As of December 31, 2021, there are 15,000 Warrants outstanding.

On July 19, 2019, the Company entered into a new Equity Distribution Agreement (the “2019 EDA”) with Maxim Group LLC (“Maxim”), pursuant to which it could sell, from time to time, shares of its Common Stock through Maxim, as agent (the “Offering”). The 2019 EDA replaced a prior EDA with Maxim. For the year ended December 31, 2020, the Company sold 20,444,807 shares under the 2019 EDA for total gross proceeds of $53,936,615, which includes a 3.5% fee to Maxim of $1,888,727. During the period ended December 31, 2021, the Company sold 5,665,731 shares under the 2019 EDA for total gross proceeds of $13,301,526, which includes a 3.5% fee to Maxim of $465,533. The 2019 EDA was terminated in early February 2021.

The 2018 Equity Incentive Plan, effective September 12, 2018, authorizes the grant of (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Stock Appreciation Rights, (iv) Restricted Stock Awards, (v) Restricted Stock Unit Awards, (vi) Performance Stock Awards, (vii) Performance Cash Awards, and (viii) Other Stock Awards. Initially, a maximum of 7,000,000 shares of Common Stock is reserved for potential issuance pursuant to awards under the 2018 Equity Incentive Plan. Unless sooner terminated, the 2018 Equity Incentive Plan will continue in effect for a period of 10 years from its effective date. On October 17, 2018, the Board of Directors issued 26,324 options to the officers and directors at the exercise price of $9.68 expiring in 10 years, and on November 14, 2018, the Board of Directors issued 23 options to each employee, officer and director at the exercise price of $9.68 expiring in ten years. On January 28, 2019, 27,570 options were issued to each of these officers with an exercise price of $9.68 for a period of ten years with a vesting period of one year. In August 2020, 400,000 options were issued to each of these officers with an exercise price range of $2.77 to $3.07 for a period of ten years with a vesting period of one year. During fourth quarter of 2021, 613,512 options were issued to employees with an exercise price range of $1.11 to $1.71 for a period of ten years with a vesting period of one year. During December 2020, 675,000 options were issued to employees with an exercise price range of $1.85 to $1.96 for a period of ten years with a vesting period of one year.

As of December 31, 2021, and 2020, there were 47,994,672 and 42,154,371 shares outstanding, respectively.

(c) Equity Financings

See (b) above

(d) Common Stock Options and Warrants

(i) Stock Options

The Equity Incentive Plan of 2009, effective June 24, 2009, as amended, authorizes the grant of non-qualified and incentive stock options, stock appreciation rights, restricted stock and other stock awards. A maximum of 22,000,000 shares of common stock is reserved for potential issuance pursuant to awards under the Equity Incentive Plan of 2009. Unless sooner terminated, the Equity Incentive Plan of 2009 will continue in effect for a period of 10 years from its effective date.

The 2018 Equity Incentive Plan, effective September 12, 2018, authorizes the grant of (i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Stock Appreciation Rights, (iv) Restricted Stock Awards, (v) Restricted Stock Unit Awards, (vi) Performance Stock Awards, (vii) Performance Cash Awards, and (viii) Other Stock Awards. Initially, a maximum of 7,000,000 shares of common stock is reserved for potential issuance pursuant to awards under the 2018 Equity Incentive Plan. Unless sooner terminated, the 2018 Equity Incentive Plan will continue in effect for a period of 10 years from its effective date. On October 17, 2018, the Board of Directors issued 26,234 options to the officers and directors at the exercise price of $9.68 expiring in 10 years, and on November 14, 2018, the Board of Directors issued 23 options to each employee, officer and director at the exercise price of $9.68 expiring in ten years. On January 28, 2019, 27,570 options were issued to each of these officers with an exercise price of $9.68 for a period of ten years with a vesting period of one year.

The Equity Incentive Plans of 2009 and 2018 are administered by the Board of Directors. The Plans provide for awards to be made to such Officers, other key employees, non-employee Directors, consultants and advisors of the Company and its subsidiaries as the Board may select.

