Quarterly report pursuant to Section 13 or 15(d)

EQUITY

v3.23.3
EQUITY
 9 Months Ended
Sep. 30, 2023
EQUITY  
EQUITY

NOTE 4 - EQUITY

 

Preferred shares

 

The Company has authorized 416,667 shares of preferred stock with a par value of $0.001 per share.

 

As of September 30, 2023, there were no shares of preferred stock issued or outstanding.

 

Common Shares

 

The Company has authorized 50,000,000 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.

 

During the nine months ended September 30, 2023, in accordance with the Equity Line, the Company issued 306,666 shares of the Company’s Common Stock with aggregate proceeds to the Company of $535. As of September 30, 2023, there were 3,162,354 shares of Common Stock issued and outstanding. 

Warrants

 

A summary of activity of the warrants during the nine months ended September 30, 2023, is follows:

 

 

 

 

 

 

 

Weighted

 

 

 

Number of

 

 

Weighted Average

 

 

Average

 

 

 

shares

 

 

Exercise Price

 

 

Life (years)

 

Outstanding, December 31, 2022

 

 

 270,053

 

 

 $ 64.16

 

 

 

 2.05

 

Granted

 

 

 -

 

 

 

 -

 

 

 

 -

 

Expired

 

 

 (16,734 )

 

 

 180.00

 

 

 

 -

 

Exercised

 

 

 -

 

 

 

 -

 

 

 

 -

 

Outstanding, September 30, 2023

 

 

 253,319

 

 

 $ 55.82

 

 

 

 1.42

 

 

The intrinsic value of the warrants as of September 30, 2023, is $0. All of the outstanding warrants are exercisable as of September 30, 2023.

 

2018 Equity Incentive Plan, as amended

 

On January 1, 2023, the number of shares available under the Company’s 2018 Equity Incentive Plan, as amended (the “2018 Plan”) was increased by 428,353 shares of Common Stock.

 

As of September 30, 2023, the 2018 Plan permits the Company to issue up to an aggregate of 1,050,879 shares of Common Stock of which 531,774 shares are available to be issued.

 

Options granted during the nine months ended September 30, 2023

 

The following is a summary of stock option activity during the nine months ended September 30, 2023:

 

 

 

Options Outstanding

 

 

Weighted Average

 

 

 

Number of

 

 

Weighted Average

 

 

Remaining life

 

 

 

Options

 

 

Exercise Price

 

 

(years)

 

 

 

 

 

 

 

 

 

 

 

Outstanding, December 31, 2022

 

 

 313,109

 

 

 $ 24.15

 

 

 

 8.41

 

Granted

 

 

 205,996

 

 

 

 3.09

 

 

 

 10.00

 

Exercised

 

 

 -

 

 

 

 -

 

 

 

 -

 

Forfeited/canceled

 

 

 -

 

 

 

 -

 

 

 

 -

 

Outstanding, September 30, 2023

 

 

 519,105

 

 

 $ 15.79

 

 

 

 8.32

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exercisable options, September 30, 2023

 

 

 214,807

 

 

 $ 29.22

 

 

 

 7.50

 

 

Valuation

 

The Company utilizes the Black-Scholes model to value its stock options. The Company utilized the following assumptions:

 

 

 

Nine Months Ended

 

 

 

September 30,

 

 

 

2023

 

Expected term

 

 5.50 - 6.25 years

 

Expected average volatility

 

110 - 150%

 

Expected dividend yield

 

 

 -

 

Risk-free interest rate

 

3.43 - 4.15%

 

During the nine months ended September 30, 2023, the Company granted 205,996 options valued at $586. During the nine months ended September 30, 2023, and 2022, the Company recognized stock-based compensation expense of $801 and $1,850, respectively, of which $539 and $1,668 was for related parties, respectively, and as of September 30, 2023, $1,533 remains unamortized, of which $1,064 is for related parties. The intrinsic value of options outstanding as of September 30, 2023, is $0.