Quarterly report pursuant to Section 13 or 15(d)

Common Stock

v3.23.3
Common Stock
9 Months Ended
Sep. 30, 2023
Common Stock  
Common Stock

Note 6 - Common Stock

 

As of September 30, 2023, the Company was authorized to issue 100 million shares of common stock, par value $0.001 per share, of which 78,342,417 and 57,873,379 shares were issued and outstanding as of September 30, 2023 and December 31, 2022, respectively.

 

Stock Option Exercises

 

During the nine months ended September 30, 2023, no shares of common stock were issued pursuant to the exercise of stock options.

 

Stock Options Expired / Cancelled

 

The table below summarizes the stock options granted under the Company’s 2015 Stock Incentive Plan (the “2015 Plan”) or the 2011 Equity Incentive Plan (the “2011 Plan”), as indicated, that expired or were cancelled during the nine months ended September 30, 2023.

 

Equity Incentive Plan

 

Options (#)

 

 

Grant Date

 

Options

Cancelled (#)

 

 

Grant

Price ($)

 

 

Cancellation Date

 

2015

 

 

25,000

 

 

 Apr 15, 2016

 

 

25,000

 

 

 

4.00

 

 

 Feb 18, 2023

 

2015

 

 

55,000

 

 

 Apr 13, 2020

 

 

55,000

 

 

 

3.60

 

 

 Feb 18, 2023

 

2015

 

 

50,000

 

 

 Mar 30, 2017

 

 

50,000

 

 

 

5.00

 

 

 Feb 18, 2023

 

2015

 

 

50,000

 

 

 Feb 11, 2019

 

 

50,000

 

 

 

3.25

 

 

 Feb 18, 2023

 

2015

 

 

50,000

 

 

 Jan 23, 2018

 

 

50,000

 

 

 

4.00

 

 

 Feb 18, 2023

 

2015

 

 

32,383

 

 

 Aug 3, 2021

 

 

32,383

 

 

 

3.40

 

 

 Feb 18, 2023

 

2011

 

 

5,267

 

 

 Mar 20, 2013

 

 

5,267

 

 

 

4.35

 

 

 Mar 20, 2023

 

2011

 

 

1,100

 

 

 Mar 20, 2013

 

 

1,100

 

 

 

4.35

 

 

 Mar 20, 2023

 

2015

 

 

4,317

 

 

 Aug 3, 2021

 

 

4,317

 

 

 

3.40

 

 

 Jun 28, 2023

 

2011

 

 

550

 

 

 Sep 2, 2013

 

 

550

 

 

 

3.35

 

 

 Sep 2, 2023

 

2011

 

 

550

 

 

 Sep 2, 2013

 

 

550

 

 

 

4.35

 

 

 Sep 2, 2023

 

2011

 

 

550

 

 

 Sep 2, 2013

 

 

550

 

 

 

4.35

 

 

 Sep 2, 2023

 

2011

 

 

2,167

 

 

 Sep 2, 2013

 

 

2,167

 

 

 

3.35

 

 

 Sep 2, 2023

 

2011

 

 

2,167

 

 

 Sep 2, 2013

 

 

2,167

 

 

 

4.35

 

 

 Sep 2, 2023

 

2011

 

 

2,167

 

 

 Sep 2, 2013

 

 

2,167

 

 

 

4.35

 

 

 Sep 2, 2023

 

2015

 

 

4,318

 

 

 Aug 3, 2021

 

 

4,318

 

 

 

3.40

 

 

 Sep 28, 2023

 

 

 

 

285,536

 

 

 

 

 

285,536

 

 

 

 

 

 

 

 

RSU Settlements

 

Below is a table summarizing the RSUs vested and settled during the nine months ended September 30, 2023, all of which were issued pursuant to the 2015 Plan.

 

Equity Incentive Plan

 

RSUs

Vested (#)

 

 

Vest Date

 

Shares

issued (#)

 

 

Shares

Withheld

for

Taxes (#)

 

2015

 

 

4,000

 

 

 Feb 8, 2023

 

 

2,369

 

 

 

1,631

 

2015

 

 

15,000

 

 

 Mar 1, 2023

 

 

9,609

 

 

 

5,391

 

2015

 

 

15,000

 

 

 Mar 25, 2023

 

 

15,000

 

 

 

-

 

2015

 

 

2,500

 

 

 Apr 4, 2023

 

 

1,759

 

 

 

741

 

2015

 

 

13,500

 

 

 Apr 4, 2023

 

 

7,995

 

 

 

5,505

 

2015

 

 

35,000

 

 

 Apr 4, 2023

 

 

22,610

 

 

 

12,390

 

2015

 

 

50,000

 

 

 May 1, 2023

 

 

35,707

 

 

 

14,293

 

2015

 

 

4,000

 

 

 Jun 1, 2023

 

 

2,270

 

 

 

1,730

 

2015

 

 

7,500

 

 

 Jun 1, 2023

 

 

4,257

 

 

 

3,243

 

2015

 

 

208,809

 

 

 Aug 3, 2023

 

 

167,809

 

 

 

41,000

 

2015

 

 

34,102

 

 

 Aug 15, 2023

 

 

23,764

 

 

 

10,338

 

2015

 

 

12,000

 

 

 Sep 7, 2023

 

 

7,046

 

 

 

4,954

 

2015

 

 

12,500

 

 

 Sep 21, 2023

 

 

7,434

 

 

 

5,066

 

 

 

 

413,911

 

 

 

 

 

307,629

 

 

 

106,282

 

 

Warrant Expiration

 

Effective February 26, 2023, a warrant to purchase 125,000 shares of common stock expired unexercised.