Stock options awarded under the Plans may be exercisable at such times (not later than 10 years after the date of grant) and at such exercise prices (not less than fair market value at the date of grant) as the Board may determine. The Board may provide for options to become immediately exercisable upon a “change in control”, which is defined in the Plans to occur upon any of the following events: (a) the acquisition by any person or group, as beneficial owner, of 20% or more of the outstanding shares or the voting power of the outstanding securities of the Company; (b) either a majority of the Directors of the Company at the annual stockholders meeting has been nominated other than by or at the direction of the incumbent Directors of the Board, or the incumbent Directors cease to constitute a majority of the Company’s Board; (c) the Company’s stockholders approve a merger or other business combination pursuant to which the outstanding common stock of the Company no longer represents more than 50% of the combined entity after the transaction; (d) the Company’s stockholders approve a plan of complete liquidation or an agreement for the sale or disposition of all or substantially all of the Company’s assets; or (e) any other event or circumstance determined by the Company’s Board to affect control of the Company and designated by resolution of the Board as a change in control.

The fair value of each option award is estimated on the date of grant using a Black-Scholes-Merton pricing option valuation model. Expected volatility is based on the historical volatility of the price of the Company’s stock. The risk-free interest rate is based on U.S. Treasury issues with a term equal to the expected life of the option and equity warrant. The Company uses historical data to estimate expected dividend yield, life and forfeiture rates. The expected life of the options and equity warrants was estimated based on historical option and equity warrant holders’ behavior and represents the period of time that options and equity warrants are expected to be outstanding. The fair values of the options granted were estimated based on the following weighted average assumptions:

	Year Ended December 31,
	2021	2020
Risk-free interest rate	0.66% - 1.23%	0.3% - 0.46%
Expected dividend yield	—	—
Expected life	5 years	5 years
Expected volatility	108.08% - 108.46%	115.24% - 116.79%
Weighted average grant date fair value for options issued	$1.61 per option for 613,512 options	$2.28 per option for 1,025,000 options

The exercise price of all stock options and equity warrants granted was equal to or greater than the fair market value of the underlying common stock on the date of the grant.

Information regarding the options approved by the Board of Directors under Equity Plan of 2009 is summarized below. The plan expired June 24, 2019:

	2021							2020
	Shares			Option Price		Weighted Average Exercise Price		Shares			Option Price		Weighted Average Exercise Price
Outstanding, beginning of year		129,680			13.20 – 2,127.84		23.05		132,615			13.20 -2,127.84		31.65
Granted		—					—		—			—		—
Forfeited		(1,176	)		16.76-1056.00		289.62		(2,935	)		9.68 – 380.16		82.38
Exercised		—			—		—		—			—
Outstanding, end of year		128,504			13.20-2,127.84		25.58		129,680			13.20 - 2,127.84		23.05
Exercisable, end of year		126,393			13.20-2,127.84				98,138			13.20 – 2,127.84
Weighted average remaining contractual life (years)		5.9 years							5.6 years

Information regarding the options approved by the Board of Directors under the Equity Plan of 2018 is summarized below:

	2021							2020
	Shares			Option Price		Weighted Average Exercise Price		Shares			Option Price		Weighted Average Exercise Price
Outstanding, beginning of year		1,086,549			1.85 - 9.68		2.75		61,806			9.68		9.68
Granted		613,512			1.11 – 1.71		1.67		1,025,000			1.85 – 3.07		2.33
Forfeited		(50,044	)		1.85 – 8.50		1.86		(257	)		9.68 – 16.72		2.75
Exercised		—			—		—		—			—		—
Outstanding, end of year		1,650,017			1.11 – 9.68		2.35		1,086,549			1.85 – 9.68		2.75
Exercisable, end of year		1,141,798			1.11 – 9.68		2.35		243,750			1.85 – 9.68		2.75
Weighted average remaining contractual life (years)		9.12 years							9.4 years
Available for future grants		344,322							28,268

Stock option activity during the years ended December 31, 2021 and 2020 is as follows:

Stock option activity for employees

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contracted Term (Years)		Aggregate Intrinsic Value
Outstanding December 31, 2019		127,747		$	29.61		6.41		—
Granted		925,000			2.28		9.78		—
Forfeited		(2,483	)		19.50		—		—
Expired		(569	)		348.48		—		—
Outstanding December 31, 2020		1,049,695		$	5.38		9.28		—
Granted		500,000			1.60		9.11		—
Forfeited		(50,897	)		—
Expired		—			—		—		—
Outstanding December 31, 2021		1,498,798		$	4.22		9.11		—
Vested and expected to vest at December 31, 2021		1,498,798		$	4.22		9.11		—
Exercisable at December 31, 2021		1,086,298		$	3.52		7.96		—

The weighted-average grant-date fair value of employee options granted during the year 2021 was $801,000 for 500,000 options at $1.60 per option and during year 2020 was $2,110,250 for 925,000 options at $2.28 per option.

