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| NOTE 5 - EQUITY |
NOTE 5 - EQUITY
Preferred shares
The Company has authorized 6,250,000 shares of preferred stock with a par value of $0.001 per share.
During the six months ended June 30, 2022, there were no issuances of preferred stock. No preferred stock was issued and outstanding as of June 30, 2022. Common Shares
The Company has authorized 750,000,000 shares of common stock with a par value of $0.001 per share. Each share of common stock entitles the holder to one vote, in person or proxy, on any matter on which an action of the stockholders of the Company is sought.
On May 13, 2022, the Company entered into a purchase agreement and a registration rights agreement (together, the “Lincoln Park Agreements”) with Lincoln Park Capital Fund, LLC (“Lincoln Park”) providing for the purchase by Lincoln Park of up to $20.0 million worth of the Company’s common stock, over the thirty-six (36) month term of the Lincoln Park Agreements. The Company issued to Lincoln Park 292,968 shares of its common stock as commitment shares in consideration for entering into the Lincoln Park Agreements and received no funds in exchange for such commitment shares. Upon initiation of the Lincoln Park Agreements, the Company recorded $134 as a deferred offering cost. As of June 30, 2022, the Company had not issued any equity in accordance with the terms of the Lincoln Park Agreements, and as such, the balance of deferred offering costs was $134.
Warrants
A summary of activity during the six months ended June 30, 2022, follows:
The intrinsic value of the warrants as of June 30, 2022, is $0. All of the outstanding warrants are exercisable as of June 30, 2022.
Stock Options
Amended and Restated 2018 Equity Incentive Plan
On February 15, 2022, 257,652 shares of common stock were returned to the option pool and on February 18, 2022, the number of shares of Common Stock reserved for issuance under the 2018 Plan increased by 2,115,051. Such additional shares were registered on a Registration Statement on Form S-8 filed with the Securities and Exchange Commission on April 7, 2022. On May 15, 2022, an additional 91,148 shares were returned to the option pool.
In June 2022, the Company granted options to certain directors of the Company to purchase a total of 60,000 shares of the Company’s common stock with an exercise price of $0.33 and vesting on the earlier of the one-year anniversary of the vesting commencement date or the date prior to the date of the Company’s annual meeting following the vesting commencement date. The vesting commencement date is June 24, 2022.
As of June 30, 2022, 4,617,702 shares are available to be issued under the 2018 Plan.
During the six months ended June 30, 2022, the Company granted 60,000 options valued at $18. During the six months ended June 30, 2022, the Company recognized stock-based compensation expense of $1.2 million, of which $1.1 million was for related parties, and as of June 30, 2022, $3.0 million remains unamortized, of which $2.3 million is for related parties. The intrinsic value of the 4,720,184 options outstanding as of June 30, 2022, is $0. The following is a summary of stock option activity during the six months ended June 30, 2022:
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