 

Equity Capital Raises

 

On February 17, 2023, the Company entered into an underwriting agreement with Newbridge Securities Corporation (“Newbridge”) in connection with an underwritten public offering of 4,945,000 shares of the Company’s common stock, which includes Newbridge’s exercise in full of its overallotment option, pursuant to the Company’s “shelf” registration statement on Form S-3 (declared effective by the SEC on November 8, 2021, File No. 333-259783) (as amended and supplemented from time to time, the “2021 Form S-3”). The public offering price was $1.75 per share. The underwriter purchased the shares from the Company at a price of $1.6275 per share on February 22, 2023, after taking into account the underwriting discounts and commissions. The net proceeds received by the Company for the sale and issuance of the shares were approximately $8.0 million, before deducting offering expenses of $0.2 million paid by the Company.

On June 1, 2023, the Company entered into an underwriting agreement with Prime Executions, Inc. dba Freedom Capital Markets (“Freedom”) acting as the book-running manager of the offering and Bancroft Capital, LLC acting as co-manager in connection with an underwritten public offering of 14,950,000 shares of the Company’s common stock, which includes Freedom’s exercise in full of its overallotment option, pursuant to the 2021 Form S-3. The underwriter purchased 13,000,000 shares and 1,950,000 shares from the Company on June 5 and June 23, 2023 respectively. The public offering price was $1.27 per share. The underwriter purchased the shares from the Company at a price of $1.1811 per share. The net proceeds received by the Company for the sale and issuance of the shares were approximately $17.6 million, before deducting offering expenses of $0.1 million paid by the Company.  In addition, the Company issued warrants to purchase an aggregate of 448,500 shares of Company common stock to Freedom, at an exercise price of $2.00 per share.

 

The Company evaluated the warrants as either equity-classified or liability-classified instruments based on an assessment of the specific terms of the warrants and applicable authoritative guidance in ASC 480 and ASC 815-40. The Company determined the warrants issued in the Freedom offering failed the indexation guidance under ASC 815-40, specifically, the warrants provide for a Black-Scholes value calculation in the event of certain transactions (“Fundamental Transactions”), which includes a floor on volatility utilized in the value calculation at 100% or greater. The Company has determined that this provision introduces leverage to the holders of the warrants that could result in a value that would be greater than the settlement amount of a fixed-for-fixed option on the Company’s own equity shares. Accordingly, pursuant to ASC 815-40, the Company has classified the fair value of the warrants as a liability upon issuance and marked to market each reporting period in the Company’s consolidated statement of operations until their exercise or expiration.

 

The fair value of the warrants as of June 1, 2023, the issuance date, and September 30, 2023, were $366,960 and $117,115, respectively. The warrant liability was estimated using the Black-Scholes pricing model with the following assumptions.

 

 

 

 

 

(At Issuance)

 

 

 

September 30,

2023

 

 

 June 1,

2023

 

 

 

 

 

 

 

 

Risk-free interest rate

 

 

4.6 %

 

 

3.7 %

Expected volatility

 

 

72.34 %

 

 

71.56 %

Expected life (years)

 

 

4.72

 

 

 

5.03

 

Expected dividend yield

 

 

-

 

 

 

-

 

Total fair value

 

$ 117,115

 

 

$ 366,960

 

 

The fair value of the warrants deemed to be a liability, due to certain contingent put features, was determined using the Black-Scholes option pricing model, which was deemed to be an appropriate model due to the terms of the warrants issued, including a fixed term and exercise price.

Equity Distribution Agreement

 

On May 20, 2022, the Company entered into an equity distribution agreement (the “2022 EDA”) with Jefferies LLC (“Jefferies”) to sell shares of the Company’s common stock, with an aggregate offering price of up to $25.0 million, from time to time through an “at the market” offering pursuant to the Company’s 2021 Form S-3 through Jefferies acting as the Company’s agent and/or principal. The Company is not obligated to sell any shares under the 2022 EDA. 

 

During the three months ended September 30, 2023, the Company did not sell any shares of its common stock under the 2022 EDA. During the nine months ended September 30, 2023, the Company raised aggregate net proceeds (net of broker commissions and fees) of approximately $0.7 million under the 2022 EDA through the sale of 279,703 shares of its common stock. As of September 30, 2023, the Company has raised aggregate net proceeds (net of broker commissions and fees) of approximately $1.5 million under the 2022 EDA through the sale of 630,532 shares of its common stock.