Unvested stock option activity for employees:

	Number of Options			Weighted Average Exercise Price		Average Remaining Contracted Term (Years)		Aggregate Intrinsic Value
Unvested December 31, 2019		30,100		$	23.79		7.48		—
Granted		925,000			2.28		9.78		—
Vested		(226,254	)		3.93		7.53		—
Forfeited		—			—		—		—
Unvested December 31, 2020		728,846		$	3.71		9.61		—
Granted		449,102			1.60		9.11		—
Vested		(765,448	)		2.24		8.36		—
Forfeited		—			—		—		—
Unvested December 31, 2021		412,500		$	4.15		5.85		—

Stock option activity for non-employees during the year:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contracted Term (Years)		Aggregate Intrinsic Value
Outstanding December 31, 2019		66,675		$	12.80		5.59		—
Granted		100,000			2.77		—		—
Exercised		—			—		—		—
Forfeited		(142	)		104.29		—		—
Outstanding December 31, 2020		166,533		$	11.03		6.88		—
Granted		113,512			1.64		9.92		—
Exercised		—			—		—		—
Forfeited		(322	)		965.93		—		—
Outstanding December 31, 2021		279,723		$	6.12		7.93		—
Vested and expected to vest at December 31, 2021		279,723		$	6.12		7.93		—
Exercisable at December 31, 2021		181,892		$	7.11		7.53		—

The weighted-average grant-date fair value of non-employee options granted during year 2021 was $181,161 for 109,154 options at $1.66 per option and during the year 2019 was $277,000 for 1000,000 options at $2.77 per option.

Unvested stock option activity for non-employees:

	Number of Options			Weighted Average Exercise Price		Weighted Average Remaining Contracted Term (Years)		Aggregate Intrinsic Value
Unvested December 31, 2019		25,566		$	12.80		5.59		—
Granted		100,000			2.77		9.58		—
Vested		(59,364	)		5.95		—		—
Forfeited		—			—		—		—
Unvested December 31, 2020		66,202		$	7.24		6.13		—
Granted		113,512			1.64		9.92		—
Vested		(81,883	)		3.48		—		—
Forfeited		—			—		—		—
Unvested December 31, 2021		97,831		$	3.89		7.82		—

Stock-based compensation expense was approximately $1,568,000 and $1,036,000 for the years ended December 31, 2021, and 2020 resulting in an increase in general and administrative expenses and loss per share of $0.03 and $0.03, respectively.

As of December 31, 2021, and 2020, there was $779,000 and $1,599,000, respectively, of unrecognized stock-based compensation cost related to options granted under the Equity Incentive Plans. Stock-based compensation related to options granted under the Equity Incentive Plans will be recorded over the vesting period which is typically one year or upon reaching agreed upon Company and/or individual performance milestones being met which is indefinite.

(ii) Stock Warrants

Stock warrants are issued as needed by the Board of Directors and have no formal plan.

The fair value of each warrant award is estimated on the date of grant using a Black-Scholes-Merton pricing option valuation model. Expected volatility is based on the historical volatility of the price of the Company’s stock. The risk-free interest rate is based on U.S. Treasury issues with a term equal to the expected life of the warrant. The Company uses historical data to estimate expected dividend yield, life and forfeiture rates. The expected life of the warrants was estimated based on historical option holder’s behavior and represents the period of time that options are expected to be outstanding. There were 16,907,471 granted in 2019 at $0.99 - $8.80 per warrant. No warrants were granted in 2021 or 2020.

Information regarding warrants outstanding and exercisable into shares of common stock is summarized below:

	2021							2020
	Shares			Warrant Price		Weighted Average Exercise Price		Shares			Warrant Price		Weighted Average Exercise Price
Outstanding, beginning of year		375,100		$	0.99 – 469.92	$	116.38		10,201,761		$	0.99 – 469.92	$	1.54
Granted		—			—		—		—			—		—
Expired		(79,593	)		17.16 – 84.48		20.85		—			—		—
Exercised		(568	)		8.80		8.80		(9,826,661	)		0.90-8.80		0.97
Outstanding, end of year		294,939		$	0.99-469.92	$	15.19		375,100		$	0.99 – 469.92	$	116.38
Exercisable		294,939		$	0.99-469.92	$	15.19		375,100		$	0.99 – 469.92	$	116.38
Weighted average remaining contractual life		4.75 years							5.75 years
Years exercisable		2022-2025							2021-2024

Stock warrants are issued at the discretion of the Board. In 2021 and 2020 there were no warrants issued and 568 warrants were exercised in 2021 and 9,826,661 were exercised in 2020.